Sensex, Nifty end lower dragged by metal and auto stocks

Closing bell

The shares ended lower for the second consecutive session, with metal and auto stocks among the biggest drags, as caution ahead of the Union budget and a delay in monsoon rains dampened investor sentiment.

The broader NSE index closed 0.21 per cent or 24.45 points lower at 11,699.65, while the benchmark BSE index was down 0.18 per cent or 71.53 points at 39,122.96. Both the indexes posted their second consecutive session of falls.

The top gainers in the Sensex pack were Yes Bank, Mahindra & Mahindra, TCS, State Bank of India, and IndusInd Bank while the laggards were ONGC, Tata Steel, Vedanta, Bajaj Auto, and Tech Mahindra.

In the broader index, the stocks in the positive zone were UPL, Yes Bank, Mahindra & Mahindra, TCS and IBUL Housing Finance while the major losers were JSW Steel, ONGC, Eicher Motors, Tata Steel and Vedanta.

JSW Steel, top loser by percentage on the NSE index, ended 3.5 per cent lower, while Eicher Motors Ltd, the maker of Royal Enfield motorcycles, closed down 3.2 per cent. - With inputs from Reuters

Bullion market

Decline in demand from local jewellers at the domestic spot market led to the dip in gold prices. File Photo

Gold prices declined by Rs 100 to Rs 34,270 per 10 gram in the bullion market due to easing demand from jewellers despite a positive overseas trend, according to the All India Sarafa Association. Silver, however advanced by Rs 90 to Rs 39,090 per kg on increased offtake by industrial units and coin makers. Read the bullion market report here

P-Note investments

Investments in the Indian capital market through participatory notes increased by nearly ₹1,400 crore to ₹82,619 crore till May-end, a gain of 1.72 per cent over the previous month.

As per latest data by SEBI, the total value of P-note investments in the Indian markets — equity, debt, and derivatives — rose to ₹82,619 crore till May-end from ₹81,220 crore at April-end. Of the total investments, P-note holdings in equities stood at ₹61,574 crore, followed by debt (₹19,681 crore) and derivatives (₹193 crore).

Sensex down 90 points

The 30-share BSE index Sensex was trading at 39,104.62, lower by 89.87 points or 0.23 per cent as metal and auto stocks pull the index down.

The stocks in top gainers pack were Yes Bank, Mahindra & Mahindra, TCS, State Bank of India, and IndusInd Bank while the laggards were ONGC, Vedanta, Tata Steel, Bajaj Auto and Tech Mahindra.

Among the sectoral indices, the oil & gas, metal, and energy stocks were leading in the negative zone.

While the NSE index Nifty was trading marginally lower at 11,695.90, down 28.20 points or 0.24 per cent. Top gainers were UPL, Yes Bank, Mahindra & Mahindra, TCS and IBUL Housing Finance while the major losers were JSW Steel, ONGC, Eicher Motors, Tata Steel, and Vedanta.

Hedge exposure

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Monsoon update

The monsoon has delivered 38% lower-than normal rainfall since June 1. File Photo

India's annual monsoon rains have covered nearly half of the country and conditions are favourable for further advancement into the central and western parts this week, a weather department official said. The monsoon's progress will help farmers to accelerate sowing of summer-sown crops, which has been lagging due to a delay in the arrival of monsoon rains. Read the monsoon updates here

Broker's Call

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UltraTech Cement (Buy)

CMP: ₹4,595.35

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Sensex, Nifty in red

The 30-share BSE index Sensex was trading lower by 79.94 points or 0.20 per cent at 39,114.55 dragged by metal stocks. The top gainers were Yes Bank, State Bank of India, Mahindra & Mahindra, ITC and IndusInd Bank while the laggards were ONGC, Tata Steel, Vedanta, Bajaj Auto and Reliance.

Sectorally the top loser was oil & gas, followed by energy and metal stocks.

The 50-share NSE index Nifty was also trading in red, lower by 26.50 points or 0.23 per cent at 11,697.60.

The stocks leading the positive pack were UPL, Yes Bank, IBUL Housing Finance, Coal India and State Bank of India while the scrips trading in red were ONGC, JSW Steel, Tata Steel, Vedanta and Eicher Motors.

Interview | Big bull markets are built on low land, capital costs

Sankaran Naren

Sankaran Naren, Executive Director and CIO of ICICI Prudential Mutual Fund speaks on what has changed for markets post-elections, and the pockets of opportunity. Read the interview here

Nifty Call

The Sensex and the Nifty started the session on flat note and slipped into negative territory. The Nifty June month contract began the session with a gap-down open at 11,730. The contract is range-bound between 11,700 and 11,760. As long as the contract trades in this band, avoid trading. Read more on the Nifty Call for the June futures here

Bajaj Auto hits over 4-month low

Shares of Bajaj Auto Ltd fall as much as 2.6 per cent. File Photo

Shares of Bajaj Auto Ltd fell as much as 2.6 per cent to ₹2801.2, their lowest since February 21. The stock broke below a support at ₹2,820.45, the 38.2 per cent Fibonacci retracement level of the downtrend from February 2, 2018 high to October 25, 2018 low.

The stock of Bajaj Auto was trading lower by 1.85 per cent at Rs 2,820. Click here to read the stock activity of Bajaj Auto

Choppy trade

The 30-share BSE index Sensex was trading 27.43 points or 0.07 per cent lower at 39,167.06. Auto and oil & gas stocks drag the index down.

The top gainers were Yes Bank, Mahindra & Mahindra, State Bank of India, ITC and TCS while the laggards were ONGC, Vedanta, Tata Steel, Bajaj Auto and Hero MotoCorp.

The 50-share NSE index Nifty was trading 11.70 points or 0.10 per cent lower at 11,712.40. The stocks trading in positive pack were UPL, Yes Bank, State Bank of India, Coal India and Zee Entertainment while the scrips of ONGC, Vedanta, Bajaj Auto, JSW Steel and Tata Steel were trading in red.

IndiaMart IPO

IndiaMart launched its initial public offer (IPO) with a price band of Rs 970-973 to raise over Rs 474 crore. The company has offered 48,87,862 equity shares in the issue, which will close on June 26. The existing investors Intel Capital, Amadeus, DPF Limited along with promoter Dinesh Chandra Agarwal, are diluting some of their stake for the IPO. More on IndiaMart's IPO, read here

SEBI may soon allow DVR shares with superior rights

SEBI's board meeting will be held on June 27

SEBI is likely to come out with guidelines on differential voting rights (DVR), new norms for buyback and pledging of shares by promoters. The decision will be taken during its board meeting on June 27. Generally, DVR shares carry rights disproportionate to their economic ownership. Click here to read more on the DVR shares and SEBI's guidelines

Bitcoin climbs above $11,000

Bitcoin traded above $11,000 for the first time in 15 months. File Photo

Bitcoin traded above $11,000 for the first time in 15 months, recouping more than half of the parabolic increase that captured the attention of mainstream investors before the cryptocurrency bubble burst last year. Bitcoin surged as high as $11,251.21 on Monday, a 13 per cent gain from late Friday that put it at the highest levels since March 2018. Read more on Bitcoin and other cryptocurrency movement here

Sensex erases early loses

The 30-share BSE index Sensex was trading higher by 12.89 points or 0.03 per cent at 39,207.38. Bank stocks lead the index gains.

The stocks of Yes Bank, Mahindra and Mahindra, State Bank of India, IndusInd Bank and TCS emerged the top gainers while the losers were ONGC, Bajaj Auto, Tata Steel, Vedanta and Hero MotoCorp.

Sectorally, oil & gas and energy stock indexes were the top losers.

Similarly, the broader index was trading 3.95 points or 0.03 per cent higher at 11,728.05. The stocks leading the positive pack were UPL, Yes Bank, State Bank of India, Coal India and Zee Entertainment while the laggards were ONGC, Vedanta, Bajaj Auto, JSW Steel and Tata Steel.

Precious market

Spot gold up for fifth session.

Gold prices advanced, hovering near a six-year high touched in the previous session, as dovish signals from major central banks and heightened tensions between the United States and Iran boosted demand for the safe-haven metal.

Spot gold was up 0.3 per cent at $1,402.50 per ounce as of 0336 GMT, heading for a fifth straight session of gains. Click here to read more on the gold and other precious metals market

Motorbike makers stocks drop

All auto makers in India facing demand slowdown, due to lack of credit and high insurance costs. Representative image

Shares of Indian motorcycle and scooter makers like Bajaj Auto Ltd, Hero MotoCorp Ltd and TVS Motor Co Ltd fell between 2.3 per cent and 3.2 per cent. Auto index was trading 1.2 per cent lower in the Sensex and 0.28 per cent lower in the broader market. More on the stock activity of motorbike makers stock, read here

Shares fall on monsoon delay, caution ahead of budget

Shares edged lower as a delay in monsoon rains and caution ahead of the Union budget kept investor sentiment cautious, while two-wheeler stocks were in focus on government's push for electric vehicles.

Monsoon has been progressing slower-than-expected, leading to a delay in planting of summer-sown crops in the country, and raising concerns over lower agricultural production.

Monsoons deliver about 70 per cent of India's annual rainfall and are the lifeblood of its $2.5-trillion economy, spurring farm output and boosting rural spending on items ranging from gold to cars, motorcycles and refrigerators.

Investors are also awaiting new Finance Minister Nirmala Sitharaman's first union budget on July 5, for the fiscal year ending March 2020.

The broader NSE index fell 0.17 per cent or 20.35 points to 11,703.75, while the benchmark BSE index inched down 0.17 per cent or 66.89 points to 39,127.60.

“I think we'll see some choppiness and volatility in the markets till the union budget is done and dusted,” said Gaurang Shah, senior vice-president, Geojit Financial Services in Mumbai, adding that monsoon is one of the biggest concerns right now. Shah expects some volatility owing to F&O expiry later this week, along with the meeting between the US President Donald Trump and Chinese President Xi Jinping, and tensions between the US and Iran.

Two-wheeler makers Bajaj Auto and Hero MotoCorp were the top losers on the NSE index by percentage, falling more than 2 per cent each.

NITI Aayog has asked scooter and motorbike manufacturers to draw up a plan to switch to electric vehicles days after they publicly opposed the government's proposals saying they would disrupt the sector, two sources told Reuters .

Bucking the trend, UPL Ltd and Yes Bank Ltd rose 3.4 per cent and 2.6 per cent, respectively and were the top gainers on the NSE index by percentage. Among other gainers, JMC Projects India rose as much as 3.6 per cent after it secured new orders worth Rs 514 crore ($73.88 million).

Meanwhile, Asian shares were off to a cautious start too as investors pinned their hopes on any signs of a thaw in Sino-US trade negotiations, while oil prices firmed on worries over heightened tensions between the United States and Iran. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.16 per cent in early trade.

Commodities market

Oil prices climbed as tensions remain high between Iran and the US, with US Secretary of State Mike Pompeo saying “significant” sanctions on Tehran would be announced. Brent futures were up 37 cents, or 0.6 per cent, at $65.57 a barrel by 0044 GMT. West Texas Intermediate crude was up 43 cents, or 0.8 per cent, at $57.86 a barrel. Here's more on the commodities market

NBFC crisis

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Nearly 10 months after the IL&FS crisis first broke out and took the NBFC sector by storm, the market is still split between naysayers, who believe this is our very own Lehman crisis on the verge of snowballing into a financial contagion, and optimists relying on the storm to blow over soon. For investors in NBFC stocks, the entire episode has been a nightmare, with little respite from the spate of negative reports and rating downgrades. Will the NBFCs return to their green pastures? Click here to read more on the NBFC crisis

Rupee market

The rupee opened on a flat note at 69.58 against the US dollar in opening trade amid rising crude oil prices and foreign fund outflows. The rupee opened at 69.58 at the interbank forex market, unchanged from its previous closing level. Read more on the local currency here

Sensex, Nifty marginally low

The 30-share BSE index Sensex was trading lower by 39.40 points or 0.10 per cent at 39,155.09. The auto stocks were dragging the index lower.

The top gainers were Yes Bank, Bharti Airtel, Mahindra and Mahindra, IndusInd Bank and ITC while the stocks of Hero MotoCorp, Bajaj Auto, ONGC, Reliance and Tech Mahindra emerged the top losers.

Among the sectoral indices, the stocks of oil & gas and Energy were trading in the negative zone.

The 50-share NSE index Nifty was trading 16 points or 0.14 per cent lower at 11,708.10. The top gainers were UPL Yes Bank, Bharti Airtel, IndusInd Bank and Adani Ports while the laggards were Bajaj Auto, Hero MotoCorp, IOC, Eicher Motors and ONGC

Forex market

The Swiss National Bank, the Bank of England and the Bank of Japan kept their policies on hold on Thursday. Their currencies rose and mostly held gains in Asian trade.(file photo)

The euro rose to a three-month high against the dollar, as bearish bets on the US currency remained solid on prospects of a near-term interest rate cut by the Federal Reserve. The dollar index versus a basket of six major currencies was a shade lower at 96.135, having struck 96.093 on Friday. For more on the Forex market, click here

Viral Acharya resigns

RBI Deputy Governor Viral Acharya. File Photo

RBI Deputy Governor Viral Acharya, who was in-charge of the monetary policy department, has resigned six months before the scheduled end of his term, sources said on Monday. This is the second high profile resignation in the past six months at the Reserve Bank of India. Click here to read more

Sensex, Nifty on cautious note

Domestic equity benchmarks BSE Sensex and NSE Nifty started on a cautious note amid weak cues from other Asian markets and rising crude prices.

The 30-share index was trading 46.67 points, or 0.12 per cent, lower at 39,147.82. Similarly, the broader NSE Nifty was quoting 9.80 points, or 0.08 per cent, down at 11,714.30.

In the previous session on Friday, the BSE gauge settled 407.14 points, or 1.03 per cent, lower at 39,194.49, and the broader NSE Nifty tumbled 107.65 points, or 0.91 per cent, to 11,724.10.

Top gainers in the Sensex pack included IndusInd Bank, L&T, Bharti Airtel, Asian Paints, TCS, NTPC, SBI, ITC, HDFC twins, ICICI Bank and Infosys, rising up to 1.35 per cent. While, Bajaj Auto, Hero MotoCorp, TechM, ONGC, Sun Pharma, Tata Motors and RIL shed up to 2.31 per cent.

According to experts, volatility in crude oil prices due to global political uncertainty has dampened investor sentiment. Going ahead, the upcoming Union budget will remain the key event in the market. The global oil benchmark Brent crude futures rose 0.40 per cent to 64.71 per barrel.

On the currency front, the Indian rupee was trading almost flat at 69.57 against the US dollar.

Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Nikkei and Kospi were trading on a positive note in their respective early sessions. On Wall Street, S&P500 and Nasdaq ended in the red on Friday.

Meanwhile, on a net basis, foreign institutional investors sold equity worth Rs 730.58 crore, while domestic institutional investors purchased shares to the tune of Rs 445.75 crore, provisional data available with stock exchanges showed on Friday.

Asian markets

Asian shares were off to a cautious start

Asian shares were off to a cautious start as investors pinned their hopes on any signs of a thaw in Sino-US trade negotiations, while oil prices firmed on worries over heightened tensions between the US and Iran. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.16 per cent in early trade, while Japan's Nikkei ticked down 0.26 per cent. More on the Asian markets report , read here

Stocks in focus

Traders will have to have a wary eye out for 34 stocks that will be excluded from the derivatives segment from June 28. Among them are Allahabad Bank, BEML, CG Power, DCB Bank, Godrej Ind, IFCI, Indian Bank, Jet Airways, Karnataka Bank, OBC, PC Jeweller, Suzlon and Wockhardt. While new contracts in these securities will not be issued upon expiry for the existing months, unexpired contracts for May and June will continue to be available until their expiry.

Shares of RITES will remain in focus, as its board of directors will meet on Monday to consider a proposal for a bonus issue. If approved, shareholders will be keen to know the ratio and the record date. The stock of RITES, a miniratna (Category-I) pubic sector firm, got listed on July 2, 2018, at ₹190 on the BSE, against an issue price of ₹185 a share. The stock, which had registered an all-time high of ₹327 on August 17, 2018, is currently hovering around ₹280.

Opening bell

The 30-share BSE index Sensex opened 34.26 points lower at 39,160.23 against the previous close of 39,194.49. While, the broader index Nifty opened 18.2 points higher at 11,742.30 against the previous close of 11,724.10

Weekly Trading Guide

SBI (₹349.45)

SBI fell about 3 per cent in the initial part of the week. However, the stock managed to claw-back from the low of ₹333.75, recovering all the loss and closed 1.6 per cent higher for the week. An immediate resistance is at ₹352 for the stock which can be tested in the near future. A strong rise past this hurdle will take the stock higher to the next crucial resistance level of ₹362.

As mentioned last week, SBI has to breach ₹362 decisively to gain fresh bullish momentum and target ₹390 and ₹400. But a pull-back from ₹362 can drag SBI lower to ₹350 again. In such a scenario, the stock can remain range-bound between ₹335 and ₹362 for some more time. On the other hand, if SBI fails to surpass the immediate resistance level of ₹352, it can fall to ₹335 again. In that case, SBI can trade between ₹335 and ₹352 for some time. The stock will come under pressure if it declines below ₹335 levels. Such a break can take the stock lower to ₹325-320. The region around ₹320 is a strong long-term support and a further fall below it is unlikely.

ITC (₹274.2)

ITC continued to trade lower and has declined below ₹275 as expected. The stock was down 1.3 per cent last week. The outlook is bearish. Strong resistance is in the ₹280-282 region, which has been capping the upside over the last few weeks. Intermediate support is at ₹272.5. If this support holds, a range-bound move between ₹272.5 and ₹282 is possible for some time.

However, the bias will continue to remain negative as the indicators on the charts are negative. The 21-day moving average has crossed below the 100-day moving average as expected. This indicates that the downtrend is intact and the upside could be limited. An eventual break below ₹272.5 will bring renewed pressure on the stock. Such a break below will increase the likelihood of it tumbling towards ₹265 and ₹260. The levels of ₹262 and ₹257 are crucial long-term supports. The current downtrend is likely to find a bottom around these levels. A strong bounce from these supports will mark the beginning of a long-term uptrend in this stock.

Infosys (₹750.7)

Infosys has been stuck inbetween its support at ₹735 and resistance at ₹759 over the last couple of weeks. Within this range, the stock fell to ₹735 and bounced sharply from there to close 1.4 per cent higher last week. The 21-week moving average support level of ₹735 has held very well as expected and keeps the bullish view intact.

The immediate resistance level of ₹759 is likely to be tested in the near term. The bias on the chart is positive. The 21-day moving average has crossed over the 55-day moving average. This is a bullish signal, which indicates that Infosys is likely to breach ₹759 and rise to ₹770 and ₹775 again. Inability to break above ₹775 can drag the stock lower to ₹755 and ₹750 again. Such a pull-back move will keep the broader ₹695-775 sideways range intact. The stock has been stuck in this range for a prolonged period of time since mid-January this year. On the other hand, if Infosys manages to surpass ₹775 decisively, it will gain fresh momentum and target ₹795 and ₹800 thereafter.

RIL (₹1,279.2)

As expected, RIL declined below the psychological level of ₹1,300. The stock was down about 3 per cent last week and closed decisively below the 21-week moving average level of ₹1,309. The level of ₹1,300 will now act as a strong support-turned-resistance and cap the upside. As long as the stock trades below ₹1,300, the outlook will remain negative. RIL has to rise past ₹1,300 decisively to negate the bearish view and rise to ₹1,320 and ₹1,350 levels again.

But such a strong up-move looks unlikely now. As such, a fall to ₹1,240 can be seen in the near term. If the RIL stock manages to bounce from ₹1,240, a relief rally to ₹1,300 is possible. But a break below ₹1,240 will then increase the likelihood of the fall extending to ₹1,220 and ₹1,200. The region between ₹1,220 and ₹1,200 is a strong long-term support for the stock. A further fall below ₹1,200 looks unlikely as fresh buyers are likely to emerge at those levels. A strong bounce from ₹1,200 may indicate the beginning of a fresh leg of a long-term uptrend for the stock.

Tata Steel (₹497.75)

Tata Steel tumbled over 7 per cent intraweek, but managed to bounce-back, recovering almost all the loss. The near-term outlook is unclear. Support is at ₹492 and resistance at ₹506. A breakout on either side of ₹492 or ₹506 will decide the direction of the next move.

A break above ₹506 will ease the downside pressure. Such a break will take the stock higher to ₹515 and ₹520. The region around ₹520 is a crucial long-term resistance, which has to be breached decisively to turn the outlook bullish. A break above ₹520 can take Tata Steel up to ₹530. But if the stock breaks below ₹492, it can fall initially to ₹475. A further break below ₹475 will then increase the likelihood of the stock revisiting ₹465-460 levels. Tata Steel can trade in a wide range of ₹460-520 in the coming weeks. A breakout on either side of ₹460 or ₹520 will set the direction of the next move.

Index Outlook

In the ensuing week, the weakening rupee, progress of the monsoon and the June month derivatives expire are key factors to note. Globally, the Fed kept rates unchanged, opening the door for a rate cut in the future and lifting global markets. But continued trade war concerns and a slowing global economy can keep global markets choppy. Read our Index Outlook for the upcoming week here

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