MARKET WRAP: Indices end lower as govt faces no-confidence motion

Benchmark indices erased early gains on Wednesday as the opposition parties tabled a no-confidence motion against govt

Benchmark indices erased early gains to end lower on Wednesday, with the benchmark BSE index falling from a record high, as the opposition parties tabled a no-confidence motion against Prime Minister Narendra Modi’s government.

For the first time in 15 years, a no-confidence motion against the government was moved and accepted in Lok Sabha today. Speaker Sumitra Mahajan said the notice, moved by the Congress, Telugu Desam Party and Sharad Pawar's Nationalist Congress Party, will be taken up on Friday.

The S&P BSE Sensex ended at 36,373, down 147 points while the broader Nifty50 index settled at 10,980, down 28 points.

The S&P BSE Sensex earlier today hit a fresh record high of 36,747.87 in intra-day deals, surpassing its previous high of 36,740.07 touched on Friday, July 13, 2018.

Among sectoral indices, Nifty Realty and the Nifty Metal indices were the worst hit in trade today. Jindal Steel, Tata Steel, Hindustan Copper, Hindalco and Vedanta from the metal pack slipped 3 per cent to 6.8 per cent.

Among gainers, shares of state-owned Oil and Natural Gas Corp rose 2.8 per cent on reports that ONGC has authorised the government to sell its 49 per cent stake in helicopter service provider Pawan Hans.

IPO WATCH

The initial public offer of TCNS Clothing Company opened for subscription today, involving an offer for sale of 15.71 million shares. Its business prospects look good, with healthy past performance and experienced management; however, the stock valuation suggests investors looking for immediate gains might get disappointed. Analysts, thus, suggest only long-term investors should subscribe.

TCNS is a leading women’s branded apparel company, the target customers being those with jobs. Set up in December 1997, it had cumulative annual sales growth of 32 per cent during FY16-18. READ MORE HERE

GLOBAL MARKETS

Asian shares followed Wall Street higher on Wednesday as a bullish outlook from the head of the US central bank buoyed the dollar, lifted Tokyo shares to a one-month top and sent gold to a one-year trough.

Japan's Nikkei leapt out of the blocks with a 1 per cent gain as a weakening yen promised to fatten exporters' profits. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.16 per cent and South Korea's market 0.85 per cent.

In commodities, oil prices also eased early on Wednesday, with Brent off 53 cents at $71.63 a barrel. US crude was quoted down 31 cents at $67.77 a barrel.

(with Reuters inputs)

3:41 PM

Nifty Metal Index ended 3.15% lower today. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
JINDAL STEEL	185.30	199.00	-13.70	-6.88
TATA STEEL	505.20	532.35	-27.15	-5.10
HINDALCO INDS.	212.20	219.50	-7.30	-3.33
HIND.COPPER	55.10	57.00	-1.90	-3.33
VEDANTA	203.35	210.10	-6.75	-3.21

3:36 PM

Nifty sectoral losers of the day

3:35 PM

BSE Sensex: ONGC top gainer of the day, Tata Steel, Vedanta, Axis Bank among top losers

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 36,373, down 147 points while the broader Nifty50 index settled at 10,980, down 28 points.

3:22 PM

NEWS ALERT: Cabinet approves increase in FRP of sugarcane by Rs 20/quintal

3:15 PM

WEB EXCLUSIVE Nifty Metal index could enter a bear phase, say analysts

 

Metal stocks are slowly heading towards a bear phase – typically described as a fall of 20 per cent or more from peak levels – given the ongoing trade war concerns, feel analysts.

 

The Nifty Metal index that lost nearly 2.6 per cent in trade on Wednesday was the worst performing sectoral index on the National Stock Exchange (NSE). On a year-to-date (YTD) basis, the index has already lost over 16 per cent as compared to around 5 per cent rally in the Nifty50 index, ACE Equity data shows. READ MORE

3:00 PM

Bandhan Bank surges 6% on healthy Q1 results; stock hits new high

 

Shares of Bandhan Bank surged 6% to Rs 596 on the BSE after the bank reported a strong 47.5% year on year (yoy) growth in net profit at Rs 4.82 billion in June quarter (Q1FY19), on back of strong operational income. The private sector lender had a profit of Rs 3.27 billion in year ago quarter.

 

The stock was trading at its highest level since listing on March 27, 2018. It gained 59% over the issue price of Rs 375. READ MORE

2:46 PM

UltraTech Cement first-quarter profit beats estimates

 

UltraTech Cement on Wednesday reported a first-quarter net profit of Rs 5.98 billion ($87.15 million), beating street estimates. Revenue from operations stood at Rs 86.55 billion.

2:30 PM

Stocks at 52-week low

COMPANY	PRICE( )	52 WK LOW	CHG( )	CHG(%)
ADVANCE. ENZYME.	204.80	204.00	-2.00	-0.97
APAR INDS.	612.15	610.65	-10.50	-1.69
BEML LTD	772.25	761.80	-17.05	-2.16
BHARAT ELECTRON	99.30	99.05	-4.75	-4.57
BHARTI AIRTEL	336.15	331.20	-6.10	-1.78

2:15 PM

From HSCC to Central Electronics, strategic sale of 5 PSUs likely in FY19

 

The Department of Investment and Public Asset Management (Dipam) has carefully examined 30 strategic sale candidates and earmarked five — HSCC, Engineering Projects India, Pawan Hans, Scooters India and Central Electronics — which it is confident of selling in 2018-19.

 

The move comes after the government failed to find a single bidder for Air India, threatening to derail the Rs 800 billion disinvestment target for the current financial year. READ MORE

2:00 PM

Market Check

INDEX	LATEST	PREVIOUS	CHANGE	CHANGE(%)
	36465.36	36519.96	-54.60	-0.15
	14747.50	14786.73	-39.23	-0.27
	15240.21	15376.11	-135.90	-0.88
	15862.09	15966.18	-104.09	-0.65
	4253.97	4258.84	-4.87	-0.11

1:45 PM

Metal index hits 52-week low; Tata Steel, JSPL dip over 5%

 

Shares of metal companies were under pressure with the Nifty Metal (down 3.3% at 3,117) and the S&P BSE Metal index (3.3% at 11,828) hitting their respective 52-week lows after more than 5% decline in market price of Tata Steel and Jindal Steel and Power (JSPL).

 

The metal indices plunged 20% from their recent highs recorded on April 19, 2018. READ MORE

1:30 PM

JSW Steel gears up for next phase of growth, plans to raise Rs 250 bn

 

With Rs 450 billion in capital expenditure (capex) planned over the next 30-odd months, JSW Steel, the country’s largest in the segment by market value, is gearing up for the next phase of growth. The levers would be higher volume, better product mix, backward integration and de-risking by entering newer markets.

 

All these should help the JSW Steel stock (which is to enter the National Stock Exchange's benchmark Nifty index, dislodging pharma maker Lupin), sustain its outperformance. READ MORE

1:15 PM

TCNS IPO prospects good but there's little room for near-term growth

 

TCNS Clothing Company is coming with an Initial Public Offer (IPO) of equity, involving an offer for sale of 15.71 million shares. Its business prospects look good, with healthy past performance and experienced management; however, the stock valuation suggests investors looking for immediate gains might get disappointed. Analysts, thus, suggest only long-term investors should subscribe.

 

TCNS is a leading women’s branded apparel company, the target customers being those with jobs. READ MORE

1:00 PM

Top BSE500 losers

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
ASHOK LEYLAND	117.85	-10.65	-8.29	4795316
HIND.CONSTRUCT.	10.15	-0.57	-5.32	1071924
V-MART RETAIL	2241.90	-117.95	-5.00	2647
UNION BANK (I)	76.75	-4.00	-4.95	448689
VAKRANGEE	45.35	-2.35	-4.93	998187