Closing bell: Sensex falls 119 pts, Nifty ends below 9650; Met upgrades monsoon forecast
The 30-share BSE Sensex was down 118.93 points at 31,190.56 while the 50-share NSE Nifty fell 37.95 points to 9,637.15.
3:20 pm Monsoon forecast: Met Department has upgraded its monsoon rains forecast to 98 percent of long-term period average.
In April, it had estimated monsoon at 96 percent of long-term period average.
3:15 pm Drug launch: Dr Reddy’s Laboratories (DRL) announced the launch of Bivalirudin injection, indicated for use as an anti-coagulant in patients, after approval from the US health regulator.
In a BSE filing, Dr Reddy’s said it has “launched Bivalirudin for injection, 250 mg/vial, a therapeutic equivalent generic version of Angiomax for injection, approved by the US Food and Drug Administration (USFDA)”.
Angiomax brand and generic version had sales of about USD 198 million in the 12 months ended March 2017, DRL said citing IMS Health data.
The company said its Bivalirudin injection, 250 mg/vial, is available in packages of 10 single-dose vials.
3:05 pm Oil Update: Oil prices fell for a third day, hit by concerns that a political rift between Qatar and several Arab states would undermine an OPEC-led push to tighten the market.
Brent crude was trading at USD 49.31 per barrel, down 0.32 percent from its last close.
2:55 pm Buzzing: Tyre stocks gained momentum today as JK Tyre, Apollo Tyres, Ceat, MRF and Balkrishna Industries were up 1-4 percent on correction in crude oil prices for third consecutive session.
2:50 pm Blue Star weak: Blue Star shares declined nearly 2 percent intraday after Motilal Oswal cut earnings estimates by 5 percent each to factor in the lower sales in the unitary cooling products (UCP) segment.
After meeting with senior management team of Blue Star, the research house has maintained neutral rating with a revised price target of Rs 610, implying 4 percent downside. It believes that the current valuations of 36x FY18 and 24x FY19 EPS fully capture the growth potential over FY18/19.
Blue Star has witnessed flattish growth in May when room air conditioner manufacturers’ sales declined 20 percent YoY due to dealer destocking. In June also, their sales could also be subdued, according to the brokerage house.
The company scaled down its growth target for Q1FY18 to 15 percent from 25 percent earlier, given the uncertainty around GST implementation.
2:33 pm Profit booking: Jewellery stocks like Titan Company, PC Jeweller, Gitanjali Gems and TBZ were down 4-6 percent on profit booking.
These stocks had gained 2-20 percent in previous session after the GST Council fixed GST rate for jewellery at 3 percent, which was lower than estimates by the Street.
2:25 pm SBI’s mega farmers meet: Ahead of the kharif season, country’s largest lender State Bank of India today said it will meet nearly 10 lakh farmers to understand their credit need and provide finance.
The meeting will be organised at the bank’s 15,500 rural and semi-urban branches across the country on June 8.
During the meet, branches will receive applications for fresh loans as well as for renewal or enhancement of existing loan, the bank said in a statement here today.
2:05 pm Market Check: Benchmark indices extended its losses from the morning session, with the Nifty breaching 9650-mark.
The Sensex was down 101.57 points at 31207.92, while the Nifty was down 30.65 points at 9644.45. The market breadth was negative as 818 shares advanced against a decline of 1,765 shares, while 148 shares were unchanged.
TCS, HCL Tech and Infosys gained the most, while Tata Motors, Tata Motors DVR and ONGC lost the most.
1:36 pm RBI policy expectations: The RBI, in its upcoming policy review on June 7, 2017, could maintain status quo on policy rates even as the case for rate cut is strengthening, according to Edelweiss.
“Three key reasons for same: 1) incoming inflation data has been softer than expected, stronger rupee, softer global commodity prices and fading El Nino risks augur well for the outlook; 2) growth data (Q4 GDP) too has been softer than expected, with credit growth and capex related indicators exhibiting sustained sluggishness; and 3) externally, dollar remains quite stable and India’s BoP dynamics has been very comfortable,” it reasoned.
Thus, it thinks that economy needs policy support and macroeconomic backdrop offers ample room for same. Rate cuts are likely over next 6-9 months, Edelweiss feels.
1:15 pm Buzzing: Tata Motors shares declined more than 3 percent intraday after reporting subdued UK sales growth by Jaguar Land Rover.
The luxury car maker sold 8,813 units in May, down 7.8 percent compared with 8,880 units sold in same month last year, dented by both brands.
Jaguar’s UK sales declined 1 percent to 2,564 units while Land Rover sales fell sharply by 10.7 percent to 5,619 units compared with year-ago month.
Meanwhile, Tata Motors informed exchanges, on Monday, that Ravindra Pisharody has submitted his resignation as executive director (commercial vehicles) of the company, and as a director of the company and its associated companies for personal reasons.
The company has appointed Satish Borwankar as chief operating officer with immediate effect and his tenure of executive directorship would be extended for a period of 2 years from July 2017.
12.54 pm Market Check: Equity benchmarks extended losses in afternoon, with the Sensex falling more than 100 points and the Nifty breaking 9650 level.
Investors maintained their cautious stance ahead of the outcome of two-day policy meeting by Monetary Policy Committee that due Wednesday.
CARE Ratings believes that there will be status quo in policy this time with there still being some caution on inflation given the possible impact of GST in particular. Otherwise conditions look fairly favourable for a rate cut, which it thinks will be invoked in October if things work out well.
The 30-share BSE Sensex was down 114.77 points at 31,194.72 and the 50-share NSE Nifty fell 35.35 points to 9,639.75. About two shares declined for every share rising on the BSE.
12:40 pm Europe opening: European markets opened lower amid a political rift between Qatar and several other Arab countries and as investors take a cautious approach ahead of a general election in the UK and a European Central Bank (ECB) meeting.
The pan-European Stoxx 600 was 0.27 percent lower with all sectors moving south.
12:35 pm Buzzing: Shares of Everest Organics were higher by 5 percent intraday after a successful check of its facility by the US drug regulator.
The US Food and Drug Administration (FDA) had inspected its manufacturing facility at Aroor village between February 27 and March 3, 2017.
“USFDA inspected facility at Aroor village, from February 27 to March 3. There is only one observation,” the pharmaceutical company said in its filing.
12:20 pm Economic growth: The March quarter GDP data failed to impress the Street but economists expect there more to than meets the eye. Chetan Ahya of Morgan Stanley expects GDP growth to accelerate to 7.9 percent by December 2017.
The GDP data has a lot of nuances that we have to go through. If you remember, last year, March quarter was very strong as growth rose to over 9 percent. “We also had demonetisation impact which came in last quarter which macro data is giving a positive indication,” Ahya said in an exclusive interview with CNBC-TV18 on the sidelines of Morgan Stanley 19th India Summit.
“If we look at the April-May data such as two-wheeler sales, car sales – it looks like the bulk of currency replacement programme is behind us and in the meantime, exports have also picked up,” he said.
12.00 pm Market Check: Equity benchmarks traded lower amid consolidation in afternoon as investors maintained cautious stance ahead of interest rate decision from the Reserve Bank of India on Wednesday.
The 30-share BSE Sensex was down 33.69 points at 31,275.80 and the 50-share NSE Nifty fell 7.60 points to 9,667.50.
The market breadth was negative as more than three shares declined for every rising on the BSE.
HCL Technologies was biggest gainer among Nifty stocks and hit 20-month high of Rs 908.40, up more than 5 percent intraday as investors may be buying the stock due to attractive valuations.
11:42 am Buzzing: Cadila Healthcare shares hit fresh record high of Rs 510, up 4 percent intraday on receiving establishment inspection report (EIR) from the US health regulator for Baddi unit.
“This receipt of EIR indicates the successful closure of inspection points (483s) raised based on the inspection carried out between February 21 and March 1,” the Ahmedabad-based pharma company in its filing.
In addition, its group company has received final approval from the US Food & Drug Administration to market Mirtazapine Orally Disintegrating tablets USP in strengths of 15 mg, 30 mg and 45 mg.
11:30 am New foray: Multi-business conglomerate, ITC, has now forayed into the frozen foods market with the launch of frozen prawns under the ITC MasterChef brand created earlier in the year to roll out export quality spices. The frozen prawns market, currently dominated by brands like IFB, Sumeru, Cambay Tiger, among others, is estimated to be worth Rs 300-crore.
Starting with New Delhi and Hyderabad, ITC plans to sell its frozen prawns in seven metro cities covering 200 top retail outlets in each city, by year-end. The 200-gram packs are priced between Rs 185 and Rs 350 and they will also be sold on online like BigBasket. The company even plans to take care of the delivery if required.
As part of its strategy to enter one new category every quarter, the salt-to-cigarette company next plans to launch vegetable and fruits later this year before moving on to sauces, dips and condiments. However, ITC may consider creating a new brand for fresh vegetables, fruits and organic products. The ITC MasterChef brand will cover only processed and frozen foods.
11:15 am Market Check: Benchmark indices were sluggish after opening at record highs, as consolidation mode set on the Street on Tuesday.
The Sensex was down 48.12 points at 31261.37, while the Nifty was down 12.75 points at 9662.35. The market breadth was negative as 907 shares advanced against a decline of 1,310 shares, while 138 shares were unchanged.
IT stocks Tata Consultancy Services (TCS), Infosys and HCL Technologies gained the most on both indices, while ITC, ONGC and Indiabulls Housing Finance lost the most.
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10:45 am Adani Enterprises in focus: India’s Adani Enterprises said that it has given final investment approval for the Carmichael mine and rail projects in Queensland.
“The project has Final Investment Decision approval, which marks the official start of one of the largest single infrastructure and job-creating developments in Australia’s recent history,” Adani Chairman Gautam Adani said in a statement.
The company has said the project, at an initial cost of USD 4 billion, would pay billions of dollars in royalties and taxes, create jobs and export coal to India help bring electricity to rural regions.
10.22 am Market Check: Equity benchmarks continued to be rangebound after hitting record highs in opening. Investors awaited the outcome of two-day RBI monetary policy due on Wednesday.
The 30-share BSE Sensex was up 9.78 points at 31,319.27 and the 50-share NSE Nifty fell 3.50 points to 9,671.60.
TCS was the biggest gainer among Sensex stocks, up 4 percent followed by Infosys, HDFC and SBI while ITC, Asian Paints, ONGC, L&T, Adani Ports, Tata Motors and Bharti Airtel were under pressure.
The broader markets also entered into consolidation. About 1,152 shares declined against 881 advancing shares on the BSE.
10:06 am IPO Listing: India Grid Trust shares started off trade on a negative note. The stock price opened at Rs 99.70 against issue price of Rs 100 on the National Stock Exchange.
It fell as much as 6.3 percent in early trade to Rs 93.70 amid consolidation in the market. Even the subdued response to its public issue, which was subscribed 1.17 times, indicated some correction in the stock.
At 10:06 am hours IST, the stock price was trading at Rs 96.20, down 3.8 percent or Rs 3.8.
India Grid Trust, second in the infrastructure investment trusts (InvIT) space, raised Rs 2,250 crore through initial public offering that was opened for subscription during May 17-19.
9:52 am Buzzing Stock: Shares of State Bank of India were higher by around 2 percent intraday on Tuesday as investors cheered the lender’s plan to raise funds.
The country’s largest lender on Monday opened share sale through a private placement at Rs 287.58 a piece to raise Rs 11,000 crore.
This is part of plans to garner Rs 15,000 crore capital from markets in the current fiscal.
9:36 am Rupee Update: The Indian rupee gained further in early trade. It opened at 64.32 against the US dollar, up 4 paise compared with previous close of 64.36 a dollar.
Bhaskar Panda of HDFC Bank said the rupee has showed strength and is trading near the 64.30 a dollar pivot which is expected to hold.
He expects USD-INR pair to trade within a range of 64.30-64.50 a dollar for the day.
9:25 am Bond outlook: Bhaskar Panda of HDFC Bank said Indian 10-year benchmark bond yield has continued to move down on the expectation of a dovish pronouncement in the coming policy.
He expects the yield to remain range bound within 6.62-6.65 percent for today.
Also read – Forget Sensex, India’s market cap likely to double from $ 2 trn to $ 4-5 trn in 7-10 yrs
9:15 am Market Check: Equity benchmarks started off Tuesday’s session on a strong note, with the Nifty hitting 9,700 level for the first time and the Sensex also at record high in early trade but could not hold all gains.
The 30-share BSE Sensex rose 101.24 points to 31,410.73 and the 50-share NSE Nifty was up 26.10 points at 9,701.20.
SBI, TCS, Tata Motors, Axis Bank, Infosys, HCL Technologies and Aurobindo Pharma were lead gainers in early trade while Bharti Airtel and ONGC were losers.
Asian markets were in the doldrums today, following the lower close on Wall Street and as markets digested the impact of diplomatic tensions between Qatar and other Middle Eastern nations. Japan’s benchmark Nikkei 225 index declined 0.52 percent.
