MARKETS ON THURSDAY: Indices end lower, Nifty below 10,700; IT stocks fall

Benchmark indices declined on Thursday, dragged down by IT and pharma stocks

3:48 PM

Market rundown by Anand James, Chief Market Strategist, Geojit Financial Services

 

"Market remained volatile throughout as US china talks rekindled fears of escalation of trade war. This meant that profit booking persisted, even in an otherwise buoyant IT sector, resigning Nifty to languish around the 10700 level. Expectation is that positive FOMC outcome and earnings positivity will seek to extend markets’ uptrend, but FII’s persistent remains a concern."

3:41 PM

Nifty IT index ends 2.04% lower. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
HCL TECHNOLOGIES	925.70	1000.50	-74.80	-7.48
MINDTREE	1031.85	1051.65	-19.80	-1.88
WIPRO	271.45	275.55	-4.10	-1.49
TECH MAHINDRA	652.95	662.55	-9.60	-1.45
INFIBEAM INCORP.	162.85	164.85	-2.00	-1.21

3:38 PM

Nifty sectoral gainers and losers of the day

3:36 PM

BSE Sensex: Sun Pharma, Tata Steel among top gainers of the day, Asian Paint among top loser

3:34 PM

Market at close

 

The S&P BSE Sensex ended at 35,103, down 73 points while the broader Nifty50 index settled at 10,680, down 38 points.

3:16 PM

Gold extends gains; all eyes on US-China trade talks

Gold prices rose for a second session on Thursday after the U.S. Federal Reserve held interest rates steady as expected at the end of a two-day policy meeting, while investors awaited U.S.-China trade talks.

 

Spot gold rose 0.2 percent to $1,307.05 per ounce. U.S. gold futures for June delivery rose 0.2 percent to $1,307.60 per ounce. READ MORE

 

3:00 PM

Bayer cuts full-year earnings guidance on strong euro

Bayer said the pressure from a stronger euro on overseas revenues would translate into a decline in earnings this year, as it prepares to close its $62.5 billion takeover of U.S. seeds maker Monsanto this quarter.

Earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for one-offs, are now set to decline by a low single-digit percentage rather than coming in flat as previously forecast, it said in a statement on Thursday. READ MORE

2:47 PM

Volume Toppers

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
PC JEWELLER	111.75	1.10	0.99	16818944
HIND.CONSTRUCT.	18.15	-5.20	-22.27	7094852
REL. COMM.	15.25	-0.80	-4.98	6117869
SPICEJET	122.95	-8.95	-6.79	4886062
JP ASSOCIATES	19.30	-0.35	-1.78	3243724

2:35 PM

TeamLease Services hits record high; stock surges 50% in two months

 

Shares of TeamLease Services hit a record high of Rs 3,042 per share, up 12% on the BSE in otherwise subdued market. The stock surpassed its previous high of Rs 2,948 touched on April 25, 2018 in intra-day trade.

 

In past two months, the stock rallied 50% from Rs 2,033 after the Reserve Bank of India (RBI) raised the investment limit for foreign portfolio investors (FPIs) in the company to 75%. On comparison, the S&P Sensex was up 3.35% during the same period. READ MORE

2:15 PM

PC Jeweller turns volatile on reports of CBI arresting its owner

Shares of PC Jeweller have turned volatile gaining more than 30% from its intra-day low on the National Stock Exchange (NSE). The stock opened 9% lower at Rs 101, slipped 15% in intra-day deal to Rs 95, hitting fresh 52-week low. At around 11:32 am; it bounced back to Rs 127, up 34% from its intra-day low, the exchange data shows. READ MORE

1:59 PM

Market Check

 

S&P BSE Sensex	35,161.68		-0.04%
Nifty 50	10,694.25		-0.22%
S&P BSE 200	4,681.20		-0.38%
Nifty 500	9,398.45		-0.49%
S&P BSE Mid-Cap	16,645.90		-1.00%
S&P BSE Small-Cap	18,048.14		-0.78%

1:50 PM

Axis Bank ratings unaffected by sharp rise in non-performing assets: S&P

Global rating agency Standard and Poor's (S&P) on Thursday said rating assigned to various instruments issued by Axis Bank were unaffected by the sharp rise in its non-performing assets. The increase in bad loans was part of a balance sheet clean-up exercise underway in the Indian banking system, the rating agency said. READ MORE

1:35 PM

Demonetisation, GST impact: India is fast ceding gold market share to China

India is fast losing its gold market share to China. And, from that perspective, the January-March period of 2018 has been the worst for India’s share of the global yellow metal demand.

 

According to the World Gold Council’s gold demand trend report for the March quarter, released on Thursday, total global consumer gold demand (jewellery and investment) in 2017 stood at 3,198.6 tonnes, two per cent lower than that in 2010. India’s share of the 2010 demand, at 1,001.7 tonnes, was 31 per cent of the total; and China’s was 29.7 per cent. In 2017, while China’s share of the total demand increased to 31.6 per cent, India’s fell to 23 per cent. READ MORE

1:22 PM

Markets are not factoring in Karnataka poll outcome yet, say analysts

Markets have not yet priced in the possibility of a loss for the Narendra Modi-led Bharatiya Janata Party (BJP) in the upcoming assembly election in Karnataka. Though analysts expect a knee-jerk reaction to the outcome on May 15, they believe the markets will start focussing on other global and domestic events soon after.

Nilesh Shah, managing director at Kotak Mahindra Mutual Fund believes the S&P BSE Sensex could dip sharply if the BJP loses Karnataka. He, however, expects the recovery to be equally swift. A win, on the other hand, could take markets higher. READ MORE

Prime Minister Narendra Modi with BJP workers at an election campaign rally, ahead of Karnataka polls, in Udupi on Tuesday. PTI Photo

1:05 PM

In Modi's 4 years, India forgot that crude is the biggest bond vigilante

The 10-year U.S. bond yield breaking through the 3 percent danger level worries India, as it does every emerging market. Still, the price that sends policymakers in New Delhi and Mumbai into paroxysm isn’t that of global capital, but of a commodity: oil.

 

With Brent crude flirting with $75 a barrel, the panic is already beginning to show. Crucial state polls in Karnataka are due next week and general elections are only a year away. No surprise then that the Indian government appears to have instructed state-run oil marketers who control most retail sales not to raise pump prices. READ MORE

12:46 PM

BSE board likely to discuss charges against chairman Sethurathnam Ravi

The BSE plans to discuss the ongoing investigation against its chairman, Sethurathnam Ravi, named in the Central Bureau of Investigation’s (CBI’s) First Information Report in connection with the alleged ~6 billion IDBI-Aircel loan fraud. The board of directors of the exchange will meet on Friday to declare the March quarter results.

 

The CBI has registered a case against 38 people, including former Aircel promoter C Sivasankaran, his company’s executives, along with some of the public interest directors including Ravi, appointed by regulators. READ MORE

12:33 PM

After banks and equity players, DSP, Mirae join race for IDFC AMC

After banks and private equity players, two more entities — the DSP Group and Mirae Asset Global Investments (India) — have thrown their hats in the ring to acquire IDFC Asset Management Company (AMC).

 

The DSP Group is one of the oldest financial services firms in India and is headed by veteran investment banker Hemendra Kothari. Notably, DSP Group has also separately entered into talks to sell its 60 per cent stake in DSP BlackRock to its joint venture partner BlackRock. READ MORE

12:16 PM

HCC, Siemens, Mahanagar Gas, Suzlon Energy, Idea Cellular hit 52-week lows

Hindustan Construction Company (HCC), Mahanagar Gas, Suzlon Energy, Idea Cellular, Vakrangee and PC Jeweller among 21 stocks from the S&P BSE500 index hitting 52-week lows on the BSE.
 

Bharat Electronics, Chennai Petroleum Corporation Limited (CPCL), DCM Shriram, Allcargo Logistics, Siemens, Sintex Industries, Uco Bank and Syndicate Bank were among 22 stocks from the index too hit 52-week lows today. READ MORE

11:59 AM

Market Check

 

S&P BSE Sensex	35,058.92		-0.33%
Nifty 50	10,665.10		-0.49%
S&P BSE 200	4,664.81		-0.73%
Nifty 500	9,373.15		-0.76%
S&P BSE Mid-Cap	16,598.42		-1.28%
S&P BSE Small-Cap	17,978.77		-1.16%

11:40 AM

Top BSE500 losers

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
HIND.CONSTRUCT.	19.35	-4.00	-17.13	5072337
INTERGLOBE AVIAT	1183.20	-165.05	-12.24	522982
JET AIRWAYS	538.75	-54.15	-9.13	426495
SIEMENS	1032.00	-95.90	-8.50	67743
RADICO KHAITAN	389.00	-35.00	-8.25	400117

 

11:31 AM

HCL Technologies falls 12% in two days on weak FY19 revenue guidance

 

Shares of HCL Technologies have dipped 7% to Rs 924 per share on the BSE in early morning trade, extending their 5% fall on Wednesday as weak organic growth guidance raised concerns, according to analysts.

 

For the current financial year 2018-19 (FY19) HCL Tech has guided for constant currency (CC) revenue growth of 9.5%-11.5% (10.5%-12.5% in USD terms) and EBIT (earnings before interest and tax) margin guidance of 19.5%-20.5%. READ MORE

11:14 AM

Xiaomi files for world's biggest IPO since Alibaba, may raise over $10 bn

 

Xiaomi Corp. became the first major company to use Hong Kong’s new rules for going public, filing for what’s expected be the world’s biggest debut since 2014.

 

The Chinese smartphone maker is taking advantage of changes in the former British colony that mean companies with different share classes can now list in the city. While the filing didn’t say how much Xiaomi is looking to raise in the initial public offering, it’s expected to be at least $10 billion, people with knowledge of the matter have said, and could value the business as high as $100 billion.READ MORE

11:00 AM

Telecom: Where is the money?

The telecom sector continues to be a source of concern. Almost every company posted poor results. Airtel had net profits of Rs 830 million in the fourth quarter, a steep fall from the Rs 3.7 billion in net profits that it had posted a year ago. This was its worst quarter in 15 years.

 

Airtel saw a steep fall in revenues, both in India and in its overseas operations. Consolidated revenues fell by 10.5 per cent, while India-mobile revenues dropped by 20 per cent year-on-year. It did add 14 million Indian mobile customers during the quarter. The India business lost Rs 7.6 billion. READ MORE

10:48 AM

Airline stocks fall on weak InterGlobe Aviation results; IndiGo tanks 18%

Shares of airline companies - InterGlobe Aviation (IndiGo), Jet Airways and SpiceJet – have tanked up to 18% after the IndiGo reported weak set of numbers for the quarter ended March 2018 (Q4FY18).

 

IndiGo plunged 18% to Rs 1,111 on the BSE after the company reported a sharp 73% decline in net profit to Rs 1.17 billion for the March quarter (Q4FY18), due to higher fuel costs and adverse forex exchange positions. The country’s largest airline had profit of Rs 4.4 billion in year ago quarter. READ MORE

IndiGo.

10:33 AM

Rising economic tide doesn't lift all boats, Indian market veteran cautions

Sustained 7 per cent-plus economic growth may sound like a great recipe for stock-market returns, but investors looking at a country like India still need to do their homework.

 

A quick look at the automobile industry shows why. While India’s vehicle production has climbed about 25-fold over the past quarter century, the two major players in the market as of the mid-1990s -- Hindustan Motors Ltd. and Premier Ltd. -- barely register today. It’s a cautionary tale that a rising economic tide doesn’t necessarily lift all boats, highlighted by local-market veteran Prateek Agrawal. READ MORE

10:15 AM

Biocon dips 4% on seven USFDA observations for Bengaluru drug facility

Shares of Biocon have dipped 4% to Rs 634 per share on the BSE in early morning trade on Thursday after the biotechnology major on Wednesday said that US health regulator has made seven observations after inspection of its sterile drug product manufacturing facility in Bengaluru this week. READ MORE

10:00 AM

Market Check

 

S&P BSE Sensex	35,134.59		-0.12%
Nifty 50	10,694.45		-0.22%
S&P BSE 200	4,685.02		-0.30%
Nifty 500	9,409.40		-0.37%
S&P BSE Mid-Cap	16,725.14		-0.53%
S&P BSE Small-Cap	18,077.15		-0.62%

9:45 AM

Multi-year high margins lend comfort to Dabur; demand and sales to rise

The Dabur stock recorded a 52-week high at Rs 382.3 in Wednesday's trade, after the company posted its highest operating profit margin of 23.9 per cent, up 206 basis points (bps) year-on-year (y-o-y), in the March quarter. This was led by cost management and an improved product mix.

 

Operating expenses (excluding finance costs and depreciation) as a proportion of sales fell to 76 per cent, among its lowest; it was 78 per cent in the year-ago quarter. A fall in cost of raw material consumption propelled the gross margin, which expanded by 167 bps to 50.7 per cent. The management foresees a stable gross margin in 2018-19. It believes price hikes, if required, will help neutralise any inflationary pressure. READ MORE

9:29 AM

IndiGo Q4 profit plunges 73% on higher expenses at Rs 1.18 billion; stock down 10%

9:18 AM

Sectoral Trend