Market Live: Sensex dips 200 pts, all Nifty Bank stocks fall; rupee hits 3-mth low
Wed Feb 28 2018
Rajesh Sharma (2002 articles)

Market Live: Sensex dips 200 pts, all Nifty Bank stocks fall; rupee hits 3-mth low

10:10 am Crude Update: US oil prices extended declines into a second day after industry data showed an increase in US crude and gasoline stockpiles, with surging production in the country hampering OPEC attempts to end a global glut.

US West Texas Intermediate crude was down 35 cents, or 0.56 percent, at USD 62.66, after falling 90 cents the previous session.

Brent crude contract fell 40 cents or 0.6 percent to USD 66.23 a barrel.

9:58 am Market Update: Benchmark indices continued to trade lower, with the Sensex falling 215.61 points to 34,130.78, weighed by banks stocks.

The 50-share NSE Nifty declined 69.50 points or 0.66 percent to 10,484.80.

The gap between advances and declines narrowed as about two shares declined for every share rising against 1:4 in the opening.

9:52 am Rupee Trade: Falling for the third straight session, the rupee weakened by 22 paise to 65.09 against the US dollar to hit its three-month low in morning trade at the forex market.

The dollar firmed up against select global currencies as US Federal Reserve Chairman Jerome Powell’s upbeat views on the economy bolstered bets on further Fed interest rate hikes this year.

Forex dealers said sustained month-end demand for the American currency from importers, foreign fund outflows and the dollar’s gains against other global currencies weighed on the rupee.

Investors were also cautious ahead of GDP and IIP numbers to be released later in the day.

Yesterday, the local currency had lost by 8 paise to end at 64.87 against the American unit on sustained dollar demand from importers and banks amid heavy capital outflows.

9:40 am Order Win: Shares of Dilip Buildcon rose 1 percent as the company has been declared as lowest bidder for a project by NHAI.

The company has been declared L-1 bidder for a new hybrid annuity project valued at Rs 2013 crore by the National Highways Authority of India (NHAI) in the state of Andhra Pradesh.

The project includes six laning of Anandapuram-Pendurthi-Anakapalli section of NH-5 in the state of Andhra Pradesh under Bharatmala pariyojana on hybrid annuity mode.

The construction period of said project is 30 months.

9:30 am Joint Venture: Auto components major Bharat Forge said it has completed divestment of balance 26 per cent stake in power equipment JV with GE, Alstom Bharat Forge Power Pvt Ltd.

With this, the company has completed divestment of its shareholding in Alstom Bharat Forge Power Pvt Ltd to GE, Bharat Forge said in a regulatory filing.

The consideration received from the disposal was USD 35 million, which was received in March last year, the company said.

9:22 am Buzzing: Shares of Cipla rose 1 percent on partnership with Roche Pharma.

The company entered in to an agreement with Roche Pharma under which Cipla will promote and distribute Tocilizumab (Actemra) and Syndyma, the 2nd brand of Roche’s cancer therapy, bevacizumab (Avastin) in India.

This partnership is in line with Cipla and Roche’s efforts to improve healthcare and increase access to innovative, life-changing medicines in India, particularly to patients who currently do not have access to them.

9:18 am Asia Update: Asian markets edged down following a congressional testimony from the Federal Reserve’s new chief.

Japan’s Nikkei, China’s Shanghai Composite, Hong Kong’s Hang Seng, Australia’s ASX 200 and South Korea’s Kospi were down 0.6-1.6 percent.

9:15 am Market Check: Benchmark indices extended losses in opening on Wednesday, tracking weakness in global peers and due to selling pressure in banking & financials.

The 30-share BSE Sensex was down 265.86 points or 0.77 percent at 34,080.53 and the 50-share NSE Nifty slipped 86.60 points or 0.82 percent to 10,467.70.

HPCL, ICICI Bank, Hindalco Industries, Eicher Motors, Axis Bank, Indiabulls Housing, Vedanta, Bajaj Finance and Bajaj Auto were losers in early trade.

PNB plunged 5 percent. Nifty Midcap fell over a percent.

About four shares declined for every share rising on the BSE.

PSU Bank index slipped over 2 percent as Bank of Baroda, Bank of India, Dena Bank, Canara Bank, IDBI Bank and Syndicate Bank were under pressure.

Oberoi Realty, VIP Industries, Chennai Petroleum, Vakrangee and Bharat Forge were down 1-5 percent.

On the global front, US stocks fell for the first time in four days Tuesday after comments from new Federal Reserve Chair Jerome Powell sent rates higher.

The new chair signaled the central bank could hike rates more than three times this year in an effort to keep the economy from overheating, sparking anxiety among equity traders.

The Dow Jones industrial average fell 299.24 points Tuesday to close at 25,410.03.

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.

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