Indian shares ended Thursday's trade with sharp losses, settling two percent lower at close amid a global equity sell-off. Benchmark indexes fell over 6-month low, dragged lower by financials and IT stocks. Shares of Tata Consultancy Services ended 3 percent lower ahead of September quarter results later in the evening. Only 9 Nifty stocks ended in the green. PSU downstream companies gained after Brent crude oil slipped close to $81 per barrel levels. Earlier, the NSE Nifty50 tumbled 3 percent to lowest since April 4 amid a global equity sell-off. The BSE Sensex also fell as much as 3 percent to lowest since April 9. Here are the main highlights from the stock markets today:
Oct 11, 2018
Closing Bell: Sensex, Nifty end 2% lower, TCS slips 3% ahead of Q2 results
The BSE Sensex ended lower by 2.19 percent, or 760 points, at 34,001, while the Nifty settled at 10,234, dipping 225 points, or 2.16 percent at close. Benchmark indexes closed lower, cutting massive losses seen in the first half when the Sensex fell 1,000 points. Nifty Bank recovered over 300 points to end almost 2 percent lower. Financials and IT stocks lead losses for Nifty with Indiabulls Housing Finance being the top loser. Tata Consultancy Services shares end 3 percent lower ahead of Q2 results due later today evening. Only nine Nifty stocks end in the green amid a sea of red today. ONGC gains on no subsidy burden reports, ending over 2 percent higher. Oil marketing companies end up as the top Nifty gainers after Brent slips below $82 per barrel. Yes Bank was the only Nifty Bank constituent to end higher. ICICI Bank, SBI and HDFC Bank contribute over 65 percent to Nifty Bank fall. Airline companies also ended higher after cut in jet fuel’s excise duty by 3 percent. Market breadth improves but in favour of declines, advance-decline ratio at 2:5.
Asian markets fall to a 19-month low, US inflation data eyed
Benchmark Asian indices ended sharply lower, hitting a 19-month low, tailing weak US markets amid concerns that rising interest rates, surging bond yields and trade tensions could dampen investments and profits across the globe. Investors also remained risk-averse ahead of the US inflation figures, due later today, as a higher print might lead to speculation of more aggressive rate hikes by the US Federal Reserve. Taiwan's Taiex were among the worst hit in the region, down over 6 percent, while Japan's Nikkei 225 ended down over 3 percent led by weakness in shares of automobile manufacturers. (Cogencis)
Meanwhile, the Sensex dipped 2.35 percent, or 817 points, to trade at 33,969. The Nifty plunged 233 points, or 2.23 percent, to trade at 10,227.10.
Oct 11, 2018
GMR signs MoU with APGDC
Shares of GMR Infrastructure shed 4 percent Thursday. The company's subsidiary has signed MoU with APGDC for supply of piped natural gas. Kakinada SEZ, a subsidiary of GMR Infrastructure, signed a MoU (Memorandum of Understanding) with the Andhra Pradesh Gas Development Corporation (APGDC) to get access to piped domestic natural gas for its upcoming 10,500-acre zone. (Moneycontrol)
Oct 11, 2018
Shares of SBI trade at 1.7 times 10-day average
Shares of the State Bank of India dipped nearly 6 percent to trade at Rs 262.20, trading 1.7 times below its 10-day moving average. The SBI recently announced that it will buy assets from non-banking finance companies. Banks usually buy loan portfolios to meet priority-sector lending requirements or to show loan growth in their books.
Market update: Sensex, Nifty give up mild recovery, indexes fall
Indian shares gave up mild recovery seen in early afternoon trade on Thursday. The Sensex traded at 33,933.20, extendng losses by 827.69 points, or 2.38 percent. The Nifty too declined by 2.38 percent, or 249 points, to trade at 10,211.25. Broader market also widened losses with the Nifty MidCap dropping more than 410 points, or 2.42 percent, and the BSE MidCap dipping 2.51 percent. Bank Nifty too fell by more than 650 points, or 2.6 percent. Top gainers comprised of mostly oil and energy stocks with HPCL surging 9.52 percent. ONGC, Gail, BPCL and Yes Bank shares gained by up to 3.57 percent, while top losers came from financials and metals. Bajaj Finserv, SBI, Bajaj Finance, Tata Steel, Hindalco, Infosys, M&M and Adani Ports dipped by up to 6.23 percent.
Oct 11, 2018
Indiabulls Housing Finance dips 12%
Shares of Indiabulls Housing Finance plunged nearly 12 percent to hit intra-day low of Rs 862, snapping its three days of consecutive gain. The stock opened at a loss of 5.46 percent at Rs 919. Shares traded at Rs 894.10, lower by 8.60 percent on the NSE at 1.50 pm. The Nifty traded 1.43 percent lower at 10,310. The Sensex traded at 34,172.09, lower by 589 points, or 1.69 percent.
Oct 11, 2018
PSU oil refiners surge, Sensex, Nifty, broader indices recoup losses
Shares of public sector oil marketing companies gained between 3.6 percent and 9.66 percent, respectively, leading among the pack of index gainers. HPCL shares spiked 9.66 percent to trade at Rs 198.15 at 1.10 pm, while IOC and BPCL surged 4.19 percent and 3.69 percent, respectively. OMCs gained after the government said that it has no intention to ask oil companies to share subsidy burden from LPG and Kerosene. Meanwhile, benchmark and broader indices recovered from their lows. The Nifty MidCap recovered more than 500 points from the day's low, trading at 16,514, lower by just 0.91 percent. Nifty Bank also cut losses by recovering more than 400 points to trade at 24,901, but still lower by 1.66 percent. The Sensex traded at 34,214.72, still lower by 546 points, or 1.57 percent at 1.25 pm, while the Nifty traded lower by 1.52 percent, or 159 points, at 10,301.25.
Oct 11, 2018
Yes Bank extends gaining streak, surges 15%, Sensex, Nifty recover
Shares of Yes Bank surged 15 percent, continuing its gaining streak from the last three days as investors remain optimistic of a speedy resolution to the management situation at the bank. The private sector lender’s shares had fallen sharply from its 52-week high of Rs 404 after the RBI cut short its CEO Rana Kapoor's tenure to five months from three years earlier. The stock had plunged to Rs 165 on September 28. Shares of the bank traded 6.97 percent higher at Rs 250.20 at 12.45 pm. The Nifty traded at 10,272.75, lower by 187.35, or 1.79 percent. The Sensex also recovered to 34,231, still down by 529 points, or 1.52 percent.
Market update: Sensex, Nifty mildly cut losses, indices still down over 2.3%
The Sensex traded more than 800 points lower, or by 2.31 percent at 11.45 am, slipping below the 34,000-level, at 33,958.59. The 30-share BSE index had plunged more than 1,000 points in initial trade, after ending Wednesday with 461 points gain. The Nifty is hovering around the 10,200 levels, with the 50-share broader NSE index trading at 10,207.30, down by 252.80 points, or 2.42 percent at 11.45 am.
Macquarie cuts Bandhan Bank's rating on valuations
Brokerage Macquarie has downgraded the rating on shares of Bandhan Bank to "neutral" from "outperform" and has cut price target on the stock by 3.6 percent to Rs 540 rupees due to high valuations and uncertainties surrounding the resolution of promoter stake sale. JP Morgan has maintained its "neutral" rating on the stock but has cut the price target on shares by 12 percent to Rs 590. JP Morgan has cut the price target on lower growth visibility from April 2019. Buoyed by a strong 50.9 percent year-on-year growth in loans and a 55.6 percent rise in net interest income, Bandhan Bank reported a 47.3 percent rise in net profit for the quarter ended September. Shares traded at Rs 473.05, down by 7.63 percent at 11.13am on the NSE. (Cogencis)
Oct 11, 2018
SBI falls 5%, Bank Nifty dips 2.6%
Shares of the State Bank of India trade more than 5 percent lower, after opening at Rs 268. The stock touched the day's low of Rs 264.05 amid global rout in equities. Shares traded at Rs 264.55, down by 5.08 percent at 10.52 am. SBI shares have fallen nearly 25 percent from its 52-week high of Rs 351.3, hit on October 26, 2017. Meanwhile, benchmark indexes continue to trade sharply lower. The Nifty traded lower by 256 points, or 2.45 percent, to trade marginally above 10,200. The Sensex traded lower by 816 points, or 2.35 percent, at 33,944.
Bank Nifty was at 24,685, diving more than 630 points or 2.5 percent. Other major losers on the sectoral index were IndusInd Bank, PNB, Bank of Baroda, Kotak Mahindra Bank, down by up to 3.20 percent. Others like IDFC, Federal Bank, Axis Bank, RBL Bank, ICICI Bank and HDFC Bank were down between 2.17 percent and 2.72 percent. Only Yes Bank traded near flatline.
Aviation stocks gain as government cuts excise duty on jet fuel
Shares of airline companies surged amid a sell-off in the broader market after the government on late Wednesday slashed excise duty on air turbine fuel to provide relief to the ailing civil aviation sector. The government cut the central excise duty on aviation turbine fuel by 300 basis points to 11 percent. Fuel cost accounts for over a third of total expenses of airlines, and the rise in that has hit their financials in 2018. At 9.58 am, shares of InterGlobe Aviation, Jet Airways India and SpiceJet rose 1.8-4.2 percent. (Cogencis)
Meanwhile, benchmark indexes are off the day's low but still trade sharply lower. The Sensex traded at 33,890.55, down by 870 points, or 2.50 percent, while the Nifty traded below 10,300, at 10,188, lower by 272 points, or 2.6 percent at 10.15 am.
Oct 11, 2018
Only ONGC trades in the green on Sensex, Axis Bank, SBI, Vedanta top losers
Oct 11, 2018
Opening Bell: Sensex, Nifty tank on sell-off in global equity markets
Indian shares tanked 3 percent on Thursday, mirroring sharp losses across global markets triggered by equity sell-off overnight on Wall Street.The BSE Sensex slumped to 33,797.33, plunging 963.56 points, or 2.8 percent, while the NSE Nifty50 tanked 302 points, or 2.9 percent, to trade at 10,157. Broader markets also fell reversing Wednesday's gains, sharply dipping more than 500 points. Nifty Bank shed more than 700 points in initial trade.
Oct 11, 2018
Sensex falls nearly 700 ponts, Nifty 3% in pre-open trade
The BSE Sensex settled at 34,063.82, tanking by 697.07 points, or 2.01 percent, while the NSE Nifty50 slided to 10,169.80, down by 290.30 points, or 2.78 percent. Indexes look set for sharply lower opening amid a global equity sell-off as investors fret that rising interest rates, surging bond yields in the US and trade tensions could dampen investments and crimp corporate profits.
Oct 11, 2018
Rupee hits fresh record low, opens at 74.45 against the US dollar
The Indian rupee hit fresh record low on Thursday amid a global sell-off in equity, opening at 74.45 against the US dollar. The home currency closed at 74.20 against the greenback on Wednesday.
Oct 11, 2018
Here is what Deutsche Bank says on Axis Bank
BUY call, target at Rs 750/share.
Multiple factors to drive upsides.
Ideally positioned to consistently improve its earnings quality.
New MD should assuage investor concerns, improve regulatory relations.
Expect loan growth to revert back to 20 percent, NIMs to improve.
Raise FY20/21 EPS by 3/8 percent.
Company is one of our top picks in the banking space.
Strong liability franchise augurs well in a tight liquidity environment.
Expect NIM to expand 30 bps over next 2 years.
Mangalam Maloo deciphers what losses in FAANG stocks means
FAANG group of stocks, abbreviated for Facebook, Apple, Amazon, Netflix, Google (Alphabet), tanked overnight on Wednesday, dragging US shares to sharply low levels. Facebook shares dipped 4.1 percent, erasing the company’s market cap by $19 billion, while Apple tumbled 4.6 percent, wiping out $51 billion. Amazon’s 6.1 percent dip reduced the e-commerce giant’s mcap by $56 billion.
Netflix lost $13 billion after its stocks crashed by 8.4 percent, while Google’s parent company Alphabet saw an erosion of $37 billion in market cap after its stocks declined 4.6 percent. Taken together, FAANG stocks lost $176 billion in market cap, equal to Rs 13 lakh crore.
To put into perspective, the market cap loss in FAANG stocks equals the entire market cap of Maruti Suzuki, Kotak Mahindra Bank, SBI, HDFC and Hindustan Unilever.
The market cap of 10 largest Indian companies stands at:
Here’s what brokerages are saying on Zee Enterprises post Q2 results
Traditional strong, OTT promising.
Margin improvement heartening given investor concerns on ZEE5 Investments.
Strong show in traditional helping fund digital investments.
Company confident of digital contributing over 30 percent to revenues in 5 years.
It’s attractively priced growth story.
Reiterating BUY call on the stock.
Raise FY19-21 EPS estimates by 1-4 percent.
BUY call, target cut to Rs 627 from Rs 632/share.
Healthy advertisement growth outlook; margins healthy despite digital investments.
Forecast 18 percent EPS CAGR over FY19-21.
Valuations attractive at current levels.
UNDERWEIGHT call, target at Rs 410/share.
See risks to consensus; P/E could derate as growth slows.
Increase FY19-21 forecasts for revenue and EBITDA.
Earnings estimates unchanged on a higher tax rate.
Consensus margin expectation of 32 percent has downside risk.
BUY call, target cut to Rs 585 from Rs 630/share.
Ad revenue growth at 23 percent aided by continued market share gains.
Domestic subscription revenue up 26 percent on higher realisation from phase III subs.
Strong growth in core business places it in a position to scale up digital.
BUY call, target at Rs 585/share.
Valuations look tenable given company’s superior execution.
Recent correction offers a decent entry point.
Near-term outlook robust, led by viewership market share gains.
See strong growth in ad and subscription revenues in near term.
BUY rating, target cut to Rs 670 from Rs 675/share.
Forecast company to deliver 19 percent earnings CAGR over FY19-21.
ZEE5 ramp-up is creditable.
23% domestic ad revenue growth underlines strong ad spend by FMCG companies.
Reiterates BUY, target raised to Rs 550 from Rs 540/share.
Market concerns addressed with Q2 results.
Core TV business is perhaps in the best shape it has been in recent history.
Company is the best play on the macro trend of increasing online video consumption.
ZEE5 operating metrics positive, tie-ups with telecom companies to provide scale.
Oct 11, 2018
Macquarie goes on to talk about its sectoral bets & stock plays, finds risk-reward for oil marketing cos to be compelling but need to clear the election first pic.twitter.com/xNf3e4fDWL