Nifty ends below 11,600, Sensex falls 495 points; IT stocks gain

22 Apr 2019

Market close: Indian indices ended at day's low as selling pressure dragged Nifty below 11,600, while Sensex also fell nearly 500 points.

At close, the Sensex was down 495.10 points at 38,645.18, while Nifty was down 158.30 points at 11,594.50. About 747 shares have advanced, 1751 shares declined, and 166 shares are unchanged.

Indiabulls Housing, Yes Bank, BPCL, IndusInd Bank and IOC were top losers on the Nifty, while gainers were Bharti Airtel, Wipro, TCS, Tech Mahindra and Infosys.

Among the sectors except IT all other indices ended in red led by energy, bank, auto, metal, pharma, infra and FMCG.

IT Stocks Buck Trend

Technology stocks gained strength as the Indian rupee traded lower, falling 27 paise to 69.62 a dollar but recovered from day's low of 69.87.

The Nifty IT was only gainer among sectoral indices, rising 0.64 percent driven by TCS, Wipro, Mindtree, Infosys and Tech Mahindra.

Market Update:

Benchmark indices extended selling pressure in afternoon with the BSE Sensex falling 358.58 points to 38,781.70. The Nifty50 was trading way below 11,700 levels, down 122.30 points to 11,630.50.

Mixed March quarter earnings and rising oil prices dented sentiment.

Market breadth was in favour of bears as more than two shares declined for every share rising on the BSE.

Plant Closure Order

Piccadily Agro Industries said Harayan State Pollution Control Board has ordered for closure of its distillery unit for making the compliance of certain pollution norms.

The company is hopeful to start its operations shortly. The stock fell 2.5 percent.

Buzzing: Shares of Gravita India added 4.5 percent after company commenced commercial production of lead from its East Africa plant with an annual capacity of around 3000 MTPA

Market Update: The benchmark indices are continues to trade lower on Monday with Sensex around 38,900 level.

The Sensex is down 234.48 points at 38,905.80, while Nifty is down 83.80 points at 11,669.00. About 644 shares have advanced, 1389 shares declined, and 121 shares are unchanged.

Oil Prices Soar by About 3%

Oil prices rallied by about 3 percent to their highest since late 2018 as the United States was set to announce that all imports of Iranian oil must end or be subject to sanctions.

Brent crude futures rose as much as 3.3 percent to $74.31 a barrel, the highest since November 1, before easing back to $73.76, up 2.49 percent from their last close.

US West Texas Intermediate (WTI) crude futures climbed by as much as 2.9 percent to $65.87 per barrel, the most since October 31, and were at $65.55, up 2.41 percent from their last close. (Source: Reuters)

SpiceJet, Emirates Sign MoU for Code Share Partnership

Budget carrier Spicejet announced signing of an initial pact for code share partnership with Gulf carrier Emirates.

The reciprocal partnership will allow opening of new routes and destinations for passengers of the two airlines, SpiceJet said in a statement.

SpiceJet passengers from 51 domestic destinations will be able to access Emirates' network across the US, Europe, Africa and Middle East, company said. (Source: PTI)

Dollar Update: The dollar drifted higher against the euro and British pound on Monday, supported by the relative strength of the US economy, though moves remained small as many investors were still away for the long Easter weekend.

Market Opens: It is a negative start for the benchmark indices on Monday with Nifty slipped below 11,700 level.

At 09:18 hrs IST, the Sensex is down 200.46 points or 0.51% at 38939.82, and the Nifty down 74.30 points or 0.63% at 11678.50. About 317 shares have advanced, 591 shares declined, and 53 shares are unchanged.

Tata Coffee, SpiceJet, Dr Reddy's Lab, HDFC Bank, are among major gainers on the indices, while losers are Reliance Undustries (RIL), Jet Airways, Reliance Capital, Reliance Infra, Reliance Power, Reliance Comm, SBI, DHFL and Canara Bank.

On the sectoral front except IT all other sectors are trading lower led by energy, infra, auto, bank, metal and pharma.

Rupee Opens: The Indian rupee opened lower by 39 paise at 69.75 per dollar on Monday versus 69.36 Thursday.

Market at pre-open: Benchmark indices are trading higher in pre-opening with Nifty at 11,780 level.

At 09:02 hrs IST, the Sensex is up 129.73 points or 0.33% at 39270.01, and the Nifty up 28.10 points or 0.24% at 11780.90.

RBL Bank, RIL, HDFC Bank are trading higher in the pre-opening session, while Jet Airways is down 10 percent.

Brokerages View: Source: CNBC-TV18

Morgan Stanley on Reliance Industries

Overweight call, target at Rs 1,230 per share

Q4 earnings 7% higher than our estimate, with a slight miss in EBITDA

Refining margin slightly better; telecom ARPU lower than expected

Kotak Instl Equities on Reliance Industries

Maintain sell call, target at Rs 1,100 per share

Revise FY20-21 consolidated EPS estimates to Rs 75 (-2%) & Rs 87 (+1%)

Factor in lower subscribers/ARPU for Jio, higher retail contribution

Nomura on Reliance Industries

Maintain buy call, target at Rs 1,400 per share

Refining margin recovered from the low levels

Ramp-up of petcoke gasification over next few months is positive for refining margin

CLSA on Reliance Industries

Maintain buy call, target raised to Rs 1,665 from Rs 1,500 per share

USD 15 bn cut in liabilities & capex intensity may have peaked

Lease payments for demerged assets drives a 3%-8% cut in EPS estimates

CLSA on HDFC Bank

Maintain buy rating, target raised to Rs 2,850 from Rs 2,730 per share

Uptick in CASA key to growth & profitability

Profit ahead of estimates aided by lower provisions

Credit Suisse on HDFC Bank

Maintain outperform, target at Rs 2,700 per share

Strong 23% earnings growth on the back of continued loan growth momentum

Bank remains adequately capitalised to support pick-up in growth

Morgan Stanley on HDFC Bank

Overweight call, target raised to Rs 2,700 from Rs 2,550 per share

Fee growth slowed down to 11%, causing core PPoP to slow to 22%

With LCR trending down, liability growth remains the key constraint

Kotak Instl Equities on HDFC Bank

Maintain add rating, target raised to Rs 2,400 from Rs 2,350 per share

A few misses but strong earnings momentum maintained for the quarter

FY20 could see a few headwinds momentum if Q4 trend persists

SGX Nifty: Trends on SGX Nifty indicate a flat opening for the broader indices in India, a fall of 35 points or 0.30 percent. Nifty futures were trading around 11,773-level on the Singaporean Exchange.

Oil prices hit Nov 2018 highs: Oil prices rose by more than 1 percent on Monday to levels not seen since November 2018, driven up by a Washington Post opinion column that said the United States is preparing to announce all imports of Iranian oil must end or be subject to sanctions.