MARKETS ON FRIDAY: Indices decline for 4th session, Sensex down 301 pts

Benchmark indices declined for a fourth straight session on Friday, amid caution over uncertainty over the formation of government in Karnataka,

3:41 PM

Nifty PSU Bank index ends 1.65%. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
ALLAHABAD BANK	37.80	39.75	-1.95	-4.91
ORIENTAL BANK	75.40	78.85	-3.45	-4.38
IDBI BANK	60.45	62.55	-2.10	-3.36
SYNDICATE BANK	43.30	44.80	-1.50	-3.35
ANDHRA BANK	34.35	35.35	-1.00	-2.83

3:35 PM

Nifty sectoral gainers and losers

3:33 PM

BSE Sensex: Top gainers and losers of the day

3:31 PM

Market at close

 

The S&P BSE Sensex ended at 34,848, down 301 points while the broader Nifty50 index settled at 10,605, down 78 points.

3:25 PM

Strides Shasun tanks 25% on weak Q4 results

Shares of Strides Shasun have tanked 25% to Rs 378 per share, also their 52-week low on the BSE after the company reported a consolidated net loss of Rs 44 million in March 2018 quarter (Q4FY18). The pharmaceutical company reported its first quarterly loss since September 2014 quarter. It had posted a net profit of Rs 916 million in Q4FY17. Revenue from operations during the quarter under review declined 1.9% to Rs 6.64 billion from Rs 6.77 billion in the corresponding quarter of previous fiscal. READ MORE

3:13 PM

EARNINGS IMPACT

Bajaj Auto share price gained more than a percent after reporting better-than-expected earnings for the March quarter.

 

Profit for the quarter grew by 34.7% year-on-year to Rs 10.80 billion and revenue rose by 38.3% to Rs 67.73 billion.Operating profit jumped 45.2% to Rs 13.15 billion for the quarter and margin expanded 90 basis points to 19.4% compared to year-ago.

3:00 PM

BUZZING STOCK

Biocon gained 1% after the company sold close to 2% stake in its research arm Syngene International for an estimated Rs 230 crore. 

 

"Biocon, the promoter of Syngene International, on May 16, 2018 has sold 37,65,574 equity shares amounting to 1.88% of the equity share capital of Syngene through open market sale," Biocon said in a regulatory filing.

2:46 PM

Funds will stick to duration norms, but may take credit risk

 

In the recent re-categorisation of schemes that fund houses have undertaken in response to the Securities and Exchange Board of India’s (Sebi’s) October circular, many debt and hybrid funds have been shuffled around. Investors need to understand the change that has happened in the funds they hold and only then decide whether to stay put or exit and move to another fund.

 

Among debt funds, a large number of categories, 16, have been created. In the very short-duration segment, only liquid funds existed earlier, which invested in papers with a maturity of up to 91 days. READ MORE

2:30 PM

Avenue Supermarts falls 8% as Radhakishan Damani plan to sale upto 1% stake

 

Avenue Supermarts, which operates the chain of D-Mart stores, dipped 8% to Rs 1,379 on the BSE in noon deal after the company said the promoter Radhakishan Shivkishan Damani propose to sell upto 1% stake in the company in the open market for achieving minimum public shareholding.

 

“Mr.Radhakishan Shivkishan Damani, one of our promoters has conveyed to us his intention to sell the equity shares of face value of Rs 10 each of the Company to enable us to comply with the requirements of minimum public shareholding,” Avenue Supermarts said in a BSE filing. READ MORE

2:16 PM

Ahead of IPO, Unit Trust of India moves to clear pension hurdle

 

Nearly 800 former employees of the erstwhile Unit Trust of India (UTI) might be a step closer to securing a resolution on a matter that has been hanging fire for more than 15 years.

 

In a meeting held recently, the board of directors at UTI MF, the country’s sixth-largest asset manager, discussed the long-pending demand for providing pension to its erstwhile employees who had opted for voluntary retirement in 2003, said two people familiar with the matter. READ MORE

2:00 PM

Market Check

S&P BSE Sensex	34,889.12		-0.74%
Nifty 50	10,615.20		-0.63%
S&P BSE 200	4,605.68		-0.83%
Nifty 500	9,231.90		-0.78%
S&P BSE Mid-Cap	15,943.44		-1.18%
S&P BSE Small-Cap	17,415.30		-1.12%

1:45 PM

ADAG stocks tumble

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)	VOLUME
RELIANCE NAV.ENG	15.95	16.90	-0.95	-5.62	11946264
RELIANCE POWER	34.30	35.60	-1.30	-3.65	2100655
REL. COMM.	16.00	16.55	-0.55	-3.32	54377986
RELIANCE CAPITAL	384.00	392.25	-8.25	-2.10	510899
RELIANCE INFRA.	392.45	396.75	-4.30	-1.08	171707

1:31 PM

Nifty PSU Bank hits fresh 52-week low; BOB touches over 2-yr low of Rs 126

 

Shares of public sector undertaking (PSU) banks are trading lower for the fourth straight trading days with Nifty PSU Bank index hitting fresh 52-week low on the National Stock Exchange (NSE) on Friday. READ MORE

1:15 PM

Four years of Modi govt: Market return improves but still below UPA's

 

The benchmark Sensex has delivered 42 per cent return in the four years of the Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA). The returns are slightly below the previous government—Congress-led United Progressive Alliance (UPA), when Sensex had gone up nearly 45 per cent.

 

Among the seven governments, to have competed four years, this is the second-worst return. The worst returns were under the Atal Bihari Vajpayee-led NDA government, which had assumed office in October 1999. READ MORE

1:00 PM

Microfinance to be half of Ujjivan's business in 5 yrs, says MD & CEO Ghosh

 

A well-run non-banking company has better margins than a bank, but the objective of setting up Ujjivan was to provide comprehensive financial inclusion, Ujjivan Small Finance Bank MD & CEO Samit Ghosh tells Anup Roy in an interview. Read full interview here

12:46 PM

Fitch says emerging markets vulnerable as debt balloons to $19 trillion

 

Debt levels that quadrupled in a decade have made emerging markets (EMs) vulnerable to tightening financial conditions in the era of rising US interest rates, Fitch Ratings said.

 

Outstanding debt securities from developing nations have ballooned to $19 trillion from $5 trillion a decade earlier, the credit-rating company said in a report. Despite the development of local-currency bond markets, borrowers will be hobbled by higher external borrowing costs, a stronger dollar and slowdown of capital inflows, it said. Fitch estimates the Federal Reserve will raise rates at least six times by the end of next year. READ MORE

12:31 PM

SRF falls 11% on disappointing Q4 results

SRF dipped 11% to Rs 1,997 on the BSE in early morning trade after the company reported a consolidated net profit of Rs 1.24 billion against an average analyst estimates of Rs 1.41 billion for the quarter ended March 2018 (Q4FY18). The company had profit of Rs 1.29 billion in the same quarter year ago. READ MORE

12:14 PM

Why RBI putting state-run banks under PCA does not panic depositors

 

If the Reserve Bank of India puts Punjab National Bank (PNB), along with Canara Bank and Union Bank of India, under the so-called Prompt Corrective Action (PCA), the financial sector equivalent of intensive care unit, close to 14 per cent of the total banking credit could be potentially impacted. Of these, PNB accounted for 5.49 per cent as at the end of financial year 2016-17. READ MORE

12:02 PM

Markets Check

 

S&P BSE Sensex	34,983.10		-0.47%
Nifty 50	10,641.40		-0.39%
S&P BSE 200	4,621.90		-0.48%
Nifty 500	9,264.75		-0.43%
S&P BSE Mid-Cap	16,051.46		-0.51%
S&P BSE Small-Cap	17,526.99		-0.48%

11:43 AM

JUST NOW

The Supreme Court on Friday held a hearing in the Karnataka government formation matter, directing that the Bharatiya Janata Party (BJP) leader and the state's new chief minister, B S Yeddyurappa, must conduct the floor test tomorrow at 4 pm. 

11:33 AM

Bharti Airtel falls for sixth straight trading day; stock hits 52-week low

 

Bharti Airtel hit a 52-week low of Rs 356, down 3%, falling for the sixth straight trading days on the BSE, after Reliance Jio Infocomm (RJio) announced a new unlimited postpaid plan on Thursday May 10, with national roaming, international calling and international roaming plans among others.

 

The stock of telecom services has fallen 13.6% in past six trading sessions as compared to 0.65% decline in the S&P BSE Sensex. Bharti Airtel has lost Rs 218 billion market capitalistion during the period. READ MORE

11:14 AM

Top BSE500 losers

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
SRF	2040.00	-191.90	-8.60	31299
JYOTHY LAB.	437.75	-32.25	-6.86	46583
VOLTAS	543.50	-40.05	-6.86	396388
PARAG MILK FOODS	350.40	-22.00	-5.91	96963
VAKRANGEE	51.50	-2.70	-4.98	21561

11:01 AM

Escorts: Strong volume growth across its three segments aid Q4 show

 

Helped by strong volume growth across its segments of tractors, railways and construction equipment, Escorts reported a 40 per cent year-on-year (y-o-y) jump in revenues for the March quarter (Q4). The performance, marginally lower than estimates, was led by the tractor segment, which accounts for three-quarters of the firm’s revenues and over 86 per cent of the segment’s profits.

 

Tractor volumes were up 57 per cent y-o-y, though realisations came in lower compared to Q3, given the launch of products in the lower horse power and compact segments. READ MORE

10:46 AM

Voltas declines 8% post Q4 results

Shares of Voltas have declined by 8% to Rs 539 per share on the BSE in early morning trade after the company reported 3% decline in its consolidated net profit at Rs 1.94 billion in March quarter (Q4FY18), due to poor performance of the engineering products and services business. The Tata Group company had profit of Rs 2 billion in the same quarter last fiscal. Gross revenue of the company during quarter under review remained flat at Rs 20.21 billion over the previous year quarter. READ MORE
 

10:31 AM

US 10-yr treasuries hit 7-yr high, selloffs continues as oil tops $80 a bbl

Yields on benchmark 10-year U.S. Treasuries rose on Thursday to their highest level in about seven years, extending this week's bond market selloff and pushing the U.S. dollar to a four-month peak against the yen.

 

Oil prices topped $80 a barrel for the first time since November 2014 before pulling back. READ MORE

10:14 AM

RCom up 108% from Wednesday's low on buzz of settlement talks with Ericsson

Shares of Reliance Communications (RCom) have rallied 25% to Rs 20.65 per share on the BSE in early morning trade, surging 108% from its Wednesday’s intra-day low of Rs 9.95 after a media report suggested that the Anil Ambani-led telecom services company and Ericsson inform National Company Law Tribunal (NCLT) in Mumbai that they are in settlement talks. READ MORE
 

10:03 AM

Market Check

 

S&P BSE Sensex	35,018.14		-0.37%
Nifty 50	10,650.25		-0.30%
S&P BSE 200	4,629.13		-0.32%
Nifty 500	9,278.75		-0.28%
S&P BSE Mid-Cap	16,109.01		-0.15%
S&P BSE Small-Cap	17,564.85		-0.27%

9:45 AM

India may see $460 mn outflows after MSCI rebalancing: JP Morgan

India could see a net passive outflow of $459 million due to reduction in the MSCI India weight in MSCI Emerging Markets Index, after the May semi-annual index review, according to JPMorgan. The weight in MSCI EM would drop 14 basis points (bps) to 8.18 per cent after the MSCI rebalance and China A-shares’ 2.5 per cent inclusion in MSCI EM, the brokerage said in a note.
 

9:31 AM

MUST READ Rising oil prices a key threat to Indian equities, says CLSA's Chris Wood

The main risk to investors in Indian equities, from a US dollar return perspective remains the rising oil price, writes Christopher Wood, managing director, equity strategist at CLSA in his weekly note GREED & fear.

 

Prices for global benchmark Brent crude shot above $80 a barrel Thursday, as Washington’s decision to reinstate sanctions on Iran extended a rally that has pushed the market to their highest level since 2014. In the past one year alone, Brent oil price has flared over 56 per cent, data shows. READ MORE

CLSA Managing Director & Equity Strategist Christopher Wood

9:19 AM

Sectoral Trend