Anand James, Chief Market Strategist, Geojit Financial Services
Though Sebi’s softened stance on shell companies revived midcap stocks, volatility persisted keeping risk appetite under check. VIX soared over 15 for the first time in 6 months, as anxiety prevailed over the aggravating tensions between the US and North Korea, and investors were largely cautious ahead of the weekend. IIP and CPI numbers due shortly should offer the markets some distraction. Investors would be keeping their eyes on escalating tensions on the Korean peninsula for its impact on neighbouring economic powerhouses.
3:53 PM Sectoral trend
PSU banks and metal stocks shed the most.
3:51 PM Nifty Pharma bucks trend
Nifty Pharma (up 0.1%) was the sole sectoral gainer among NSE indices. All but two pharma stocks ended in green. CLICK HERE TO TRACK INDEX
3:44 PM Top Sensex gainers and losers
3:41 PM Markets breadth negative
Market breadth depicted weakness. There were more than two losers against every gainer on BSE. 1,530 shares fell and 1000 shares rose. A total of 129 shares were unchanged.
3:39 PM Broader markets outperform
The BSE Midcap (down 0.2%) was down marginally, while the BSE Smallcap settled nearly unchanged.
3:38 PM Markets at close
The Sensex settled at 31,213, down 317 points, while the broader Nifty50 closed at 9,710, down 109 points.
3:30 PM Bank Nifty dips below 24,000, down 1%
CLICK HERE TO TRACK BANKING STOCKS
3:26 PM Earnings impact
SBI tumbles as much as 5.9% post Q1 results as bad loans soar. CLICK HERE FOR THE STORY
39 stocks from BSE 500 index hit 52-week lows
Markets have been on a downward spiral since August 1 when the S&P BSE Sensex ended at a record high of 32,575 levels. Since then, the index has tanked 4.2%, or around 1,381 points in past eight trading sessions. CLICK HERE TO READ MORE
European markets trade lower. Europe's main London, Frankfurt and Paris markets started between 0.5 and 1.1% lower and Germany's ultra-safe 10-year government bonds were trading at their highest prices since June.
At 3:00 pm, the Sensex was trading at 31,175, down 355 points, while the broader Nifty50 was ruling at 9,697, down 122 points.
3:00 PM Volatility index
India VIX shoots up 11%, highest in six-month.
2:30 PM Earnings impact
Union Bank of India tanked over 7% to Rs 124 after the lender’s net profit for the first quarter ended June 2017 (Q1FY18) dipped by 30.1% to Rs 116 crore on a sharp rise in provisions for bad loans and taxes. The Mumbai-based lender had posted a net profit of Rs 166 crore in April-June 2016 (Q1FY17). CLICK HERE FOR DETAILED EARNINGS
Market falls 4% in 7 sessions: Is it a good time to buy?
Given the developments, analysts say there could be more pain in store for the markets that have recently taken cognizance of the developing geopolitical situation. CLICK HERE TO READ FULL REPORT
At 1:45 pm, the Sensex was trading at 31,232, down 298 points, while the broader Nifty50 was ruling at 9,725, down 95 points.
SBI top Sensex loser post Q1 numbers
SBI tanked 4% to Rs 284 after the public sector bank's gross NPA increased to Rs 1.88 lakh crore from Rs 1.12 lakh crore and net NPA jumped to Rs 1.07 lakh crore from Rs 58,277 crore on sequential basis.
1:20 PM SBI Q1 earnings
SBI's Q1 net profit came in at Rs 3,032 crore for the June quarter against Rs 1,046 reported in the March quarter of previous fiscal year. The public sector bank's net interest income weakened to Rs 19,323 crore against 19,673 reported in Q4FY17.
SBI Q1 earnings
State Bank of India's net non-performing asset (NPA) came in at 5.97% in the June quarter vs 3.71% reported in the March quarter of previous fiscal year, while its gross NPA stood at 9.97% vs 6.9% QoQ.
1:00 PM 44 BSE-500 stocks outperform Sensex during ongoing week
Tata Steel, Britannia Industries, Edelweiss Financial Services, PC Jeweller, Future Retail, Relaxo Footwear and Finolex Cables have outperformed the market by gaining up to 15% against 3% fall in Sensex during the current week.
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12:21 PM Economic Survey Part-2: Early signs of tax base expanding under GST.
12:21 PM Economic Survey Part-2: Farm loan waivers could cut economic demand up to 0.7% of GDP.
12:20 PM Economic Survey Part-2: Downside risks to FY18 GDP forecast of 6.75-7.5%.
12:19 PM Economic Survey Part-2: FY18 Budget opted for gradual fiscal consolidation.
12:19 PM Govt tables Eco Survey Part-2 in Parliament.
Economic Survey Part-2: CPI inflation by March likely to be below 4%
11:55 AM Cadila Healthcare fell 0.5% after the pharma firm's Q1 numbers missed analysts' expectations as profit plunged 65.3% year-on-year to Rs 138.4 crore and revenue was down 4.5% at Rs 2,229 crore.
At 11:30 am, S&P BSE Sensex was trading ar 31,325, down 206 points while the broader Nifty50 index was ruling at 9,747, down 72 points.
11:11 AM Three reasons why market tanked over 4% from lifetime highs in 7 sessions: Geopolitical tensions, Sebi move on shell companies and poor June-quarter earnings.
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MOIL was up 5% at Rs 346 on BSE in otherwise weak market as the company’s June quarter net profit more than doubled and the board recommended bonus share in the ratio of 1:1.
The state-owned mining company reported net profit of Rs 97.73 crore for the quarter ended June 2017 (Q1FY18). It had profit of Rs 47.15 crore in the same quarter last fiscal.
10:26 AM Cochin Shipyard lists
Cochin Shipyard moved to Rs 528 on the National Stock Exchange (NSE), a 22% premium against its issue price of Rs 432 offered to qualified institutional buyers (QIBs) and non institutional investors (NIIs). The retail investors and employees offered shares at price of Rs 411 (a discount of Rs 21 per equity share).
10:07 AM Nifty Bank dropped 200 points as Federal Bank, PNB, IDFC Bank, ICICI Bank, Canara Bank, and Bank of Baroda were down 1-2%
Shares of J Kumar Infraprojects and Prakash Industries were locked at 20% lower circuit in the opening trade on Friday.
These shares traded for the first time today after they were banned for trading on SEBI order since Tuesday.
On Thursday evening, the Securities and Appellate Tribunal (SAT) has stayed SEBI's order against J Kumar Infra & Prakash Industries, which were among the 331 companies that the market regulator had suspected as 'shell' companies.
Why rupee is unlikely to hit 60 levels against the US dollar
Though the rupee saw its sharpest fall in a day since July 3 of 24 paise to hit 64.08 against the US dollar (USD) on Thursday, the Indian unit is in no hurry to breach 60 levels in the near term, suggests the latest report by Tanvee Gupta Jain, an economist with UBS.
Going ahead, Jain expects the rupee (USD/INR) to remain range-bound between 62-66 levels over the next few months and average 64.3 in FY18 and 65.4 in FY19. UBS had earlier estimated it to hover around 65.4 and 67.6 levels, respectively.
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Illustration by Ajay Mohanty
Union Bank of India fell 6.58 % after the lender's net profit for the first quarter ended June 2017 (Q1FY18) dipped 30.1% to Rs 116 crore on a sharp rise in provisions for bad loans and taxes. It had posted a net profit of Rs 166 crore in April-June 2016 (Q1FY17).
The company also signed a deal to sell 40% stake in its mutual fund business to Japan's Dai-ichi Life Insurance Company.
9:40 AM IT index erased losses to become the only index trading in green led by frontline stocks like Wipro, Tech Mahindra and TCS, which were up between 0.7-1.6%
Motilal Oswal on Nifty:
Rahul Shah, VP- Equity Advisory - MOSL says: Markets took a breather after a long three months, in sync with the global markets where all of them were down 1-1.5% down . Nifty bank fell 4% from near term high on sell off. The main reasons for the sell off were geo political tensions and weak quarterly performance.
However, we believe markets looks good in near term, the recent correction augurs well for investors. Good monsoon, improving macroeconomics and GST will improve the sentiment.
9:34 AM All sectoral indiceswere trading in red
Nifty Auto, Nifty Pharma, Nifty Realty and Nifty Metal indices slipped over 2% each in early morning deals
9:30 AM Tata Motors extends fall
Extending losses for second session, Tata Motors fell over 5% in the early morning trade after analysts downgraded the firm post poor Q1 earnings.
Analysts from CIMB, Phillip Capital, Elara Capital and Antique Stock Broking reduced their target price on the stock by 15-18%. However, apart from Morgan Stanley and Phillip Capital, who have downgraded their rating on the stock, the rest have retained their recommendations, albeit with significantly lower target price.
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9:26 AM State Bank of India falls nearly 1% ahead of its June-quarter earnings
9:21 AM Broader markets underperform
Broader markets underperformed benchmark indices with BSE Midcap and BSE Smallcap falling 1.6% and 2.2% respectively
9:20 AM Top gainers and losers on BSE Sensex
Extending falls for the fifth straight session, benchmark indices opened lower, cracking 1% at open, following a crack in US stocks as well as Asian markets on escalating geopolitical tensions over North Korea.
At 9:16 am, S&P BSE Sensex was trading ar 31,220, down 310 points while the broader Nifty50 index was ruling at 9,723, down 96 points.
Cochin Shipyard to list shares today
Cochin Shipyard, the largest public sector shipyard company, will make a debut on exchanges today. The issue price is fixed at the higher end of price band of Rs 424-432 per share.
RBI halves dividend payout to Rs 30,659 crore in FY17
The Reserve Bank of India (RBI) has halved its yearly dividend transfer to the government at Rs 30,659 crore for the financial year 2016-17, potentially upsetting the government’s fiscal math this year.
The government had budgeted to earn about Rs 58,000 crore as dividend from the RBI, and the lower payout may force the Centre to borrow more from the market, widening the fiscal deficit for 2017-18.
The RBI did not provide any reason for the decline in dividend but economists said this indicated the cost incurred by the central bank in printing new notes as well as in sterilising liquidity after old Rs 500 and Rs 1,000 currency notes were scrapped in November and subsequently returned to the banking system.
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9:03 AM Nifty outlook from Prabhudas Lilladher
Market witnessed erosion of this sort after a very long time and with a close above 9800 levels, Nifty has taken support of a long term trend line drawn from lows of 7,900 to 9,450 on June 30, 2017 and now, a decisive break of 9800 would bring in further weakness to take Nifty to 9700-9600. The support for the day is seen at 9770 while resistance is seen at 9860.
Technical calls from Prabhudas Lilladher:
ITC - BUY
CMP: Rs 273.10
TARGET: Rs 300
STOP LOSS: Rs 260
AXIS BANK - BUY
CMP: Rs 485.50
TARGET: Rs 525
Over 400 companies will report their Q1 results today:
Companies like Allahabad Bank, Bank of Baroda, BPCL, CESC, Cipla, Dalmia Bharat, GMR Infra, Godrej Industries, GVK Power, Hindalco, HDIL, SAIL, State Bank of India, Sun TV, Suzlon, TVS Motor among others will report their June quarter results later in the day
Gold hits two-month high
The price of gold climbed to the highest levels in two months as the United States and North Korea exchanged more threats, prompting investors to buy bullion as a safe haven asset
Oil slides on worries about global crude glut
Oil prices fell more than 1.5%, as a bruising day on Wall Street bolstered fears of slowing demand amid lingering concerns over a global oversupply of crude.
US West Texas Intermediate crude settled down 97 cents or 1.96% to $48.59 a barrel. Brent crude futures were down 80 cents or 1.52% to $51.90 a barrel.
Trump issues stern warning to North Korea
President Donald Trump warned North Korea again on Thursday not to strike Guam or US allies, saying his earlier threat to unleash "fire and fury" on Pyongyang if it launched an attack may not have been tough enough.
After North Korea disclosed plans to fire missiles over Japan to land near the US Pacific territory of Guam, Trump said the move would prompt "an event the likes of which nobody's seen before."
He took specific aim at North Korean leader Kim Jong Un, saying he had "disrespected our country greatly. He has said things that are horrific. And with me, he's not getting away with it," Trump said.
The Nifty50 futures on the Singapore Stock Exchange were trading 109 points lower at 9,755 indicating a lower opening for the domestic market.
Asian markets slide
Asian stocks slumped on Friday as tensions ramped up between the US and North Korea, sending investors into less risky assets such as gold, the yen and US government bonds.
South Korea's KOSPI fell 1.3% in early trade, taking its losses this week to 2.8%.
MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.5% in its third session of declines, with Australia down 1.4%. Japanese markets were closed for a holiday.
8:47 AM Wall Streel cracks in overnight trade
The S&P 500 index had its biggest one-day drop in almost three months on Thursday as investors fled riskier assets, with technology stocks leading the charge, in response to an increasingly aggressive exchange of threats between the United States and North Korea.
The Dow Jones Industrial Average closed down 204.69 points, or 0.93%, at 21,844.01, the S&P 500 lost 35.81 points, or 1.45%, to end the session at 2,438.21 and the Nasdaq Composite fell 135.46 points, or 2.13%, to 6,216.87.
8:45 AM Good Morning and welcome to market's live blog. Catch all the live market action here.
First Published: Fri, August 11 2017. 15:36 IST