Sensex ends 117 points lower, Nifty holds 11,900; IT stocks gain

31 May 2019

Market Close: The market close the volatile day on the negative side but off day's low after cabinet announcement under Modi 2.0.

At close, the Sensex was down 117.77 points at 39,714.20, while Nifty was down 23.10 points at 11,922.80. About 1020 shares have advanced, 1534 shares declined, and 155 shares are unchanged.

Yes Bank, ITC, Grasim Industries, Vedanta and Zee Entertainment were the top losers on the Nifty, while gainers were Tech Mahindra, Asian Paints, TCS, IOC and Britannia Industries.

Among sectors, PSU bank, metal, auto, infra and pharma witnessed selling pressure, while buying saw in the energy and IT space.

Amar Ambani, President & Research Head, YES Securities:

Hon. Ms Nirmala Sitharaman is an excellent choice as Finance Minister, in Hon. PM Modi’s 2.0 cabinet team of ministers. Besides having relevant qualifications as MA in Economics, she has played varied roles in corporate life, including work related to field of economics. In her political career, Ms Sitharaman has served as MOS with independent charge for Finance and Corporate Affairs, as well as minister of Commerce and Industry for three years.

This qualifies her for the big role and we remain hopeful, seeing her illustrious record. She has done justice to the portfolios managed so far, whether as national spokesperson or even as Defence minister, with facts and figures in place. She has a strong personality and seems like a task-master with an eye for detail; qualities that are much needed to bring sweeping change.

Sahil Kapoor, Chief Market Strategist, Edelweiss professional Investor Research:

We expect turnaround in economic cycle and remain bullish on the markets with Nirmala Sitharaman as the new FM. We believe reflationary forces will form the backdrop of the next growth trajectory.

Mid-Caps remain our preferred space with a room for significant rally going forward. We expect Nifty could rise to a level of 13,000-13,500 while the Midcap Index can rise to a level of 25,000. We expect G-sec 10 year yield to fall to a level of around 6.5%.

Dipan Mehta, Director, Elixir Equities:

With Nirmala Sitharaman as new FM and other ministers under Modi 2.0, the Nifty50 is likely to get past 12000 mark convincingly in coming months and quarters. We are back in the bull market which spurted in 2018 and first half of 2019, and from this time, the gains will be more broadbased.

The bull market may not be visible in the index stocks because most of them are priced to perfection. We will see is again re-rating of the PE multiple ahead of the earnings.

Modi 2.0 Cabinet

Nirmala Sitharaman will be a new Finance Minister as well as Corporate Affairs Minister while Rajnath Singh would be Defence Minister under new NDA government.

Amit Shah, who was BJP president, will become Home Minister while Piyush Goyal will be Commerce and Railway Minister.

Nitin Gadkari holds Road, Transport and Highways Ministery along with MSME while RK Singh is appointed as Power Minister.

Expert Take on new Finance Minister

Ajay Bodke, CEO - PMS at Prabhudas Lilladher said with an illustrious academic background in the sphere of economics (Masters in Economics from JNU), a Doctorate in Indo-European Textile Trade, a stint in leading consultancy Pricewaterhouse Coopers as well as a reasonably successful stint as the Defence & Commerce Minister in the previous term of the government; Nirmala Sitharaman is eminently qualified to steer India's economy which is facing multiple headwinds of slowing consumption impulses, moribund private capex cycle and anemic exports.

Monsoon Update

Meteorological department said monsoon season rainfall for country as a whole is likely to be 96 percent of long term average.

Rains are likely at 94 percent of LPA over north-west India; 100 percent over central India while South Peninsula is expected to see 97 percent rainfall and Northeast 91 percent, according to MET.

Market Expert Reaction on Appointment of FM

Sanjeev Jain, VP Equity Research at Sunness Capital India said Nirmala Sitharaman is appointed as the finance minister is a welcome move for D-Street.

"She is appointed as an FM under the current challenging environment like liquidity crunch, as well as NPA issue. She has good experience to handle the challenging environment," he said.

Market Update: Indian indices have erased some of its losses but trading lower with Nifty below 11,950 level.

Nirmala Sitharaman assumes the role of Finance Minister, becomes the first female to assume the role after Indira Gandhi. Amit Shah gets Home Affairs and Rajnath Singh gets defence.

Market Update: Benchmark indices witnessed a sharp fall from the high point of the day with Nifty around 11,900, while Sensex slipped below 40,000 level.

At 12:02 hrs IST, the Sensex is down 164.11 points or 0.41% at 39667.86, and the Nifty down 42.40 points or 0.35% at 11903.50. About 851 shares have advanced, 1369 shares declined, and 116 shares are unchanged.

Buzzing: Coal India shares rallied 4 percent as global brokerages remained bullish on the stock after the fourth quarter earnings beat analyst expectations.

Mindtree Open Offer

Larsen & Toubro has received approval from capital market regulator SEBI for Mindtree open offer, reports CNBC-TV18 quoting sources.

Sources said L&T is likely to launch Mindtree open offer by June 18 and to bring in open offer at Rs 980 per share, the closing price on May 30.

The engineering and infrastructure major currently owns 29 percent stake in Mindtree.

L&T is yet to respond to CNBC-TV18's query w.r.t Mindtree open offer.

Market Update: Benchmark indices are trading strong as Sensex and Nifty are trading near the respective record highs. The Bank Nifty has touched a new record high of 31,781.50.

At 10:17 hrs IST, the Sensex is up 266.23 points at 40098.20, while Nifty up 84.50 points at 12030.40. About 1048 shares have advanced, 796 shares declined, and 102 shares are unchanged.

Buzzing: Share price of Berger Paints India rose more than 7 percent on Friday after company posted better numbers for the quarter ended march 2019.

Crude update: Oil prices dropped 1.5% percent on Friday to their lowest in nearly three months after U.S. President Donald Trump said he would impose tariffs on imports from Mexico, stoking fears about global economic growth.

Prakash Gaba, Technical Analyst:

Technically now 11,836 is a crucial support to work with and breach could slide Nifty down to 11,777-11,695 zones, while logical target beyond 12,000 is 12,191.

Technically now 31,236 is crucial support to work with and breach could slide Bank Nifty down to 30,839. The logical target beyond 31,600 is 32,234.

Market Opens: It is firm start for the June series as Indian indices opened on higher note with Nifty above 12,000 level.

At 09:17 hrs IST, the Sensex is up 149.96 points or 0.38% at 39981.93, and the Nifty up 60.40 points or 0.51% at 12006.30. About 530 shares have advanced, 311 shares declined, and 46 shares are unchanged.

Bharti Airtel, HDFC Bank, JSW Steel, Coal India, HPCL, Berger Paints, IndiGo and Tata Steel are some of the major gainers on the indices in the early trade, while losers are ONGC, HUL, Kotak Mahindra Bank and

All the sectoral indices are trading higher led by metal, pharma, bank, IT, auto, FMCG, pharma and infra.

Rupee Opens: The Indian rupee gained in the early trade on Friday. It has opened higher by 11 paise at 69.76 per dollar versus Thursday's close 69.87.

Market at pre-open: Benchmark indices are trading higher in the pre-opening session with Nifty test 12,000 level.

At 09:01 hrs IST, the Sensex is up 128.01 points or 0.32% at 39959.98, and the Nifty up 55.70 points or 0.47% at 12001.60.

Citi on Coal India

Buy rating, target raised to Rs 320 from Rs 300 per share

Valuations at 9x 1-yr forward PE discount uncertainty on volume trends

CLSA on Coal India

Maintain buy rating, target raised to Rs 290 from Rs 275 per share

Q4 EBITDA higher than estimate, led by better-than-expected realisations

CLSA on Glenmark Pharma

Q4 below estimates due to a miss on US rev & higher R&D/SG&A spends

Expect investment phase to remain high over the next two years

CLSA on IPCA Labs

Maintain sell call, target raised to Rs 780 from Rs 730 per share

Q4 EBITDA up 50% despite modest 7% revenue growth

CLSA on ONGC

Reiterate buy call, target raised to Rs 285 from Rs 240 per share

Slew of one-offs cause a big miss in Q4

Macquarie on ONGC

Outperform call, target at Rs 210 per share

Q4 EBITDA-EPS significantly below consensus & estimates

Nomura on Alkem Labs

Upgrade to buy from neutral, target raised to Rs 2,230 from Rs 1,965 per share

Q4 below estimates; but commentary suggests improved outlook

Nomura on Ujjivan Financial

Maintain reduce call, target at Rs 315 per share

Asset quality was steady, with GNPAs of 0.92%

Nomura on KNR Construction

Maintain buy call, target at Rs 305 per share

Results beat both on revenue & EBITDA margin

Macquarie on Jagran Prakashan

Maintain outperform, target cut to Rs 146 from Rs 150 per share

Cut FY20/FY21 EPS estimates by 16%/12

Trump plans 5% tariff on Mexican imports: President Donald Trump, struggling to stem a surge of illegal immigrants across the southern border, vowed on Thursday to impose a tariff on all goods coming from Mexico starting at 5% and ratcheting higher until the flow of border-crossers ceases.

Wall Street ends higher: US stocks showed signs of stabilizing on Thursday, but gains were kept in check by conflicting comments on trade talks from President Donald Trump and Beijing that reinforced concerns about a potentially lengthy battle harming global growth.

Asian markets trades lower: Asian shares extended a month-long slide and sovereign bonds surged on Friday after US President Donald Trump ramped up trade tensions globally by suddenly slapping tariffs on all goods from Mexico, sending the peso tumbling.