Sensex slumps 192 pts, Nifty below 11,800; pvt banks, metal stocks drag

Topics MARKET WRAP

Illustration by Ajay Mohanty
Benchmark indices erased their early gains to close Friday's session lower, dragged down by metal stocks.

The benchmark S&P BSE Sensex closed 192 points, or 0.48 per cent, lower, with YES Bank, IndusInd Bank, Tata Motors, Reliance Industries, and ONGC the top losers.

The broader Nifty50 index slipped 53 points, or 0.45 per cent, to 11,789. The market breadth remained in favour of sellers. About 919 stocks declined and 822 advanced on the NSE.

On a weekly basis, however, the indices gained with the Sensex closing 0.5 per cent higher and the Nifty climbing 0.6 per cent.

Among Nifty sectoral indices, only three closed the day in the green. Nifty Metal, down 1.1 per cent, took the deepest cuts while the Nifty Private Bank index dipped 0.6 per cent.

 
In the broader market, the S&P BSE MidCap index settled 45 points, or 0.3 per cent, lower at 14,808, while the S&P BSE SmallCap index lost 10 points, or 0.07 per cent, to 14,239..

BUZZING STOCKS

Shares of Cox & Kings were locked in the 10 per cent lower circuit for the third straight day on Friday to quote at Rs 36 apiece on the BSE after the company defaulted on commercial paper worth Rs 150 crore. READ MORE

Shares of Sadbhav Infrastructure Projects (SIPL) tanked 18 per cent to hit a record low of Rs 59 on the BSE on Friday after Care Ratings downgraded the credit rating of the firm's wholly-owned subsidiary, Rohtak-Hissar Tollway Private Limited (RHTPL), from 'BB+' to 'D'. The stock, however, recovered to Rs 72.60, up 0.8 per cent, by the end of the session. READ MORE

Dewan Housing Finance Corporation Limited (DHFL) shares dipped 11.75 per cent to Rs 72.10 on the BSE on Friday, after the company deferred the release of its March 2019 quarter (Q4) results which were schedueled to be announced on Saturday (June 29) to July 13. READ MORE

4:13 PM IST COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%) ALKEM LAB 1670.35 1660.35 -12.25 -0.73 CASTROL INDIA 132.65 132.35 -3.20 -2.36 G N F C 233.60 232.60 -5.15 -2.16 GLAXOSMI. PHARMA 1199.00 1198.45 -19.45 -1.60 GLENMARK PHARMA. 442.80 440.35 -5.55 -1.24 » More on 52 Week Low

4:13 PM IST COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%) BAJAJ FIN. 3678.40 3695.00 38.25 1.05 BAJAJ FINSERV 8537.75 8565.80 92.50 1.10 CONTAINER CORPN. 568.00 573.50 -1.95 -0.34 GODREJ PROPERT. 1003.30 1014.00 2.95 0.29 HAVELLS INDIA 783.70 806.90 -11.65 -1.46 » More on 52 Week High

4:12 PM IST COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME RELIANCE POWER 4.16 -0.21 -4.81 5502766 RELIANCE CAPITAL 66.15 -4.55 -6.44 5290290 RELIANCE INFRA. 55.50 -3.90 -6.57 5188424 YES BANK 108.70 -3.70 -3.29 4515045 SUZLON ENERGY 5.25 -0.46 -8.06 4132923 » More on Most Active Volume

4:10 PM IST

4:09 PM IST

4:08 PM IST

3:34 PM IST The S&P BSE Sensex ended at 39,395, down 192 points while the broader Nifty50 index settled at 11,789, down 53 points.

3:11 PM IST

2:55 PM IST

2:46 PM IST - Lenders looking at 40% stake in DHFL post resolution

LIVE UPDATES

Stocks that hit 52-week low on S&P BSE Sensex

COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%)
ALKEM LAB 1670.35 1660.35 -12.25 -0.73
CASTROL INDIA 132.65 132.35 -3.20 -2.36
G N F C 233.60 232.60 -5.15 -2.16
GLAXOSMI. PHARMA 1199.00 1198.45 -19.45 -1.60
GLENMARK PHARMA. 442.80 440.35 -5.55 -1.24
» More on 52 Week Low

Stocks that hit 52-week high on S&P BSE Sensex

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
BAJAJ FIN. 3678.40 3695.00 38.25 1.05
BAJAJ FINSERV 8537.75 8565.80 92.50 1.10
CONTAINER CORPN. 568.00 573.50 -1.95 -0.34
GODREJ PROPERT. 1003.30 1014.00 2.95 0.29
HAVELLS INDIA 783.70 806.90 -11.65 -1.46
» More on 52 Week High

Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
RELIANCE POWER 4.16 -0.21 -4.81 5502766
RELIANCE CAPITAL 66.15 -4.55 -6.44 5290290
RELIANCE INFRA. 55.50 -3.90 -6.57 5188424
YES BANK 108.70 -3.70 -3.29 4515045
SUZLON ENERGY 5.25 -0.46 -8.06 4132923
» More on Most Active Volume

Nifty sectoral indices at close


Heatmap: S&P BSE Sensex


Market at close


Market at close

The S&P BSE Sensex ended at 39,395, down 192 points while the broader Nifty50 index settled at 11,789, down 53 points.

Arvind Limited tumbles 5%


Market check


NEWS ALERT | SBI, Bank of Baroda may convert DHFL's Debt-To-Equity at Rs 70/Sh: BTVi

- Lenders looking at 40% stake in DHFL post resolution

Market check | Nifty50 slips below 11,800


Market check


Stock Alert | DHFL slips after reports say banks looking at initiating resolution plan


NEWS ALERT | Anti-corruption Bureau books officials of Jammu & Kashmir Bank

NEWS ALERT | Banks considering options for resolution: CNBC TV18

- Conversion of debt to equity is one option

- Direct assignment of loans reduces exposure to DHFL

- Banks will take final call under RBI's June 7 circular on NPAs

Alert: DHFL has borrowings of Rs 1 trillion

Monsoon stocks | Agri-based stock picks by Prabhudas Lilladher


YES Bank extends loss to 3.5%


NEWS ALERT | Monsoon covers more parts of Gujarat, MP: Met Dept

- Heavy rain likely on Monday in Odisha

NEWS ALERT | ED attaches properties of Rs 209 cr of IMA Group, Bengaluru: CNBC TV18

- Also attaches properties of its Managing Director Mohammed Mansoor Khan in a Ponzi Scheme Case

Alert: ED is Enforcement Directorate 

Boeing 737 MAX unlikely to fly until 2020 over flight-control problem

Boeing's troubled 737 MAX fleet is expected to stay grounded until late this year as a result of the latest flight-control problem flagged by US air-safety regulators.
 
The setback, at the very least, is expected to prompt additional disruptions to airline schedules across the US and overseas as some 500 of the planes remain idled for months longer than previously projected, reports Efe news. READ MORE

Alert: SpiceJet is biggest customer of B737 Max in India

G20 Summit | G20 meeting may offer more clarity to OPEC, non-OPEC: Russia's Novak

- Russian Energy Minister Alexander Novak said on Friday he hoped a meeting of G20 nations in Japan would provide clarity for OPEC and non-OPEC oil producers as they consider whether to extend deal on cutting supplies beyond June.

As reported by Reuters

G20 Summit | Rel Nippon Asset Mgmt to manage Indo-Japan Tech Fund announced by Japan: CNBC TV18

- Rel Nippo working closely with Japan Govt

- Letter of intent signed between lead investors and Rel Nippon Asset Management


Sobha, Prestige dip after K'taka govt mulls construction ban for 5 yrs

Shares of south India based real estate companies mainly Sobha, Prestige Estates Projects and Brigade Enterprises have fallen by up to 7 per cent on the National Stock Exchange (NSE) in intra-day trade on Friday after reports suggested that Karnataka government was mulling to ban construction activity in the state for 5 years owing to acute water supply shortage. READ MORE

EID-Parry India surges 8%


SBI hits new high as PSU banks gain; Canara Bank, Bank of India up over 4%

Shares of public sector undertaking (PSU) banks rallied by up to 12 on the National Stock Exchange (NSE) in intra-day trade on Friday after the Reserve Bank of India (RBI) said that bad loans cycle seems to have turned around as bulk of the legacy non-performing assets (NPAs) have already been recognized in the banking books. READ MORE
Illustration by Binay Sinha

NEWS ALERT | Bharti Airtel to shut down 3G network in Kolkata, focus on 4G: CNBC TV18

-- Bharti Airtel to continue providing 2G network

Metal stocks trade under pressure

COMPANY NAME LATEST HIGH LOW CHG
(rs)
CHG(%)
S A I L 51.85 52.75 51.50 -0.35 -0.67
JINDAL STEEL 144.00 148.70 142.90 -4.15 -2.80
TATA STEEL 504.50 515.30 502.40 -6.20 -1.21
NATL. ALUMINIUM 49.65 50.50 49.50 -0.60 -1.19
VEDANTA 174.20 178.90 173.60 -2.70 -1.53
JSW STEEL 275.30 278.65 273.30 -2.05 -0.74
NMDC 113.00 113.75 111.75 -0.05 -0.04
HINDALCO INDS. 205.75 207.45 203.60 -0.50 -0.24
COAL INDIA 255.40 261.70 255.05 -4.20 -1.62
HIND.ZINC 243.45 244.50 242.20 -1.40 -0.57

MARKET CHECK


DHFL defers March 2019 quarter results; stock tanks 9%

Dewan Housing Finance Corporation Limited (DHFL) shares dipped 9 per cent to Rs 74.65 on the BSE during intra-day trade on Friday, after the company deferred the release of its March 2019 quarter (Q4) results which were schedueled to be announced on Saturday (June 29) to July 13. At 11:52, the stock was trading 7.65 lower at Rs 75.45 as compared to a 0.2 per cent dip in the benchmark S&P BSE Sensex. READ MORE

NEWS ALERT | Average base rate for NBFCs, MFIs to be 9.18% for Jul-Sep: RBI


G20 Summit | Many G20 heads voiced concern over trade tensions, global growth: Japan government

- There are downside risks to the global economy as trade tensions escalate. Against this background, the G20 leaders agreed on the need for the group to drive global growth, a senior government official told reporters after the G20 summit’s session on the world economy and trade.

(As reported by Reuters)

Mindtree, Sunteck Realty: 10 stocks showing a positive trend on the RSI

Among the BSE 500 stocks, the selloff has been quite sharp with stocks like Reliance Communication (RCom), Reliance Power (RPower), Jet Airways, HEG, Jaiprakash Associates and Jain Irrigation slipping 58 per cent to 91 per cent during ths period. READ MORE

Buzzing | Punjab National Bank rises 3.5%


140 stocks from BSE500 index beat benchmark in first half of 2019

140 stocks from the BSE500 index have outperformed the benchmark index in the first half of calendar year 2019 (H1CY10) by giving a return of over 10 per cent on strong earnings and institutional buying support. In comparison, the benchmark index S&P BSE Sensex was up 9.7 per cent, while the broader S&P BSE 500 index gained 5.6 per cent during the period. READ MORE

COMMENT :: Kotak Institutional Securities

Lower sectoral cap for mutual funds will affect financial flexibility

MF’s current exposure to NBFC/HFCs at 28% is broadly in line with the revised cap prescribed by SEBI. However, lower sectoral limit will affect medium-term financial flexibility of all NBFCs. MF/debt investors are anyway cautious, preferring retail NBFCs with strong parentage; most NBFCs have anyway increased bank borrowings. In light of liquidity challenges and concern in wholesale NBFCs, we remain cautious on the sector even as stable asset quality in most retail segments, detailed in RBI’s FSR, reinforces comfort on retail players.

Stocks that hit 52-week high on BSE

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
BAJAJ FIN. 3644.00 3664.25 3.85 0.11
BAJAJ FINSERV 8454.00 8488.15 8.75 0.10
HAVELLS INDIA 798.50 806.90 3.15 0.40
HDFC AMC 2056.00 2068.20 19.55 0.96
POWER FIN.CORPN. 137.50 138.80 1.65 1.21
» More on 52 Week High

Sadbhav Infra hits record low as CARE downgrades subsidiary's credit rating

Shares of Sadbhav Infrastructure Projects (SIPL) tanked 18 per cent to hit a record low of Rs 59 on the BSE on Friday after Care Ratings downgraded the credit rating of the firm's wholly-owned subsidiary, Rohtak-Hissar Tollway Private Limited (RHTPL), from 'BB+' to 'D'. The ratings agency downgraded the company due to "sustained subdued toll collection" against large debt obligations. The subsequent poor liquidity and weak debt coverage indicators led to overdues in the account (as per lender’s feedback) for debt servicing. READ MORE

NEWS ALERT | DHFL defers Q4 earnings to July 13


Chris Wood sees 100 bps cut in repo rate; hikes allocation in Axis Bank

The recent developments in the Indian financial sector have made even global investors sit up and take notice. Christopher Wood, global head of equity strategy at Jefferies has done away with his holding in IndusInd Bank in his Asia ex-Japan long-only portfolio, and upped the existing investment in GRUH Finance (by 1 per cent) and Axis Bank (2 per cent). READ MORE
File photo of Christopher Wood, global head of equity strategy at Jefferies

NEWS ALERT | ONGC invites offers to enhance production of oil & gas from its 64 marginal fields: CNBC TV18

-  Agreement to be on revenue sharing basis

- Contractors to get marketing , price freedom

NEWS ALERT | Reliance Capital likely to defer Q4 earnings: CNBC TV18

-- Reliance Capital was scheduled to report Q4 earnings today

Trump prioritises 'trade' at G20, China's Xi warns against protectionism

US President Donald Trump made clear on Friday that trade was a top priority at a summit of leaders of Group of 20 nations, as Chinese leader Xi Jinping warned against rising protectionism and India and Russia defended multilateral trade rules. Ahead of talks with Japanese Prime Minister Shinzo Abe and Indian Prime Minister Narendra Trump said he would discuss trade, days after criticising the US-Japan security treaty and demanding New Delhi withdraw retaliatory tariffs. READ MORE

June Auto Sales Expectation | Slowdown likely to get deeper : Nirmal Bang Institutional Equities

We expect subdued auto numbers for June 2019 owing to weak consumer sentiments across all segments. Consumer sentiment has suffered due to cost increase amid strict safety regulations, delay in monsoon, rural stress, slowing economy and liquidity constraints. Hence, both rural and urban demand remained subdued.
Soaring inventory levels owing to dearth of demand has forced OEMs to schedule plant shutdowns and production cuts in May and June. Our channel checks suggest that footfalls have dried up and only those OEMs who have launched new models recently are getting some response from customers. Retail sales continue to decelerate and barring few OEMs, dispatches have not been curtailed.

Havells hit 52-week high


Central Bank of India gains over 5%


MARKET CHECK


Bharti Airtel dips 1.3%


In a volatile oil scenario, city gas distribution firms still a safe bet

City gas distribution or CGD companies like Indraprastha Gas (IGL) and Gujarat Gas, which scaled to their 52-week highs in June itself, have accrued good returns for investors. While Mahanagar Gas (MGL) may have lagged, analysts feel all three companies remain a good bet for investors. READ MORE

Nifty PSU Bank index is trading 1.4% higher


Cox & Kings tanks 40% in a week on ratings downgrade, payments default

Shares of Cox & Kings were locked in the 10 per cent lower circuit for the third straight day on Friday to quote at Rs 36 apiece on the BSE after the company defaulted on commercial paper worth Rs 150 crore. There were pending sell orders for 5.16 million shares representing 3 per cent of total equity capital of Cox & Kings on the NSE and BSE, the exchange data show. READ MORE

Most active stocks by volume

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
UPL 945.00 1.70 0.18 1708434
SUZLON ENERGY 5.45 -0.26 -4.55 994278
DISH TV 28.45 0.00 0.00 960165
YES BANK 110.75 -1.65 -1.47 518388
RELIANCE POWER 4.34 -0.03 -0.69 518005
» More on Most Active Volume

Sun Pharma rises 1.3% on entering licensing agreement with subsidiary of China Medical System holdings


Sadbhav Infra tumbles over 8%


NEWS ALERT | DHFL defers Q4 earnings announcement: CNBC TV18

-- DHFL was scheduled to announce Q4 earnings on June 29



Market check | Indices turn volatile


BHEL slips almost 1%

- NMDC issues termination notice to BHEL on Rs 1,400-crore steel plant contract due to delay in project completion


Tata Steel dips marginally

- European arm's CEO Hans Fischer will step down, effective July 1.


Nifty Realty slips the most during early trade


Broader markets update


Eros International Media slips 5%


DHFL continues slide


Heavyweight ICICI Bank trims gains on Sensex


Lupin Pharma gains over 3%

- Company gets USFDA tentative approval for generic version of Myrbetriq tablets used to treat overactive bladder.

Sadbhav Engineering slips 1.5% in early trade


Sectoral trends on NSE


Top gainers and losers on S&P BSE Sensex


Market at open


Market at open


G20 Summit | PM Modi meets US Presdent Donald Trump

- Both sides talked about concerns on trades

- PM Modi said its important for US and India to collaborate

(As reported by CNBC TV18)


Rupee check | Rupee slips below 69/$ for the first time since April 11


Top gainers and losers on S&P BSE Sensex during Pre-open trade


Market at pre-open


Market at pre-open


Rupee opening

Rupee opens stronger at 69.01/$ vs Thursday's close of 69.06 against US dollar

NEWS ALERT | Glenmark Pharma gets US FDA nod for Ezetimibe & Simvastatin tablets: CNBC TV18

-- Ezetimibe is used to treat high blood cholesterol

-- Simvastatin is used to decrease elevated lipid levels

NEWS ALERT | Sadbhav Infra ays Rohtak-Hissar Tollway will clear the pending dues of Rs 6.5 cr today

- Co issues clarification after Care rating downgraded Rohtak-Hissar Tollway  to ‘D’.

- Sats, alternate routes at Rohtak-Hissar Tollway led to a considerable diversion of traffic.

- Company is financially committed  to the project & it’s not a guarantor to the debt availed by RHTPL

Stocks to watch

Cox & Kings has defaulted on commercial paper worth Rs 150 crore, the company informed stock exchanges on Thursday.
 
Tata Steel: European arm's CEO Hans Fischer will step down, effective July 1.
 
Mindtree/L&T: L&T’s ongoing open offer for buying shares in Mindtree was subscribed by 1.08 times by the end of trading hours on Thursday, taking its stake in the IT firm to over 60 per cent. READ MORE

G20 Summit | Global economy is being ruled by one-sided decisions: PM Modi

- Should focus on WTO reforms for equitable global growth 

 Alert: PM Modi was addressing BRICS leaders'meeting 

        : WTO stands for World Trade Organisation 


MARKETS ALERT | June-July rollovers at 80.4% Vs 73.4%; 3-mth average

Alert: June series of Futures & Options contracts expired yesterday, June 27. 

NEWS ALERT | BRICS leaders meet on sidelines of G20 Summit

Over half the SME universe in the red: Here're the top losers since 2012

Together with the National Stock Exchange (NSE), a total of 507 companies have been listed on SME platforms since 2012, when the platform was first started. Of these, 259 or 51 per cent are in the red, and 47 have shed more than 75 per cent over their issue price. READ MORE

NEWS ALERT | Protectionism is hurting global trade order: Chinese President Xi Jinping

- He said that some developed countries are taking protectionist measures that are leading to trade conflicts and economic blockade - calling them the biggest risk of the increase in instability in the global economy.

Alert: He spoke at a meeting of the BRICs countries’ leaders on the sidelines of the G20 summit meeting in Osaka.

Investors are discerning, investing only in quality deals: Raj Balakrishnan

The Sensex is hovering around lifetime highs, but primary exuberance is missing. Raj Balakrishnan, head of India investment banking, Bank of America Merrill Lynch, tells Sundar Sethuraman and Samie Modak that investors are sticking to companies with good governance structures and track record. Edited excerpts: How is all the negative news flow affecting deal activity? Investors are not exactly rattled. READ FULL INTERVIEW HERE
Raj Balakrishnan, MD, Head Investment Banking, DSP Merrill Lynch Ltd.

NEWS ALERT | Japan's May factory output grows 2.3% MoM: Reuters

- Japan’s industrial output rose at the fastest pace in more than a year.

- The May data showed that higher production of car parts and machines used to make flat panel displays helped offset a decline for airplane parts

- May’s median market forecast was 0.7%

SpiceJet, DHFL: Top gainers and losers in the first half of 2019

Coming with a baggage of severe liquidity crisis triggered by default at Infrastructure Leasing and Financial Services (IL&FS), domestic markets changed course every other month. Geopolitical tensions between India and Pakistan, return of the National Democratic Alliance (NDA) government for the second consecutive term amid weakening economy and renewed trade tensions between the two major world economies, the United States and China, were some of the other the defining moments for markets. READ MORE

Sebi tightens norms for MFs, pledged shares to boost investor confidence

The Securities and Exchange Board of India (Sebi) on Thursday introduced more checks and balances for debt mutual funds (MFs) to secure investors and stem systemic risks.
 
The regulator, among other things, has increased security cover for loans against shares, brought down sectoral investment limits, and mandated certain schemes to have a fifth of their exposure in government securities (g-sec). READ MORE
Ajay Tyagi, Chairman, SEBI | Photo: Kamlesh D Pednekar

Derivative strategy on Havells by HDFC Securities

Buy HAVELLS 
 
July Future at Rs 794 | Stop loss of Rs 785 | Target Rs 810
 
Rationale:
 
Long build up is seen in the Havells Futures’ yesterday, where we have seen sharp rise in Open Interest with price rising by 0.8%.
 
Stock price gave bullish breakout on the daily charts by closing at all time high with higher volumes.
 
Stock price is making higher top higher bottom formation on the daily and weekly charts.
 
Oscillators and Momentum Indicators like RSI and MACD showing strength in the stock on the weekly charts.

Bulk deal on NSE as on Thursday

FII/FPI & DII trading activity on NSE, BSE and MSEI


Rupee check

Source: Bloomberg


Oil check

At 8:12 am, Brent Crude Futures were at $65.27 per barrel 

SGX Nifty

At 8:11 am, SGX Nifty was trading 7 points higher at 11,899 levels

Asian Markets check


US Market check


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