Indian shares plunged on Thursday tracking global equity sell-off amid lingering concerns of slowdown and US-China trade tariff war. The Sensex dipped more than 570 points to end above 35,300, while the Nifty barely holds 10,600, dipping 182 points. Reliance Industries, HDFC, Maruti Suzuki, Infosys, Kotak Mahindra Bank, Hindustan Unilever, Axis Bank, ITC, L&T, IndusInd Bank and SBI were among the biggest drags on indexes. Only 4 Nifty stocks end in the green. Here are the main highlights from the stock markets today:
Dec 6, 2018
Closing Bell: Sensex, Nifty plunge on sell-off, Only four Nifty stocks end positive
Indian shares plunged on Thursday tracking global equity sell-off amid lingering concerns of slowdown and US-China trade tariff war. The Sensex dipped more than 570 points to end above 35,300, while the Nifty barely holds 10,600, dipping 182 points. Reliance Industries, HDFC, Maruti Suzuki, Infosys, Kotak Mahindra Bank, Hindustan Unilever, Axis Bank, ITC, L&T, IndusInd Bank and SBI were among the biggest drags on indexes. Only 4 Nifty stocks end in the green.
Dec 6, 2018
Sensex heatmap at close: Only Sun Pharma ends positive, Maruti, Tata Motors fall 5%
Market update: Sensex dives over 500 points, Nifty holds 10,600
The Nifty traded at 10,609, dipping more than 173 points, or by 1.61 percent at 3.10 pm, while the Sensex plunged 546 points, or 1.52 percent, to 35,338. Midcaps also dipped sharply with both the Nifty MidCap and the BSE MidCap down by 1.5 percent. Only two Nifty shares, Sun Pharma, JSW Steel traded positive with the former rising more than 2 percent after a near 15 percent slump this week. Indiabulls Housing Finance, Maruti Suzuki, Tech Mahindra, Bajaj Finserv and HCL Technologies were among top laggards, falling by up to more than 5 percent.
Dec 6, 2018
Deepak Fertiliser slips on report of company's alleged tax fraud
Shares of Deepak Fertilisers & Petrochemicals Corp. slumped to their two-and-half-year low of Rs 149.50 after reports said that the income tax department has alleged that the company tried to avoid paying tax and furnish fake depreciation claims. The income tax department had initiated search operations on the company's premises on November 15 and a week later, the company had resumed its operations, saying that the search was completed. The company , however, did not disclose any finding. The search was reportedly conducted at the company's units in Navi Mumbai, Baroda, Surat, and Pune. At 2.30 pm, shares of the company were down 3.7 percent at Rs 150. So far in 2018, the stock has fallen 64 percent. (Cogencis)
PFC falls ahead of Cabinet decision on PFC-REC deal
Shares of Power Finance Corp fell as much as 3 percent ahead of the Cabinet's meeting later in the day to discuss prospects of the company buying the government's 52.6 percent stake in REC. The government wants to raise up to Rs 150 billion by selling its stake in REC to PFC as part of its overall divestment efforts to raise Rs 800 billion in 2018-19 (Apr-Mar). Shares of Power Finance Corp were down 1 percent at Rs 91.60, while those of REC were down 0.7 percent at Rs 104.30.
Dec 6, 2018
Sun Pharma headed for worst weekly loss in over 18 years
Shares of Sun Pharmaceutical Industries are up more than 2 percent on Thursday, but are headed for their worst weekly loss in over 18 years this week. The stock hit an over five-year low on Wednesday. The Mumbai-based company has lost over 15 percent of its market capitalization so far this week. Shares traded at Rs 422.50, up by 2.15 percent on the BSE at 1.37 pm.
Dec 6, 2018
M&M hits 9-month low, headed for worst loss in 9 weeks
Shares of Mahindra & Mahindra hit a nine-month low of Rs 706.50, weighed down by continued weakness in its shares. The stock fell for the fourth session in a row today, and is down more than 10 percent for the week. At 12.55 pm, shares traded flat at Rs 718.
Hindustan Unilever aces weekly gains on Nifty50, hits lifetime high
Shares of Hindustan Unilever are the best performers on the Nifty 50 so far this week, with over 3 percent gains. The buyout of GlaxosmithKline Consumer Healthcare has helped the company outperform the Nifty 50, which is down over 2 percent for the week. Hindustan Unilever shares hit a lifetime high of Rs 1,854.80 on Wednesday, which helped its market capitalization cross the Rs 4-trillion mark for the first time ever. At 12.22 pm, shares of HUL were down more than 2 percent at Rs 1,807.20.
Dec 6, 2018
Market update: Only 3 Nifty stocks trade in the green
The 30-share Sensex traded a little over 35,500 at noon, down by 378 points, or 1.05 percent. The Nifty was also down by 123 points, or 1.15 percent, to trade at 10,659. Broader markets also remained subdued dragged by non-banking financial firms after the Reserve Bank of India maintained status quo in its monetary policy review meeting on Wednesday. The Nifty MidCap was down by 1.42 percent, while the BSE MidCap slipped 1.3 percent. Sectoral indices traded lower with all 43 indexes on both bourses seeing sell-off. Nifty Realty, Auto and PSU Banks were under maximum pressure. On the NSE, only 3 stocks advanced with Sun Pharma leading with nearly a percent gains. NTPC and Power Grid were the other two gainers. Indiabulls Housing Finance dipped 5 percent, leading the losers, while Maruti Suzuki also fell more than 4 percent. Tech Mahindra, HCL Technologies, Tata Motors, Grasim, ONGC, Kotak Bank, Asian Paints were other major losers.
Dec 6, 2018
Yes Bank down nearly 3% on selling pressure, Sensex, Nifty fall further
Shares of Yes Bank fell nearly 3 percent in early trade on Thursday on selling in large volumes between Rs 169 and Rs 171.20 per share. At 11.05 am, shares of Yes Bank were down 1.5% at Rs 170.90. So far in 2018, shares of Yes Bank have fallen 46 percent. Meanwhile, benchmark indexes declined further with the Nifty50 down by nearly 135 points to 10,648. The Sensex slided 393 points, or 1.10 percent, to trade at 35,491.
Global Markets: US stock futures fall, Asia follows after Canada arrests Huawei CFO
US stock futures and Asian shares tumbled on Thursday after Canadian authorities arrested a top executive of Chinese tech giant Huawei for extradition to the United States, fanning fears of a fresh flareup in tensions between the two superpowers.
The news came as Washington and Beijing begin three months of negotiations aimed at de-escalating their bruising trade war, which is adding to global investors' worries over rising U.S. interest rates and other risks to global economic growth.
S&P500 e-mini futures fell almost 2 percent at one point in thin Asian morning trade and were last were down 1.2 percent.
The losses in the first few minutes of trading might have been even steeper, but CME Group's Chicago Mercantile Exchange implemented a series of 10-second trading halts that helped limit the initial drop.
Japan's Nikkei slid 1.7 percent, with semi-conductor related shares leading the losses. Huawei is one of the world's largest makers of smartphones and telecommunications network equipment.
Dec 6, 2018
Here are stock recommendations by ace market experts
Rajat Bose: Sell Interglobe Aviation and Jet Airways, here's why.
Manoj Murlidharan: Sell State Bank of India and LIC Housing Finance, here's why.
Mitessh Thakkar: Buy HCL Tech and Tata Power; Sell Eicher Motors and Petronet LNG, here's why.
Sudarshan Sukhani: Buy UPL and Divis; Sell Tata Steel, Tata Motors and Balkrishna Industries, here's why.
Ashwani Gujral: Buy HUL and HDFC; Sell Reliance Infra, Balkrishna Industries and Tata Steel, here's why.
Bond market update: Bonds at 8-month high on RBI bond purchase hopes
Indian bonds rose to over 8-month highs as rate hike fears faded after the central bank promised to keep buying government bonds to infuse liquidity, and also mentioned the probability of changing its rate stance if inflation risks do not mature.
The 10-year benchmark bond yield fell to as low as 7.38 percent, its lowest since April 11 and compared with its previous close of 7.44 percent.
The Indian rupee was weaker at 70.89 to the dollar tracking Asian peers, compared with 70.46 on Wednesday. Most Asian currencies fell on concerns over slowing global growth and a lack of resolution in the China-U.S. trade war.
India's central bank kept interest rates unchanged on Wednesday, in a decision that was widely expected as inflation has eased significantly, while it took steps to persuade banks to lend more in order to support an economy that has lost some momentum.
Opening Bell: Sensex, Nifty start sharply lower as financials, metal shares drag
The Sensex dipped 224 points, or 0.63 percent, to 35,660, while the Nifty sliped by more than 76 points, or 0.75 percent, to 10,706 in initial trade. The Nifty MidCap slipped 0.93 percent, while the BSE MidCap was down by 0.88 percent. Sun Pharma was leading the index gainers, rising nearly 2.5 percent. HCL Technologiesd, Power Grid, Tata Consultancy Services, Infosys were other gainers, rising by up to 1.17 percent. The losers were led by primarily metal and energy stocks with JSW Steel declining the most by 2.73 percent. Vedanta slipped 2.65 percent, Tata Steel down by 2.6 percent. Hindalco shares declined by 2.4 percent, while Indian Oil Corp. fell nearly 2 percent.
Dec 6, 2018
Rupee opens at 70.79 against the US dollar, Sensex, Nifty set for lower opening
The Indian rupee opened lower by 33 paise at 70.79 per dollar on Thursday versus previous close 70.46. On Wednesday, the home currency had settled at 70.46 against the greenback at close. The 10-year government bond yield opens at 7.43 percent against last close of 7.44 percent. Meanwhile, the Sensex settled 190 points lower, or 0.53 percent, to trade at 35,694 in pre-open at 9.08 am. The Nifty started below 10,750, at 10,718, down by nearly 65 points, or 0.60 percent.
Dec 6, 2018
US stock futures fall, Asia follows after Canada arrests Huawei CFO
US stock futures tumbled on Thursday and Asian markets followed after Canadian authorities arrested a top executive of Chinese tech giant Huawei Technologies, fanning fears of further tensions between China and the United States. S&P 500 e-mini futures fell almost 2 percent at one point in thin Asian morning trade and were last were down 0.7 percent.
RBI monetary policy: Patel does a Powell; deputy governor does a Draghi
The Reserve Bank of India (RBI) delivered a near perfect policy cartwheel, much like US Federal Reserve chairman Jerome Powell did two weeks back. From a hawkish October policy when it changed its stance from neutral to “calibrated tightening”, the Indian central bank today glided back to a “near-neutral” policy with the ease of a trapeze artiste.
RBI monetary policy: Bond markets salute central bank's liquidity gift
Bond markets heaved a sigh of relief post announcement of the Reserve Bank of India monetary policy committee (MPC) decision. While there was near consensus on the status quo on rates, what has really excited the markets is the lower revision in inflation targets, and the high chances of continuity of open market operations (read OMO purchases) through March 2019.
Finance Ministry says RBI's assessment of economy in line with government's reading
The finance ministry on Wednesday said the assessment of growth and inflation made by the RBI's Monetary Policy Committee (MPC) is line with government's reading. RBI Governor Urjit Patel-headed MPC has kept the key lending rate unchanged. The panel retained its GDP growth projection of the current fiscal at 7.4 percent and expects inflation to remain well below the mid-term target of 4 percent.
"The assessment of the MPC for growth and inflation outlook is consistent with the government's assessment of inflation and growth," said Subhash Chandra Garg, Secretary, Economic Affairs, in a statement.
Here’s what brokerages have to say on RBI monetary policy decision
Loan book of banks will fall under proposed external benchmarking rate.
Proposed external benchmarking is to ensure greater transparency.
External benchmarking of lending yield could make margins volatile.
Gradual 150 bps cut in SLR will be positive at the margin for banks.
SLR cut would lead to a reversal in high MTM provisioning.
For top-quality HFCs/NBFCs, it implies cost of funds will moderate.
Maintain our preference for large CASA-funded banks to NBFCs/HFCs.
Axis Bank is our top pick.
CPI forecasts revised sharply lower; communication turns markedly dovish.
Maintain our call of one hike in Q2CY19.
RBI policy was largely positive for the banking sector.
Staggered lowering of SLR should free up investments for banks.
Key beneficiaries should be banks with relatively lower excess SLR.
Key beneficiaries likely are Axis Bank, Federal Bank, Yes Bank, HDFC Bank, ICICI Bank.
RBI seemed comfortable with regard to the improving liquidity situation.
Expect inflation to remain benign, especially for the next two readings.
Expect rates to be unchanged in the next two policy reviews.
High probability of a change in stance to neutral in the next policy.
Top stocks to watch out for on December 6: ICICI Bank, Jet Airways, BHEL, NBCC
Jet Airways: Jet Airways Ltd and second-largest shareholder Etihad Airways have been holding rescue talks with bankers of the indebted Indian carrier, three people aware of the matter told Reuters on Wednesday.
NBFCs: Difficulties in getting funding will halve the non-bank lenders' asset growth to around 10 percent in the second half of the current fiscal, a CRISIL report said. The asset quality of retail loans is resilient, but the NBFCs' (non-banking finance companies) non-retail book has to be monitored for potential stress, according to the report.
ICICI Bank: The government has appointed Lalit Kumar Chandel, economic advisor in the Department of Financial Services, as its nominee on the board of ICICI Bank with effect from December 4, the lender said on Wednesday.
10 things you need to know before the opening bell
Asia: Japan's Nikkei slid 0.8 percent, with benchmark indexes in South Korea and Australia down 0.6 percent and 0.2 percent, respectively.
Wall Street: S&P 500 e-mini futures were last down 0.7 percent, with volume at 66,034 contracts. US stocks had tumbled more than 3 percent on Tuesday as the US bond market sent unsettling signs about economic growth and investors worried anew about global trade. US equity and bond markets were closed Wednesday, a day of mourning for former President George H.W. Bush, 94, who died on Friday.
Crude Oil Prices: US West Texas Intermediate (WTI) crude futures were at $52.57 per barrel at 0109 GMT, down 32 cents, or 0.6 percent, from their last close. International Brent crude oil futures were down 17 cents, or 0.3 percent, at $61.39 per barrel.
Dollar: The euro traded flat at $1.1347 while the dollar dipped 0.1 percent against the yen to 113.01. The yuan is also unmoved at 6.8660 in the offshore trade.