Sensex, Nifty slide on Turkey concerns

Domestic stocks logged modest losses weighed by mounting currency crisis in Turkey, which raised the alarm for possible contagion into other markets. The barometer index, the S&P BSE Sensex, lost 224.33 points or 0.59% to settle at 37,644.90. The Nifty 50 index fell 73.75 points or 0.65% to settle at 11,355.75. Indices remained in negative zone throughout the day.

The indices opened lower and hit fresh intraday low in early trade. Stocks came off day's low and were trading with modest losses in morning trade. Indices recovered sharply in afternoon trade. Indices once again turned weak in mid-afternoon trade as selling resumed.

The Sensex lost 224.33 points or 0.59% to settle at 37,644.90. The Sensex fell 69.69 points, or 0.18% at the day's high of 37,799.54 in afternoon trade. The index fell 309.97 points, or 0.82% at the day's low of 37,559.26 in early trade.

The Nifty fell 73.75 points or 0.65% to settle at 11,355.75. The Nifty fell 23.20 points, or 0.20% at the day's high of 11,406.30 in afternoon early trade. The index fell 89.20 points, or 0.78% at the day's low of 11,340.30 in early trade.

Among secondary barometers, the BSE Mid-Cap index fell 0.70%. The BSE Small-Cap index fell 0.78%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On BSE, 956 shares rose and 1724 shares fell. A total of 177 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Oil & Gas index (down 1.93%), the S&P BSE Bankex (down 1.2%), and the S&P BSE Power index (down 0.99%) underperformed the Sensex. The S&P BSE IT index (up 1.24%), the S&P BSE Teck index (up 0.77%), the S&P BSE Healthcare index (up 0.55%) outperformed the Sensex.

Sun Pharmaceuticals Industries (up 1.65%), Mahindra & Mahindra (up 0.96%), IndusInd Bank (up 0.62%) and ITC (up 0.39%) edged higher from the Sensex pack.

Vedanta (down 3.4%), State Bank of India (down 3.17%), Yes Bank (down 3.11%), Axis Bank (down 1.68%), ONGC (down 1.6%), HDFC (down 1.48%) and Reliance Industries (down 1.4%) were the major Sensex losers.

IT stocks rose as the rupee fell to a record low against the dollar as a currency turmoil in Turkey sparked worries of potential market contagion. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.

Hexaware Technologies (up 2.63%), Tech Mahindra (up 2.01%), MindTree (up 3.26%), Wipro (up 1.31%), Larsen & Toubro Infotech (up 0.99%), Oracle Financial Services Software (up 1.61%), HCL Technologies (up 1.7%), MphasiS (up 1.03%), Persistent Systems (up 0.16%), Infosys (up 1.75%) and TCS (up 0.33%) edged higher.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 69.84, compared with closing of 68.8350 during the previous trading session.

Tata Steel fell 1.1% ahead of its Q1 June 2018 result today, 13 August 2018.

Coal India rose 0.89% after consolidated net profit surged 61.07% to Rs 3786.44 crore on 25.05% rise in total income to Rs 25470.86 crore in Q1 June 2018 over Q1 June 2017. On a consolidated basis, Coal India's production of raw coal rose to 136.85 million tonne in Q1 June 2018 from 118.84 million tonne in Q1 June 2017. Offtake rose to 153.47 million tonne from 137.42 million tonne. The announcement was made on Saturday, 11 August 2018.

Engineering and construction major Larsen & Toubro (L&T) rose 0.29%. Buildings & factories business of L&T Construction has bagged an engineering, procurement and construction (EPC) order worth Rs 3028 crore from GMR Hyderabad International Airport (GHIAL). The scope of work includes execution and implementation of EPC for expansion of the Terminal Building and Airside Infrastructure Works at the Rajiv Gandhi International Airport, Hyderabad, Telangana. This is a brownfield airport expansion project to be handed over within a stringent timeline. The announcement was made during trading hours today, 13 August 2018.

DLF fell 1.07% after the company announced robust Q1 result after market hours on Friday, 10 August 2018. On a consolidated basis, DLF reported 58.19% rise in net profit to Rs 172.44 crore on 25.03% fall in total income to Rs 1657.67 crore in Q1 June 2018 over Q1 June 2017.

New sales booking during the quarter stood at Rs 600 crore. Given the current momentum, the company remains on track to achieve fresh sales booking of Rs 2000 to 2250 crore in the current fiscal. The commercial leasing business continues to grow steadily and is experiencing healthy momentum. The company is working towards achieving net debt zero in its development business, in the near future. This would be achieved through equity infusion during the current year.

DLF remains focussed on monetization of finished inventory which would result in surplus cash flows which shall primarily be utilised for debt reduction and balance cash surplus will be utilized by the company to re-invest in development of new projects for both sale and lease business.

Sheela Foam gained 6.45% after consolidated net profit rose 15.69% to Rs 32.59 crore on 19.64% rise in total income to Rs 508.37 crore in Q1 June 2018 over Q1 June 2017. The announcement was made after market hours on Friday, 10 August 2018.

Sheela Foam's consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) rose 16% to Rs 51 crore in Q1 June 2018 over Q1 June 2017. EBITDA margin stood at 10% in Q1 June 2018. The revenue from operations from Australia increased from Rs 72 crore to Rs 76 crore. The EBITDA, however, went down from Rs 4 crore to Rs 2 crore. The EBITDA margins in Australia went down due to high TDI prices during the quarter.

On the economic front, India's industrial production growth rebounded to five month high of 7% in June 2018, while recovering from a seven-month low of 3.9% in May 2018. The industrial production growth for May 2018 has been revised upwards from 3.2% increase reported provisionally.

Overseas, European equities fell as banking shares tumbled amid concerns about the Turkish economic crisis affecting liabilities of the region's lenders. The turmoil in Turkish markets continued as President Recep Tayyip Erdogan showed no signs of backing down in a standoff with the US administration, with the lira's decline spurring concern about European lenders' exposure to the nation.

Asian shares declined on Monday after investor sentiment took a hit amid the slump in the Turkish currency, lira, on geopolitical developments. US stocks dropped on Friday, triggered by fears over the sell-off in the lira after US President Donald Trump said he had approved the doubling of metals tariffs against Turkey on Friday.

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