Sensex ends down 130 points on profit-booking

The benchmark BSE Sensex fell by 130 points today due to profit booking in realty, capital goods, teck, auto and banking stocks due to renewed global trade war fears and losses in European markets. The 30-share Sensex opened higher at 33,206.99 and advanced to hit a high of 33,281.77 in early trade.

However, it slipped into the negative zone to touch a low of 32,963.31 in afternoon trade as fresh worries appeared after reports that the US President is mulling new sanctions on China.

The barometer finally ended lower by 129.91 points or 0.39 per cent at 33,006.27, ending its two-day gaining streak.

The NSE Nifty closed down by 40.50 points or 0.39 per cent at 10,114.75 as banking stocks dropped. It shuttled between 10,207.85 and 10,105.40 during the day.

“Market started on a positive note on account of less hawkish Fed commentary on CY18 rate hike trajectory and in turn US 10-year yield declined. However, the gains were only short lived due to negative trend in European and other Asian market owing to re-emergence of trade war,” Vinod Nair, Head of Research, Geojit Financial Services Ltd, said.

“Investors are utilising every rally as an opportunity to sell,” he added.

The US Trade Representative (USTR) said America has strong evidence of Beijing violating its commitments on intellectual property and technology transfers, fanning speculation that the White House may announce sanctions against China tomorrow.

China also promised to reply with “necessary measures” to defend its “legitimate rights and interests“.

Equity benchmarks erased early gains after realty, capital goods, teck, auto, PSU, IT, power and bankex counters came under selling pressure, falling up to 1.28 per cent.

Weekly derivatives expiry

Banking stocks again faced the heat largely due to weekly derivatives expiry in the NSE Bank Nifty. SBI, ICICI Bank, PNB, Canara Bank, Axis Bank, Yes Bank, and Bank of Baroda ended with losses up to 2.62 per cent.

Other losers included Wipro, M&M, Maruti Suzuki, Dr Reddy’s, Adani Ports, Infosys, Bajaj Auto, L&T, TCS, Coal India, Bharti Airtel, HDFC, Power Grid, Hero MotoCorp, ITC, Tata Steel and HUL, falling up to 2.32 per cent.

However, ONGC, IndusInd Bank, Tata Motors, RIL, Sun Pharma, Asian Paint and NTPC ended in the positive zone, rising up to 2.45 per cent.

Selling pressure also emerged in the broader markets the BSE small-cap index down by 1.05 per cent and mid-caps fell 0.75 per cent.

Among the BSE sectoral indices, realty fell the most at 1.28 per cent, followed by capital goods (1.07 per cent), teck (0.99 per cent), auto (0.94 per cent), PSU (0.93 per cent), IT (0.91 per cent), infrastructure (0.69 per cent), power (0.66 per cent), bankex (0.66 per cent), healthcare (0.60 per cent), FMCG (0.36 per cent) and oil & gas (0.29 per cent).

However, consumer durables rose by 0.79 per cent and metal 0.37 per cent.

Globally, Asian share markets ended mixed and European bourses opened lower following overnight losses on Wall Street after the US Federal Reserve raised interest rates for the first time this year. The Federal Reserve delivered its sixth interest-rate increase since the end of 2015 and signalled it still expects to deliver two more before the end of the year.

Hong Kong’s Hang Seng fell 1.09 per cent, Shanghai Composite Index shed 0.53 per cent and Singapore down 0.65 per cent, while Japan’s Nikkei was up by 0.99 per cent.

In the Eurozone, Paris CAC 40 fell 1.06 per cent and Frankfurt moved down 1.01 per cent in their early deals. The UK’s FTSE also traded lower 0.53 per cent.

The Lead futures contract on the Multi Commodity Exchange (MCX) has reversed sharply higher after making a low of ₹151.7 a kg on Tuesday. The contract has surged over 3 per cent from this low and is currently trading at ₹156.5 per kg. Inability to break below ₹150 since the beginning of this month reflects lack of fresh sellers to drag the contract further lower. A strong bounce this week indicates that the downtrend that has been in place since February is weakening. Read more

Cox & Kings stake sale in subsidiary

Travel firm Cox & Kings today said it has sold 11.58 per cent stake in Prometheon Holdings UK to SSG Capital for ₹450 crore, after transaction expense and tax. The company’s wholly-owned subsidiary, Prometheon Enterprises has sold 11.58 per cent stake in Prometheon Holdings (UK) to an investee company of SSG Capital Management, Cox & Kings said in a statement. Read more

The government on Thursday pushed back by a month the last date of bidding for a record number of oil and gas blocks to May 2.  Read more

Representative image

Rupee gets a breather as Fed intends to go for only two more hikes this year

The Indian rupee, which was threatening to decline steeply once it breached the 65 level in the initial part of the week, got a breather on Thursday. The US Federal Reserve on Wednesday increased the interest rates by 25 basis points to 1.5 to 1.75 per cent. This relieved the markets that expected the Fed to increase rates four times this year on the back of an improving economic outlook. Read more

The BSE Sensex pared initial gains to slip into negative territory in the afternoon trade, amid global volatility after the US Federal Reserve’s interest rate hike. The 30-share index was trading at 33,064.60 at about 1.50 pm, with a loss of 71.58 points or 0.22 per cent. 

The broader Nifty index was trading below the key 10,200-level, at 10,132.70, down 22.55 points or 0.22 per cent.

Weakness was seen in capital goods, auto, telecom, banks and realty stocks.

Major losers include M&M, Adani Ports, ICICI Bank, SBI and Maruti, falling up to 2.17 per cent.

While, gainers were ONGC, Tata Motors, IndusInd Bank, Reliance Industries, and HDFC Bank.

Asian markets witnessed volatility after the US Federal Reserve raised rates by 25 basis points to 1.75 per cent yesterday, signalling two more hikes for 2018. Nikkei 225 index edged up 0.99 per cent, or 211.02 points, to close at 21,591.99, while the broader Topix swung between losses and gains, to trade 0.65 per cent, or 11.10 points, higher at 1,727.39. US stocks ended a choppy session slightly lower yesterday.

SC refuses to lift Bombay High Court stay on R-Com asset sale

The Supreme Court today ordered that the status quo be maintained on Reliance Communication’s sale of assets to RJio on pleas by a consortium of banks. The apex court bench, comprising Justices A K Goel, R F Nariman and U U Lalit, refused to lift the stay ordered by the Bombay High Court on RCom asset sale. Read more

Parliament today passed a key bill that will empower the government to fix the amount of tax free gratuity and the period of maternity leave with an executive order. The Rajya Sabha, which has failed to transact any significant business over the last fortnight due to protests by various parties, today passed the Payment of Gratuity (Amendment) Bill without discussion.

The bill moved by Labour Minister Santosh Kumar Gangwar was passed by a voice vote. Read more

Shares of drugmaker Sun Pharmaceutical Industries Ltd rose as much as 3.27 per cent to ₹521. The company has received US drug regulator FDA’s nod for Ilumya, used for treatment of plaque psoriasis, a non-contagious skin disorder.

At about 12.15 pm, the stock was off its morning highs and was quoting at ₹508.30, up ₹3.60 or 0.77 per cent. Read more

Nifty call: Go short with stop-loss at 10,205

Nifty 50 March Futures (10,183) The Nifty 50 futures contract has failed to sustain higher after breaking above the psychological 10,200 mark earlier today. The contract made a high of 10,237 and has come-off sharply from there. The near-term bias is bearish. Resistance is between 10,185 and 10,200. Read more

Shares were trading flat in late morning trade on Thursday after the US Federal Reserve raised interest rates.

The Fed raised interest rates and forecast at least two more hikes for 2018, signalling growing confidence that US tax cuts and government spending will boost the economy and inflation and lead to more aggressive tightening in future. Given that some investors had expected it to project three more rate hikes, the guidance was perceived by some as less hawkish than anticipated, a positive factor for risk assets in general, though analysts noted the Fed was upbeat on the economy overall.

Domestically, traders are also awaiting cues from the roll-over of monthly derivatives contracts later in the day.

At about 11.50 am, The broader NSE index was down 0.04 per cent or 4.40 points at 10,150.85. The benchmark BSE Sensex was up 5.52 points or 0.02 per cent at 33,141.70.

Sensex at 12 noon

Sensex movers at 12 noon

“It looks like a relief rally after the FOMC (Federal Open Market Committee) meeting. There is also some short-covering today due to (F&O) expiry,” said Vinod Nair, head of research at Geojit Financial Services.

“Going forward, if this relief rally continues in the US, then domestically April will be better than what we have seen in March.”

Energy stocks Oil and Natural Gas Corp Ltd gained 2.4 per cent while Reliance Industries rose 1.25 per cent on firmer oil prices. Among financials, HDFC Bank Ltd rose 0.7 per cent while Housing Development Finance Corp was up 0.6 per cent.

Meanwhile, Hindustan Construction Co Ltd slumped to its lowest since August 31, 2016 on reports that its unit Lavasa Corp is planning to declare bankruptcy due to challenges in raising money for project completion.

Strong demand for room ACs to propel  Blue Star growth  20%

The air-conditioning major Blue Star is betting big on 15-20 per cent growth in 2018, thanks to the rise in the room AC market, which grew by 10 per cent last year.

“There are strong indications of a severe summer this year and the market is expected to further grow driven by the rise in demand. We have consistently outperformed the market growth rate and year-after-year since 2011, the company has gained significant market share,” said B Thiagarajan, Joint Managing Director. Read more

The tussle for Binani Cement is set to snowball into a major legal battle with all the parties blaming each other for alleged violation of the process. While Binani Cement questioned the timing of the disclosures made by the resolution professional about alleged ‘fraudulent transactions’ to the tune of ₹2,400 crore, UltraTech has highlighted the lack of transparency on the part of the resolution professional. Read more

The race to acquire Essar Steel will start all over again with new players, including JSW Steel, evincing interest in bidding for the company. This follows a decision by the Committee of Creditors of Essar Steel to reject the bids placed by Numetal (backed by Russia’s largest bank VTB) and ArcelorMittal, the world’s largest steel company, on grounds that their proposals did not comply with the Insolvency and Bankruptcy Code. Read more

Aerial view of Essar Steel complex at Hazira, Gujarat

IRB Infra wins project

Marking its fourth successive project win under the the Hybrid Annuity Model, toll road builder IRB Infrastructure Developers has bagged the Rs 3,400-crore Hapur Bypass Build Operate Transfer project. Following this win, the company’s construction order book rose to Rs 15,300 crore with a three-four year visibility. Read more

The benchmark BSE Sensex was trading higher by over 100 points in morning trade today, extending gains for the third session, after US Federal Reserve announced the widely-expected hike in key lending rate. The 30-share index was trading 126.11 points, or 0.38 per cent, higher at 33,262.29. The gauge had gained 213.06 points in the previous two sessions.

Sectoral indices, led by healthcare, metal, capital goods, oil & gas infrastructure, auto and FMCG, gained up to 0.57 per cent.

The NSE Nifty also advanced by 32.05 points, or 0.32 per cent, to 10,187.30.

Major gainers that supported the uptrend were ONGC, Sun Pharma, Tata Motors, Reliance Industries, HDFC an and HDFC Bank, rising up to 2.5 per cent.

Brokers said sustained foreign fund inflows, increased buying by domestic institutional investors (DIIs) and a mixed trend in other Asian bourses, after the Fed rate hike, influenced the market.

An appreciating rupee against the dollar also supported investor sentiment, they said.

Meanwhile, on a net basis, foreign institutional investors (FIIs) bought shares worth Rs 98.44 crore, while DIIs purchases equities to the tune of Rs 197.78 crore yesterday, provisional data showed.

Among other Asian markets, Japan’s Nikkei was trading higher by 0.38 per cent, while Hong Kong’s Hang Seng fell 0.61 per cent in their early deals. The Shanghai Composite index was down by 0.93 per cent.

The US Dow Jones Industrial Average ended 0.18 per cent lower in yesterday’s trade.

Midhani IPO

Mishra Dhatu Nigam (Midhani), a public sector enterprise, is approaching the primary market with an offer-for-sale of 4.87 crore equity shares in the price band of ₹87-90. The Government of India is divesting 26 per cent share in the company through this offer. Retail investors and employees get to buy the shares at a discount of ₹3 a piece. Read more

The U.S. dollar slipped on Thursday after the Federal Reserve did not signal a faster pace of rate hikes this year while worries about a coming announcement on tariffs from U.S. President Donald Trump dented Asian shares.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.1 percent, erasing earlier gains of up to 0.7 pct, which were led by South Korea and Taiwan hitting six-week highs. Japan's Nikkei gained 0.4 percent. Read more

Brokerage stocks under pressure ahead of I-Sec IPO

ICICI Securities unlikely to provide  listing gains: analysts

Brokerage stocks came under pressure today ahead of ICICI Securities’ (I-Sec) initial public offering, which opens on Thursday. Stocks of companies such as Emkay Global Financial Services, Geojit Financial Services, Edelweiss Financial Services, Motilal Oswal Financial Services and IIFL Holdings closed down 1-3 per cent. The stock of JM Financial however, ended up 1.8 per cent. (Stock quotes for Thursday) Read more

The rupee rose 9 paise against the US dollar to 65.12 in early trade at the interbank forex market today amid weakness in the greenback after the US Fed raised benchmark lending rate by 25 bps.  Read more

At about 9.30 am, the Sensex was up 74.55 points or 0.22 per cent at 33,210.73. Similarly, the NSE Nifty was trading 27.70 points or 0.27 per cent higher at 10,182.95.

On the Nifty 50, 34 stocks advanced against 16 that declined.

ONGC, Sun Pharma, Tata Motors, L&T, ITC and Reliance were among the top gainers on the Sensex. On the Nifty, Sun Pharma, Tata Motors, HCL Tech, Vedanta and ONGC were the top gainers.

Bharti Airtel, SBI, Wipro, Axis Bank and BPCL were the top losers on the Nifty.

The Sensex opens 70.81 points higher at 33,206.99 on Thursday. The NSE Nifty opens at 10,167.50, up 12.25 points.

On Wednesday, the BSE Sensex spurted 139 points to close at 33,136.18, while the broader NSE Nifty rose 30 points to 10,155.25.

Today's PicK : Ashoka Buildcon (₹246.3)

The stock of Ashoka Buildcon gained 7.3 per cent with good volumes on Wednesday, breaching a key resistance at ₹230.The short-term forecast is bullish for the stock.  Read more

Day Trading Guide for March 22 gives supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading: Click on the link for all recommendations

₹1857 • HDFC Bank

₹1168 • Infosys

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