Closing bell

The BSE Sensex slumped 286 points on Wednesday after the RBI slashed the benchmark lending rate, but also lowered the growth estimate for the current financial year amid a slowdown in demand and investments.

After swinging 494 points in a highly volatile session, the 30-share index settled 286.35 points or 0.77 per cent lower at 36,690.50. It hit an intra-day low of 36,610.57 and a high of 37,104.79.

The broader NSE Nifty also fell 92.75 points or 0.85 per cent to 10,855.50. During the day, it hit a low of 10,835.90 and a high of 10,975.65.

Earlier in the day, the Reserve Bank of India cut interest rates by an unusual 35 basis points to a nine-year low in an attempt to boost an economy growing at its slowest pace in nearly five years. This is the fourth successive rate cut by the central bank.

The RBI also reduced its growth projection for the Indian economy to 6.9 per cent for the current financial year, from 7 per cent forecast in June, due to a slowdown in demand and investments.

Most rate-sensitive stocks ended on a negative note, with BSE auto, bankex, finance and realty indices cracking up to 2.10 per cent.

Top losers in the Sensex pack included M&M, Tata Steel, Tata Motors, SBI, Vedanta, Axis Bank, ITC, RIL, Maruti, L&T, HDFC twins and Kotak Bank, which fell up to 5.62 per cent.

On the other hand, HUL, YES Bank, HeroMotoCorp, IndusInd Bank, Sun Pharma, Tech Mahindra and Infosys rose up to 1.95 per cent.

Market volatility spiked after RBI’s rate cut decision, which was seen positively. However, lowering of the GDP forecast for FY20 and global slowdown fears left markets wanting, said Narendra Solanki, Head Fundamental Research (Investment Services) - AVP Equity Research, Anand Rathi Shares & Stock Brokers.

Elsewhere in Asia, the Shanghai Composite Index, Kospi and Nikkei ended in the red, while Hang Seng settled a tad higher.

Equities in Europe were trading on a positive note in their respective early sessions. Meanwhile, the Indian rupee depreciated 2 paise to 70.84 against the US dollar intra-day.

Brent crude futures, the global oil benchmark, slipped 0.54 per cent to $58.62 per barrel. - PTI

German chemical deal lifts European shares, FTSE lags

European shares rose on Wednesday after three days of falls, as deal-making activity in the German chemical sector helped offset losses from London-listed mining majors, with US-China trade worries lingering.

German chemical groups Bayer and Lanxess agreed a $3.9 billion deal to sell chemical park operator Currenta to Macquarie Infrastructure and Real Assets (MIRA), sending shares in both European companies 2-4 per cent higher. Click here to read in full the European markets report .

Sensex, Nifty maintain weak trend

The benchmark indices edged lower in the afternoon session on Wednesday after the RBI cut the repo rate by 35 bps. The Sensex was quoting at 36,873, down 102 points or 0.28 per cent lower, while the Nifty was at 10,914, down 34 points or 0.31 per cent lower.

The top gainers in the Sensex pack were YES Bank, HIndustan Unilever, HeroMotoCorp, IndusInd Bank and Sun Pharma. The laggards were led by M&M, Tata Steel, Tata Motors, SBI and Vedanta.

Healthcare and technology sector shares were the only notable gainers on the BSE index during the session. On the other hand, the metals, basic materials, energy, industrials, auto, oil and gas and realty indices lost between 1-2 per cent.

M&M Q1 results: On expected lines 

At a time when the auto sector is reeling under a slowdown and most frontline companies have reported dips in profits, Mahindra and Mahindra’s Q1 results are on expected lines. During the quarter ended June 2019, the company saw its domestic tractor volumes drop by 15 per cent, while its domestic volumes in the auto segment plunged by 6 per cent in the same period. Click here to read in full the analysis of the M&M results .

Benchmark indices flat

Domestic equity benchmarks BSE Sensex and NSE Nifty turned volatile in afternoon trade on Wednesday after the RBI slashed benchmark lending rate, but lowered the GDP growth estimates for the current financial year.

After swinging nearly 300 points, the 30-share index was trading 20.61 points, or 0.06 per cent, lower at 36,956.24 around noon. The broader Nifty also fell 3.20 points, or 0.03 per cent, to 10,951.45.

The Reserve Bank of India reduced the benchmark lending rate by 35 basis points to 5.40 per cent amid concerns over slowdown in economy.

The central bank, after the meeting of rate-setting panel Monetary Policy Committee (MPC), also lowered the GDP growth estimates for the current financial year to 6.9 per cent from its June forecast of 7 per cent.

Rate-sensitive stocks were trading on a mixed note, with BSE bankex, finance and realty indices rising up to 0.53 per cent, and BSE auto index shedding 0.50 per cent.

Top gainers in the Sensex pack were YES Bank, IndusInd Bank, HUL, Hero MotoCorp, HCL Tech, Bajaj Finance, ICICI Bank, Sun Pharma and Kotak Bank, rising up to 6 per cent.

On the other hand, Tata Steel, M&M, ONGC, ITC, Vedanta, L&T, Axis Bank and Maruti fell up to 3.48 per cent.

“The RBI continued with the rate cut cycle but in a surprise change to the quantum, reduced repo rate by 35 bps. While this induces some uncertainty in market expectations of the quantum of rate changes, it provides the RBI MPC with a greater degree of flexibility in signalling their intent,” said Suvodeep Rakshit, Senior Economist at Kotak Institutional Equities.

On the currency front, the rupee too witnessed high volatility and slipped towards the 71 level to trade at 70.91 at 1215 hrs, down 10 paise over its last close. - PTI

Nifty call: Tread with caution while contract is range-bound

The Sensex and Nifty began the session on a flat note amid choppy Asian markets. The Nikkei 225 has trimmed its intra-day loss and is down by 0.3 per cent to 20,516, while the Hang Seng index is trading flat at 25,960.

Both the Sensex and the Nifty remain volatile in a narrow range. The market breadth of the Nifty index is biased towards declines. The India VIX has marginally declined by 0.4 per cent to 16 levels. Buying interest is seen in the Nifty mid and small cap indices, which have gained 0.6 per cent and 0.8 per cent respectively.

The Nifty August contract commenced the session with a gap-down open at 10,950. It recorded an intra-day low at 10,894 and took support at 10,900 levels. Click here to read in full the Nifty call report .

Bharat Gears falls after Q1 loss

Shares of Bharat Gears Ltd were down as much as 8 per cent to Rs 64.1 on Wednesday.

The gear manufacturer posted a June-quarter loss of Rs 703 crore ($991,187.87) versus a profit of Rs 3.41 crore a year earlier. Revenue fell ~22 per cent to Rs 115 crore.

The company's est PE of 2.93 was well below the sector average of 8.21.

Up to last close, the stock was down 56 per cent this year ($1 = 70.9250 rupees) - Reuters

YES Bank hits 1-week high on QIP reports

Private sector lender YES Bank Ltd's shares rose as much as 7.8 per cent to Rs 92, their highest since July 31.

Media reports said YES Bank may launch a qualified institutional placement (QIP) later this week. According to one media channel, HDFC AMC may participate in the QIP.

YES Bank profit dropped over 90 per cent last month due to higher provisioning for bad loans. The shares have taken ~53 per cent hit this year.

The broader market, bank index was little changed ($1 = 70.9250 rupees) - Reuters

Titan Co falls as jewellery unit falters on pricey gold

From an iconic television commercial for Tanishq jewellery

Shares of jewellery-to-watchmaker, Titan Company Ltd , fell as much as 4.7 per cent to Rs 998 - their lowest since February 1.

The company has reported a higher June-quarter profit, but says growth in its jewellery business was adversely impacted by high gold prices.

“Macro-economic environment, coupled with lower consumption, have impacted some of our businesses,” the company said in a statement after the earnings announcement.

Gold prices have been rising since the beginning of the trade war between the US and China; prices touched a six-year high on Wednesday.

The company's biggest business is in jewellery, where it owns popular brand 'Tanishq'. The broader market was little changed, rival PC Jeweller Ltd was up 1 per cent. - Reuters

Sensex, NIfty spurt up

The Sensex and Nifty were trading firm at mid-session on Wednesday, after the Reserve Bank of India cut interest rates by an unconventional 35 basis points, slightly above expectations. This was the fourth cut in 2019, to try to boost a sluggish economy growing at its slowest pace in nearly five years.

The RBI maintained its “accommodative” stance but said further rate reductions would depend on the level of inflation.

The Sensex was quoting at 37,099, up 123 points or 0.33 per cent higher, while the Nifty was at 10,970, up 20 points or 0.19 per cent higher.

The top gainers in the Sensex pack were YES Bank, Hero MotoCorp, IndusInd Bank, HCL Tech and Hindustan Unilever, while the laggards were Tata Steel, M&M, ONGC, Axis Bank and ITC.

Gujarat State Fertilizers hits near 3-year low after lower Q1 profit

Shares of Gujarat State Fertilizers & Chemicals Ltd fell as much as 4.3 per cent to Rs 73.5, their lowest since September 29, 2016.

The fertiliser and industrial chemical manufacturer posted a 10.5 per cent fall in June-quarter profit to Rs 63.33 crore ($8.93 million).

The company's est PE of 5.39 is below the sector average of 5.96.

Up to last close, the stock was down 34 per cent this year, while peer Gujarat Narmada Valley Fertilizers & Chemicals was down 41 per cent. ($1 = 70.9350 rupees) - Reuters

Indiabulls Housing Finance, Lakshmi Vilas Bank fall on Q1 results

Mortgage lender Indiabulls Housing Finance's shares fell 8.5 per cent to Rs 470 on Wednesday.

The housing finance company, a part of the embattled shadow banking sector, saw a ~25 per cent fall in profit, along with worsening asset quality.

The NBFC's quarterly revenue from operations dropped to Rs 3,885 crore from Rs 4,071 crore last year.

Lakshmi Vilas Bank , with which INBF is expected to be merged, reported a June-quarter loss of Rs 237 crore ($33.43 million).

Shares of Lakshmi Vilas Bank fell by their 5 per cent daily limit to Rs 40.85. Indiabulls is awaiting approval from the Reserve Bank of India and the stock exchanges on the proposed merger with the bank.

Up to last close, Indiabulls shares had fallen 40 per cent and Lakshmi Vilas down 51 per cent this year ($1 = 70.9000 rupees). - Reuters

Wall St climbs more than 1% after China moves on yuan

The gains came a day after US stocks' biggest percentage drop of the year and a sharp fall in the Chinese currency. File Photo

US stocks jumped more than 1 per cent on Tuesday, bouncing back from a sharp sell-off the previous day as China stepped in to stabilize the yuan, easing concerns that currencies would be the next weapon in the US-China trade war.

China's overnight intervention came after the US Treasury Department labelled Beijing a currency manipulator as it let the yuan slide to a more than decade low on Monday. “It's a signal from the Chinese side that they want to keep the yuan steady and elevated. But it also indicates how quickly things can change. That's permeating the tone in the market, and it's one of the reasons there remains that sense of trepidation,” said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey. Click here to read in full the US markets report .

Rupee slips 12 paise to 70.93 versus dollar in early trade

At the Interbank Foreign Exchange, the rupee opened at 68.48. File Photo

he rupee opened on a weak note and fell 12 paise to 70.93 against the US dollar in early trade on Wednesday, ahead of the outcome of the Reserve Bank of India’s monetary policy review meet.

Forex traders said, besides the RBI’s monetary policy review outcome, unabated foreign fund outflows and cautious opening in domestic equity market also weighed on the local unit. Click here to read in full the rupee report .

Dollar falls versus yen, offshore yuan slips on trade woes

The dollar fell 0.3% to 106.13 yen in Asian trading. File Photo

The dollar fell against the yen and the yuan weakened, in a sign investors remain wary that China's currency policy has become a new flashpoint in its trade war with the United States.

The yuan eased against the dollar in offshore trade on Wednesday after the People's Bank of China set its official midpoint not much firmer than its previous close. China's currency also opened weaker against the dollar in onshore trade. Click here to read in full the global forex markets report .

Why are gold prices rising?

Looks like the bull market in gold has begun after a pause. Indian gold prices have hit an all-time high. MCX Spot gold price is at ₹36,386, 25 per cent higher over prices in the same time last year. Escalating trade tensions between the US and China, the Fed rate cut and drop in rupee vis-à-vis the US dollar are reasons for the yellow metal seeing a strong rally (at $1484/ounce now). IMF too has recently downgraded its global growth outlook for 2019 to 3.2 per cent from 3.3 per cent predicted in April. Click here to read in full the report on why gold prices are rising?

Oil prices steady, US-China trade dispute remains in focus

Oil prices steadied on Wednesday after falling at the start of the session, with the potential for damage to the global economy and fuel demand from the intensifying Sino-US trade dispute continuing to cast a shadow over the market. Click here to read in full the global oil markets report .

Mahindra & Mahindra Q1: What to expect

Mahindra SUVs that will take a substantial price increase are the Scorpio, Bolero, TUV300 and KUV100 NXT. File Photo

Mahindra and Mahindra , which will come out with its Q1 results today, will be the last among the major auto companies to do so. And expectations don’t run high. The entire sector is reeling under a slowdown, with overall vehicle sales volumes for the industry (domestic) dipping by 12.4 per cent in the April-June 2019 period.

Mahindra and Mahindra has seen its domestic tractor volumes drop by 15 per cent in the first three months of this fiscal, while its domestic volumes in the auto segment have plunged by 6 per cent in the same period. With no leverage from volumes, revenues (standalone) are expected to dip by about 6 per cent year-on-year and net profits by a sharper 22 per cent, according to Bloomberg consensus estimates. Click here to read in full the report on M&M Q1: What to expect

How RBI’s possible rate cut today could add pressure on PSU banks’ deposit growth

The escalating US-China trade war and turbulence in the currency markets may weigh on any decision that the RBI takes

Aside from the high slippages that SBI reported in the latest June quarter, what stands out in India’s largest bank’s Q1 results, is the weak trend in deposit growth. SBI has been lagging the overall growth in deposits over the past one year; the June quarter was no different.

While at the overall system level, deposits grew by 10 per cent YoY in the June quarter, for SBI, its domestic deposits grew by a modest 7.4 per cent. The story is similar for most public sector banks that continue to witness weak deposit growth -- in the June quarter, deposits of listed PSU banks grew by a muted 6-odd per cent as against the 18-20 per cent growth reported by their private peers. Click here to read the full report on how a possible rate cut could add pressure on PSU banks' deposit growth .

Sensex, Nifty trade in the green

The Sensex and Nifty traded in the green in early session on Wednesday. The Sensex was up 75 points or 0.21 per cent at 37,052, while the Nifty was up 0.14 per cent or 15 points at 10,963.

The top gainers on the Sensex were YES Bank, HeroMotoCorp, IndusInd Bank, Sun Pharma and Hindustan Unilever, while the laggards were Tata Steel, M&M, Vedanta, Axis Bank and Kotak Bank.

Healthcare sector shares spurted over 1 per cent in early trading. FMCG, realty, power  and technology shares gained between 0.50-1 per cent.

NSE, SGX get regulator’s nod for joint F&O products at GIFT City

SGX, the Singapore bourse, and the NSE have buried the hatchet. Both the exchanges on Tuesday received approval from SEBI to operate jointly in Gujarat International Finance Tec (GIFT) City, the international finance city under the proposed programme ‘connect’. Simply put, Nifty index, which is trading on SGX in Singapore, will be traded on a joint platform between the NSE and the SGX in GIFT City. CLick here to read in full the report on NSE, SGX get regulator's nod for joint F&O products at GIFT City .

Fragile calm returns to global stock markets as yuan steadies

Asian shares steadied slightly on Wednesday as investors caught their breath from a searing week-long sell-off, with steps taken by Chinese authorities to contain a sliding yuan helping calm fears of a full-blown Sino-US trade and currency war. Click here to read in full the Asian markets report .

What to Watch: Tata Steel, Adani Group, HPCL results eyed

About 90 companies will declare their June quarter results on Wednesday. Among these are Adani Gas, Adani Green, Adani Ports, Adani Power, Allcargo, Aster DM, AstraZeneca, Aurobindo Pharma, Bajaj Electricals, Balrampur Chini, Cipla, Cummins, Dollar Ind, HCL Tech, HPCL, India Cements, KEC, Lemon Tree, Lupin, M&M, Phoenix, PTC India, Ramco Cement, Ramco Sys, Schneider, Siemens, SREI Infra, Sundram Fasteners, Tata Steel, Voltas, Welspun and Uttam Sugar.

What to Watch: Will RBI resort to aggressive rate cut?

The Reserve Bank of India will declare its monetary stance on Wednesday. Widespread expectations among marketmen is that the central bank will deliver its fourth successive quarter-point interest rate cut to 5.5 per cent, amid calls from businessmen, investors and the government for further easing rates, as a slowdown gripping the economy becomes more visible and harsh. Interest-sensitive sectors, such as banks, NBFCs, realty and automobile will remain in focus.

Opening bell

The benchmark indices, the BSE Sensex and the NSE Nifty, opened Wednesday's session flat to firmer. The Sensex was up 42 points or 0.12 per cent firmer, while the Nifty opened little changed at 10,946.

On Monday, the 30-share index closed at 36,976.85, up by 277.01 points, or 0.75 per cent. It hit a high of 37,241.77 and a low of 36,536.59. The 50-share index too ended 85.65 points or 0.79 per cent higher at 10,948.25 points.

What to Watch: Tata Steel, Adani Group, HPCL results eyed

About 90 companies will declare their June quarter results on Wednesday. Among these are Adani Gas, Adani Green, Adani Ports, Adani Power, Allcargo, Aster DM, AstraZeneca, Aurobindo Pharma, Bajaj Electricals, Balrampur Chini, Cipla, Cummins, Dollar Ind, HCL Tech, HPCL, India Cements, KEC, Lemon Tree, Lupin, M&M, Phoenix, PTC India, Ramco Cement, Ramco Sys, Schneider, Siemens, SREI Infra, Sundram Fasteners, Tata Steel, Voltas, Welspun and Uttam Sugar.

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