MARKET WRAP: Sensex slips 262 points as US-China trade war fears escalate

Among sectoral indices, the Nifty Metal index hit an over 8 month low earlier today led by a sharp fall in the shares of SAIL, Jindal Stainless (Hisar) and NMDC. It eventually settled over 1.5% lower.

3:48 PM

Nifty Metal index ends 1.57% lower. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
S A I L	82.85	86.95	-4.10	-4.72
JINDAL STAIN .HI	156.00	162.70	-6.70	-4.12
NMDC	107.90	112.05	-4.15	-3.70
VEDANTA	224.05	232.20	-8.15	-3.51
JINDAL STEEL	222.25	229.55	-7.30	-3.18

3:44 PM

Nifty Realty index ends 2% lower. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
GODREJ PROPERT.	732.80	758.65	-25.85	-3.41
INDBULL.REALEST.	165.00	170.25	-5.25	-3.08
H D I L	22.00	22.65	-0.65	-2.87
PHOENIX MILLS	629.70	647.70	-18.00	-2.78
BRIGADE ENTERPR.	235.10	241.40	-6.30	-2.61

3:42 PM

Sectoral gainers and losers of the day

3:40 PM

BSE Sensex: ITC top gainer of the day, Vedanta, Sun Pharma, infosys among top losers

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 35,287, down 262 points while the broader Nifty50 index settled at 10,710, down 89 points.

3:17 PM

Nifty Metal index hits over 8-month low; Vedanta, NMDC slip nearly 4%

Shares of metal companies were under pressure with the Nifty Metal index hitting an over eight month low on the National Stock Exchange (NSE). Vedanta, Jindal Steel & Power, Hindalco Industries, Steel Authority of India (SAIL), NMDC and Hindustan Copper were trading 2% to 4% lower on the NSE. READ MORE

3:04 PM

ICICI Bank: Chanda Kochhar is no longer the boss and won't be missed

Chanda Kochhar, the chief executive officer of India’s second-biggest lender, has left the building, and her new deputy should waste no time in letting stakeholders know who the real boss is: It’s him. READ MORE

2:47 PM

Mutual fund managers go 'bottom up' in May: All you need to know

While mutual fund managers pumped Rs 136 billion into stocks in May the buying wasn’t across the board. Changes to portfolio holding suggest fund managers have been following bottom-up approach for stock picking amid spike volatility in May. READ MORE
 

2:30 PM

RBI may raise rates again by year-end but August hike still in play: Poll

The Reserve Bank of India (RBI) is expected to raise interest rates again in the final three months of this year, according to a Reuters poll of economists, but over one-third of them predicted a hike as early as at the next meeting in August.

 

Accelerating inflation and India retaining top spot as the fastest-growing major economy prompted the RBI to lift the repo rate by 25 basis points to 6.25 per cent at the June 4-6 meeting, wrong-footing a slim majority of economists polled by Reuters who had expected no change. READ MORE

2:14 PM

UltraTech Cement, NTPC among 19 stocks in BSE500 that hit their 52-week low

Shares of UltraTech Cement, NTPC, Bharti Infrastructure, Tata Power Company, Vedanta, India Cements and Shree Cement were among 19 stocks from the S&P BSE 500 index hitting their respective 52-week lows on the BSE.
 

CG Power & Industries, Cummins India, Inox Wind, JK Lakshmi Cement, Kirloskar Oil Engines, Mangalore Refinery Petrochemicals (MRPL), Manpasand Beverages, Motilal Oswal Financial Services and NHPC too hit their respective 52-week lows today. READ MORE

1:59 PM

Market Check

 

S&P BSE Sensex	35,369.34		-0.50%
Nifty 50	10,732.80		-0.62%
S&P BSE 200	4,640.55		-0.66%
Nifty 500	9,249.55		-0.74%
S&P BSE Mid-Cap	15,827.49		-0.91%
S&P BSE Small-Cap	16,631.61		-1.18%

1:45 PM

Top Nifty50 losers

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)	VOLUME
VEDANTA	223.65	232.20	-8.55	-3.68	16348722
I O C L	169.00	173.90	-4.90	-2.82	5711710
B P C L	411.25	423.10	-11.85	-2.80	2431121
HINDALCO INDS.	225.00	231.00	-6.00	-2.60	6593420
H P C L	314.00	322.10	-8.10	-2.51	4153012

1:30 PM

Growing balance sheet may not be easy for gold loan companies

 

Stocks of Muthoot Finance (Muthoot) and Manappuram Finance (Manappuram) are down 10-12 per cent in the past one month. Besides overall volatility in the market, lower gold prices and rising competition impacted investor sentiment.

 

These factors may keep a check on stock prices, unless these firms allay market fears with better numbers. “Other companies and banks have also got into gold loan business. READ MORE

1:15 PM

DMart's slowing momentum makes brokerages cautious

The stock of Avenue Supermarts (which runs the DMart chain) is a favourite of investors. Its market capitalisation is higher than the combination of the next 10 listed multi-brand retailers.

 

However, while investor demand has led to the doubling of the stock since its listing, most brokerages are now cautious, barring a few such as Goldman Sachs and HSBC. READ MORE

1:01 PM

Trade war triggers an across-the-board risk aversion to commodities

 

Trade war triggered by the US has hit commodity prices hard, and most of them, including bullion, metals, oil, and even agri-commodities, have fallen to risk aversion. On Friday, US President Donald Trump announced a 25 per cent tariff on up to $50-billion worth of Chinese imports.

 

China immediately retaliated with a similar move. In the last two days, the prices of oil, gold-silver, other metals, and most other commodities fell 2-3 per cent, while cotton prices fell over 5 per cent. READ MORE

12:45 PM

ICICI Bank: Brokerages give thumbs-up to Bakhshi's appointment as COO

Expectation of a change of guard at the helm at ICICI Bank seems to have infused a fresh life into its stock that has gained nearly 2.5 per cent thus far in June, outperforming the S&P BSE Sensex which moved up 0.6 per cent. The banking index on the Bombay Stock Exchange (BSE), the S&P BSE Bankex has, however, lost 1.3 per cent during this period. READ MORE

12:30 PM

Morgan Stanley on Indian markets

The market is recognizing India macro's growing stability, as evidenced by the 37% fall in the country's beta vs. EM since Dec-14 to a 13-year low. The implications include the case for a positive surprise in equity returns for India (as expectations are now low, going by beta's level) with likely outperformance for India vs. EM in a low-return world.

India's falling relative short rates, likely rising relative growth rates and a fall in FPI positioning to 2011 levels add to the outperformance case, in our view. We prefer large-caps over mid-caps. We like Banks (private corporate and retail), Discretionary Consumption, Industrials and Domestic Materials, while avoiding Healthcare, Staples, Utilities, Global Materials and Energy.

Photo: Shutterstock

12:17 PM

Footwear stocks extend rally; Relaxo hits new high, Bata nears record high

Shares of footwear companies were trading higher for the second straight day in a row with Relaxo Footwear hitting new high, while Bata India trading close to its record high on the BSE in an otherwise weak market today.
 

Bata India, Liberty Shoes, Relaxo Footwear, Superhouse and Khadim India were up 1% to 8% on the BSE. READ MORE

12:00 PM

Markets at noon

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	35362.31	35548.26	-185.95	-0.52
	14671.94	14777.60	-105.66	-0.72
	15807.58	15972.10	-164.52	-1.03
	16674.12	16830.67	-156.55	-0.93
	4173.78	4199.91	-26.13	-0.62

11:51 AM

MARKET OUTLOOK UBS Securities

We expect 7-8% cuts to consensus Nifty earnings growth estimate of over 20% for each of FY19 and FY20. With the Nifty trading near its historical high valuations, the market seems to be pricing in a sharper demand recovery than we believe is likely. Our base case/upside/downside scenarios of 10,500/11,900/8,800 imply unattractive risk-reward

11:45 AM

MUST READ Investors score more in PM Modi's rule than under Vajpayee's govt

 

The markets have performed better under the National Democratic Alliance’s (NDA’s) Narendra Modi, as compared to Atal Bihari Vajpayee’s tenure as India’s Prime Minister (PM).

 

The Nifty 50 index (Nifty as it was known then), notched up a gain of 5.7 per cent, while the Sensex lost one per cent on an absolute basis between October 13, 1999, when Vajpaee assumed charge as the PM, and May 19, 2004, when he left office, data shows. READ MORE

11:30 AM

Over half of 2018 IPOs trading below issue price on expensive valuations

 

Several newly listed companies have seen a steep fall in their share prices in the last two months. Shares of 57 per cent of the companies listed in 2018 are currently trading below their issue price.

 

Further, 14 of the 33 companies that listed last year, too, are trading at a discount to their initial public offering (IPO) price. Weakness in the broader markets along with expensive valuations that these companies had commanded during their IPOs has led to this fall, say experts. READ MORE

11:15 AM

NTPC stock: Concerns likely to ease in the coming months

The NTPC stock touched its lowest level in 52 weeks on Friday, and ended on Monday with marginal gains. Concerns over coal availability at some of its power plants has kept the Street worried.

 

If analysts are to be believed, it may be a good time for investors to buy into this correction. While it is too early to comment on the possibility of return on equity (RoE) declining in the new regulatory regime, the low project internal rate of return (12 per cent) against the prevailing cost of equity (11-12 per cent) leaves little room for further cuts. READ MORE

11:01 AM

BS Special Marksheet of market: A half-yearly performance review and what lies ahead

Till end-January 2018, returns in Indian equity markets were very good, driven by a broad-based rally in all sectors, apart from pharma. Companies dealing in industrial commodities and cyclicals, too, saw very good returns in FY 2017-18 (Apr 17 to Mar 18) as commodity prices bounced up from their lows. Also, chemicals companies benefitted from production cuts in China because of environmental concerns. READ MORE
 

10:47 AM

Devangshu Dutta Derivatives strategies: Conflicting signals for market

The Nifty is range-bound. Background signals are conflicting. The VIX is low, indicating traders are not nervous. However, breadth is negative with advances outnumbered by declines. Volumes are middling to low.

 

Geopolitical tensions continue with fears of a trade war involving the US vs China and US versus the rest of the G-7. However, crude oil prices could come down with Russia and Saudi Arabia apparently set to pump more. The Nifty tested 10,900 unsuccessfully on June 13, topping out at 10,893. It has stiff resistance between 10,830 and 10,900. READ MORE

10:31 AM

Borosil Glass Works zooms 20% after its board approves 3:1 bonus issue

Shares of Borosil Glass Works are locked in upper circuit of 20% at Rs 1,064 per share, also their 52-week high on the National Stock Exchange (NSE) after the company said its board has approved issue of bonus shares in the ratio of 3:1 (i.e. 3 equity shares to be issued for every one equity share held). READ MORE

10:16 AM

INTERVIEW OF THE DAY Don't rule out mid- and small-caps altogether, says Rajesh Iyer

Despite the high valuations, opportunities exist in equities across large-,mid-and small-caps, says Rajesh Iyer, MD & CEO of DHFL Pramerica Asset Managers. In an interview with Ashley Coutinho, he adds that markets may witness volatility in the next 6-12 months and investors should stick to quality businesses. CLICK HERE FOR MORE

Rajesh Iyer

10:01 AM

Market Check

S&P BSE Sensex	35,410.20		-0.39%
Nifty 50	10,759.75		-0.37%
S&P BSE 200	4,656.35		-0.32%
Nifty 500	9,290.45		-0.30%
S&P BSE Mid-Cap	15,959.99		-0.08%
S&P BSE Small-Cap	16,779.83		-0.30%

9:46 AM

Financial advisors' body moves Sebi over ban on distributors

The Foundation of Independent Financial Advisors (FIFA) has written to the Securities and Exchange Board of India’s (Sebi’s) mutual fund advisory committee seeking a hearing on a consultation paper issued by Sebi that effectively quashes any possibility of distributors providing advice to their clients. READ MORE

9:30 AM

ICICI Bank appoints Sandeep Bakhshi as COO, Chanda Kochhar goes on leave

 

The board of ICICI Bank has appointed Sandeep Bakhshi whole-time director and chief operating officer (COO) to run the affairs of the private lender. Chanda Kochhar, managing director (MD) & chief executive officer (CEO) will be on leave, pending the probe.

 

The changes come amid allegations of a quid pro quo in transactions between Videocon Industries, Kochhar and her husband Deepak Kochhar’s company NuPower Renewables. READ MORE

 

Stock Impact