MARKETS ON THURSDAY: Indices end lower, Nifty below 10,700; IT stocks fall

Benchmark indices declined on Thursday, dragged down by IT and pharma stocks, while caution prevailed as hopes waned for real progress in Sino-US trade talks due later in the day.

Among sectoral indices, the Nifty IT index was over 1% down led by fall in the shares of HCL Technologies and MindTree.

Shares of InterGlobe Aviation slumped nearly 20% during the day to hit their lowest in seven months and wiped out nearly Rs 101.13 billion ($1.52 billion) in market capitalisation after it posted a 73% plunge in profit on Wednesday.

Going ahead, the investors will also be mindful of the upcoming state elections in Karnataka on May 12 that are being seen as a semi-final to the general elections scheduled in 2019.

Gloablly, Asian shares fell, while the US dollar consolidated recent bumper gains after the Federal Reserve reaffirmed the outlook for more rate hikes. Reports that the Trump administration is considering executive action to restrict some Chinese companies’ ability to sell telecoms equipment in the United States were a dampener.

The Federal Reserve held interest rates steady on Wednesday and expressed confidence that the recent rise in inflation at a level near the US central bank's target would be sustained, keeping it on track to raise borrowing costs in June. It was widely expected that the US central bank would keep rates unchanged in May 2018, but might raise them again in June 2018.

(with Reuters inputs)

3:48 PM

Market rundown by Anand James, Chief Market Strategist, Geojit Financial Services

 

"Market remained volatile throughout as US china talks rekindled fears of escalation of trade war. This meant that profit booking persisted, even in an otherwise buoyant IT sector, resigning Nifty to languish around the 10700 level. Expectation is that positive FOMC outcome and earnings positivity will seek to extend markets’ uptrend, but FII’s persistent remains a concern."

3:41 PM

Nifty IT index ends 2.04% lower. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS()	LOSS(%)
HCL TECHNOLOGIES	925.70	1000.50	-74.80	-7.48
MINDTREE	1031.85	1051.65	-19.80	-1.88
WIPRO	271.45	275.55	-4.10	-1.49
TECH MAHINDRA	652.95	662.55	-9.60	-1.45
INFIBEAM INCORP.	162.85	164.85	-2.00	-1.21

3:38 PM

Nifty sectoral gainers and losers of the day

3:36 PM

BSE Sensex: Sun Pharma, Tata Steel among top gainers of the day, Asian Paint among top loser

3:34 PM

Market at close

 

The S&P BSE Sensex ended at 35,103, down 73 points while the broader Nifty50 index settled at 10,680, down 38 points.

3:16 PM

Gold extends gains; all eyes on US-China trade talks

Gold prices rose for a second session on Thursday after the U.S. Federal Reserve held interest rates steady as expected at the end of a two-day policy meeting, while investors awaited U.S.-China trade talks.

 

Spot gold rose 0.2 percent to $1,307.05 per ounce. U.S. gold futures for June delivery rose 0.2 percent to $1,307.60 per ounce. READ MORE

 

3:00 PM

Bayer cuts full-year earnings guidance on strong euro

Bayer said the pressure from a stronger euro on overseas revenues would translate into a decline in earnings this year, as it prepares to close its $62.5 billion takeover of U.S. seeds maker Monsanto this quarter.

Earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for one-offs, are now set to decline by a low single-digit percentage rather than coming in flat as previously forecast, it said in a statement on Thursday. READ MORE

2:47 PM

Volume Toppers

COMPANY	PRICE()	CHG()	CHG(%)	VOLUME
PC JEWELLER	111.75	1.10	0.99	16818944
HIND.CONSTRUCT.	18.15	-5.20	-22.27	7094852
REL. COMM.	15.25	-0.80	-4.98	6117869
SPICEJET	122.95	-8.95	-6.79	4886062
JP ASSOCIATES	19.30	-0.35	-1.78	3243724

2:35 PM

TeamLease Services hits record high; stock surges 50% in two months

 

Shares of TeamLease Services hit a record high of Rs 3,042 per share, up 12% on the BSE in otherwise subdued market. The stock surpassed its previous high of Rs 2,948 touched on April 25, 2018 in intra-day trade.

 

In past two months, the stock rallied 50% from Rs 2,033 after the Reserve Bank of India (RBI) raised the investment limit for foreign portfolio investors (FPIs) in the company to 75%. On comparison, the S&P Sensex was up 3.35% during the same period. READ MORE

2:15 PM

PC Jeweller turns volatile on reports of CBI arresting its owner

Shares of PC Jeweller have turned volatile gaining more than 30% from its intra-day low on the National Stock Exchange (NSE). The stock opened 9% lower at Rs 101, slipped 15% in intra-day deal to Rs 95, hitting fresh 52-week low. At around 11:32 am; it bounced back to Rs 127, up 34% from its intra-day low, the exchange data shows. READ MORE

1:59 PM

Market Check

 

S&P BSE Sensex	35,161.68		-0.04%
Nifty 50	10,694.25		-0.22%
S&P BSE 200	4,681.20		-0.38%
Nifty 500	9,398.45		-0.49%
S&P BSE Mid-Cap	16,645.90		-1.00%
S&P BSE Small-Cap	18,048.14		-0.78%

1:50 PM

Axis Bank ratings unaffected by sharp rise in non-performing assets: S&P

Global rating agency Standard and Poor's (S&P) on Thursday said rating assigned to various instruments issued by Axis Bank were unaffected by the sharp rise in its non-performing assets. The increase in bad loans was part of a balance sheet clean-up exercise underway in the Indian banking system, the rating agency said. READ MORE

1:35 PM

Demonetisation, GST impact: India is fast ceding gold market share to China

India is fast losing its gold market share to China. And, from that perspective, the January-March period of 2018 has been the worst for India’s share of the global yellow metal demand.

 

According to the World Gold Council’s gold demand trend report for the March quarter, released on Thursday, total global consumer gold demand (jewellery and investment) in 2017 stood at 3,198.6 tonnes, two per cent lower than that in 2010. India’s share of the 2010 demand, at 1,001.7 tonnes, was 31 per cent of the total; and China’s was 29.7 per cent. In 2017, while China’s share of the total demand increased to 31.6 per cent, India’s fell to 23 per cent. READ MORE

1:22 PM

Markets are not factoring in Karnataka poll outcome yet, say analysts

Markets have not yet priced in the possibility of a loss for the Narendra Modi-led Bharatiya Janata Party (BJP) in the upcoming assembly election in Karnataka. Though analysts expect a knee-jerk reaction to the outcome on May 15, they believe the markets will start focussing on other global and domestic events soon after.

Nilesh Shah, managing director at Kotak Mahindra Mutual Fund believes the S&P BSE Sensex could dip sharply if the BJP loses Karnataka. He, however, expects the recovery to be equally swift. A win, on the other hand, could take markets higher. READ MORE

Prime Minister Narendra Modi with BJP workers at an election campaign rally, ahead of Karnataka polls, in Udupi on Tuesday. PTI Photo

1:05 PM

In Modi's 4 years, India forgot that crude is the biggest bond vigilante

The 10-year U.S. bond yield breaking through the 3 percent danger level worries India, as it does every emerging market. Still, the price that sends policymakers in New Delhi and Mumbai into paroxysm isn’t that of global capital, but of a commodity: oil.

 

With Brent crude flirting with $75 a barrel, the panic is already beginning to show. Crucial state polls in Karnataka are due next week and general elections are only a year away. No surprise then that the Indian government appears to have instructed state-run oil marketers who control most retail sales not to raise pump prices. READ MORE