Anand James, Chief Market Strategist, Geojit Financial Services
Likelihood of Sebi letting its hook off a few companies from the shell company notification gave brief respite to the sell off, but geo political tension continued to keep risk appetite under check. The rise of VIX, a measure of volatility, above 13 also looks to have prompted investors to take money off the table.
3:50 PM Tata Motors Q1 earnings
Tata Motors reported June quarter earnings below Street expectations. The auto major's consolidated net profit grew 41.5% to Rs 3,199 crore against Rs 2,260 crore reported in the same quarter of previous fiscal year. Its consolidated revenues slipped 9.3% to come in at Rs 58,493 crore against Rs 65,003 crore posted in Q1FY16.
The stock settled at Rs 416, down 3% on the BSE.
3:43 PM Top Sensex gainers and losers
3:39 PM Sectoral trend
All sectoral indices settled in red. Nifty Pharma (down 4%) shed the most.
The broad market depicted weakness. There were more than three losers against every gainer on BSE. 1,976 shares declined and 604 shares rose. A total of 114 shares were unchanged.
3:37 PM Broader markets underperform
The BSE Midcap shed 1.6%, while the BSE Smallcap lost 1.8%.
3:36 PM Markets at close
The Sensex settled at 31,797, down 216 points, while the broader Nifty50 ended at 9,908, down 70 points. The 50-share Nifty had slipped below its crucial 9,900 in the last leg of the trade.
Inflation seen picking up
Retail inflation is expected to have picked up slightly in July after cooling in the previous three months, a Reuters poll showed, but likely remained well below the central bank's 4% medium-term target. READ MORE
3:08 PM Volatility index
India VIX was trading over 4% higher at 13.
3:04 PM Markets check
At 3:00 pm, the Sensex was trading at 31,882, down 132 points, while the broader Nifty50 was ruling at 9,932, down 45 points.
European markets opened lower as geopolitical concerns restrained investor sentiments. FTSE 100 index was trading at 7,498 levels, lower by 43.76 points, CAC 40 index was at 5,175 levels, down by 42.99 points, while the German DAX was at 12,206 levels, down by 85.62 points, while, the pan-European Stoxx 600 was down by 0.05%.
Oil held around $52 a barrel as an industry report showing a large drop in U.S. crude stocks countered doubts that compliance with OPEC-led supply cuts will increase. US crude inventories last week fell by 7.8 million barrels, more than expected, but gasoline inventories rose unexpectedly, data from the American Petroleum Institute (API) showed on Tuesday ahead of Wednesday's official numbers.
Brent crude, the global benchmark, was unchanged at $52.14 after two days of decline. US West Texas Intermediate (WTI) crude added 4 cents at $49.21.
Bank of India (BOI), rose over 6% to Rs 162 in intraday trade after the country's sixth biggest lender by assets reported profit for the June quarter as its bad loan ratio narrowed and loan-loss provisions fell. CLICK HERE FOR DETAILED EARNINGS
Nifty Realty top sectoral gainer in CY17 so far
Realty stocks have been on fire with the Nifty Realty index topping the sectoral chart on year-to-date basis on the hopes of a turnaround and transparency in the sector post the implementation of Real Estate (Regulation and Development) Act (RERA) and Goods and Services Tax (GST). CLICK HERE FOR FULL REPORT
1:32 PM Nifty Pharma index falls nearly 3%
1:19 PM Sun Pharma, Adani Ports, Cipla, Bajaj Auto and Tata Motors were the top losers on BSE Sensex
Natco Pharma dipped 8% to Rs 856, extending Tuesday’s 4% decline on BSE, on profit booking after the company’s net profit nearly doubled at Rs 93.7 crore for the quarter ended June, 2017 (Q1FY18). The company had posted a profit of Rs 47.5 crore in the corresponding period previous year.
The consolidated revenue for the quarter grew 30% to Rs 449 crore as compared to Rs 346 crore in the year ago period.
So far in 2017, the stock of pharmaceutical company had outperformed the market by gaining 65% till Monday. On comparison, the S&P BSE Sensex was up 21%, while S&P BSE Healthcare index was down 6% during the period.
12:23 PM Market check
At 12:23 pm, the S&P BSE Sensex was trading at 31,890, down 123 points while the broader Nifty50 index was ruling at 9,942, down 35 points
SRF slipped 8% to Rs 1,420 on BSE in intra-day after the company’s consolidated net profit declined 33% year-on-year (YoY) to Rs 104 crore in June quarter (Q1FY18), due to higher raw material cost. The company had profit of Rs 155 crore in the same quarter year ago.
SRF said the decrease in net profit was mainly on account of subdued commodity prices, channel destocking during the transition to the Goods and Services Tax (GST) regime and strengthened rupee.
Sebi ban on shell companies: You should be seriously worried
Investors say Sebi has taken a very wide view without understanding the nuances.
If you hold shares in any of the suspected shell companies that have been banned from trade following the Sebi order on Monday, you have a genuine reason to worry – at least for now.
On Monday, market regulator Sebi, directed the stock exchanges to ban trading in shares of 331 suspected shell companies and placed them under a graded surveillance measure (GSM) stage VI, where trading in the security is allowed only once a month with “surveillance deposit” of three times the trade value.
11:18 AM Centrum Capital hit a record high of Rs 61.50, up 14% on BSE in intra-day trade after an over 2% of total equity of financial services company changed hands on the counter through multiple block deals.
JBF Industries hit a fresh 52-week low of Rs 143, down 19%, extending its over 25% fall on BSE, after the rating agencies downgraded the rating of the company on delays in servicing its debt obligations by JBF group.
In past two weeks, the stock slipped 47% from Rs 269, as against 1.4% decline in the S&P BSE Sensex.
10:30 AM Benchmark indices pared some gains but continued trading in red.
At 10:30 am, the S&P BSE Sensex was trading at 31,955, down 59 points while the broader Nifty50 index was ruling at 9,967, down 11 points
10:03 AM IOC gains over 2% after Credit Suisse increased its FY18/19 EPS estimates for the comapny by 3% and 4%, respectively, while maintaining target of Rs 505/share.
A logo of Indian Oil is picture outside a fuel station in New Delhi
JSPL gained 1% after the company reported narrowing of its consolidated loss to Rs 420.4 crore for the quarter ended on June 30, 2017. Naveen Jindal-led company had reported a consolidated loss of Rs 1,238 crore for the corresponding quarter of previous fiscal.
9:43 AM Ahead of earnings
Tata Motors fell 1.05 %, Aurobindo Pharma slipped 2.92 %, PTC India Financial lost 1.87 % and Thomas Cook shed 0.45 % while Eicher Motors gained 0.11 % and NMDC advanced 1.14% ahead of their Q1 earnings
Tata Teleservices fell over 4% after reports that the company's lenders may recall loans of Rs 1,911 crore as the telecom firm has not been able to satisfy them with its financial performance, according to company note on the Bombay Stock Exchange.
9:28 AM All indices except metal were trading in red on NSE. Nifty Realty dragged the most, down 2% followed by Nifty Pharma, which slipped 1.8%, Nifty Private bank, which lost 0.9% and Nifty FMCG which shed 0.8%
Sun Pharma slips on acquisition
Sun Pharmaceutical Industries fell over 4% after ot announced that it was pumping in $7 million for a 15.9% stake in US-based bio-pharmaceutical company Krystal Biotech Inc. According to a stock market disclosure by Sun Pharma, the transaction, which does not require regulatory approvals, will be completed on Wednesday.
Krystal Biotech is engaged in gene therapy research to develop treatments for rare debilitating disorders.
9:22 AM Top gainers and losers on BSE Sensex
9:19 AM Broader markets underperformed benchmark indices with BSE Midcap and BSE Smallcap down 0.6% each
9:18 AM Markets open
The benchmark indices opened on a negative note with Sensex down over a 100 points and Nifty50 index breaching the 9,950 levels following weakness in the global markets after gropoloticals tensions between North Korea and US flared up.
At 9:18 am, the S&P BSE Sensex was trading at 31,930, down 83 points while the broader Nifty50 index was ruling at 9,945, down 32 points.
Nifty outlook from HDFC Securities
Nifty has breached crucial support of its 10 Days EMA, indicating short term bearish trend reversal in the Index. Oscillators like RSI and MACD have turned bearish on the daily charts. Advance decline ratio of 1:4 of yesterday indicates weak market breadth. Recent high made at 10,138 would continue to remain resistance for the short term. Technical evidences suggest that Nifty is likely to extend the fall towards 9,700-9,750 in the coming days.
Technical Calls from Prabhudas Lilladher:
CENTURY TEXTILES - BUY
CMP: Rs 1,281.05
TARGET: Rs 1,385
STOP LOSS: Rs 1,200
JUBILANT FOODWORKS - BUY
CMP: Rs 1,330.80
TARGET: Rs 1,450
STOP LOSS: Rs 1,250
VA TECH WABAG - BUY
CMP: Rs 641.30
TARGET: Rs 705
STOP LOSS: Rs 615
Monsoon rains to be normal in Aug, Sept
The country is expected to receive normal rainfall in the second half of the monsoon season, the India Meteorological Department (IMD) said, setting stage for a good kharif harvest and strong rural demand. According to the IMD, rainfall over the country during the remaining two months of the monsoon season (August and September) is likely to be 100 percent of the Long Period Average (LPA) with a model error of plus or minus 8%, as forecast in June.
166 companies on the BSE will report their Q1 results today including Aurobindo Pharma, Eicher Motors, Finolex Cables, Max Financial, NHPC, NMDC, Tata Motors, Tata Motors DVR, etc. among others.
The Nifty50 futures on the Singapore Stock Exchange were trading 31 points lower at 10,015 indicating a lower opening for the domestic market.
Crude oil check
Crude futures fell for a third day on Wednesday despite a bigger than expected fall in US oil inventories reported by an industry group, with doubts lingering over OPEC's ability to restrain supply as promised.
Benchmark Brent crude was down 24 cents, or 0.5%, at $51.90 a barrel at 0233 GMT. In the previous session, it settled down 0.4%.
US West Texas Intermediate crude (WTI) was down 15 cents, or 0.3%, at $49.02 a barrel, after falling 0.4% on Tuesday.
Asian markets trades lower
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.2% in early trading, while Japan's Nikkei was 1.2% lower as the stronger yen sapped investors' appetite.
South Korean shares were down 0.9% and the won was 0.6% lower at 1,134.10.
Wall Street ends lower
US stocks closed lower as investors fled for safety after US President Donald Trump vowed to respond aggressively to any threats from North Korea.
The Dow Jones Industrial Average ended down 33.08 points, or 0.15%, at 22,085.34, snapping a 9-day streak of closing records. The S&P 500 lost 5.99 points, or 0.24%, to close at 2,474.92 and the Nasdaq Composite dropped 13.31 points, or 0.21%, to 6,370.46.
8:45 AM Good morning and welcome to market's live blog. Catch all the live market action here
First Published: Wed, August 09 2017. 15:34 IST