Market registers modest losses in broad-based decline

Domestic stocks logged modest losses in volatile session of trade dragged down by slide in index pivotals L&T, Tata Steel and ITC. The barometer index, the S&P BSE Sensex, lost 236.10 points or 0.69% at 33,774.66, as per the provisional closing data. The Nifty 50 index lost 73.90 points or 0.71% at 10,378.40, as per the provisional closing data. Capital goods stocks edged lower. The recent detection of a massive fraud at a Mumbai branch of the state-run Punjab National Bank (PNB) continued to weigh on sentiment.

The Sensex rose 112.20 points or 0.33% at the day's high of 34,122.96 in early trade. The index slumped 456.39 points or 1.34% at the day's low of 33,554.37 in mid-afternoon trade, its lowest level since 6 February 2018. The Nifty gained 37.05 points or 0.35% at the day's high of 10,489.35 in early trade. The index dropped 149.55 points or 1.43% at the day's low of 10,302.75 in mid-afternoon trade, its lowest level since 6 February 2018.

The Sensex provisionally settled below the psychological 34,000 mark after drifting below that level in early trade. A bout of volatility was seen in early trade as the key benchmark indices opened higher but quickly erased gains to sink in the negative zone. Stocks extended slide and hit fresh intraday low in morning trade. Key benchmark indices hovered in negative zone in mid-morning trade. Selling aggravated and indices nosedived to hit fresh day's low in afternoon trade. Domestic stocks continued to languish and hover near intraday low in mid-afternoon trade. Key indices cut losses in late trade.

The S&P BSE Mid-Cap index provisionally declined 1.05%. The S&P BSE Small-Cap index provisionally fell 0.99%. Both these indices underperformed the Sensex.

The broad market depicted weakness. There were over two losers against every gainer on BSE. 2,006 shares fell and 747 shares rose. A total of 160 shares were unchanged.

The total turnover on BSE amounted to Rs 4056.99 crore, lower than the turnover of Rs 4116.26 crore registered during the previous trading session.

Capital goods stocks edged lower. BEML (down 2.47%), ABB India (down 2.11%), Bharat Electronics (down 1.54%), Bharat Heavy Electricals (Bhel) (down 1.11%), and Siemens (down 2.31%) fell. Punj Lloyd (up 1.23%) and Thermax (up 1.82%) rose.

Shares of engineering and construction major L&T dropped 2.18%. The water & effluent treatment business of L&T Construction has secured EPC orders worth Rs 1680 crore from Pune Municipal Corporation for study, survey, investigation, assessment, design validation and revamping of the entire water supply system for Pune city. L&T Construction is the construction arm of L&T. The announcement was made during market hours today, 19 February 2018.

The scope of the project includes supply, laying, testing and commissioning of water transmission pipelines, optical fiber cable ducts, construction of sumps & house service connections along with water audit, non-revenue water reduction, SCADA, bill reading & generation and other associated electromechanical & instrumentation works.

Axis Bank rose 0.57%. The bank said that it has reviewed the marginal cost of funds based lending rate with effect from 17 February 2018. The bank's marginal cost of funds based lending rate (MCLR) for overnight loans will be 7.85%, the rate for one month will be 7.85% and for three months it will be 8.15%. The MCLR on 6-month loans will be 8.3% and for one-year loans the rate will be 8.4%, the bank said. MCLR on two-year loans will be 8.45% and for three-year loans the rate will be 8.5%. The announcement was made during market hours today, 19 February 2018.

Punjab National Bank (PNB) lost 8.32% to Rs 115.20, extending recent losses triggered by the bank detecting a $1771.69 million fraud at a single branch in Mumbai. PNB made the announcement before trading hours on 14 February 2018. Shares of PNB fell 9.81% to settle at Rs 145.80 on 14 February 2018. The stock has fallen 28.49% in four trading sessions from its close of Rs 161.65 on 12 February 2018. The domestic stock market was shut on 13 February 2018, on account of Mahashivratri.

PNB announced before trading hours on 14 February 2018, that it detected some fraudulent and unauthorised transactions (messages) in one of its branch in Mumbai for the benefit of a few select account holders with their apparent connivance. Based on these transactions, other banks appear to have advanced money to these customers abroad. In the bank these transactions are contingent in nature and liability arising out of these on the bank shall be decided based on the law and genuineness of underlying transactions. The quantum of such transactions is $1771.69 million (approximately). The matter is already referred to law enforcement agencies to examine and book the culprits as per law of the land. The bank said it is committed to clean and transparent banking.

PNB clarified after market hours on 15 February 2018, that on 16 January 2018, the partnership firm of Nirav Modi group approached PNB branch at Brady House, Mumbai and presented a set of import documents with a request to allow buyers' credit for making payment to the overseas suppliers. Since there was no sanctioned limit in the name of the above firms, the branch officials requested the firms to furnish at least 100% cash margin for issuing Letter of Undertaking (LOU) for raising buyer's credit. On denial, the firms contested that they have been availing such transactions since past several years.

Vakrangee was locked in 5% lower circuit at Rs 233.20 on profit booking after a recent rally. Shares of Vakrangee surged 27.57% in five trading sessions to settle at Rs 245.45 on Friday, 16 February 2018, from its close of Rs 192.40 on 8 February 2018.

Overseas, European shares were trading lower. Asian shares rose as sentiment improved gradually from a recent shakeout that stemmed from fears of creeping inflation and higher borrowing costs. Markets in China, Hong Kong and Taiwan remain closed for the holiday. US markets will be closed today, 19 February 2018 in observance of Presidents Day.

Japanese exports rose for a 14th straight month in January 2018, helped by continued demand from Asia for equipment to make semiconductors, data from Japan's finance ministry showed today, 19 February 2018. Exports grew 12.2% in January from a year earlier, following a 9.3% year-on-year gain in the previous month.

In US, the Dow industrials and S&P 500 logged their sixth straight advance on Friday, 16 February 2018 but the Nasdaq lagged its peers, as political drama sparked turbulent trade late in the session. Special Counsel Robert Mueller announced the indictments of 13 Russian nationals and three Russian entities, accusing them of interfering in the 2016 US presidential election. The indictment said the defendants were supporting Donald Trump's campaign and disparaging Hillary Clinton.

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