MARKET WRAP: Sensex falls 311 points as geopolitical concerns weigh
All that happened in the markets today
 "Markets, Up, Down, BSE, NSE, Stocks")
Photo: Shutterstock.com
Despite a rally in global equities, Indian markets lost ground on Monday, as investors assessed the nation’s retaliation to a deadly attack on its defense forces last week. Benchmark indices ended nearly 1 per cent lower on Monday, led by a decline in PSBs, IT and FMCG (fast moving consumer goods) stocks.
The S&P BSE Sensex ended at 35,498, down 311 points or 0.87 per cent, while the broader Nifty50 index settled at 10,641, down 83 points or 0.78 per cent.
"Market remained on a selling spree as reducing foreign inflows due to fear of escalation of tensions at the border impacted the sentiment. Rupee weakened, 10-year yield inched up and rising oil prices are expected to weaken domestic macros. Volatility is likely to continue due to lack of domestic triggers and investors are likely to remain cautious. Global market stands positive supported by hope in US-China trade deals," said Vinod Nair, head of research at Geojit Financial Services in an emailed note.
SECTOR WATCH
The S&P BSE Sensex ended at 35,498, down 311 points or 0.87 per cent, while the broader Nifty50 index settled at 10,641, down 83 points or 0.78 per cent.
"Market remained on a selling spree as reducing foreign inflows due to fear of escalation of tensions at the border impacted the sentiment. Rupee weakened, 10-year yield inched up and rising oil prices are expected to weaken domestic macros. Volatility is likely to continue due to lack of domestic triggers and investors are likely to remain cautious. Global market stands positive supported by hope in US-China trade deals," said Vinod Nair, head of research at Geojit Financial Services in an emailed note.
SECTOR WATCH
Among sectors, the Nifty FMCG index ended 1.3 per cent lower weighed by Dabur and Procter & Gamble Hygiene and Health Care. The Nifty PSU index settled 1.44 per cent lower driven by a fall in Bank of India and IDBI. In the broader market, the S&P BSE MidCap ended 145 points or 1.04 per cent lower at 13,795, while S&P BSE SmallCap index settled at 13,118, down 134 points or 1.01 per cent.
RUPEE OUTLOOK
RUPEE OUTLOOK
Meanwhile, the rupee has gone from being the best-performing Asian currency last quarter to the worst this year as rising crude prices and tensions over Kashmir weigh on sentiment.
“The risk for the India story, which is keeping the dollar well bid vis-a-vis rupee, is higher oil, followed by Kashmir tensions and the political uncertainty,” said Ashish Vaidya, head of trading at DBS Bank Ltd. in Mumbai. “If the negative factors are sustained, for instance, if the Kashmir situation worsens, the rupee could soon touch 73.” READ MORE HERE
BUZZING STOCKS
Shares of IPCA Laboratories hit a 43-month high of Rs 828 apiece, up 7 per cent on the BSE in intra-day trade on Monday, on the back of healthy operational performance in December 2018 quarter (Q3FY19). The stock ended 3.87 per cent higher at Rs 805.
Shares of Dish TV India moved higher by 13 per cent to Rs 37.10 apiece on the BSE in intra-day trade on Monday in an otherwise weak market. The stock settled at Rs 34.75, up 5.62 per cent.
GLOBAL MARKETS
Asian share markets bounced broadly on Monday as investors dared to hope for both progress at Sino-US trade talks in Washington this week and more policy stimulus from major central banks.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.9 per cent, largely recovering from a sharp fall last Friday. Japan's Nikkei climbed 1.8 per cent to its highest level of the year so far, while Shanghai blue chips rallied 2.1 per cent.
(with Reuters input)
3:58 PM
MARKET COMMENT :: Jayant Manglik, President, Religare Broking
Nifty started the week on feeble note and lost nearly a percent. Though it opened with an uptick, taking cues from the Asian counterparts but selling pressure in the index majors erased all the gains in no time. Participants were in cautious mood ahead of the RBI board meet and sharp rise in the volatility index, India VIX, further dampened the sentiment.
Participants are now eyeing the global cues like US-China trade talks, in absence of any major event. On local front, the recent profit taking phase in private banking counters and IT majors, which were holding the benchmark index, are added negatives. We feel traders have no option but to follow the prevailing bias and prefer hedged positions instead of naked trades. Nifty has next major support at 10,500.
3:35 PM
Sectoral gainers and losers of the day on NSE
3:34 PM
Gainers and losers of the day on S&P BSE Sensex
3:33 PM
Market at close
The S&P BSE Sensex ended at 35,498, down 311 points or 0.87 per cent, while the broader Nifty50 index settled at 10,641, down 83 points or 0.78 per cent.
3:20 PM
IPCA Labs hits 43-month high on robust Q3FY19 results; gains 13% in a week
Shares of Ipca Laboratories hit a 43-month high of Rs 828 apiece, up 7 per cent on the BSE in intra-day trade on Monday, gaining 13 per cent in the past one week, on the back of healthy operational performance in December 2018 quarter (Q3FY19). In comparison, the S&P BSE Sensex was down 0.71 per cent today. The stock of pharmaceutical company was quoting at its highest level since August 28, 2015 and is 9.5 per cent away from its all-time high level of Rs 907 touched on February 28, 2014. READ MORE
3:18 PM
Indian Oil signs first annual deal for US oil
Indian Oil Corp, the country's top refiner, has signed its first annual deal to buy US oil, paying about $1.5 billion for 60,000 barrels a day in the year to March 2020 to diversify its crude sources, its chairman said on Monday. IOC is the first Indian state refiner to buy US oil under an annual contract, in a deal that will also help boost trade between New Delhi and Washington. READ MORE
3:16 PM
» More on Top Losers
Top losers on BSE500
| COMPANY | PRICE(rs) | CHG(rs) | CHG(%) | VOLUME |
| TEJAS NETWORKS | 121.85 | -14.25 | -10.47 | 19689 |
| HIMADRI SPECIALT | 95.40 | -8.05 | -7.78 | 101052 |
| INDIABULLS INTEG | 222.75 | -15.60 | -6.54 | 14669 |
| FINOLEX INDS. | 462.10 | -31.65 | -6.41 | 5984 |
| TAKE SOLUTIONS | 102.20 | -6.75 | -6.20 | 31196 |
3:00 PM
NEWS ALERT
CARE revises rating of Vodafone Idea's long-term facilities to AA- from AA, according to TV reports
2:53 PM
VBL to acquire PepsiCo franchise rights in South, West India
PepsiCo India's bottling partner Varun Beverages Monday said its board has approved plans to acquire franchise rights of the beverages and snacks major in South and West regions.
The board has approved the company's intent to enter into a binding agreement with PepsiCo India Holdings to acquire franchise rights in the two regions for a national bottling, sales and distribution footprint in seven states and five UTs, Varun Beverages Ltd (VBL) said in a regulatory filing. READ MORE
Stock impact:
Stock impact:
2:49 PM
Dolat Capital on VRL Logistics
Even with high competition intensity and uncertainty in fuel cost, there are signs of improvement in business sentiment with a likely a tonnage growth of 7-8%. This likely to help the company able to achieve its targeted revenue growth of 10% YoY for FY19, in our view. Hence, we continue to be positive on the company’s growth prospects, with an estimated CAGR growth of 13% for FY18-21E in earnings and continue to maintain Accumulate with a TP ` 300.
2:48 PM
ICICI Securities on Prestige Estates
While the rise in debt levels is a cause for concern, it is backed by a strong portfolio of operational annuity assets and Rs 28 bn of completed inventory in its residential projects which provides the necessary cushion. We retain our BUY rating with a revised target price of Rs301/share (earlier Rs311) factoring in balance=sheet adjustments.
2:32 PM
Rupee could weaken past 75 if Modi fails to win second term: Expert
Two of Asia’s biggest emerging economies will soon elect leaders, and wagers are already being placed on their currencies. The consensus: Indonesia’s rupiah will trump India’s rupee.
RupeeRupee It boils down to who retains power among the two pro-business incumbents. Opinion polls show Indonesian President Joko Widodo is set to win the April 17 vote, while Indian Prime Minister Narendra Modi’s position appears less secure following regional defeats for his party late last year. READ MORE
2:18 PM
Dish TV hits one-month high; stock zooms 93% from January 28 low
Shares of Dish TV India moved higher by 13 per cent to Rs 37.10 apiece on the BSE in intra-day trade on Monday in an otherwise weak market. The stock of the country’s largest direct-to-home (DTH) company was trading at a one-month high. It zoomed 93 per cent from its January 28, 2019 low of Rs 19.25, as compared to 1 per cent fall in the S&P BSE Sensex. READ MORE
2:14 PM
Elara view on Nifty 50 EPS for FY19 and FY20
We downgrade Nifty 50 EPS for FY19E to 501 (5.9%) and FY20E to 626 (4.9%) from the past quarter, primarily led by energy (lower GRM due to weak crude oil outlook) and Financials (elevated credit cost in near-term due to private bank exposure to ILFS holding companies turning substandard). Based on consistent upward earnings revision with our Buy or Accumulate recommendation – we like HCL Technologies, Tech Mahindra, Wipro and Nestle India
2:00 PM
Market check
Topics :
Don't miss the most important news and views of the day. Get them on our Telegram channel
First Published: Feb 18 2019 | 8:07 AM IST