Sensex falls 352 points, Nifty Bank loses 381 pts on US-China trade war woes

04 Apr 2018

3:30 pm Market Closing: Benchmark indices closed sharply lower after gains seen in previous two consecutive sessions, weighed by US-China trade war concerns.

The 30-share BSE Sensex was down 351.56 points or 1.05 percent at 33,019.07 and the 50-share NSE Nifty fell 116.60 points or 1.14 percent to 10,128.40.

About 1,427 shares declined against 1,183 advancing shares on the BSE.

Nifty Midcap was down 225 points.

Gammon Infra, PC Jeweller, Jaiprakash Associates, HCC, Sunil Hitech, SAIL, HDIL, DLF, Union Bank, South Indian Bank and Ashok Leyland fell up to 5 percent.

Kwality was up 10 percent while Nalco and Indiabulls Real gained 2-3 percent.

3:26 pm ICICI Securities Performance:

3:18 pm Godawari Power & Ispat inform exchanges that it has received approval of competent authority for private railway siding served by Mandhar Station of Raipur Division for inward traffic of coal, iron ore & manganese and outward traffic of pellet, which has become operational w.e.f. 31st March, 2018.

Earlier, the company used to transport its raw materials through the railway siding facility of Raipur Infrastructure Company (RICL), a joint venture company, at Mandhar, Raipur.

The lease period of the said railway siding of RICL has expired on March 31, 2018 and the same has not been renewed.

There will not be any interruption in the movement of the raw materials due to above developments, the company said.

3:10 pm Leading contributors to Nifty's fall: HDFC Bank, L&T, HDFC, IOC, Titan Company, Vedanta, Infosys, Bajaj Finserv, Kotak Mahindra Bank, Grasim, UPL, Yes Bank and SBI were down up to 4 percent.

2:58 pm HUDCO in focus: HUDCO has achieved the level of loan sanctions (provisional) of Rs 38,600 crore and loan releases (provisional) of Rs 16,500 crore as on March 31, 2018, for the financial year 2017-18.

2:45 pm Market Update: The market is trading near day's low, with the Sensex falling nearly 400 points after China has announced new tariffs on 106 US products, which include soybeans, cars and whisky.

The Nifty Bank index lost more than 400 points while the Nifty50 slipped more than 100 points as all sectoral indices are in the red barring Auto.

Nifty Midcap index is also down over a percent.

Dow Jones futures are down 2 pecent, indicating negative opening on Wall Street later today.

2:30 pm Licensing agreement: Glenmark Pharmaceuticals and Helsinn Group, a Swiss pharmaceutical group focused on building quality cancer care products, entered into an exclusive licensing agreement to introduce AKYNZEO in India and Nepal.

AKYNZEO, an oral fixed combination of netupitant 300mg and palonosetron 0.5mg in capsule form, is used for prevention of chemotherapy-induced nausea and vomiting (CINV).

Glenmark will have exclusive marketing rights for AKYNZEO in India and Nepal.

2:20 pm Order Win: CC has received four new orders totalling to Rs 1,085 crore in March 2018.

Out of this, one order of Rs 344 crore pertains to Water and Environment division and three oders totalling Rs 741 crore pertain to electrical division.

2:10 pm Corporate Affairs Secy on ICICI Bank-Videocon matter: It is well within the SIFO's ambit to make a reference about a case but there is no such reference currently with the corporate affairs ministry on the issue involving ICICI Bank and Videocon Group, a senior official said.

Against the backdrop of controversy over the alleged conflict of interest and quid pro quo involving ICICI Bank CEO Chanda Kochhar and her family members in extending a loan to Videocon Group, reports said the Serious Fraud Investigation Office (SFIO) has sought permission to look into the matter.

The probe agency comes under the Corporate Affairs Ministry.

On whether the matter is being looked at by the SFIO, Corporate Affairs Secretary Injeti Srinivas said there is no such reference in the ministry and added that the RBI is the regulator that is looking into it.

"If the SFIO considers it necessary to make a reference to the ministry, it is well within its ambit," he told reporters.

2:00 pm Market Update: Benchmark indices extended losses, with the Sensex falling 333.36 points or 1 percent to 33,037.27 after China unveiled new retaliation plan for US tariffs.

The Nifty fell 111.80 points or 1.09 percent to 10,133.20.

The market breadth turned negative as about 1,394 shares declined against 1,078 advancing shares on the BSE.

1:51 pm Buzzing: Sharika Enterprises share price rallied 20 percent as it has received letter of intent for designing, supplying, installation and commissioning of solar street lighting systems worth Rs. 40.33 crore (approximately) from one of the State Government's renewable energy agency.

1:36 pm Europe Update: European markets were slightly lower, as elevated concerns of a tit-for-tat trade war between the world's biggest economies overshadowed a bounce on Wall Street.

The pan-European Stoxx 600 was down around 0.2 percent, with most sectors and major bourses in negative territory.

1:31 pm Market Update: Benchmark indices fell sharply in afternoon after China unveiled new retaliation plan for US tariffs.

The 30-share BSE Sensex was down 272.14 points at 33,098.49 and the 50-share NSE Nifty fell 86.30 points to 10,158.70.

1:20 pm China unveils retaliation plan for US tariffs: China has announced new tariffs on 106 US products, which include soybeans, cars and whisky.

The world's second largest economy has set net tariff rate of additional 25 percent on US products, which include soyabean, corn, auto, chemical products.

China will announce effective date for new US tariffs at a later time.

New tariffs on US products include corn, other agri products, some types of aircraft, some plastic products, cotton, orange juice, wheat, sorghum products, tobacco etc.

1:05 pm Fundraising: Indian companies raised Rs 4,975 crore by issuing non-convertible debentures (NCDs) to retail investors in 2017-18 to meet their business requirements, a plunge of 83 percent from the preceding year.

In 2016-17, firms had mobilised Rs 29,558 crore through this route, according to latest data with the Securities and Exchange Board of India (Sebi).

Overall, in terms of volume, there were seven NCD issues in the recently-concluded fiscal as against 16 in 2016-17.

The companies raised money for funding expansion plans, retiring debt, supporting working capital requirements and other general corporate purposes.

NCDs are loan-linked bonds that cannot be converted into stocks and usually offer higher interest rates than convertible debentures.

12:55 pm Buyback of shares: Akzo Nobel India scrip price rallied 10 percent intraday ahead of board meeting to consider share buyback.

"A meeting of the board of directors of the company scheduled to be held on April 06, 2018, to consider proposal to buyback its own shares," the paint company said in its filing.

Meanwhile, the company completed its divestment of specialty chemicals business to Akzo Nobel Chemicals India Private Limited on March 31, 2018.

12:45 pm Market Update: The market continued to be rangebound, with the Nifty hovering around 10,250 levels.

Investors are awaiting cues from the two-day monetary policy committee meeting which ends on Thursday and March quarter earnings.

Tata Motors retained top position in the buying list of Nifty50 stocks, rising nearly 6 percent after good JLR show in the US in March.

12:35 pm RBI Policy Expectations: The first bi-monthly monetary policy review for FY19 is to be announced by the RBI on April 5.

According to CARE Ratings, the RBI is likely to maintain an unchanged stance on policy rates.

"The important issue will be the tone of the policy- will it be hawkish or neutral. We would tend to think that there would be more than neutral indications with a tint of hawkishness. Also we expect all members of the MPC to vote for at least no change with a possibility of a vote for a rate hike also on cards. However, there would not be a vote for a rate cut most probably," it said.

The policy review is in the backdrop of higher economic growth, moderation in inflation, increase in bank credit growth, lower bank deposits growth, tight liquidity conditions and increasing GSec yields in FY18.

12:20 pm Appointment: Reliance Capital announced the appointment of Nitin Rao as its new Chief Executive Officer.

"Rao will report to Anmol Ambani, Executive Director at Reliance Capital, and will be responsible for driving a more broad-based strategy for growing the wealth management offering to high net worth individuals," the company said.

12:15 pm ICICI-Videocon Case: The Serious Fraud Investigation Office (SFIO) is awaiting a nod from the Ministry of Corporate Affairs (MCA) to probe the ICICI-Videocon case, wherein a loan of Rs 3,250 crore was extended by the bank to the Videocon Group in 2012. The agency wants to take up the investigation as “the quantum involved is several thousand crores” and it concerns “public money”.

The SFIO had sent a request to the ministry last week regarding the same.

The Mumbai office of the SFIO had received a letter from a whistleblower last month. The letter, sources said, talked of alleged “corporate malpractice, surreptitious transactions and round tripping of money”.

The SFIO made a preliminary report on the case and submitted it to the MCA. A source close to the development told Moneycontrol, "The ministry may take a call on the investigation within this week."

Another source told Moneycontrol, "In the preliminary report, there are many transactions which need to be investigated."

12:05 pm Technical Outlook: Ashish Chaturmohta of Sanctum Wealth Management said above 10,250 levels, the Nifty can rally towards 10,420-10,500 levels where next cluster of resistances are seen. On the downside index has immediate resistance at 10,095 levels, breaking below this next support is at 9,950-9,920 levels.

11:56 am Market Update: The market is currently off the day's high in volatile trade. Investors are awaiting cues from the two-day monetary policy committee meeting which ends on Thursday and March quarter earnings.

The 30-share BSE Sensex was up 42.70 points at 33,413.33 and the 50-share NSE Nifty rose 3.40 points to 10,248.40.

About 1,626 shares advanced against 715 declining shares on the BSE.

11:40 am Infosys Earnings next week: Infosys will announce the results for its fourth quarter and year ended March 2018 on Friday, April 13 around 4.00 pm Indian Standard Time.

11:25 am Crude Update: Oil prices slipped on expectations for a build-up in US crude inventories, but Russian government comments on prospects for stepping up cooperation with OPEC to coordinate output cuts braked steeper declines.

US WTI crude futures were at USD 63.32 a barrel, down 0.30 percent, from their previous settlement.

Brent crude futures dipped to USD 67.90 per barrel, down 0.32 percent, after it rose 0.7 percent on Tuesday.

11:15 am Jet Airways in Focus: Shares of Jet Airways rose as much as 3 percent on the bourses after the company said it had entered a pact for buying 75 B737 planes.

In a regulatory filing yesterday Jet Airways said it had entered an agreement with Boeing for buying 75 B-737 Max aircraft, as it looks to strengthen presence in the fast growing domestic aviation market.

Following the announcement, shares of the company opened on a bullish note at Rs 623, then gained further ground to touch an intraday high of Rs 632.25, up 2.99 per cent over its previous closing price.

11:03 am Buzzing: Zensar Technologies share price gained more than 5 percent after receiving a four-year, multi-million dollar contract from the City of San Diego for network services.

The contract has option of extension of two additional two-year terms with the total not to exceed contract value being approximately USD 79 million.

10:50 am Order Win: NBCC has received sanction from Ministry of Home Affairs (MHA), Government of India, for the construction of 14,460 bunkers in villages along the Indo-Pak Border in Jammu and Kashmir amounting Rs 415.73 crore.

NBCC is already executing border fencing work on Indo-Pak & Indo-Bangla borders for the MHA.

10:40 am Market Update: The market gained strength amid volatility, with the Nifty inching towards 10,300 levels and the Sensex gaining more than 100 points.

The broader markets extended gains, with the Nifty Midcap index rising 0.8 percent and BSE Smallcap gaining 1.2 percent.

The 30-share BSE Sensex was up 119.84 points at 33,490.47 and the 50-share NSE Nifty rose 30.30 points to 10,275.30.

About four shares advanced for every share falling on the BSE.

Tata Motors was the top gainer among Nifty50 stocks, up more than 5 percent after strong JLR show in the US in March

10:33 am RBI Approval: IndusInd Bank informed exchanges that the Reserve Bank of India has granted approval for the proposed company's acquisition of 100 percent stake in ISSL.

In March, the bank entered into an agreement with Infrastructure Leasing and Financial Services, the promoter shareholder of IL&FS Securities Services (ISSL) to acquire 100 percent of ISSL.

10:20 am Order Win: Building construction company Capacit'e Infraprojects has received contracts worth Rs 365.50 crore from Oberoi Realty Group entities. The stock gained 2 percent.

10:10 am Appointment: Den Networks said Himanshu Jindal has been appointed as chief financial officer of the company with immediate effect.

Rajesh Kaushall has resigned as chief financial officer and will continue to act as an advisor to the company, it added.

10:02 am Listing: Mishra Dhatu Nigam share price opened lower at Rs 87 on the National Stock Exchange, down 3.3 percent compared to the issue price of Rs 90.

The stock price fell as much as 4.4 percent in morning to hit a day's low of Rs 86.05 while it touched an intraday high of Rs 90.90.

The Rs 438-crore initial public offer of speciality alloy maker Mishra Dhatu Nigam (MIDHANI) was subscribed 1.21 times during March 21-23, 2018.

10:00 am Listing: ICICI Securities started off the first day on a negative note due to tepid response to the issue and analysts' doubts over consistency in financial performance going ahead.

The stock price debuted at Rs 453.80 on the National Stock Exchange, down 12.73 percent compared to issue price of Rs 520.

9:50 am Pre-Opening for ICICI Securities, Mishra Dhatu Nigam: ICICI Securities share price settled at Rs 435 in pre-opening trade on the NSE, down 16 percent from issue price of Rs 520.

State-owned steel company Mishra Dhatu Nigam share price settled at Rs 87 in pre-opening, down 3.3 percent from issue price of Rs 90.

9:45 am Monthly Sales Performance: JSW Steel has posted highest every monthly, quarterly and annual crude steel production.

"The monthly production of 1.52 million tonnes for March signifies a capacity utilisation of 101 percent. With this the company achieved 99 percent of production guidance of 16.5 million tonnes, given at the beginning of FY18," the company said.

9:35 am Market Update: Benchmark indices remained rangebound after opening mildly higher, with the Nifty hovering around 10,250 levels.

The 30-share BSE Sensex was up 17.29 points at 33,387.92 and the 50-share NSE Nifty fell 0.70 points to 10,244.30.

The broader markets outperformed frontliners, with the Nifty Midcap rising 0.4 percent and BSE Smallcap index up 0.75 percent on positive breadth.

About three shares advanced for every share falling on the BSE.

9:31 am Monsoon Forecast: Skymet Weather forecasts normal monsoon for India in 2018.

Skymet Weather said monsoon in India is likely to remain normal this year at 100 percent of its long period average of 887 mm. It sees a 20 percent chance of a below normal monsoon and zero probability of a drought.

9:21 am Buzzing: Tata Motors share price rallied more than 3 percent after Jaguar Land Rover's March US sales increased 10.2 percent to 14,232 units compared to 12,918 units sold in year-ago.

The growth was largely driven by Land Rover US sales that jumped 37.8 percent to 10,972 units, but Jaguar US sales fell 34.2 percent to 3,260 units YoY.

9:17 am Midcap Performer: Nifty Midcap gained 13 points.

Zensar Technologies, Akzo Nobel, IDBI Bank, Jet Airways, InterGlobe Aviation, Infibeam, Voltas, Pidilite Industries and VST Tillers gained up to 5 percent.

9:15 am Market Update: Benchmark indices opened mildly higher on Wednesday, with the Sensex rising 92.32 points to 33,462.95 and the Nifty gaining 11.80 points at 10,256.80.

9:08 am Technical Recommendations: We spoke to Guiness Securities and here’s what they have to recommend:

InterGlobe Aviation Ltd: Buy | Close: Rs 1367.85 | Target: Rs 1500 | Stop loss: Rs 1282 | Return: 9.65%

Jamna Auto Industries Ltd: Buy | Close: Rs 85.85 | Target: Rs 98 | Stop loss: Rs 78.50 | Return: 14.15%

Exide Industries Ltd: BUY | Close: Rs 232.95 | Target: Rs 260 | Stop loss: Rs 215 | Return: 11.59%

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

9:06 am Rupee Update: The Indian rupee has opened higher by 3 paise at 64.98 against the US dollar on Wednesday.

It closed at 65.0125 to the dollar in previous session.

9:05 am Stocks in news: Bharat Forge and Ramkrishna Forgings in focus - North America Mach Class 8 truck sales up 102 percent at 46,900 units versus 23,215 units YoY: Agencies

Tata Motors: March auto sales

-JLR US sales up 10.2 percent at 14,232 units versus 12,918 units (YoY)

-Jaguar US sales down 34.2 percent at 3,260 units versus 4,953 units (YoY)

-Land Rover US sales up 37.8 percent at 10,972 units versus 7,965 units (YoY)

ICICI Securities: ICICI Securities make their debut on the bourses on Wednesday, it will be the first time in almost three years that a company whose public issue remained largely undersubscribed will list on the stock exchanges.

Mishra Dhatu: Shares of Mishra Dhatu Nigam (MIDHANI) will list on BSE and NSE on Wednesday. The initial public offer (IPO), which was oversubscribed by 1.21 times, was opened for subscription from March 21 to March 23. The company had fixed the price band of Rs 87-90 for the public offer.

Zensar Technologies: Technology firm Zensar said it has bagged a four-year deal from the City of San Diego for network services for a deal value of up to USD 79 million.

9:02 am Market Check: Benchmark indices were higher in pre-opening trade on Wednesday, continuing upside for third consecutive session.

The 30-share BSE Sensex was up 66.19 points at 33,436.82 and the 50-share NSE Nifty gained 46.80 points at 10,291.80.

Kwality rallied 10 percent. Voltas was up 2 percent and Zensar Technologies gained 3 percent. Infibeam was up 2.5 percent.

Videocon was down 5 percent.

The three major US stock indexes ended higher after a choppy session on Tuesday as investors looked forward to earnings season while the S&P 500 pushed above a key support level, Reuters reported.

The Dow Jones Industrial Average rose 389.17 points, or 1.65 percent, to 24,033.36, the S&P 500 gained 32.57 points, or 1.26 percent, to 2,614.45 and the Nasdaq Composite added 71.16 points, or 1.04 percent, to 6,941.28.

Asian markets were mixed in early Wednesday trade as Japanese stocks tracked gains seen on Wall Street overnight on a bounce in large cap technology names.

Japan's Nikkei 225 edged up by 0.42 percent and Topix crept higher by 0.16 percent. South Korea's benchmark Kospi index slipped 0.09 percent, weighed down by declines in the technology sector, CNBC reported.