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| DEPB |
Banks shares like SBI, HDFC Bank and PNB rallied 2-2.6%. Kotak Mahindra Bank and Axis Bank gained nearly 1.5%. ICICI Bank too turned into green. BHEL and L&T from capital goods space climbed over 0.5%.
Heavyweights ONGC shot up over 5% and Reliance Industries went up more than 1%. Oil marketing companies HPCL and BPCL jumped over 3% as EGoM is going to discuss under recoveries of oil companies on May 11. Govt is going to consider diesel rate hike by Rs 3/litre in EGoM meet.
However, technology, cement and select auto companies' shares were still putting pressure on the market though these stocks recovered a bit from day's low.
ACC and Ambuja Cements were among top losers, with falling 3.5-4.5%. Holcim got majority control in both companies via open market transactions. Holcim crossed 50% threshold in ACC & Ambuja Cements.
Non-extension of Duty Entitlement Pass Book (DEPB) scheme will affect Dr Reddy's Labs, TVS Motor and Bajaj Auto. About 70% of DRL's formulations are exported and analysts see margins impact of 3-4% if DEPB not extended.
Dr Reddy's Labs was the biggest loser, with falling more than 5%. Bajaj Auto and TVS Motors were down 3% each. TVS Motor said non-extension of DEPB would impact margins while Bajaj Auto said impact would be significant if DEPB not extended.
TCS, Infosys, HDFC, Bharti Airtel, Hero Honda, Maruti, Tata Steel, Tata Power and Sun Pharma were down 0.8-2%.
The 30-share BSE Sensex was trading at 18,543, up 9 points while the 50-share NSE Nifty fell 6 points to 5,559, after seeing recovery of nearly 200 points from day's low.
Sensex trades lower; Bajaj Auto, Hero Honda top losers
Indian equity benchmark Sensex continued to trade weak but off the day's low--trading around the 18,425 mark. It touched an intraday low of 18,339. Selling was seen in auto, IT, metal, pharma and realty stocks, while oil & gas stocks were trading strong.
Reliance, L&T, HDFC Bank, SBI and ONGC were positive contributors to the Sensex while Infosys, ICICI Bank, ITC, HDFC and TCS were negative contributors.
Markets were still reeling under yesterday's hawkish RBI credit policy announcements coupled with rise key rates.
Portfolio manager PN Vijay feels that the RBI’s stance over monetary tightening has put off the market players because it was too calibrated and hawkish. In the last two decades, India has never seen its growth slowing down, especially when the global growth has been accelerating.
Vijay feels that the RBI’s aggressive stand has hurt market sentiments, making it more anxious and skittish. He said, “I agree that the Indian economy will not grow 8% and we will have a nominal of 16% growth. In such scenario, one should buy stocks where the earnings are good because for the first time in probably 25 years the price earnings ratio of this market is less than the nominal growth of this country."
At 1.15 pm, the Sensex was down 107.99 points or 0.58% at 18426.70, and the Nifty was down 42.30 points or 0.76% at 5522.95.
The markets breadth was negative, about 867 shares have advanced, 1790 shares declined, and 976 shares are unchanged.
Top losers on the Sensex were Bajaj Auto at Rs 1,316.80 down 3.67%, Hero Honda at Rs 1,610.95 down 2.98%, HDFC at Rs 666.40 down 2.64%, M&M at Rs 690.85 down 2.4% and Reliance Infra at Rs 641.05 down 2.25%.
However, top gainers on the Sensex were ONGC at Rs 307.50 up 4.15%, HDFC Bank at Rs 2,263.05 up 1.22%, SBI at Rs 2,612 up 1.12%, HUL at Rs 275 up 0.99% and Reliance at Rs 952.40 up 0.90%.
Sensex under pressure; auto, IT, metals dip
Equity benchmarks were taking beating for the seventh consecutive session today. Build up in shorts and further fall in Asian markets in second half of trade weighed on Indian equities at 11:53 hours.
Expected rise in interest cost after 50 basis points hike in policy rates by RBI yesterday continues to dampen the mood on street today, which will impact the companies' profitability. Rate sensitives were still witnessing selling pressure.
Experts feel that the Reserve Bank of India’s recent move of hiking interest rates by 50 bps was a proof that central bank will go to a greater extent to tighten its monetary policy in the future. Chetan Ahya, managing director of Morgan Stanley, too feels that the RBI will continue hiking rates will the end of this calendar year.
Ahya said that RBI will hike policy rates by about 75 basis points.
Technology, auto, cement, metal, Anil Dhirubhai Ambani Group and power companies' shares were dragging the markets down. Heavyweights Bharti Airtel and HDFC tumbled nearly 2%. ICICI Bank too was down nearly 1%.
The 30-share BSE Sensex was trading at 18,422, down 112 points and the 50-share NSE Nifty lost 46 points to 5,519. The broader indices like BSE Midcap and Smallcap fell 0.8% each.
On the global front - Asian markets like Shanghai, Hang Seng, Kospi and Straits Times were down 1-2%.
Among largecaps, Bajaj Auto, Hero Honda, Hindalco, Jaiprakash Associates, HDFC, Dr Reddy's Labs, Ambuja Cements, ACC and Grasim were the top losers, with falling 2.5-5%.
However, ONGC was the top gainer, with rising 3.5%. HUL, HDFC Bank, SBI, Reliance Industries and Ranbaxy Labs gained 0.5-1%. BPCL rallied 2.5%.
SBI, Divis Labs, Infosys, LIC Housing, Reliance, Axis Bank, ICICI Bank and HDFC Bank were the most active shares on exchanges.
About 319 shares advanced as against 950 shares declined on National Stock Exchange.
Nifty trades lower amid volatility; ONGC, SBI, RIL gain
The benchmark Nifty continued to trade lower amid volatility, dragged down by technology, cement, auto, metals, realty and power companies' shares. Some impact of 50 basis points hike in key rates by RBI yesterday was still seeing in sectors, wherein profitability will affect on rise in interest cost.
Amit Dalal of Tata Investment Corp said, "Considerable damage has been done yesterday. But yes, I do think upsides are going to be very shy and very muted. Therefore, the market will always have a bias towards the downtrend. It's going to be very difficult for technical calls or even traders to see a turnaround."
Asian markets too were down. Hang Seng, Shanghai and Straits Times fell 1% each. Kospi was down 0.8% and Taiwan down 0.3%.
The 30-share BSE Sensex was trading at 18,471, down 63 points and the 50-share NSE Niftyfell 27 points to 5,538. The broader indices too were down 0.4%.
Ambuja Cements, ACC, Bajaj Auto and Dr Reddy's Labs were biggest losers, with falling 4% each. Infosys, TCS, Wipro, Bharti Airtel, HDFC and M&M were down 1% each.
Hero Honda, Maruti, HCL Tech, Grasim and JSPL tumbled 2-2.5%.
However, ONGC was the leading gainer, with rising nearly 2%. Reliance Industries, SBI, HDFC Bank, HUL, L&T, Axis Bank, Ranbaxy Labs and BPCL were supporting the markets.
In midcap space, Kwality Dairy, KSK Energy Ventures, UTV Software, Hindustan National Glass and Whirlpool gained 3-5%. However, TVS Motor, KGN Industries, Shree Global, Motilal Oswal and Andhra Bank lost 4-5%.
In smallcap space, Carol Info, Zenith Infotech, EIH Associated Hotel, Sandesh and Su-raj Diamonds rallied 6-10%. However, SREI Infra, Allied Digital, Karma Ispat, R M Mohite and Prabhav Industries slipped 5-6%.
About 910 shares advanced as against 1411 shares declined on National Stock Exchange.
No sign of bulls in early trade; auto, tech drag
Equity benchmarks slipped further in opening trade on Wednesday, with the Nifty beginning the trade below 5550 level. Auto, cement, private banking and technology companies' shares were seeing further correction. Weak Asian cues too weighted on Indian equities.
Some negative sentiment of 50 basis points hike in key rates by RBI yesterday and increased in savings bank rate to 4% from 3.5% is still weighed on the market. Especially rate sensitives were taking beating.
Among frontliners, Bajaj Auto, M&M, Hero Honda, Maruti Suzuki, ICICI Bank, PNB, Axis Bank, HDFC Bank, Reliance Capital, Infosys, TCS, HCL Tech, Jaiprakash Associates, Hindalco, Sesa Goa, Sterlite Industries and ACC were pulling the markets down.
However, SBI, Reliance Industries, BHEL and L&T were supporting the markets.
The 50-share NSE Nifty was trading at 5,527, down 38 points and the 30-share BSE Sensex fell 120 points to 18,414.
The CNX Midcap Index declined just 10 points at 7,944.
Midcap & Smallcap space:
GVK Power and IVRCL Infra were down 0.5-1%.
Ashok Leyland fell 2% on disappointing monthly sales numbers. TVS Motors lost 2%.
Finolex Cable was up 3% and Thermax up 1.5%.
Amrutanjan gained 1% and Jay Shree Tea went up 2%.
Global cues:
Asian markets were trading with one percent loss. Japanese market is shut today.
The US equity markets ended flat but commodities slid on Tuesday. Crude oil prices fell to a two-week low while silver dropped 8%.
The Dow Jones Industrial Average closed flat at 12,807. The NASDAQ Composite was down 22 points at 2,842 and S&P 500 Index ended down 4.6 points at 1,357.
Technology stocks were underperformer post poor results from Amazon.
Commodities
July silver dropped 7.9% at USD 42.42/ounce on back of new margin requirements
CME is raising margin requirements for silver after the market closes Tuesday
Silver extended its loss in electronic trade, lost another 3.5% in extended hours at USD 40.81/ounce, lowest levels since mid-April
June gold contract was down 1.1% at USD 1540.2/ounce, lower for a second consecutive session
June crude oil contract shed 2.2% at USD 111.05/bbl, lowest levels in over 2 weeks
June natural gas contract fell 0.5% at USD 4.67 per MMBtu
Sugar was up 0.8% while copper down 1.5%.
F&O cues:
Total Futures Open Int up Rs 607 crore, Total Options Open Int up Rs 10648 crore
Total stock futures Open Int shed 26.30 lakh shares in Open Int
Nifty futures Open Int add 19.81 lakh shares in Open Int, premium at 3.45 pts versus premium at 24.10 pts
Nifty Open Int PCR at 1.05 versus 1.18
Total Put adds 57.52 lakh shares, call adds 117.25 lakh shares
Highest OI outstanding at 6000 call, 6100 call and 5800 call
Nifty 5700 call adds 29.49 lakh (149%) shares in Open Int
Nifty 5600 call adds 28.91 lakh (383%) shares in Open Int
Nifty 5800 call adds 18.08 lakh (46%) shares in Open Int
Nifty 5300 put adds 14.65 lakh (50%) shares in Open Int
Nifty 6000 call adds 11.02 lakh (20%) shares in Open Int
Nifty 5700 put sheds 7.5 lakh (17%) shares in Open Int
Nifty 5800 put sheds 6.8 lakh (21%) shares in Open Int
Nifty 5900 put sheds 2.3 lakh (25%) shares in Open Int
Nifty 6000 put sheds 0.71 lakh (14%) shares in Open Int
India VIX up 3.35 % at 21.58
