Reversing a five-session slide, benchmark Sensex rose 74 points to end at 32,996.76 today in choppy trade as participants accumulated recently beaten down IT, telecom and auto stocks amid foreign capital inflows. Markets benefited from value buying in beaten-down stocks and a mixed trend overseas, as investors focused on new Federal Reserve Chairman Jerome Powell’s first policy meeting starting later in the day amid trade war concerns, broker said.
The market shrugged of its early losses, with IT and telecom stocks leading the recovery. The Sensex bounced back to regain the 33,000-level and touched high of 33,102.74 as TCS, Wipro and Infosys saw heavy buying.
The benchmark finally settled at 32,996.76, showing a gain of 73.64 points, or 0.22 per cent.
The index had lost 994.82 points in the previous five sessions on worries over widening current account deficit and possible US Fed rate hike.
The broader NSE Nifty reclaimed the key 10,100-mark and touched a high of 10,155.65, before finally settling at 10,124.35, showing a gain of 30.10 points, or 0.30 per cent. Intra-day, it hit a low of 10,049.10.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth Rs 292.23 crore on net basis, while domestic institutional investors (DIIs) sold equities to the tune of Rs 191.52 crore yesterday, provisional data showed. -- PTI
The domestic share indices were trading higher in late afternoon trade. At about 2.40 pm, the Sensex was up 79.58 points or 0.24 per cent at 33,002.70. Similarly, the NSE Nifty was up 35.50 points or 0.35 per cent at 10,129.75.
On the Nifty 50, 33 stocks advanced against 17 that declined.
Among the BSE sectoral indices, IT and Teck rose by up to 1 per cent.
Shares rose on Tuesday, led by financial and IT stocks, but the gains were capped as material stocks such as Vedanta Ltd stumbled on losses in Chinese iron ore prices.
“The rise in the market after 4-5 sessions of declines is a clear cut case of short-covering,” said R.K. Gupta, managing director of Taurus Asset Management, adding the market would remain under pressure for the next couple of days.
Investors are also watching out for the U.S. Federal Reserve policy meet this week.
IT stocks rose after three sessions of falls, with the Nifty IT index up over 1 per cent. Infosys advanced 0.9 per cent, while Tech Mahindra Ltd rose 2.2 per cent.
Financial stocks Housing Development Finance Corp inched up 0.9 per cent, while State Bank of India rose 1.3 per cent. Aviation stocks also gained after data released by India's civil aviation authority showed domestic passengers numbers rose 24.1 per cent on-year in February.
Shares in Jet Airways Ltd rose 1.6 per cent, while SpiceJet Ltd was 1.2 per cent higher.
Meanwhile, metal stocks slipped as Chinese iron ore prices fell further, a day after posting their biggest daily drop in almost 10 months. The Nifty metal index fell as much as 2.5 per cent, with Vedanta plunging 5.2 per cent.
Shares in pharmaceutical company Cipla Ltd fell to their lowest since June 6 on reports that the US regulator had found deficiencies in Cipla's batch production and control records after inspecting the company's Goa unit.
Among the decliners, state-run Canara Bank tumbled over 5 per cent after the CBI charged a former chairman of the bank and others over allegations of fraud.
Where will Tata Steel bid for Bhushan Steel leave minority shareholders?
Tata Steel committing ₹45,400 crore for Bhushan Steel—first of the 12 big defaulters on the RBI’s list to be referred to the National Company Law Tribunal (NCLT) for insolvency under IBC—has meant minimal haircut for lenders. But the deal may leave minority shareholders in the lurch, if the resolution plan under Alchemist Asset Reconstruction Company Limited vs Hotel Gaudavan Pvt. Ltd— the first under IBC in December 2017, is any indication. A steep reduction in capital as part of the resolution plan and fresh infusion of capital by the new investor, can hurt minority shareholders—leaving nothing on the table for them. Read more
Shares of sugar companies rose 3-5 per cent in afternoon trade after reports of government scrapping export tax. India, the world's biggest consumer of sugar, scrapped the 20 per cent sugar export tax to help boost overseas sales in a year of production surplus. Balrampur Chini Mills Ltd rose as much as 7.4 per cent, while Dalmia Bharat Sugar and Industries Ltd jumped up to 4.8 per cent. Dhampur Sugar Mills Ltd and Triveni Engineering and Industries Ltd were up more than 3 per cent. Bajaj Hindusthan Sugar Ltd and Shree Renuka Sugars Ltd were little unchanged.
GSPC hits 8-month low; gets approval to buy stake in Gujarat Gas
Shares of Gujarat State Petronet Ltd fell as much as 7.7 per cent to Rs 173.65, its lowest since July 21. More than 1.5 million Gujarat State Petronet shares changed hands, compared with the 30-day avg of 0.6 mln shares
Gujarat Gas was up as much as 2.2 per cent. Read more
Videocon exits insurance biz
Videocon Industries Ltd said on Tuesday it sold its entire stake in its joint venture with US-based Liberty Mutual Insurance Group to Diamond Dealtrade Ltd and Enam Securities Pvt Ltd. Read more
The offer-for-sale from JTEKT Corporation, promoter of Sona Koyo Steering Systems, opened for subscription to institutional investors on Monday. The promoter plans to sell 47.56 lakh shares, representing 2.39 per cent of the total paid-up equity share capital of the company, and fixed the floor price at ₹102 a share. The institutional portion received bids for just 27.74 per cent. The issue opens on Tuesday for retail investors and non-institutional investors can modify their order. Sona Koyo shares were down 0.48 per cent at Rs 103.85 on the BSE in the post-noon session.
Morgan Stanley view on Hindalco, Coal India, Vedanta
Morgan Stanley has cuts Hindalco Industries to 'equalweight' from 'overweight' and price target to Rs 256 from Rs 292. Read more
The BSE Sensex was trading 145.49 points higher, led by value buying in recently-hammered IT, bank and pharma stocks, ahead of the US Fed policy meeting scheduled later in the day. The market shrugged off early losses despite global weakness. IT stocks led the recovery momentum, as Sensex reclaimed the 33,000-level.
The 30-share index was trading 144.56 points, or 0.44 per cent, higher at 33,067.68 at 12 pm. The Nifty was trading above the crucial 10,100 level, up 0.52 per cent, at 10,146.55.
Major gainers were Tata Steel, Sun Pharma, Adani Ports, Wipro, SBI and Dr Reddy, rising up to 4 per cent.
The outlook for Indian government bonds remains challenging, but some value may be emerging after the sharp sell-off over the past six months, says Singapore’s DBS Banking Group. Read more
Aviation stocks rose after data released by the Directorate General of Civil Aviation showed passengers carried by domestic airlines in February rose 24.1 per cent y/y. Passenger load factor for Jet Airways (India) Ltd rose to 90.4 per cent in Feb from 86.8 per cent in February last year. Read more
Shares of pharmaceutical company Cipla Ltd declined as much as 6.6 per cent to Rs 522.90, the lowest since June 6. Read more
Canara Bank shares fall 5%
Shares of Canara Bank fell as much as 5 per cent on Tuesday to hit a low of Rs 251 on the BSE. The stock opened at Rs 253.95 against Monday's close of Rs 264.30. At about 11 am, the stock was quoting at Rs 255.80, down Rs 8.40 or 3.18 per cent.
The CBI on Monday charged former Chairman-cum-Managing Director RK Dubey and two of the then executive directors of the Canara Bank of cheating and forgery in the alleged loan default of over Rs 68 crore sanctioned in 2013, officials said here. Read more
After a weak start, the BSE Sensex and the NSE Nifty turned positive in morning trade. At about 10.40 am, the Sensex was up 102.18 points or 0.31 per cent at 33,025.30. Similarly, the NSE Nifty was up 27.40 points or 0.27 per cent at 10,121.65.
The Sensex hit a high of 33,027.33 and a low of 32,810.86 in morning deals. The 30-share barometer had lost 994.82 in the previous five sessions.
Among the sectoral indices, metal and banks were down by up to 0.5 per cent. IT and Tech led the gainers, rising up to 0.80 per cent.
All eyes are on the US Fed’s key policy meet that begins later in the day. A weak trend in other Asian markets, following overnight losses Wall Street, dampened market sentiment here, brokers said.
Meanwhile, on a net basis, domestic institutional investors sold shares worth Rs 191.52 crore, while foreign portfolio investors (FPIs) bought shares worth Rs 292.23 crore on yesterday, provisional data released by the stock exchanges showed.
In the Asian region, Hong Kong’s Hang Seng fell 0.72 per cent, Japan’s Nikkei shed 0.09 per cent, while Shanghai Composite Index down 0.26 per cent in their early deals.
Global forex trade
The euro on Tuesday held onto gains made the previous day when traders revived bets that the European Central Bank would raise interest rates sooner than previously thought. The euro last changed hands at $1.2341, after gaining 0.4 per cent on Monday.
The common currency had drawn strength on Monday from a source-based Reuters report that ECB policymakers are shifting their debate to how steeply interest rates should rise and how to phase out a bond buying programme after purchasing 2.5 trillion euros in over three years. Read more
Rupee falls in early trade
The rupee depreciated further by 4 paise to hit its four-month low of 65.21 against the US dollar in opening session today on some dollar-buying by importers and banks and weakness in the domestic equity market. Read more
Igarashi Motors: Open offer opens today
The open offer from Igarashi Motors will open for subscription on Tuesday and close on April 4. Read more
Asian shares fell on Tuesday after investors took profits in high-flying US technology shares on fears of stiffer regulation as Facebook came under fire following reports it allowed improper access to user data. Read more
Rupee outlook
The reversal from 64.80 followed by a strong break and a decisive close below 65 on Monday is a negative for the rupee. The price action since the beginning of this month reflects the flag formation on the chart. Read more
Broker's Call
CD Equisearch has a buy on Supreme Ind
CMP: ₹1,201.30
Target: ₹1,416
Higher polymer prices emanating from higher crude oil prices to shut down of several Chinese polluting polymer plants is expected to keep global polymer prices high for some time. Read more
The domestic share indices extended their losses and opened lower on Tuesday. The Sensex opened at 32,876.48 against Monday's close of 32,923.13.
At about 9.30 am, the Sensex was trading down 82.69 points or 0.25 per cent. The NSE Nifty was down 29.65 points or 0.29 per cent at 10,064.60.
The top Sensex losers included Bharti Airtel, YES Bank, NTPC, Axis Bank and IndusInd Bank.
Adani Ports, Infosys, Bajaj Auto, Tata Steel and Hero MotoCorp were among the gainers in early trade.
Stocks weighing down Sensex
Today's Pick
SAIL (₹68.8)
Investors with a short-term perspective can consider selling the stock of Steel Authority of India at current levels. Read more
Day Trading Guide for March 20 gives supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading: Click here to view the technical calls for Infosys, ITC, ONGC, Reliance Industries, SBI and TCS .
10122 • Nifty 50 Futures
S1 | S2 | R1 | R2 | COMMENT |
10070 | 10020 | 10170 | 10232 | Fresh long positions are recommended with a tight stop-loss only if the contract rallies above 10,170 levels |
₹1849 • HDFC Bank
| S1 | S2 | R1 | R2 | COMMENT |
1840 | 1830 | 1860 | 1870 | Consider initiating fresh short positions with a stiff stop-loss if the stock fails to move beyond ₹1860 levels |
US stocks wrap
US stocks joined a broad decline in global equity markets on Monday as traders turned cautious ahead of the Federal Reserve's policy meeting this week and amid continuing concerns about the threat of a global trade war. At the same time, shares of Facebook Inc shed nearly 7 per cent after reports that a political consultancy that worked on US President Donald Trump's 2016 campaign gained inappropriate access to data on 50 million of the social network's users. That decline dragged other technology stocks, which have led the market higher over the last two years. Read more