Sensex down 184 points ahead of RBI meet; Yes Bank gains 2%

04 Jun 2019

Market at close: After hitting record highs in the previous session, the benchmark indices ended lower on May 4 on the back of profit booking.

At close, the Sensex was down 184.08 points at 40083.54, while Nifty was down 66.80 points at 12021.70. About 1108 shares have advanced, 1428 shares declined, and 175 shares are unchanged.

Zee Entertainment, Hero Motocorp, Asian Paints, HCL Tech and TCS were among major losers on the Nifty, while gainers were Yes Bank, Bharti Infratel, Axis Bank, NTPC and Vedanta.

Among sectors, IT and pharma fell more than 1 percent followed by auto, energy, FMCG, while buying seen in the metal and infra space.

Market Update: Indices are trading lower but off day's low on Tuesday.

The Sensex is down 92.69 points or 0.23% at 40174.93, and the Nifty down 41.10 points or 0.34% at 12047.40. About 1072 shares have advanced, 1290 shares declined, and 146 shares are unchanged.

Rupee erases gains: The Indian rupee erased all its morning gains and trading lower by 3 paise at 69.29 per dollar versus previous close 69.26.

Adani Port approves buyback: The company board has approved the proposal for the buy-back by the company of up to 3,92,00,000 equity shares from the equity shareholders of the company as on June 21, 2019 at a price of Rs 500 per equity share for an aggregate amount not exceeding Rs 1,960 crore .

The board also, recommended final dividend at 10% per equity share of Rs 2 each for the financial year ended March 31, 2019 subject to the approval of the shareholders at the ensuing Annual General Meeting.

Shyam Steel Industries files IPO papers with Sebi: The IPO consists of fresh issue of up to Rs 200 crore and an offer for sale of up to 66.70 lakh shares, comprising up to 11.60 lakh shares by the promoter selling shareholders and up to 55.09 lakh shares by other selling shareholders, according to the Draft Red Herring Prospectus (DRHP). Market sources said the IPO size is estimated to be around Rs 500 crore. Read more

Maruti Suzuki unveils Mobile NEXA terminal?: Maruti Suzuki has launched one-of-its-kind mobile NEXA terminal, taking the NEXA experience to markets where it is currently not present. The NEXA terminal will reach out to prospective and existing customers throughout the country, giving them an opportunity to experience NEXA.

Market Update: The benchmark indices are trading lower with Nifty below 12,050.

The Sensex is down 175.62 points at 40092, while Nifty is down 62.70 points at 12025.80. About 1019 shares have advanced, 1214 shares declined, and 143 shares are unchanged.

IOC forms JV with HPCL, BPCL: Indian Oil Corporation (IndianOil), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) have signed an agreement for formation of a joint venture company for implementation and subsequent operation of 2757 Km long LPG Pipeline from Kandla, Gujarat to Gorakhpur, UP.

Indian Oil, BPCL and HPCL would have 50%, 25% and 25% equity holding in the JV company.

PSU Banks in Action

PSU banks topped the buying list as most experts on the Street expect Monetary Policy Committee to go for a rate cut on Thursday, the last day of three-day meeting. The fund infusion in FY20 by the government also lifted sentiment.

Oritental Bank of Commerce, Union Bank, Syndicate Bank, Allahabad Bank, Bank of India,, Canara Bank and Bank of Baroda shares gained 3-7 percent, which resulted into 2 percent rally in Nifty PSU Bank.

The government is expected to infuse Rs 40,000 crore in public sector banks (PSBs) in the current fiscal year 2019-20, according to a report by The Economic Times.

Rupee Update: The Indian rupee is trading higher by 13 paise at 69.13 per dollar on Tuesday versus previous close 69.26.

Bharti Airtel's subsidiary IPO: Airtel Africa, a subsidiary of Bharti Airtel proceed with an initial public offering for admission and listing of its shares on the main market of the London Stock Exchange. The offer is targeted to raise USD 750 million (plus a primary greenshoe option of up to 15%) and will be used to reduce the net debt. Further, Airtel Africa is also considering a listing of its shares on the Nigerian Stock Exchange.

Investec on Tata Steel

Reiterate buy with a target of Rs 730 per share

It’s a strong deleveraging story

Improving mining profitability makes co a preferred play in ferrous space

HSBC on Maruti

Maintain hold, target at Rs 7,200 per share

Retail traction remains weak

Citi on IndusInd Bank

Buy rating, target at Rs 1,980 per share

Co expects growth in CV financing segment to remain healthy

CLSA on United Spirits

Sell rating, target at Rs 450 per share

Company is working across the value chain to drive profitable growth

Easy gains are already made; upsides look difficult

Nomura on M&M

Maintain buy call, target at Rs 827 per share

Company will be ready with BS-6 vehicles before September 30

HSBC on manufacturing PMI

May manufacturing PMI picked up but remains below long-term average

Input prices rise gently while output prices continues to ease

Growth is likely to remain weak in the next quarter, before improving in H2

RBI is expected to cut rates by 25 bps at the upcoming June meeting

Nomura on autos

Industry wholesale volumes decline sharply across segments

Measures to address liquidity & fall in crude could lead to demand recovery in H2

Recovery is likely to be slower than our expectation

Citi on Bajaj Auto

Company targets 25% share of overall domestic bikes over the medium term

Overall FY20 export volume growth is expected to be in double digits

Africa remains strong & ASEAN should revive

UBS on Consumer Sector

Q4 cons sector volume growth at 6.4% YoY vs 9.9% in 9MFY19

Growth differential between rural & urban significantly narrowed in Q4

Discretionary posted topline growth of 18.5% vs 6.3% by staples in Q4

UBS on Auto

May wholesales weak for cars & commercial vehicles

2-wheeler volumes fare relatively better

Sequential revival can be expected in coming months

CLSA on financials

Fitch cuts ratings on ICICI & Axis

See limited impact from revision in credit ratings to below investment grade

Downgrade comes on the back of Fitch’s concerns about operating environment

CLSA on India Strategy

Large FY19 miss, weak GST limit fiscal headroom for stimulus

FY20 sees a sluggish start with weak GST collection growth in May at 7%

GST compliance measures are badly needed

CLSA on autos

Demand remains subdued; sharp YoY decline across segments

In FY20-21, expect PVs to see a 5% CAGR

2-wheelers to witness a 4% CAGR

Trucks to see flat volumes in FY20 followed by a 14% decline in FY21

Credit Suisse on GST Collection

At Rs 1 Lakh crore, GST collection below the required run-rate of Rs 1.13 lakh cr

Worrying part is growth falling to an 8-month low of 6.7% YoY

Weak take in May reflects a broad consumption slowdown

Gold Update: Gold climbed more than 1.5% on Monday to its highest level in more than three months on concerns that U.S.-Chinese trade tensions and Washington's threat of tariffs on Mexico would hurt the global economy.

Market Opens: After hitting record highs in the previous session, it is gap down opening for the Indian indices on June 4 with Nifty around 12,050.

At 09:16 hrs IST, the Sensex is down 132.09 points or 0.33% at 40135.53, and the Nifty down 37.30 points or 0.31% at 12051.20. About 300 shares have advanced, 325 shares declined, and 38 shares are unchanged.

Wipro, Dr Reddy's Lab, Wipro, Indiabulls Housing, PFC, NTPC, L&T, ITC and Titan are some of major gainers on the indices, while losers are TCS, Zee Entertainment, ICICI Bank, Axis Bank HCL Tech, BPCL and HPCL.

Among sectors, except infra and pharma all other indices are trading lower.

Rupee Opens: The Indian rupee opened higher by 11 paise at 69.15 per dollar on Tuesday versus previous close 69.26.

Market at pre-open: Benchmark indices are trading lower in the pre-opening session with Nifty around 12,050 level.

At 09:01 hrs IST, the Sensex is down 79.28 points or 0.20% at 40188.34, and the Nifty down 29.80 points or 0.25% at 12058.70.

Crude Update: Oil prices fell on Tuesday amid a global economic slowdown that is starting to hit oil demand, triggering calls in producer club OPEC for supply cuts to be extended.

Wall Street ends lower: The three major US stock indexes declined on Monday on weaker-than-expected economic data, while shares of Alphabet, Facebook and Amazon.com fell sharply on fears the companies are the targets of US government antitrust regulators, putting pressure on the tech-laden Nasdaq.

SGX Nifty: Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 45.50 points or 0.38 percent. Nifty futures were trading around 12,072.50-level on the Singaporean Exchange.

Asian markets trade higher: Shares in Asia inched higher and safe-haven assets gave up some overnight gains on Tuesday, as investors paused for breath after a volatile Wall Street session, but deeper concerns about growth have capped broader improvements in risk sentiment.