F&O expiry: Nifty ends at 10,589, PSU banks fall; rupee hits record low

The markets ended lower on Thursday, the last day of expiry of futures & options contracts for the June series. Sentiment wasa also impacted by firm crude oil prices and the rupee that hit a record of over 69 to the US dollar. The S&P BSE Sensex ended at 35,038, down 179 points, while the Nifty50 index settled at 10,589, down 82 points.

Among sectoral indices, the Nifty PSU Bank index ended nearly 2% lower led by a fall in the shares of Punjab National Bank, Bank of India and Syndicate Bank.

RUPEE

The rupee fell to an all-time low against the US dollar in trade on Thursday, tracking Asian peers with weakening macro-economic fundamentals on the domestic front also weighing on the currency.

The partially convertible rupee was trading at a life low of 69.03/04 against the dollar. The Indian currency closed at 68.65/66 per dollar on Wednesday.

GLOBAL MARKETS

Asian stocks slumped to nine-month lows, as investors worried that the the Trump administration's approach to trade is harming global economic growth - even as the White House approach to Chinese investment in US technology companies appeared to be softening.

MSCI's broadest index of Asia-Pacific shares outside Japan fell as much as 0.52 per cent to hit a new near nine-month low, before it recovered some ground, while Japan's Nikkei average was flat after erasing earlier losses.

OIL PRICES

In commodities, US oil prices dipped away from three-and-a-half year highs on Thursday amid high output from Russia, the United States and Saudi Arabia, although unplanned supply disruptions elsewhere and record demand stemmed a bigger decline.

US West Texas Intermediate (WTI) crude futures were at $72.54 a barrel, down 22 cents, or 0.3 per cent from their last settlement. WTI hit its highest since November 2014 at $73.06 per barrel in the previous session. Brent crude futures were at $77.54 per barrel, down 8 cents from their last close.

(with Reuters inputs)

4:20 PM

MARKET COMMENT Jayant Manglik, President, Religare Broking 

Nifty remained under pressure and lost over half a percent on the F&O expiry day. Participants were already in the cautious mood from the beginning and weak global cues combined with the news of rupee trading at new record low against the US dollar further worsened the sentiment. Almost all the sectoral indices traded in line with the benchmark and closed lower.

 

Continuous global pressure and deteriorating macroeconomic condition on local front are responsible for the recent correction. And, we may see further pressure in the days to come. However, oversold positions may result in some rebound in between. Traders should limit leveraged trades and wait for clarity

4:01 PM

Nifty PSU Bank index settled 1.95% lower. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
PUNJAB NATL.BANK	72.80	76.75	-3.95	-5.15
SYNDICATE BANK	39.20	41.00	-1.80	-4.39
BANK OF INDIA	85.15	88.70	-3.55	-4.00
ORIENTAL BANK	71.70	73.90	-2.20	-2.98
UNION BANK (I)	79.80	81.35	-1.55	-1.91

3:59 PM

Nifty sectoral losers

3:57 PM

BSE Sensex: ICICI Bank, Tata Motors, RIL among top losers

3:31 PM

Market at close

 

The S&P BSE Sensex ended at 35,038, down 179 points while the broader Nifty50 index settled at 10,589, down 82 points.

3:16 PM

COMMODITY WATCH Crude oil

We have seen dramatic rise in the crude oil prices in the last couple of months due to geo-political concern. There are supply issues from Venezuela, Libya and Canada. US has asked countries to cut imports of Iranian oil from November. So the crude oil prices are moving higher in the international market.

On the other hand, the rupee has depreciated to all time low levels. As a result, crude oil prices touched Rs 5000 on the MCX yesterday. The rupee is expected to depreciate in coming sessions due to steady capital outflows and worsening macroeconomic conditions. Hence, we expect that crude oil prices might trade in a range of Rs 4800 to Rs 5200 on the MCX in coming sessions

(Source: Anand Rathi Commodities)

3:14 PM

BSE Smallcap index hits 9-month low; 111 stocks tank over 50% in CY18

Shares of smallcap companies continue to be under pressure with the S&P BSE Smallcap index hitting nine-month low, down for the fourth straight trading day on the BSE on Thursday. Thus far in calendar year 2018 (CY18), the S&P BSE Small-cap index has underperformed by falling 18%, as compared to 14% decline in the S&P BSE Midcap and 3% rise in the S&P BSE Sensex. READ MORE

3:13 PM

Where is the rupee headed?

The Indian rupee is set to weaken beyond 71 per dollar by June next year as the country’s current-account deficit widens on rising oil prices, said Taimur Baig, chief economist at DBS Group Holdings Ltd.

 

Rising US interest rates, a stronger dollar and fears of a trade war will spur flows into traditional safe-haven liquid currencies, Baig said in an interview. External funding pressures due to slowing capital flows will also keep the rupee under pressure, he added. READ MORE

3:02 PM

Top losers in BSE500:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
KRBL	308.50	348.75	-40.25	-11.54
M R P L	79.15	86.95	-7.80	-8.97
V-MART RETAIL	2336.00	2547.75	-211.75	-8.31
JAIN IRRIGATION	80.50	86.75	-6.25	-7.20
TECH MAHINDRA	668.95	714.00	-45.05	-6.31

2:46 PM

Oil price update

US oil prices steadied on Thursday, pulling back from 3-1/2-year highs, but supply remained tight with investors concerned by the prospect of a big fall in crude exports from Iran due to U.S. sanctions.
 

US light crude was 15 cents lower at $72.61 per barrel, after hitting $73.06 on Wednesday, its highest since November 2014. Benchmark Brent was unchanged at $77.62 a barrel. READ MORE

2:32 PM

COMMENT Nitasha Shankar, Sr. Vice President and Head of Research at YES Securities on rupee

The sectors that are looking good due to the fall in the rupee are of course the export oriented ones including IT and Pharma. However we believe this could mean further weakness for the oil marketing companies which have already been languishing under the pressure of higher crude prices

2:23 PM

Vietnam's loss is India's gain as US regulates illegal shrimp imports

The US’s move to introduce measures to prevent illegal, unreported and unregulated (IUU) fishing and misrepresented seafood from entering the country is likely to help Indian shrimp exports because new regulations will hurt exports from Vietnam, India's main competitor. READ MORE

2:14 PM

Rupee breaches 69/dollar level; mild intervention from RBI seen

The rupee fell to its lowest ever against the U.S. dollar on Thursday on the back of weak macro-economic fundamentals, broad dollar strength overnight and declining Asian peers, but mild intervention from the central bank helped stem losses. READ MORE

2:10 PM

IndusInd Bank buys IL&FS Securities; capital market deal to boost growth

IndusInd Bank was one of the few large private banks without a major presence in the capital market business. With Tuesday’s announcement of acquiring IL&FS Securities Services (ILFS), it has partly bridged this gap. READ MORE

2:00 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,098.94	-118.17	-0.34
S&P BSE SENSEX 50	11,127.45	-54.42	-0.49
S&P BSE SENSEX Next 50	31,537.55	-272.88	-0.86
S&P BSE 100	10,886.44	-59.30	-0.54
S&P BSE Bharat 22 Index	3,266.30	-14.97	-0.46

(Source: BSE)