Markets updates: Sensex snaps 4-day winning run, plunges 561 points as financial stocks tank

Closing bell

Snapping its four-day rising streak, equity benchmark Sensex surrendered all early gains to plunge 561 points on Wednesday, tracking a sell-off in financial stocks and weak cues from global markets.

The 30-share index settled 561.45 points, or 1.58 per cent, lower at 34,868.98. It hit an intra-day high of 35,706.55 and a low of 34,794.93.

Similarly, the NSE Nifty fell 165.70 points, or 1.58 per cent, to 10,305.30. During the day, it touched a peak of 10,553.15 and a low of 10,281.95.

IndusInd Bank was the top laggard in the Sensex pack, tanking over 7 per cent, followed by ICICI Bank, PowerGrid, Axis Bank, SBI and Bharti Airtel.

On the other hand, Asian Paints, ITC, Nestle India and Reliance Industries were among the gainers.

According to traders, despite opening on a positive note, the sell-off in financial stocks dragged domestic equities into negative territory.

A weak opening in European equities too weighed on investor sentiment, they said.

Stock exchanges in Paris, Frankfurt and London sank over 2 per cent in early deals.

Bourses in Hong Kong and Tokyo settled in the red, while Shanghai and Seoul ended with gains.

International oil benchmark Brent crude futures fell 1.15 per cent to $42.14 per barrel.

On the currency front, the rupee erased its initial gains and provisionally settled lower by 6 paise at 75.72 against the US dollar. - PTI

India Cements reports net loss of Rs 111 cr in Q4

India Cements has reported a net loss of ₹111 crore for the quarter ended March 31, 2020, compared with a net profit ₹44 crore in the year-ago quarter, on account of the impact of Covid-19 on March cement sales.

The company’s exceptional items for the year and quarter ended March 31, 2020, included an impairment provision of ₹100.04 crore relating to receivables from certain subsidiaries.

The company’s loss before exceptional items and tax stood at ₹71 crore, compared with a profit of ₹62 crore in the year-ago quarter.

With the impact on sales during March, the company’s revenue dropped to ₹1,152 crore, compared with ₹,1564 crore in Q4 of 2018-19.

For the year ended March 31, 2020, the company’s net loss was ₹36 crore, as against a net profit of ₹69 crore in the previous fiscal.

Revenue from operations stood at ₹5,058 crore as against ₹5,628 crore.

The Board has recommended a dividend of ₹0.60 per share for the year ended March 31, 2020.

Dollar dips as market risk sentiment sours

The dollar regained some ground on Wednesday after two straight days of losses, as money markets tempered hopes of a rapid global economic recovery.

The US currency gained more than 0.2 per cent against a basket of currencies, as risk sentiment soured in early trading in Europe.

Selling pressure hit several major currencies, including sterling, which was down more than a third of a per cent. The euro gave up some of the week's gains, falling nearly 0.2 per cent. Click her to read more on the global forex market .

Ind-Ra estimates economy will contract by 5.3% this fiscal

India Ratings & Research (Ind-Ra), a Fitch group company, on Wednesday estimated the Indian economy would contract by 5.3 per cent during the current fiscal year ie FY 2020-21. If it happens, this will be the second contraction in the history of the country’s GDP data collection, since FY 1950-51. Click here to read in full the report on the economy .

State governments borrow at record low rates as demand picks up for SDL bonds

State governments that were dealing with a peculiar and unsettling trend — of having to borrow funds at steep interest rates about two months ago — have a lot to cheer with shorter tenure development bonds doing particularly well.

Sensex, Nifty extend losses

The benchmark indices extended their losses in the afternoons session on Wednesday. The Sensex dropped 211 points or 0.60 per cent to 35,218, while the Nifty slipped 88 points or 0.84 per cent to 10,382.

The top gainers on the Sensex were Asian Paints, ITC, Reliance, Nestle India, and Tech Mahindra, while the laggards were IndusInd Bank, Power Grid, ICICI Bank, NTPC and UltraTech Cement.

Among the BSE sectoral indices, the majority of sectors were in the red. Telecome index fell 2.5 per cent, banking dropped by 2.35 per cent, power by 1.97 per cent, healthcare by 1.68 per cent and finance by 1.49 per cent.

Oil prices mixed as US gasoline stocks shrink

Oil futures were mixed on Wednesday as concerns about oversupply in the market, stoked by a rise in US crude inventories, were offset by a drop in gasoline stocks that lifted hopes for fuel demand recovery amid the re-opening of the global economy.

Brent crude was up 12 cents, or 0.3 per cent, at $42.75 a barrel by 0643 GMT, after falling to $42.30 earlier in the session.

US West Texas Intermediate (WTI) crude futures fell 1 cent to $40.34 a barrel, paring some of its earlier losses. US crude inventories rose by a much bigger than expected 1.7 million barrels last week, according to industry group the American Petroleum Institute (API), well ahead of analysts' expectations for a 300,000-barrel build.

However, US gasoline and distillate inventories fell, the data showed, feeding optimism that fuel consumption is picking up as some economies ease lockdowns imposed to contain the coronavirus pandemic. Click here to read more on the crude oil market .

Nifty call: Go long with stop-loss at 10,425

The Indian benchmark indices opened with a gap-up and rallied during the initial hour, even though Asian markets signalled mixed cues. But both the benchmarks went on to see an intra-day correction. Now, the Nifty 50 spot index and the Sensex spot index are trading higher by 0.5 per cent and 0.2 per cent, respectively.

The Nikkei 225 index has ended the session flat, whereas the Hang Seng index is trading lower by 0.2 per cent; the Shanghai composite index is up by 0.3 per cent. Click here to read more on the Nifty call.

Bank of Baroda shares jump 9 per cent

The shares of Bank of Baroda declined by over 3 per cent on Monday after the company reported a net loss of Rs. 1,407 crore for December quarter. The lender’s stock fell 3.4 per cent to close at Rs. 92.35 on the BSE SOMASHEKAR GRN

507 crore in the March 2020 quarter. The stock zoomed 9 per cent to Rs 55 on the BSE. On the NSE, it surged 8.51 per cent to Rs 54.80.

Bank of Baroda on Tuesday reported a profit-after-tax of Rs 507 crore in the March quarter, helped by lower provisioning for bad loans.

Effective April 1, 2019, the bank amalgamated Dena Bank and Vijaya Bank with itself. The numbers for the quarter/year ended March 31, 2020 are not comparable with that of the same period of the year ended March 31, 2019.

Bank of Baroda had reported a net loss of Rs 8,875 crore in the same period last year.

The provisions for non-performing loans declined by 69.23 per cent to Rs 3,190 crore, as against Rs 10,368 crore in the same quarter of last year.

For the full year, the bank reported a net profit of Rs 546 crore as against a net loss of Rs 8,340 crore during FY19.  - PTI

Gold soars to near 8-year high as fears of second virus wave grow

Gold climbed to its highest level in nearly eight years on Wednesday, as safe-haven demand was boosted by worries over a surge in coronavirus infections and hopes of more stimulus measures to combat the economic blow.

Spot gold was up 0.1 per cent at $1,767.93 per ounce as of 0645 GMT after touching $1,773, its highest level since October 2012, in early Asian trade. US gold futures rose 0.2 per cent to $1,785.80.

“The fears of second wave cases, particularly in the US, and also in Latin America, are driving concerns about sustained weakness in the economic recovery and that's certainly supporting safe-haven assets like gold,” said ANZ analyst Daniel Hynes.

Dumping duty imposed on value-added steel imports

The government has imposed an anti-dumping duty on certain value-added steel products to curb cheap imports and support the struggling domestic industry hit hard by the pandemic. Click here to read more .

Benchmark indices fall

The benchmark indices gave up their morning gains to fall into the red by mid-session on Wednesday.

Sensex was at 35,389, down 40 points or 0.11 per cent lower, while the Nifty was at 10,456, down 14 points or 0.14 per cent lower.

The top gainers on the Sensex were Asian Paints (up 5.6 per cent), ITC, Bajaj Auto, Nestle India and Titan.

The laggards were IndusInd Bank, Power Grid, ICICI Bank, Axis Bank and HCL Tech.

Among the BSE sectoral indices, healthcare, telecom, banking and power indices were down over 1 per cent each.

Franklin Templeton to move Karnataka High Court to repay surplus in 2 schemes

Franklin Templeton plans to move the Karnataka High Court to distribute the surplus cash in two of the six debt schemes that are being wound up. Click here to read more .

Asia stocks at 4-month high as markets stay optimistic

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.5 per cent to reach its highest since pandemic lockdowns first cratered markets in early March. File Photo

Asian shares cleared a four-month high on Wednesday as investors remained stubbornly upbeat on the outlook for a re-opening of the global economy even as cases of the coronavirus looked to be accelerating to new peaks.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.5 per cent to reach its highest since pandemic lockdowns first cratered markets in early March.

South Korea led with a rise of 1.6 per cent, while Japan's Nikkei was held flat by a firm yen. E-Mini futures for the S&P 500 reversed early losses to gain 0.2 per cent, while EUROSTOXX 50 futures lagged with a loss of 0.3 per cent. Click here for more .

Covid-19 in India: Record single-day spike of 15,968 cases; 2,58,684 people have recovered

India saw the highest single-day jump of 15,968 Covid-19 cases and 465 fatalities, taking the infection tally to 4,56,183 and the death toll to 14,476, according to the Union Health Ministry data.

Short-term Covid-19 policy: Pricing, unpredictability key challenges for insurers

The decision of the insurance regulator to permit specific, short-term health insurance products for Covid-19 treatment is timely. It will go a long way in providing relief to scores of people who are now worried over the financial implications of the dreaded virus. Click here to read more on Short-term Covid-19 policy .

Daily Rupee call: Rupee likely to extend the uptrend

The rupee (INR), which gained half a per cent against the dollar (USD) yesterday, has opened today’s session marginally higher. It has begun the session at 75.6 versus Tuesday’s close of 75.64. Notably, 75.6 is a resistance for the local currency. Click here to read in full the daily rupee call .

Rupee rises 5 paise to 75.61 against dollar in early trade

Providing help The loan would enable MSMEs to meet their operational liabilities and restart business iStockphoto Denis Vostrikov

The rupee appreciated 5 paise to 75.61 against the US dollar in early trade on Wednesday, tracking weakness in the US dollar and gains in the domestic equity market.

Forex traders said the rupee was trading in a narrow range as positive domestic equities and a weak US currency supported the local unit, while rising coronavirus cases weighed on investor sentiment.

The rupee opened at 75.61 against the US dollar, registering a rise of 5 paise over its previous close. It had settled at 75.66 against the greenback on Tuesday. Click here for more .

Sensex, Nifty trade firm

Benchmark indices BSE Sensex and NSE Nifty maintained their firm undertone in the morning session on Wednesday. Sensex rose 243 points or 0.69 per cent to 35,673, while the Nifty spurted 68 points or 0.66 per cent to 10,539.

The top gainers on the Sensex were Asian Paints, ITC, Bajaj Auto, Titan and M&M, while the laggards were HCL Tech, Power Grid, IndusInd Bank, Sun Pharma and Infosys.

According to an agency report,  Sensex advanced over 200 points in early trade on Wednesday tracking gains in index-heavyweights Reliance Industries and ITC amid sustained foreign fund inflows.

In the previous session, the BSE barometer rallied 519.11 points, or 1.49 per cent, to close at 35,430.43; while the NSE Nifty soared 159.80 points, or 1.55 per cent, to end at 10,471.

On a net basis, foreign institutional investors bought equities worth Rs 168.96 crore in the capital market on Tuesday, provisional exchange data showed.

According to analysts, news of disengagement between India and China has relieved participants, after days of heated arguments.

Further, positive sentiment in global markets and unabated foreign fund inflows also supported domestic equities, they said.

On the global front, bourses in Shanghai and Seoul were trading with gains in early deals, while those in Hong Kong and Tokyo were in the red.

Stock exchanges on Wall Street ended on a positive note in overnight session. International oil benchmark Brent crude futures fell 0.52 per cent to $42.41 per barrel. (with inputs from PTI)

Oil edges lower as US stockpiles grow more than expected

Oil futures edged lower on Wednesday, extending losses from the previous day, after United States (US) crude stockpiles grew more than expected, adding to worries about oversupply, although a fall in gasoline stocks kept the decline in check.

Brent crude was down 2 cents at $42.61 a barrel by 0045 GMT, while US West Texas Intermediate (WTI) crude futures fell 4 cents, or 0.1 per cent, to $40.33 a barrel.

US crude inventories rose by a much bigger than expected 1.7 million barrels last week, according to industry group the American Petroleum Institute (API), well ahead of analysts' expectations for a 300,000-barrel build. Click here to read in full the crude oil market report .

Dollar wobbly as PMI data stokes hopes for global recovery

The dollar was under pressure on Wednesday, after upbeat data in Europe boosted the euro and helped stoke hopes for a global economic recovery, underpinning investor appetite for riskier currencies.

IHS Markit's euro zone Flash Composite Purchasing Managers' Index, a broad gauge of economic activity, beat expectations with a bounce to 47.5 from May's 31.9.

That is still below the 50 mark separating growth from contraction, but the strong rebound - together with upbeat data in Britain and the United States - lent support to a sense that growth is returning at pace. Click here to read more on the global forex market report .

Wall Street ends higher on recovery hopes, Nasdaq hits another record

Wall Street's three major indexes closed higher on Tuesday as improving economic data and the prospect of more stimulus bolstered hopes of a swift recovery, while a jump in technology shares powered the Nasdaq to another record high.

While all the indexes pared gains late in the session to close below their peaks for the day, the Nasdaq managed to register its fifth record high close this month. Apple Inc provided the biggest boost followed by Amazon.com and Microsoft. Click here to read more on the US markets .

Opening bell

The benchmark indices, the BSE Sensex and NSE Nifty, opened over 0.5 per cent higher on Wednesday.

Sensex shot up 222 points or 0.51 per cent at 35,610, while the Nifty gained 60 points or 0.58 per cent at 10,531.

Day Trading Guide for Wednesday, June 24, 2020

₹1040 • HDFC Bank

₹720 • Infosys

₹185 • ITC

₹85 • ONGC

₹1720 • Reliance Ind.

₹192 • SBI

₹2035 • TCS

10467 • Nifty 50 Futures

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

Today's Pick: NTPC (₹100.7): Buy

Investors with a short-term perspective can buy the stock of NTPC at current levels. The stock recorded a 52-week low at ₹74 in late March this year and changed direction triggered by positive divergence on the daily RSI. Since then, the stock has been in a medium-term uptrend. But, the stock had encountered a key resistance at ₹98 in late April and was on a sideways consolidation phase in the wide band between ₹85 and ₹98 until recently. Click here to read in full Today's Pick on NTPC .

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