Market Live: Sensex erases opening gains, Nifty below 10,250; PSU banks decline
10:20 am Market Outlook: Jinesh Gopani, Head – Equity, Axis Mutual Fund, said the market sentiment is currently negative globally. Equity markets faced stiff headwinds largely from global factors this month. Local factors including the unearthing of the PNB frauds have also added to this negativity.
In our opinion, all of this is short-term in nature. Longer term metrics on the economy and earnings growth continue to remain positive.
Company results for Q3 FY 18 have seen significant improvement across sectors the highlight being a recovery in the consumer businesses and housing sector, both partly helped by the low demonetization base.
Consensus NIFTY earnings also did not see any negative commentaries, highlighting that there is confidence in a likely step-up in growth going forward. Improving GDP growth and back to back strong IIP numbers point to a revival in manufacturing.
We continue to expect elevated volatility levels in the equity markets and hence advise investors to look at equity allocations from a medium to long-term investment horizon. Systematic investments into equity products could also help investors ride out short-term volatility.
10:10 am Rupee Trade: The rupee strengthened by 2 paise to 65.12 per dollar on some selling of the US currency by exporters and banks.
A positive opening for the stock markets also boosted the domestic currency, dealers said.
Yesterday, the rupee had lost 25 paise to 65.14 on fresh bouts of demand for the American currency from importers and banks amid rising uncertainty stemming from US President Donald Trump’s possible trade war.
10:00 am Listing: HG Infra Engineering shares were flat, opening at issue price of Rs 270 on exchanges.
9:55 am Market Update: The market turned volatile and was moving in tight range after showing a positive opening led by global cues.
The 30-share BSE Sensex was up 130.73 points at 33,482.30 and the 50-share NSE Nifty gained 41 points at 10,283.70.
About two shares advanced for every share falling on the BSE.
Banks stocks were under pressure whereas index heavyweights HDFC twins, Reliance Industries, Infosys and ITC capped losses.
9:40 am Buzzing: Shares of Vedanta rose 2.5 percent as the company is going to consider interim dividend.
A meeting of the board of directors of the company will be held on March 13, to consider and approve first interim dividend on equity shares, if any, for the Financial Year 2017-18.
They will also consider dividend, if any, on the preference shares as per their terms of issuance.
9:30 am Market Update: Benchmark indices erased opened gains despite positive global cues, dragged by banks stocks.
The 30-share BSE Sensex was down 27.69 points at 33,323.88 and the 50-share NSE Nifty fell 7.10 points to 10,235.60 while the Nifty Midcap index slipped 0.34 percent.
PSU Bank index dropped 1.6 percent and Nifty Bank index was down half a percent.
9:26 am Asia Update: Asian stocks advanced as markets cheered news that US President Donald Trump had agreed to meet North Korean leader Kim Jong Un. The move higher also tracked moderate gains seen on Wall Street following the implementation of US metals tariffs.
Japan’s Nikkei and South Korea’s Kospi gained more than 1 percent while Hong Kong’s Hang Seng was up 0.8 percent.
9:19 am GST Council Meet on Saturday: Gearing up for crucial measures against tax evasion, the GST Council headed by finance minister Arun Jaitley will finalise a simpler return filing process and give approval for the rollout of e-way or electronic-way bill from April 1 in its 26th meeting in New Delhi on Saturday.
The Council will also tweak certain rules pertaining to the anti-profiteering mechanism under Goods and Services Tax (GST), giving more flexibility and power to the apex body National Profiteering Authority (NAA) in its final decision making process before penalising any company for profiteering, a senior government official told Moneycontrol.
9:15 am Market Check: Benchmark indices opened mildly higher on last day of the week, following positive lead from global peers.
The 30-share BSE Sensex was up 43.17 points at 33,394.74 and the 50-share NSE Nifty gained 13.10 points at 10,255.80.
Vedanta, Bharti Airtel, Dr Reddy’s Labs, Tata Steel, Aurobindo Pharma and UPL were early gainers while SBI, Coal India, NTPC, BPCL, Kotak Mahindra Bank, UltraTech Cement and Indiabulls Housing were losers.
Nifyt Midcap was up 64 points.
Canara Bank, Allahabad Bank, Adani Power, Bhushan Steel, Reliance Communications, GMR Infra, Suzlon Energy and Adani Enterprises were under pressure.
GTL Infrastructure plunged 20 percent after company’s comments on developments and performance review.
Amtek Auto, Castex Tech, REC and Religare Enterprises rallied 1-5 percent.