MARKETS ON WEDNESDAY: Nifty ends at 10,742, Sensex up 103 pts; IT cos gain

The markets ended higher despite weakness in their Asian counterparts.

The S&P BSE Sensex gained 103 points to close at 35,319 levels, while the broader Nifty50 index settled at 10,742 levels, up 24 points.

The oil marketing companies were under pressure today following Donald Trump's sanctions on Iran and its likely impact on global crude oil prices. HPCL and BPCL lost 0.6 per cent and 1.7 per cent, respectively. IOC, however, ended the day flat.

Among sectoral indices, the Nifty IT index ended higher led by a rise in the shares of Tata Consultancy Services, Tata Elxsi and HCL Technologies.

GLOBAL MARKETS & OIL

Crude oil prices jumped back to near three-and-a-half-year highs on Wednesday after US President Donald Trump pulled his country out of an international nuclear deal with Iran, sparking worries about global oil supplies.

The Asian shares ticked lower as renewed US sanctions on Tehran were seen as disruptive for many companies that have deals with Iran. Trump’s move is also seen as risking worsening already-tense relations between Iran and US allies in the region.

MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.2 per cent while Japan’s Nikkei fell 0.4 per cent.
 

(with Reuters inputs)

4:08 PM

MARKET COMMENT Mustafa Nadeem, CEO, Epic Research

Nifty50 may continue to trade in the range of 10780 to 10600 for next couple of days. Any upside breakout of 10780 on a closing basis will give us further direction and higher levels of 10900. Traders and investors are suggested to have positions being hedged since the increase in volatility is expected ahead of the event

3:45 PM

Nifty IT index ends 0.55% higher. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN()	GAIN(%)
TCS	3489.30	3441.20	48.10	1.40
TATA ELXSI	1192.45	1179.10	13.35	1.13
ORACLE FIN.SERV.	4269.50	4225.20	44.30	1.05
HCL TECHNOLOGIES	927.50	920.10	7.40	0.80
INFOSYS	1170.70	1165.55	5.15	0.44

3:37 PM

Sectoral Trend

3:36 PM

BSE Sensex: gainers and losers of the day

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 35,319, up 103 points while the broader Nifty50 index settled at 10,742, up 24 points.

3:15 PM

EID Parry hits 52-week low on disappointing Q4 results

Shares of EID Parry hit 52-week low of Rs 251 per share, down 7% on the BSE, after the company reported a sharp 87% year-on-year (y-o-y) drop in consolidated net profit at Rs 405 million for the quarter ended March 2018 (Q4FY18), on account of poor performance by sugar and nutrient and allied business. It had profit a of Rs 3 billion in year ago quarter. READ MORE

3:01 PM

Enkei Wheels surges 14% on stake buys by Blue Lotus Capital

Shares of Enkei Wheels (India) have surged 14% to Rs 475 per share on the BSE, after Blue Lotus Capital Multibagger Fund bought 0.55% stake in auto ancillary company through open market. On Tuesday, Blue Lotus Capital Multibagger Fund had purchased 85,000 equity shares representing 0.55% stake in Enkei Wheels (India) at price of Rs 421 per share, the BSE bulk deal data shows. READ MORE

2:40 PM

Edelweiss on Godrej Consumer

Godrej Consumer Products’ (GCPL) Q4FY18 consolidated revenue, EBITDA and PAT growth of 5.8%, 9.4% and 10.0% YoY, respectively, came in line with our estimates. Domestic volume growth was soft at 6% YoY, an outcome of 5% YoY revenue decline in HI segment and 3% YoY revenue growth for hair care segment (against run-rate of 14% over last 4 quarters).

International business segment logged constant currency (CCY) growth of 6% YoY with Indonesia (-6% CCY) and Africa (7% CCY) both on slightly weaker footing. To support new launches, ad spends expanded 70bps YoY, a right strategy in our view. Going ahead, we believe the building blocks are in place in terms of innovation and new launches pipeline, which will bolster the company’s positioning and spur market share gains too. Maintain ‘BUY

2:29 PM

Zenith Exports, SORIL Holdings, Sadhana Nitrochem zoom up to 400% in a month

Three stocks – Zenith Exports, SORIL Holdings and Ventures and Sadhana Nitrochem – have seen their market price surge up to 400% in the past one month. While Zenith Exports has gained 376% from Rs 39 to Rs 186 levels, SORIL Holdings and Ventures has surged 138% to Rs 559 (Rs 235) and Sadhana Nitrochem is up by 100% at Rs 458 (Rs 229) on the BSE. READ MORE

2:16 PM

Global shocks likely to spike gold prices this year, says GFMS report

GFMS Thomson Reuters has painted a bullish outlook for the global price of gold this year. The average so far has been $1,360 an ounce, it said, and could “potentially briefly approach a 2018 peak towards $1,500/oz on any exogenous shocks later in the year”.

 

The price at present is $1,312 an ounce. The agency sees the geopolitical climate and equity markets as supportive for gold’s role as a risk hedge. Then, political uncertainty such as on Britain’s exit talks from the European Union, beside tensions in West Asia and North Africa. America is set to announce sanctions on Iran, further stoking the price of crude oil. READ MORE

2:01 PM

Market Check

 

S&P BSE Sensex	35,367.81		0.43%
Nifty 50	10,751.75		0.32%
S&P BSE 200	4,695.86		0.18%
Nifty 500	9,429.60		0.10%
S&P BSE Mid-Cap	16,564.36		-0.43%
S&P BSE Small-Cap	18,124.34		0.08%

1:48 PM

Bond yields up 7.65% after RBI revises open market purchase securities list

India’s benchmark 10-year bond yield jumped in early trade on Wednesday after the central bank revised the list of securities it plans to buy back from the market at its open market purchase of debt on May 17.

 

The Reserve Bank of India on Tuesday removed the 6.84 per cent 2022 bonds from the list of government securities that it had announced it would buy at the OMO. This particular paper had been selected for a sale on May 11 as well and was seen by traders as a signal to support the government’s sovereign borrowing programme. READ MORE

1:34 PM

Tata Motors up 4% after rise in JLR April retail sales

Shares of Tata Motors have moved higher by 4.4% to Rs 347 per share on the BSE after the company owned car-maker in UK, Jaguar Land Rover (JLR) reported 11.9% year on year (y-o-y) growth in total retail sales of 45,180 vehicles in April 2018.
 

Sales were primarily driven by the introduction of new models including the Range Rover Velar (winner of the 2018 World Car Design of the Year award), Land Rover Discovery and the Jaguar E-PACE, the company said in a press release. READ MORE

1:20 PM

MARKET CHECK

12:45 PM

Rupee at fresh 15-month low, plunges 37 paise to 67.45 against US dollar

The rupee plunged by 37 paise to 67.45 against the US dollar in early trade today following surging demand for the greenback as crude oil prices zoomed past USD 76 per barrel level amid foreign capital outflows.

 

Forex dealers said the dollar strengthened against major global currencies overseas as crude oil prices rallied and pushed Treasury yields higher after US President Donald Trump pulled out from the international nuclear deal with Iran. READ MORE