Market Live: Sensex, Nifty give up gains post gap-up opening; IT gains post rupee move
Wed Feb 21 2018
Rajesh Sharma (1997 articles)

Market Live: Sensex, Nifty give up gains post gap-up opening; IT gains post rupee move

10:25 am PNB case update: The CBI has arrested a General Manager-rank officer of the Punjab National Bank posted at the bank’s head office here in connection with the alleged Rs 11,400-crore fraud involving billionaire jewellers Nirav Modi and his uncle Mehul Choksi, officials said.

Rajesh Jindal, who was the head of the Brady House, Mumbai, branch of the bank during 2009-11, was taken into custody last night, they said.

It is alleged that the issuance of Letters of Undertaking (LOUs) to Nirav Modi group firms without sanctioned limits started during his tenure.

Jindal is presently posted as GM, Credit, PNB Head Office, New Delhi.

10:15 am Buzzing Stock: Shares of Coal India lost around 2 percent intraday after the government on Tuesday allowed private sector to mine coal and sell it for commercial use.

The move ended state-owned CIL’s monopoly in a bid to cut imports by raising domestic output.

The Cabinet Committee on Economic Affairs (CCEA) approved the auctioning of coal mines to any firm bidding the highest per tonne price, Minister for Coal and Railways Piyush Goyal said briefing the media.

10:02 am Market Check: The market erased some of its gains from the gap-up opening seen.

The Sensex is up 74.55 points or 0.22% at 33778.14, and the Nifty up 8.00 points or 0.08% at 10368.40. The market breadth is narrow as 995 shares advanced, against a decline of 938 shares, while 157 shares were unchanged.

Dr Reddy’s, ITC, Tech Mahindra and HCL Tech are the top gainers, while Coal India, Sun Pharma, Hindalco and Bajaj Finance lost the most.

9:45 am Currency outlook:

9:35 am Buzzing Stock: Shares of Ambuja Cements were up over 2 percent intraday on Wednesday as investors reacted to the December quarter performance of the company.

The company’s Q4CY17 beat analyst expectations as standalone net profit growth of 88.8 percent year-on-year at Rs 338 crore was far ahead of CNBC-TV18 poll estimates of Rs 251 crore.

Profit in year-ago quarter stood at Rs 179 crore.

The cement maker said standalone revenue from operations increased 21.9 percent to Rs 2,712.6 crore in Q4, compared to Rs 2,224.5 crore in same quarter last year.

9:25 am Crude update: Oil prices witnessed a decline, weighed down by the rebound of the US dollar further away from three-year lows hit last week.

An expected rise in US oil production also weighed on prices, traders said.

US West Texas Intermediate (WTI) crude futures were at $ 61.32 a barrel at 0307 GMT, down 47 cents, or 0.8 percent, from their last settlement.

9:15 am Market Opens: The equity market has begun the day on a positive note, with the Sensex gaining over 100 points, while the Nifty reclaimed 10,400.

The Sensex is up 168.98 points or 0.50% at 33872.57, while the Nifty is up 46.60 points or 0.45% at 10407.00. The market breadth is positive as 358 shares advanced, against a decline of 138 shares, while 81 shares are unchanged.

Almost all sectoral indices are trading in the green, with IT and PSU banks being top gainers. Meanwhile, midcaps are also trading positive.

In case of stocks, IT stocks are reacting positively to the rupee’s depreciation. TCS and Infosys are among Sensex gainers. Coal India, Sun Pharma and ONGC are the top losers.

In the currency market, rupee opened lower by 11 paise at 64.90 per dollar on Wednesday versus previous close 64.79.

Pramit Brahmbhatt of Veracity said, “Rupee will trade with a negative bias on back of stronger dollar as well as weakness in the domestic equity market. 64.80 is the immediate support for the rupee and more weakness can be seen beyond the support.”

“The trading range for the spot USD-INR is expected to be 64.50-65,” he added.

The US dollar rose to a six-year high as it extends the rebound from a three-year low helped by rising treasury yields and profit-booking by forex traders.

Among global markets, stock markets dipped after a long winning run on Wall Street ended overnight, while the dollar gained momentum on Wednesday as yields on US Treasury debt headed for highs not seen in four years.

MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.15 percent. Japan’s Nikkei shed 0.2 percent. Australian stocks were down 0.05 percent and South Korea’s KOSPI fell 0.4 percent.

Meanwhile, the Dow and S&P 500 fell on Tuesday to snap a six-session winning streak as a sharp decline in Walmart weighed heavily, but gains in Amazon and chip stocks helped the Nasdaq hold near the unchanged mark.

Walmart, the world’s biggest brick-and-mortar retailer, reported a lower-than-expected profit and posted a sharp drop in online sales growth during the holiday period. Its shares slumped 10.2 percent, and suffered their biggest percentage fall since January 1988.

Markets have been choppy in recent weeks, falling more than 10 percent from their January 26 high only to rebound last week with their best weekly gain in five years. Tuesday’s declines once again pushed the S&P 500 below the 50-day moving average, a technical support level.

Rajesh Sharma

Rajesh Sharma

Rajesh Sharma is Correspondent for Stock Market of South East Asia based in Mumbai. He has been covering Asian markets for more than 5 years.