MARKETS ON TUESDAY: Nifty ends above 10,600; metal stocks fall; RIL up 4%

Benchmark indices edged up on Tuesday, with financials and pharma stocks boosting sentiment. That apart, Reliance Industries (RIL) gained nearly 4% in trade to end at Rs 970 levels.

However, gains  were capped by a fall in metal stocks that slipped on the back of a fall in aluminium prices on the London Metal Exchange (LME).

The S&P BSE Sensex ended at 34,617, up 166 points while the broader Nifty50 index settled at 10,614, up 30 points.

Aluminium prices continued to fall after Washington gave US customers of Russian producer United Company Rusal more time to close out their business with the company and comply with sanctions. The sanctions on Rusal had driven prices of the metal to their highest since mid-2011 recently on fears that the global market could face shortages.

Hindalco plunged as much as 9.3%, its biggest intraday percentage loss since early November 2016. Vedanta fell as much as 5.5% in intraday to end 2.4% lower, while National Aluminium was down 7%.

GLOBAL MARKETS

In the global markets, Asian stocks steadied after hitting two-week lows on Tuesday as investors paused for breathe following a heavy sell-off in recent sessions and waited to see if the dollar's rally was sustainable.

MSCI's broadest index of Asia-Pacific shares outside Japan tacked on 0.1% following two straight days of declines that took it to its lowest since April 9. Japan's Nikkei added 0.9% as a lower yen supported export-heavy firms. Chinese shares climbed 1.9%, while Hong Kong's Hang Seng index rose 1%.
 

(with inputs from Reuters)

3:55 PM

Market rundown Vinod Nair, head of research at Geojit Financial Services:

 

"Market extended gains backed by index heavyweights while correction in metals & IT were due to ease in sanctions by US and tightening of H1-B visa procedure capped the gains. Investors are likely to be cautious amid surging oil prices but any green shoots from corporate results & stability in yield will determine the market direction."

3:44 PM

Nifty IT index falls 1.99%. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
WIPRO	286.95	297.35	-10.40	-3.50
INFOSYS	1154.50	1187.70	-33.20	-2.80
TECH MAHINDRA	682.70	702.00	-19.30	-2.75
HCL TECHNOLOGIES	1061.95	1088.00	-26.05	-2.39
KPIT TECH.	241.70	245.80	-4.10	-1.67

3:42 PM

Nifty Metal index ends 1.92% lower. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
NATL. ALUMINIUM	78.60	84.85	-6.25	-7.37
HINDALCO INDS.	236.75	255.60	-18.85	-7.37
WELSPUN CORP	144.15	148.75	-4.60	-3.09
HIND.COPPER	74.65	76.65	-2.00	-2.61
VEDANTA	297.40	305.05	-7.65	-2.51

3:35 PM

Sectoral Trend

3:34 PM

BSE Sensex: Top gainers and losers

3:31 PM

Market at close

 

The S&P BSE Sensex ended at 34,617, up 166 points while the broader Nifty50 index settled at 10,614, up 30 points.

3:20 PM

Logistics shares rally; Gati, Patel Integrated soar 20%

 

Shares logistics companies have rallied by up to 20% on bourses after the Gati said it exploring the possibility of inducting a new financial/strategic partner. Gati (Rs 121) and Patel Integrated Logistics (Rs 72) have locked in upper circuit of 20% on the BSE with no sellers were seen on these counters. READ MORE

3:15 PM

Fresh US tariffs haven't hit Asian markets yet: Japan steel industry head

The head of Japan's steel industry federation said on Tuesday that new import tariffs on steel imposed by the United States have not yet hit the Asian steel market, but said the industry is monitoring the situation closely for any future impact.

 

Japanese steelmakers are trying to seek item exemptions from the US tariffs, Japan Iron and Steel Federation Chairman Kosei Shindo said at a news conference. READ MORE

3:04 PM

Nomura on HDFC Bank

With significant dominance in retail lending, improving cost ratios and potentially lower stress in SME space going forward, we expect earnings growth of +20% to sustain over FY18-21F. We maintain our Buy rating with target price of Rs 2,350/share (which implies 3.7x FY20F book and 22x FY20F EPS)

3:02 PM

Emkay Global on Delta Corp

The positive catalyst for the stock would be the announcement of new gaming policy by Goa government (expected in 2Q). Indian Gaming industry would expand multifold. The current PER of 30x FY20E does not factor in the benefits from new policy and/or Daman license. We maintain our BUY call with target price of Rs 294 based on 30x PER

3:01 PM

Edelweiss on Crisil

Though credit growth is perking up and bond market developments are positive, slowdown in SME is hurting the ratings segment. Moreover, research segment is yet to see broad-based uptick. Hence, we maintain ‘HOLD’ with target price of Rs 1,825.

2:59 PM

Goldman Sachs on FMCG sector

Britannia Industries (Buy) - India’s market leader in biscuits focused on premiumization by launching affordable individual packets for the rural population.
 

Marico (Sell) - Marico’s Saffola (edible oil) faces intense competitive pressure from products like rice bran oil while its Value Added Hair Oil operates in an over-crowded market.

(Source: Research report)

2:59 PM

STOCK ALERT ADAG stocks under pressure; Reliance Naval, RCom down over 15%

Shares of Anil Dhirubhai Ambani Group (ADAG) companies were under pressure with Reliance Naval and Engineering and Reliance Communications (RCom) plunged by more than 15% in intra-day trade on Tuesday in otherwise firm market. Reliance Power, Reliance Infrastructure and Reliance Capital were down 2% to 5% on the BSE READ MORE

2:42 PM

RBI's rate decision influenced more by core rather than headline inflation

 

Investors wrong-footed by the hawkish Indian central bank minutes might rather want to train their sights on underlying trends in inflation than the volatile headline number, analysts say.

 

The Reserve Bank of India, which Bloomberg economists Tom Orlik and Justin Jimenez rate among the top 3 central banks that surprise the most, has a mandate to keep headline inflation around 4 per cent in the medium term. But commentary from members of RBI’s rate-setting panel show they are more focused on core inflation -- the gauge that strips out volatile food and fuel components. READ MORE

2:30 PM

Abu Dhabi's NMC Health gains 1,650% in six years, stock hits record high

It has risen a whopping 1,650 per cent since it started trading six years ago, more than any other company based in the Arab world. Abu Dhabi-based NMC Health Plc closed at a record on Friday in London, boosting its market value to $10.8 billion. That’s about $200 million less than Emaar Properties PJSC, the developer of the world’s tallest tower in Dubai. READ MORE