Anand James, Chief Market Strategist, Geojit Financial Services says: Markets continue to appear guarded against any further regulatory measures, and persisted with profit booking. High beta stocks withdrew sharply and bear grip was especially strong on realty sector in which SEBI list found many companies. Global cues have also remained subdued due to geopolitical tensions. The corrections however may have helped address valuation concerns raised while Nifty was well above 10,000.
3:49 PM Realty sector fell over 5% in todays trade: DLF fell over 6% followed by India Bulls Real Estate (down 5.7%), Prestige Realty (down 4%), Sobha (down 2.6%) and Unitech (down 1.9%)
3:45 PM Nifty IT index was the only sectoral index that ended in green.
3:43 PM Tata Motor's shares ended over 8% lower to their lowest in over a year after the company's 42% rise in June-quarter profit, helped by a one-off gain related to changes to Jaguar Land Rover's pension plans, failed to please investors.
3:42 PM Top gainers and losers on Sensex
3:39 PM Broader markets underperformed the enchmark indices with BSE Midcap and BSE Smallcap down 2.6% ans 2.9% respectively
Extending losses for the fourth straight session, the benchmark indices ended pared some intra-day losses but still ended lower led by losses in pharma, auto and banking stocks. Individual stocks also dragged the sentiment on poor June-quarter result show.
The S&P BSE Sensex ended the day at 31,531, down 266 points while the broader Nifty50 index settled at 9,820, down 88 points
Four companies – Bharat Forge, Bharat Heavy Electricals Limited (BHEL), Bharat Electronics and Manpasand Beverages – have announced bonus shares on Thursday.
The board of directors of Bharat Forge and Manpasand Beverages have recommended issuing bonus shares to holders of equity shares of the companies in the ratio of 1:1 i.e. one bonus equity share for every one fully paid-up equity shares held.
Click here for more details
3:17 PM Broader markets
Midcap index sees biggest intra-day fall since November 2016 while Smallcap witnesses biggest fall in 11 months
3:16 PM The broader markets underperformed the benchmark indices with the BSE Midcap and BSE Smallcap indices falling 2.8% and 3.7% respectively
Dr Reddy's Labs plunged 5% after it said Bachupally manufacturing unit (in Hyderabad) is not renewed by German regulator post inspection.
The unit won't be able to despatch to European Union until next inspection, it added.
3:08 PM ADAG stocks crack
ADAG stocks cracked in todays trade with Reliance Infra dropping almost 9%, Reliance Defence down over 7%, Reliance Communication losing 6% and Reliance Capital shedding 4.5%
3:02 PM Market Check
The benchmark indices extended fall in the last leg of trade with Nifty50 breaching 9,800 levels and Sensex falling over 350 points led by drop in pharma, auto and banking stocks.
At 3:00 pm, the BSE Sensex was trading at 31,516, down 280 points while the broader Nifty50 index was ruling at 9,789, down 118 points
Adani Power fell 9% after the company's consolidated net loss widened to Rs 454 crore in Q1, from Rs 232.6 crore in year-ago quarter.
Revenue growth was tepid, rising 3.8% to Rs 5,590 crore from Rs 5,386 crore on year-on-year basis.
European shares slipped in early deals on Thursday, extending losses as shares in cyclical sectors fell and some large firms went ex-dividend, while earnings spurred some large individual company moves.
The pan-European STOXX 600 index was down 0.2% as basic resources and banks fell, while euro zone blue chips also declined 0.2%.
Britain's FTSE 100 dropped 0.6% as heavyweights Anglo American, BT Group, Rio Tinto and Lloyds fell after going ex-dividend, while Germany's DAX retreated 0.1%.
2:15 PM Motherson Sumi Systems fell over 3% after it missed analysts' expectations on bottomline as well as operational front for April-June quarter as profit fell 21% year-on-year to Rs 347.3 crore. Profitability was impacted by one-time loss of Rs 150.15 crore and weak operational performance by SMP that makes exteriors and interiors of cars.
1:47 PM State-run power equipment maker Bharat Heavy Electricals (BHEL) fell 4% after the company reported a below-expectation profit for Q1. Profit for the April-June quarter stood at Rs 81 crore, higher by 3.9% over Rs 77.7 crore reported in year-ago quarter.
1:33 PM Financial stocks continued their decline, with the Nifty Bank index dipping 0.5% and the Nifty PSU bank index losing 1.2%. Canara Bank, Bank of Baroda, Punjab National Bank and IndusInd bank dragged the indices
1:08 PM New India Assurance set to raise Rs 6,000 cr via IPO
The government-owned general insurer, New India Assurance Company Ltd, has filed the draft red herring prospectus with the Securities and Exchange Board of India to list its business through an initial public offering (IPO). READ FULL REPORT HERE
Nifty Auto leading sectoral loser
The Nifty Auto index fell as much as 2.2% its biggest percentage loss in over two-and-a-half months. Tata Motors, Eicher Motors and Motherson Sumi Systems pulled the index down, which has risen about 20% this year as of Wednesday's close.
IIFL cuts estimates but maintains 'buy' on Tata Motors
We have cut our estimates to factor in the weaker than expected performance in Q1 FY18. However, we believe that worst would be behind for both JLR and standalone operations. JLR in particular should see revival in margins as gains of the currency movement should start offsetting the losses on the hedge book in higher proportions. We find the valuations attractive at FY19E P/E of 11.2x. We maintain BUY with a revised price target of Rs 510.
11:30 AM Markets check
At 11:30 am, the Sensex was trading at 31,722, down 75 points, while the broader Nifty50 was ruling at 9,885, down 22 points.
Natco Pharma bucks trend among pharma stocks
Natco Pharma extended losses for the third straight session and tanked over 15% to Rs 671 even as 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.
Broader markets underperform
The BSE Midcap and the BSE Smallcap indices underperformed benchmarks to trade over 1% lower.
10:34 AM Tata Motors, Tata Motors DVR extend losses, hit 52-week lows
Tata Motors (down 6% to Rs 393) and Tata Motors DVR (down 7% to Rs 226) have hit their respective fresh 52-week lows after Tata Motors reported disappointing April-June quarter (Q1FY18) performance with sharp fall in operational performance of Jaguar Land Rover (JLR). READ MORE HERE
Hindustan Unilever, Asian Paints in Forbes' top 10 innovative firms list
Three Indian firms — Hindustan Unilever, Asian Paints and Bharti Airtel — are among Forbes' list of the world's 100 most innovative companies, where Salesforce.Com has replaced Tesla Motors on the top position. CLICK HERE TO READ MORE
SIS IPO lists
Security and Intelligence Services (India) Ltd (SIS) made a decent debut, listing at Rs 879 on the National Stock Exchange (NSE), 8% premium against its initial public offer (IPO) price of Rs 815 per share.
9:43 AM PPF or debt MFs? Where to invest in a falling interest rate scenario CLICK HERE FOR THE BS SPECIAL
Sebi ban on shell firms
Legal and corporate governance experts are having a tough time fleshing out the ambiguities in the definition of a shell company, following the Securities and Exchange Board of India’s (Sebi’s) decision to restrict trading in 331 of them. READ FULL REPORT HERE
9:35 AM Nifty Pharma snaps six-session long losing streak
9:33 AM Nifty Pharma sole sectoral gainer among NSE indices
9:29 AM Top Sensex gainers and losers
Tata Motors tanked over 5% to Rs 393 on the BSE after the auto major posted a 41.6% growth in profit at Rs 3,200 crore, against Rs 2,260 crore it posted in the same quarter last financial year. The fall came as without the one-time gain of Rs 3,609 crore that came from changes in JLR’s pension plans, the company would have reported a loss on forex impact. CLICK HERE FOR DETAILED EARNINGS
9:20 AM Markets at open
At 9:19 am, the Sensex was trading at 31,667, down 130 points, while the broader Nifty50 was ruling at 9,863, down 44 points.
Nifty outlook by Prabhudas Lilladher
Nifty now gets into the bear grip whereby the sentiment is now corrective with indices showing signs of fatigue at these levels and now the fear of weekly trend too turning down would further bring a corrective bias. The support for the day is seen at 9,860 while resistance is seen at 9,950.
Nifty outlook by Angel Broking
Traders are advised not to create longs in the index and in fact, use any bounce back towards 9,960-9,990 to move out of existing positions. On the flipside, this corrective move is now likely to extend towards 9,870-9,820 levels. One of the notable observations is that the individual stocks have now started experiencing
massive profit-booking and hence, traders are advised to be very cautious and needs to be selective while picking a stock.
The Nifty futures open interest has increased by 1.31%. BankNifty futures open interest has decreased by 5.15% as market closed at 9908.55 levels.
The Nifty August future closed with a premium of 18.65 points against the premium of 20.90 points in last trading session. The September series closed at a premium of 51.60 points.
The Implied Volatility of at the money options has increased from 10.51 to 11.37. At the same time, the PCR-OI of Nifty has decreased from 1.15 levels to 1.13.
Few of the liquid counters where we have seen high cost of carry are IDFC, ADANIPOWER, CENTURYTEX, IFCI and HDIL
Source: Angel Broking
Sensex, Nifty open flat in pre-open trade. The Sensex was trading at 31,811, up 13 points, while the broader Nifty was up 51 points at 9,960.
NIFTY BANK OUTLOOK FROM ANGEL BROKING
The index breached the '20 DEMA' with a gap on Wednesday and continued the corrective move seen in the previous session. As also mentioned in our yesterday's report, the index has given a breakdown from a 'Head & Shoulders' reversal pattern on the hourly chart which is a negative sign.
For intraday, the support for the index is placed around our earlier mentioned target of 24200. We may see some pullback move from the mentioned support and the index could trade in the range of 24200-24600 for next couple of sessions.
We continue with our advise to remain cautious and trade in stock specific move with proper risk management. The intraday support for the Nifty Bank index is placed in the range of 24150-24200 whereas resistances are seen around 24525 and 24600
Gold inches down from near-two month high
Gold prices edged lower early Thursday, moving away from near two-month highs hit in the previous session as safe haven demand triggered by rising tensions in the Korean peninsula eased.
Spot gold fell 0.2% to $1,275.10 per ounce. The precious metal rose 1.3% in the previous session, its biggest gain since mid-May, and touched $1,278.66 an ounce, it highest level since June 14.
MARKET OUTLOOK FROM ANAND RATHI RESEARCH
The momentum indicator MACD has also gone into sell mode which is a confirmation of a trend reversal. Now, just a close below its crucial levels is required i.e. a close below 9900 levels will confirm trend reversal for the target of 9700 levels.
We have been saying that the range for the Index is 9900-10150 levels, hence a reversal form upper end of the trend will definitely get it to the lower end of the trend.
From hereon, 9900 levels on closing basis must be watched, as a close below those levels will lead to a trend reversal, hence any bounce thereafter should be utilised as a shorting opportunity for the target of 9700 levels with a reversal then pegged above 10050 levels. It will be interesting to watch whether the Index closes below 9900 levels or bounces back from those levels.
Oil futures inched down despite official figures showing U.S= crude inventories fell more than expected, with an analyst saying the market had settled into a range.
Brent crude, the global benchmark, was down 4 cents, or 0.1% at $52.66 after earlier trading as high as $52.80. It closed up 1.1% on Wednesday, snapping two days of declines. US West Texas Intermediate (WTI) crude was down 3 cents at $49.52, after rising to $49.69 earlier. The contract gained 0.8% in the previous session.
8:55 AM Prabhudas Lilladher is bullish on Asian Paints, Infosys and Bank of India. Check out why
8:54 AM Sebi ban on shell companies: Why investors should be worried READ MORE HERE
8:53 AM We remain bearish on Nifty for August series: Sacchitanand Uttekar CLICK HERE FOR MORE
Stocks to watch
Aurobindo Pharma, Tata Motors, Fortis Healthcare, Bank of India, Tata Chemicals, Reliance Communications, Ashok Leyland, Lupin and Union Bank
8:52 AM Market may be headed for a deep correction, writes Devangshu Datta CLICK HERE TO READ
COMMENT: Amar Ambani, head of research, IIFL
The weakness in equity markets across the world is set to continue for a while. North Korea continues to build long-range missiles, which could potentially reach the mainland United States. Reports suggest North Korean military is examining a plan to fire missiles targeted at the waters off Guam, a military base of US.
Meanwhile, Trump has upped his verbal tone suggesting ‘fire and fury’ if North Korean threats against US continue. The outlook is a cautious start with a weak bias even as main indices continue to struggle this week.
Market regulator SEBI has given a week's time to stock exchanges to check about the authenticity of the shell companies identified and submit their report. Security and Intelligence Services (SIS) is set to list on the bourses today
NSE statement on shell companies
SEBI has directed exchanges to shift 331 companies to the Graded Surveillance Measure, Stage VI, with immediate effect. Of these 331 companies , only 48 are listed on NSE. Of these 48 companies, 10 companies were suspended prior to this directive of SEBI.
SEBI has asked NSE to seek documents from these 48 companies and verify the credentials and fundamentals of these companies. The exchange has already commenced the process of collecting information, as advised by SEBI and will be reporting to SEBI after completing the exercise.
Asian stocks steadied and US Treasury bond prices fell slightly on Thursday as the risk aversion triggered by the latest flare up of tensions between the United States and North Korea began to settle.
MSCI's broadest index of Asia-Pacific shares outside Japan stood little changed after dropping 0.6% the previous day. Japan's Nikkei rose 0.2% and Australian shares gained 0.1% South Korea's KOSPI was little changed.
Wall Street ends marginally lower
US stocks clawed back losses late on Wednesday as investors appeared to brush off geopolitical concerns after falling in the wake of US President Donald Trump's "fire and fury" warning to North Korea. The Dow Jones Industrial Average fell 36.64 points, or 0.17% to end at 22,048.7, the S&P 500 lost 0.9 point, or 0.04% to 2,474.02 and the Nasdaq Composite dropped 18.13 points, or 0.28% to 6,352.33.
Singapore Nifty indicates lower opening for markets
At 8:40 am, SGX Nifty, Nifty futures listed on Singapore Stock Exchange, were trading at 9,887, down 30 points or 0.31%.
8:43 AM Good Morning!
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First Published: Thu, August 10 2017. 15:34 IST