MARKET WRAP: Sensex sheds 262 pts; Nifty ends at 11,004; OMCs slip up to 7%

All that happened in markets today.

Equity market ended in the negative territory on Monday as oil prices surged the most in 28 years in the intra-day trade following attacks on key oil producer Saudi Arabia’s crude facilities over the weekend. Counters such as oil marketing companies (OMCs), tyre, paint and aviation stocks tumbled up to 7 per cent following the development. 

The S&P BSE Sensex lost 262 points or 0.70 per cent to close at 37,123 levels, with M&M(down 2.50 per cent) being the top loser and ONGC (up around 1.50 per cent) the biggest gainer. HDFC, Reliance Industries (RIL), SBI and L&T contributed the most to the Sensex's loss while TCS, HUL and Tech Mahindra were among the top gainers.

In the broader market, the S&P BSE MidCap index slumped 38 points, or 0.27 per cent, to 13,628.07 levels, while the S&P BSE SmallCap index surged 83 points, or 0.64 per cent, to 13,096 levels.

On NSE, the Nifty50 index ended at 11,003.50, down 72 points or 0.65 per cent. Out pf 50 constituents, 14 advanced and 36 declined. 

The session was highly volatile as India VIX, the volatility index, jumped around 6 per cent to 14.93 levels. 

Among the sectoral indices on NSE, PSU bank stocks slipped the most, followed by realty and financial services counters. The Nifty PSU Bank settled at 2,479.55 levels, down 32 points or 1.28 per cent. 

BUZZING STOCKS

Among individual stocks, Eveready Industries hit an over five-year low of Rs 57 on the BSE after the company announced that Calcutta High Court has restrained from transferring, alienating or encumbering any of its assets till the application filed by Infrastructure Leasing & Financial Services (IL&FS) was disposed of. The High Court Order is likely to delay the company’s plan to sell its battery business to pare debt.

Equitas Holdings slipped 13 per cent to Rs 102 on the BSE after the Securities and Exchange Board of India (Sebi) on Friday returned the draft scheme with regard to Equitas Small Finance Bank (ESFB), citing that it was not in compliance with the regulatory provisions. 

On the contrary, Adani Green Energy hit fresh 52-week high of Rs 58 during the session. At close, the stock stood at Rs 55.55, up around 11 per cent on the BSE. Graphite electride makers HEG and Graphite India surged up to 19 per cent. 
 

GLOBAL STOCKS

World stocks halted a four day winning streak and were down 0.16 per cent. European shares fell 0.55 per cent and Wall Street signal a weak start, too, with E-Mini futures for the S&P 500 off 0.34 per cent. In Asia, the blue-chip CSI300 index ended down 0.4 per cent at 3,957.72, while the Shanghai Composite Index closed flat at 3,030.75.

(With inputs from Reuters)

3:57 PM

Here's how sectoral indices on NSE performed today

3:57 PM

Losers and gainers on the S&P BSE Sensex

3:40 PM

CLOSING BELL

The S&P BSE Sensex lost 262 points or 0.70 per cent to end at 37,123 levels while NSE's Nifty50 index ended at 11,003.50, up 72 points or 0.65 per cent. 

3:22 PM

MARKET CHECK | Top gainers on the BSE at this hour

3:20 PM

ICICI Securities on Mphasis

The management outlook on above industry growth rate in direct core and in line growth in DXC/HP channel indicates healthy revenue visibility. In addition, a healthy client base, strong TCV (29.9% CAGR in FY17-19) and strong growth in digital/next gen (36% CAGR in FY17-19) provide further proof points. Accordingly, we estimate rupee revenue CAGR of 11.7% (FY19-21E) and EBIT margin of 16.2% in FY21E. However, most positives are already factored in the valuation. Hence, we assign a HOLD rating to the stock. We value Mphasis at 16x P/E on an estimated EPS of ~ Rs 69.1/share (FY21E) with a target price of Rs 1,100. Key risk to the company is high exposure to BFSI segment where IT spending is under pressure.

3:00 PM

Contributions to S&P BSE Sensex's fall today

2:51 PM

Adani Green Energy hits 52-week high, surges 15% on heavy volumes

Adani Green Energy hit fresh 52-week high of Rs 58, up15 per cent in the afternoon deals on the BSE on Monday, on the back of heavy volumes. The stock surpassed its previous high of Rs 57 apiece touched on September 17, 2018 in the intra-day deal.

 

Trading volumes at the counter jumped 10-fold with a combined 5.3 million shares changing hands on the NSE and BSE till 02:16 pm. In comparison, the S&P BSE Sensex was down 0.72 per cent at 37,117 level.READ MORE

2:48 PM

BSE500 stocks that hit 52-week high today

COMPANY	PRICE(rs)	52 WK HIGH	CHG(rs)	CHG(%)
ABBOTT INDIA	9905.00	10015.00	61.15	0.62
ADANI GREEN	55.40	57.50	5.20	10.36
ASTRAL POLY	1136.50	1255.00	58.82	5.46
PETRONET LNG	267.00	270.65	0.40	0.15
TIMKEN INDIA	733.45	759.70	41.80	6.04

2:45 PM

Mahindra & Mahindra dips over 2%

2:42 PM

Equitas Holdings tanks 13%

2:39 PM

Global markets check

European shares fell on Monday after four straight sessions of gains as attacks on crude facilities in Saudi Arabia and weak Chinese data added to worries over global growth while boosting shares in unaffected oil producers. The pan-European STOXX 600 index and trade-sensitive German shares DAX were both down 0.6 per cent.

 

Shares in Asia extended losses as bleak economic data from China sapped investors’ appetite for riskier assets. MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.4 per cent, China’s blue-chip index eased 0.5 per cent, while Hong Kong’s Hang Seng index faltered about 1 per cent.

(Reuters)

2:33 PM

Index Contributors at this hour

2:27 PM

ICRA on oil

According to K. Ravichandran, Senior Vice-President and Group Head, Corporate Ratings, ICRA, “While the oil markets await further updates on the resumption of supplies from Saudi Arabia, the oil markets will nevertheless be nervous as any retaliatory measures by Saudi Arabia and its allies will keep the market on tenterhooks. As a result, oil prices should factor in sizeable geo-political risk premium which will be negative for Indian consumers. Nevertheless, this impact is likely to be short lived as the market will rebalance swiftly once the tensions abate.” 

 

For the Upstream sector, an increase in crude oil prices is credit positive as their realisations and cash accruals will increase. As per ICRA’s estimates, till an Indian Basket crude price of around $70-75/bbl, the PSU upstream companies may not have to bear material under-recoveries. Thus, their net realisation and cash accruals will improve unless the extant under-recovery sharing formula is changed. However, the GoI had not called upon the Upstream companies to bear the under recoveries during April-November 2018 when crude oil prices were consistently above $70/bbl and had breached $80/bbl in September-October 2018. Higher crude oil prices, if sustained, will lead to an increase in capex by the private players too.

 

The refiners are expected to benefit from inventory gains in the short-term due to increase in crude oil prices. Additionally, an increase in crude oil prices would lead to an increase in the working capital borrowings and interest expense of refining companies. Besides, the increase in crude oil prices would lead to an increase in under recoveries on LPG and SKO, delays in the reimbursement of which by the GoI, as had happened in FY2019, will also lead to higher working capital borrowings. Significant increase in crude oil prices has the potential to slow down global demand growth, already reeling under the impact of the US-China trade war, which could also adversely impact global crack spreads and thus, GRMs of the domestic refineries over the medium term, although IMO norms implementation for bunker fuels could offer some respite from Jan 2020.

 

As regards the impact on the consumers, Prashant Vasisht, Vice President and Co-Head, Corporate Ratings, said “Higher petroleum products prices are expected to modestly impact the demand growth of petroleum products over the near to medium term. Industrial consumers may face pressure on the profitability with rise in input prices of crude derivatives besides possible increase in power and fuel cost. The retails consumers will face increase in inflation driven by higher transportation and logistics cost. Nonetheless, CGD companies will be well placed on the demand front as the price differential between CNG/PNG vs alternate liquid fuels widens giving them better pricing power”

2:21 PM

NEWS ALERT | Mindtree enters into agreement with Atotech for digital solutions: BSE filing

2:18 PM

NEWS ALERT | ECGC to launch new trade finance scheme called Niryat Rin Vikas Yojana (NIRVIK), says Piyush Goyal: CNBC TV18

-- NIRVIK to cover 90% of prinicipal interest of pre and post shipment credit: Goyal

Alert: Export Credit Guarantee Corporation of India