MARKET WRAP: Sensex dips 218 pts as WPI rises to 5.77%; Tata Steel down 7%

The Sensex and Nifty fell on Monday, dented by losses in energy, realty and healthcare stocks, with subdued Asian peers and rising inflation dampening sentiment further, while technology stocks gained with Infosys hitting an all-time high on upbeat quarterly results.

The S&P BSE Sensex ended at 36,324, down 218 points while the broader Nifty50 index settled at 10,937, down 82 points.

Among sectoral indices, the Nifty Pharma index ended 4 per cent lower led by a fall in the shares of Dr. Reddy's Laboratories and Sun Pharmaceutical Industries. The Nifty Metal index too has fallen over 3.5 per cent lower led by fall in Jindal Stainless (Hisar) and Tata Steel.

Energy shares took a beating after crude prices dropped as concerns around supply disruptions eased, while traders eyed potential supply hikes by Russia and other oil producers. Reliance Industries slipped nearly 2% per cent, while Hindustan Petroleum Corp declined pver 2 per cent.

Among individual stocks, information technology (IT) major Infosys hit a new high of Rs 1,384 in intra-day, surging 6 per cent on the BSE, in an otherwise subdued market after the company reported an in-line performance for the first quarter ended June 2018 (Q1FY19) and its board approved the issuance of one free share for every share held (that is a 1:1 bonus issue). The company announced its Q1FY19 results on Friday after the market hours. The stock ended nearly 2% higher
 

Economic Data

Inflation based on wholesale prices shot up to 5.77 per cent in June on increasing prices of vegetables and fuel items. The Wholesale Price Index (WPI) based inflation stood at 4.43 per cent in May and 0.90 per cent in June last year.

According to the government data released today, inflation in food articles stood at 1.80 per cent in June 2018, as against 1.60 per cent in the preceding month. Inflation in vegetables jumped to 8.12 per cent in June, from 2.51 per cent in the previous month.

Global Markets

Asian shares declined after official data showed China’s economy slowed slightly in the second quarter, compounded by fears of a full-scale Sino-US trade war looming over markets.

MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.43 per cent.

The Shanghai Composite Index and the blue-chip CSI300 index fell 0.5 per cent. Hong Kong's Hang Seng index was down less than 0.1 per cent and Seoul's Kospi lost 0.1 per cent. Japan's markets are closed for a holiday.
 

(with Reuters inputs)
 

3:40 PM

Nifty Pharma index ends 4.12% lower. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS()	LOSS(%)
DR REDDY'S LABS	2091.10	2319.85	-228.75	-9.86
LUPIN	815.75	865.60	-49.85	-5.76
SUN PHARMA.INDS.	533.00	559.75	-26.75	-4.78
CADILA HEALTH.	349.75	366.10	-16.35	-4.47
AUROBINDO PHARMA	575.25	602.15	-26.90	-4.47

3:37 PM

Nifty sectoral losers of the day

3:35 PM

BSE Sensex: Infosys ends over 2% higher, Tata Steel declines 7%

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 36,324, down 218 points while the broader Nifty50 index settled at 10,937, down 82 points.

3:20 PM

Motilal Oswal Securities on Infosys

 

With the quarter largely in-line, our EPS estimates have changed little. Although it looks like INFO will achieve the lower end of its guidance in FY19, we continue to reckon the margin band is conservative, with the share of Digital inching up, recent rupee depreciation, and investments already defined internally. Our price target of Rs 1,550 discounts forward earnings by 17x, based on our thesis of a narrowing gap with TCS. We maintain Buy.

3:10 PM

IFCI plans to offload 1.21 million shares in NSE, invites merchant bankers

 

Government-controlled development finance company IFCI Ltd has invited merchant bankers to help it offload stake in the National Stock Exchange (NSE).

 

The company is looking to sell 1.21 million of NSE shares (0.24 per cent stake). The deal is likely to be valued at Rs 1.05 billion to Rs 1.11 billion, based on the price-band of Rs 870-920 mentioned in the tender. READ MORE

3:00 PM

BSE Midcap, Smallcap indices hit over 10-month low

 

Shares of mid and smallcap companies were under pressure with the S&P BSE Midcap and Smallcap index falling 2% each, hitting over 10-month low on the BSE in intra-day trade on Monday.

 

The S&P Midcap index touched a low of 15,097, its lowest level since August 23, 2017, while the S&P Smallcap index hit low of 15,832, its lowest level since August 30, 2017. READ MORE

2:45 PM

Bharti Airtel hits 52-week low; stock falls 35% in thus far 2018

 

Shares of Bharti Airtel hit 52-week low of Rs 345, down 4% on the BSE, on concerns of weak earnings for the quarter ended June 2018 (Q1FY19).

 

The stock of telecom services provider was trading at its lowest level since May 10, 2017. Thus far in the calendar year 2018, Bharti Airtel underperforming the market by falling 35% as compared to 7.3% rise in the S&P BSE Sensex. READ MORE

2:30 PM

LIC board gives nod to acquisition of up to 51% stake in IDBI Bank: Garg

 

Life Insurance Corporation of India's (LIC's) board has approved raising its stake in state-run IDBI Bank to 51 per cent, Economic Affairs Secretary Subhash Chandra Garg told reporters on Monday.

 

Garg, who is on the board of state-run LIC, said the additional stake buy would be most likely through a preferential shares issue, enabling injection of funds to IDBI Bank. READ MORE

2:17 PM

Transfer of shares of listed firms must be in demat mode from Dec 5: Sebi

 

Transfer of shares of listed companies has to essentially be in dematerialised mode from December 5, according to markets regulator Sebi.

 

In a recent notification, the regulator announced the amendment to the LODR (Listing Obligations and Disclosure Requirements) Regulations pertaining to share transfer agent. READ MORE

1:59 PM

Market Check

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	36511.32	36541.63	-30.31	-0.08
	14746.34	14826.58	-80.24	-0.54
	15233.84	15431.47	-197.63	-1.28
	15937.27	16196.33	-259.06	-1.60
	4251.47	4263.19	-11.72	-0.27

1:50 PM

NEWS ALERT LIC board approves IDBI Bank buyout

Stock Impact

1:43 PM

WEB EXCLUSIVE Rising inflation among key risks to Indian equity market: Morgan Stanley

 

A likely rise in crude oil prices that could put pressure on growth, an election cycle that brings its own set of uncertainties and an upward pressure on inflation from food price hikes that sees the Reserve Bank of India (RBI) hike rates further are among the top risks to the Indian equities, according to a recent Morgan Stanley India Equity Strategy Almanac: The Uphill Climb.

 

On Monday, the wholesale price inflation (WPI) for June rose to a four-and-a-half year high of 5.77 per cent, rising from 4.43 per cent recorded in May 2018. READ MORE

Photo: Shutterstock

1:30 PM

Top BSE500 losers

COMPANY	PRICE()	CHG()	CHG(%)	VOLUME
PC JEWELLER	93.25	-26.70	-22.26	4278381
DR REDDY'S LABS	2105.30	-212.15	-9.15	193989
JP ASSOCIATES	14.10	-1.40	-9.03	4043842
JINDAL STAIN .HI	127.70	-11.90	-8.52	219727
DCB BANK	164.75	-14.70	-8.19	343365

1:15 PM

DCB Bank falls 11% post June quarter results

 

DCB Bank dipped 11% to Rs 160 on the BSE in intra-day trade after net interest margin (NIM) of the private sector lender declined 33 bps year on year (yoy) at 3.9% in June quarter. NIMs were stood at 4.23% for Q1FY18 and 4.09% for Q4FY18.

 

“Margins are under pressure especially in mortgage and corporate loan book. We continue to be watchful of NPAs,” said Murali M. Natrajan, Managing Director & CEO, DCB Bank. READ MORE