Sensex ends 192 points lower, Nifty below 11,800

Closing bell

The 30-share BSE index Sensex ended 191.77 points or 0.48 per cent lower at 39,394.64 on the back of losses in index heavyweights RIL, HDFC Bank, ICICI Bank and TCS amid weak global cues. While the broader index Nifty closed 0.45 per cent or 52.70 points lower at 11,788.85.

After opening in green, the indexes slipped into the negative zone in the early trade pulled down by bank and metal stocks as the investors were cautious ahead of the India-US trade talks between Prime Minister Narendra Modi and US President Donald Trump during the ongoing G-20 Summit in Osaka, Japan.

The Sensex touched the intraday high at 39,675.25 and intraday low at 39,361.92. The top gainers in the pack were Bajaj Finance, Axis Bank, NTPC, Maruti and Hindustan Unilever while the laggards were Yes Bank, IndusInd Bank, Tata Motors, Reliance, and ONGC.

In the 50-share index, the top stocks that lent support were GAIL, Bajaj Finserv, Axis Bank, Bajaj Finance and Adani Ports while the scrips trading in red were YES Bank, IBUL Housing Finance, Infratel, Coal India and IndusInd Bank.

Domestic trading sentiment was also dampened after regulator SEBI on Thursday tightened mutual fund norms, making it mandatory for MFs selling liquid schemes to hold at least 20 per cent in liquid assets like cash and G-secs, and also banned them from entering into standstill agreements with firms whose debt they have exposure to.

SEBI imposes fine on four firms

Markets regulator SEBI levied a total fine of over ₹26 lakh on four entities for indulging in unfair trade practices in the illiquid stock options segment on the BSE. The firms facing penalty are GKS Technology Park Pvt Ltd, Femina Stock Management, Sagar Constructions and SPFL Securities Ltd.

Power Grid to consider raising up to Rs 10,000 cr

Power Grid

A meeting of the board of directors of the company will be held on July 3 to consider and approve an agenda to raise funds up to Rs 10,000 crore. The board will consider raising up to Rs 10,000 crore through issuance of non-convertible debentures/ bonds on private placement basis during the next financial year. Click here to read more on the Power Grid's scheduled board meeting and fund raising plan .

The stock of Power Grid was trading 0.92 per cent lower at Rs 205.65

Europe stock markets

Travel and leisure stocks surged 1%, the most among major European sectors.

European stocks edged higher on Friday, as investors treaded cautiously ahead of a critical G20 meeting where the outcome of US-China trade talks will be closely monitored against the backdrop of a slowing global economy. The pan-European STOXX 600 index was up 0.16 per cent. Travel and leisure stocks surged 1 per cent, the most among major European sectors. Click here to read more on the European stock markets

RBI sets base rate of 9.18% for NBFC-MFI borrowers

The Reserve Bank on Friday set an average base rate of 9.18 per cent for non-banking financial companies and micro finance institutions to be charged from their customers for the quarter beginning July 1. RBI sets the average base rate for NBFC-MFIs on the basis of average of base rate of the five largest commercial banks.

Sensex slumps 187 points; Nifty falls below 11,800 mark

The 30-share BSE index Sensex was trading at 39,399.74 points, lower by 186.67 points or 0.46 per cent mainly led by financial and energy stocks.

The major losers in the Sensex pack were Yes Bank, IndusInd Bank, Tata Motors, Vedanta and ONGC while the gainers were Tech Mahindra, NTPC, Bajaj Finance, Hindustan Unilever, and Axis Bank.

Similarly, the Nifty dropped 54.50 points or 0.46 per cent to 11,787.05 points, falling below the psychological 11,800 mark. The top gainers were GAIL, NTPC, Tech Mahindra, Hindustan Unilever and Bajaj Finance while the laggards were Yes Bank, IBUL Housing Finance, Infratel, IndusInd Bank and Tata Motors.

Axis Bank share sale

Axis Bank is considering raising at least $1.3 billion through a share sale.

Axis Bank is considering raising at least $1.3 billion through a share sale to institutional investors, according to the sources, as the private lender seeks to bolster capital ratios and expand lending capacity. The bank plans to seek board approval for the sale as early as next month. Read more on the Axis Bank share sale here

The stocks of Axis Bank were trading at Rs 804, higher by 0.46 per cent.

Broker's call

Chola Securities

Havells India (Outperformer)

CMP: ₹797

Target: ₹853

HIL’s standalone revenue grew by a meager 8.6 per cent y-o-y to ₹2,750 crore. This slowdown was largely due to extended winters and impending general elections.

Revenue from Lighting & Fixtures (L&F) business grew by 7 per cent y-o-y in 4QFY19 to ₹329 crore, impacted due to lower project orders owing to general slowdown in infrastructure segment. Read our Broker's Call on Havells India here

Sensex slumps 96 points

The 30-share BSE index Sensex fell 95.62 points or 0.24 per cent to 39,492.80 pulled down by metal stocks.

The top scrips leading the negative pack were Yes Bank, IndusInd Bank, Vedanta, Tata Steel and ONGC while the gainers were Tech Mahindra, Bajaj Finance, NTPC, Axis Bank, and L&T. Metal stock index was trading 1.62 per cent lower at 11,052.70.

Similarly the Nifty dropped 60.65 points or 0.26 per cent to 11,810.90. The positive pack were led by the stocks of GAIL, Tech Mahindra, Adani Ports, Bajaj Finserv, and Britannia while the laggards were Yes Bank, Infratel, Vedanta, Coal India and IndusInd Bank

A reality check on NBFC crisis

The popular opinion on India’s NBFC sector has swung 180 degrees in a short span of time. Barely two years ago, the sector was being feted for its ability to deliver high margins and scorching growth rates, by lending to lucrative segments neglected by banks. Today, the same players are being blackballed for taking on undue risks in their pursuit of growth.

Given that the NBFC sector plays a critical role in powering consumption and ensuring credit flow to unbanked segments, its troubles need objective assessment and quick resolution. Here’s an attempt to examine the NBFC issue as it stands today .

Airtel Africa London listing

Airtel Africa shares dropped as much as 12.5 per cent in early trade on Friday after its London stock market debut, hitting a low of 70 pence ($0.89) after earlier setting the price at 80 pence per share. Airtel Africa, a unit of Bharti Airtel Ltd , last week set a price range of 80 to 100 pence per share for its IPO. Here's more on the Airtel Africa's market debut in London Stock Exchange

Broker's Call

ICICI Securities

Varun Beverages (Buy)

CMP: ₹939.8

Target: ₹1,106

Varun Beverages is engaged in manufacturing, selling, bottling and distribution of beverages of Pepsi brand. The company produces and distributes a range of carbonated soft drinks (CSDs), as well as a selection of non-carbonated beverages (NCBs), including packaged drinking water.

We expect it to report PAT CAGR of 34 per cent over CY18-21 with rising RoCE and maintain DCF-based target price of ₹1,106 (28.6x CY21E). Read our Broker's Call on Varun Beverages here

Bank stocks pull Sensex down

The 30-share BSE index Sensex was trading 88.94 points or 0.22 per cent at 39,497.47 dragged by the bank stocks.

The top losers were Yes Bank, IndusInd Bank, Vedanta, Tata Steel and Reliance while the scrips of Tech Mahindra, L&T, Bajaj Finance, HCL Technologies and Maruti emerged the top gainers.

Sectorally the metal stocks were the major losers.

The broader index Nifty was trading at 11,817.05, lower by 24.50 points or 0.21 per cent. The top gainers were Tech Mahindra, L&T, HCL Technologies, GAIL and Dr Reddy's while the laggards were Infratel, UPL, Yes Bank, IndusInd Bank, IBUL Housing Finance.

DHFL postpones financial results

Cash-strapped Dewan Housing Finance Corporation Ltd (DHFL) postponed its financial results for the quarter and year ended March 31, 2019, by two weeks. DHFL said the postponement is due to “certain unforeseen operational engagements, including non-availability of a few directors to ensure participation of all the members of the audit committee as well as the board. Read more on the postponement of financial results by DHFL here

The shares of DHFL were trading 7.53 per cent lower at Rs 75.55 apiece on the BSE.

Cox & Kings hits lower circuit

Shares of travel company Cox & Kings plunge 10 per cent to ₹36.8 to hit lower circuit. The company Thursday said it defaulted on ₹150 crore ($21.75 mln) payment of commercial papers. Stock hits record low.

Glenmark Pharma gets USFDA nod

Glenmark Pharmaceuticals said it has received final approval from the US health regulator for Ezetimibe and Simvastatin tablets, used for treating high levels of cholesterol in the blood. The approved product is a generic version of MSD International’s Vytorin tablets. Read more on the Glenmark Pharma's latest drug and USFDA approval here .

Shares of Glenmark Pharma were trading 0.29 per cent higher at Rs 499.65 apiece on the BSE.

Sensex, Nifty dragged down by industry heavyweights

The 30-share BSE index Sensex was trading 116.56 points or 0.29 per cent at 39,469.85 dragged down by financials and industry heavyweights.

The top losers were Yes Bank, IndusInd Bank, Vedanta, ONGC, and Tata Steel while the gainers were Tech Mahindra, L&T, HCL Technologies, Bajaj Finance and Maruti.

The broader index was 37.30 points or 0.31 per cent lower at 11,804.25. The major gainers were Tech Mahindra, L&T, HCL Technologies, GAIL and Dr Reddy's while the laggards were Infratel, UPL, Yes Bank, IndusInd bank and IBUL Housing Finance

Bullion market

Bullion up nearly 8.4 per cent this month.

Gold prices rose, heading for their best month in three years, as uncertainty loomed over whether highly anticipated trade talks between China and the United States would yield any progress in ending a year-long trade dispute. Gold prices rose on Friday, heading for their best month in three years, as uncertainty loomed over whether highly anticipated trade talks between China and the United States would yield any progress in ending a year-long trade dispute. Read more on the bullion market and the prices of precious metals

Jet Airways shares

Stock exchanges will impose restrictions on trading Jet Airways’ shares from today. This will be part of surveillance measures to curb excessive volatility. Jet Airways had suspended operations in April 2019. The company is also not in a position to consider and approve audited financial results for the financial year that ended on March 31, 2019.

The shares would be shifted to the trade-for-trade segment from June 29 by the BSE and the National Stock Exchange. They are currently available for trading in the futures and options segment of the exchanges.

The stocks of Jet Airways are trading 4.01 per cent lower at Rs 68.30 in the BSE index Sensex while in the broader index the stocks were trading at 4.06 per cent at Rs 68.50.

Commodities market

Oil prices eased on Friday in a cautious market, as traders eyed a scheduled meeting between US President Donald Trump and Chinese President Xi Jinping at the G20 summit and next week's OPEC meeting. Tensions between the US and Iran have also been keeping markets on edge. More on the commodities market, read here

Shares remain unchanged

The shares were little changed in the absence of market-moving news as risk-averse investors waited for details of a key trade meeting between US President Donald Trump and Prime Minister Narendra Modi.

The meeting assumes significance as Trump and Modi talk trade, amid a tussle on tariffs and data storage between the nations. India slapped higher duties on 28 US products after the United States withdrew tariff-free entry for certain Indian goods. Washington is also upset with New Delhi's plans to restrict cross-border data flows and impose stricter rules on e-commerce that hurt US firms operating in India.

The broader NSE index was down 0.24 per cent or 28.85 points at 11,812.70, while the benchmark BSE index dropped 118.89 points or 0.30 per cent at 39,467.52.

“No one wants to take a chance, because anything can happen in the next few days (at the G20 meet),” said Rusmik Oza, Head of Fundamental Research at Kotak Securities. “There is a bit of risk aversion right now in the system.”

Pharma majors Sun Pharma and Dr. Reddy's Labs were up 1.5 per cent and 1.4 per cent, respectively, and topped the list among bluechip stocks. The Nifty pharma index rose 1.2 per cent and was the top boost to the markets for the day. Among other gainers, Britannia Industries rose 1.22 per cent and Adani Ports and SEZ was up 1.3 per cent.

Bharti stocks fell on Friday and were among the top of the losers list on the NSE index, after a media reported that the London IPO of its Africa unit Airtel Africa PLC did not generate the gains that was hoped for. Bharti Airtel fell as much as 1.7 per cent, while telecom tower company Bharti Infratel fell 2 per cent.

Meanwhile, Yes Bank and Indiabulls Housing Finance continued to fall, shedding 1.94 per cent and 1.6 per cent, respectively.

Meanwhile, broader Asia stumbled amid doubts that Trump's meeting with Chinese President Xi Jinping could lead to easing trade tensions. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.3 per cent. - Reuters

US stock market

The benchmark S&P 500 snapped its four-day losing streak

The S&P 500 and the Nasdaq closed higher in a broad-based rally as investors looked to the G20 summit in Osaka, Japan this weekend for progress in the long-running US-China trade dispute, which has whipsawed markets for months. The benchmark S&P 500 snapped its four-day losing streak, closing within 1 per cent of its all-time high, reached a week ago. Read the US stock market report here

Rupee market

The rupee opened strong at 69 at the interbank forex market.

The rupee appreciated by 15 paise to 68.92 against the US dollar in opening trade, driven by positive opening in domestic equities and easing crude oil prices. The rupee opened strong at 69 at the interbank forex market then gained further ground to touch 68.92 per dollar. Read the local currency market report here

Market cautious amid weak global cues

Domestic equity benchmarks BSE Sensex and NSE Nifty started on a cautious note amid weak cues from global equities as the G20 Summit began in Japan.

The 30-share index was trading 14.15 points, or 0.04 per cent, lower at 39,572.26. Similarly, the broader NSE Nifty was quoting a mere 5.55 points, or 0.05 per cent, down at 11,836.

In the previous session on Thursday, the BSE gauge settled 5.67 points, or 0.01 per cent, lower at 39,586.41 and Nifty slipped 6 points, or 0.05 per cent, to end at 11,841.55.

Top losers in the Sensex pack were Bharti Airtel, Yes Bank, IndusInd Bank, ICICI Bank, Tata Motors, Bajaj Auto, M&M, RIL, Axis Bank and HDFC Bank, shedding up to 1.09 per cent. While, TechM, Sun Pharma, L&T, Maruti, PowerGrid, NTPC, Infosys and ITC rose up to 1.45 per cent.

According to experts, global investors are awaiting progress in US-China trade talks at the G-20 Summit scheduled to be held in Osaka, Japan, on June 28-29. Domestic investors are also tracking the summit for cues on India-US trade concerns, traders said.

Earlier in the day, Prime Minister Narendra Modi held a “productive” trilateral meeting with US President Donald Trump and Japanese premier Shinzo Abe, and extensively discussed issues of the Indo-Pacific region, connectivity and infrastructure development ahead of the formal opening of the G-20 Summit.

Globally, Shanghai Composite Index, Hang Seng, Nikkei and Kospi were trading in the red in their respective early sessions.

Meanwhile, on a net basis, foreign institutional investors sold equities worth Rs 71 lakh, while domestic institutional investors bought shares to the tune of Rs 196.57 crore, provisional data available with stock exchanges showed Thursday.

On the currency front, the Indian rupee appreciated 11 paise to 68.96 against the US dollar. The global oil benchmark Brent crude futures fell 0.38 per cent to 65.42 per barrel. - PTI

Forex market

Foreign exchange reserve

The dollar trod water as investors awaited a crucial meeting between the leaders of the US and China at a Group of 20 summit over the weekend for any signs of progress to end their heated trade war. The dollar traded at 107.73 yen, little changed on the day but on course for a 0.4 per cent gain this week. Click here to read the forex market report

Sensex slips into red

After opening in the positive zone, the BSE index Sensex slipped into red, trading lower by 58.46 points or 0.15 per cent at 39,527.95 dragged bank stocks.

The major losers in the early trade were Yes Bank, Bharti Airtel, IndusInd Bank, ICICI Bank and Tata Motors while the stocks in positive pack were Tech Mahindra, Sun Pharma, Power Grid, L&T and Maruti.

Sectorally, the realty and oil & gas stocks were the top gainers

Similarly, the broader index too fell 13.45 points or 0.11 per cent to 11,828.10. The stocks leading the positive zone were Tech Mahindra, Infosys, Dr Reddy's, HCL Technologies, and Wipro while the laggards were Zee Entertainment, JSW Steel, Vedanta, ICICI Bank and Bharti Aritel

Asian markets

Share markets in Asia edged higher

Share markets in Asia edged higher as investors clung on to hopes that a highly anticipated meeting between US President Donald Trump and Chinese President Xi Jinping this weekend could lead to an easing of trade tensions. In early trade, MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.02 per cent, following on from modest gains in global equity markets overnight. Read the Asian markets report here

Stocks in focus

Reliance Capital, Reliance Home Finance, and 8K Miles Software will declare their results for the period ended March 2019 on Friday. RCap said the date has been fixed keeping in view the current engagement of the entire management team in several ongoing asset monetisation programmes, involving estimated debt reduction of ₹10,000-12,000 crore in the current fiscal. For Reliance Home, the date has been fixed considering its strategic transformation.

KPR Agrochem ’s ₹283-crore IPO will open for subscription on Friday. This company is focused on manufacturing, distribution and retailing of a wide range of crop yield-enhancing and protection products, and its products range from seeds to crop nutrient products to crop protection products and veterinary feed supplements. Focus will be on listed peers such as Coromandel International, Chambal Fertilisers, Rallis India, PI Industries, Insecticides India and Dhanuka Agritech.

The board of Beardsell will meet on Friday to consider and approve the issue of shares to existing equity shareholders on rights basis. Investors will be keen to know the purpose for the fund-raising and quantum of funds the company plans to raise. Besides, entitlement ratio for the shareholders and the issue price would be the other key factors that investors would watch closely. The board will also consider fixing the date, time and venue of the AGM for the year 2018-19.

Opening bell

The 30-share BSE index Sensex opened 44.11 points higher at 39,630.52 against the previous close of 39,586.41. The 50-share NSE index Nifty opened 26.35 points higher at 11,867.90 against the previous close of 11,841.55.

Day Trading Guide

Given below are supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading:

₹2466 • HDFC Bank

₹730 • Infosys

₹273 • ITC

₹170 • ONGC

₹1274 • Reliance Ind.

₹362 • SBI

₹2252 • TCS

11843 • Nifty 50 Futures

S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2.

Today's Pick

We recommend a buy in the stock of Federal Bank at the current levels of Rs 108.5. On Thursday, the stock had conclusively surpassed a key resistance at ₹105 as well as the 21-day moving average. The stock trades well above its 21- and 50-DMAs. The short-term outlook is bullish for the stock. Read our stock recommendation and stock activity of Federal Bank here

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