MARKET WRAP: Indices end flat; SBI gains 4%, Dr Reddy's up 6% post Q4 nos

Markets pared their morning gains to end flat on Tuesday amid weakness in their Asian counterparts

Markets pared morning gains to end flat on Tuesday amid weakness in their Asian counterparts.

The S&P BSE Sensex ended at 34,651, up 35 points while the broader Nifty50 index settled at 10,537, up 20 points.

Among sectoral indices, the Nifty Metal index is nearly 1% up led by a rise in shares of JSW Steel, Hindustan Copper and Coal India.

Among individual stocks, State Bank of India (SBI) gained 3% even after it posted net loss of Rs 77.18 bn in January - March 2018 quarter, as against a net profit of Rs 28.15 billion in the previous corresponding period.

Dr Reddy's Labs gained over 6% even after it posted an about 3% fall in quarterly profit, hurt by headwinds in the US market.

GLOBAL MARKETS

Asian shares skidded on Tuesday as a strong dollar sapped demand for emerging market assets while surging oil prices stoked concerns about a flare-up in inflation and faster U.S. interest rate increases.

Japan's Nikkei was mostly flat while Australian shares fell 0.9 per cent. Chinese shares opened in the red with the blue-chip CSI300 off 0.7 per cent. Liquidity was relatively thin due to holidays in South Korea and Hong Kong.

The MSCI's broadest index of Asia-Pacific shares outside Japan was just a shade higher at 568.4 points, but well below an all-time peak of 617.12 hit in January.

OIL PRICES

Oil prices rose on Tuesday, with Brent edging closer to $80 per barrel, on concerns that Venezuela's crude output could drop further following a disputed presidential election and potential U.S. sanctions on the OPEC-member.

Brent crude futures were at $79.37 per barrel, up 15 cents, or 0.2 per cent, from their last close. Brent broke through $80 for the first time since November 2014 last week. The US West Texas Intermediate (WTI) crude futures were at $72.45 a barrel, up 21 cents, or nearly 0.3 per cent.

(with Reuters inputs)

3:44 PM

Nifty PSU bank index ends 3.25% higher. Top gainer:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
PUNJAB NATL.BANK	81.55	78.15	3.40	4.35
SYNDICATE BANK	46.35	44.55	1.80	4.04
ST BK OF INDIA	253.90	244.45	9.45	3.87
BANK OF BARODA	132.90	129.90	3.00	2.31
UNION BANK (I)	88.40	86.95	1.45	1.67

3:38 PM

Nifty sectoral performers

3:36 PM

BSE Sensex: Dr Reddy's top gainer of the day, Asian Paints top loser

3:33 PM

Market at close

 

The S&P BSE Sensex ended at 34,651, up 35 points while the broader Nifty50 index settled at 10,537, up 20 points.

3:27 PM

Dr Reddy's Q4 profit falls 19 % on US headwinds, revenue drops to Rs 14 bn

Indian generic drugmaker Dr. Reddy's Laboratories Ltd posted a 19 percent drop in quarterly net profit on Tuesday, missing analysts' estimates, pulled down by headwinds in the US market.

 

The company's net profit, for the quarter ended March 31, came in at 2.72 billion rupees ($39.98 million), compared with 3.38 billion rupees a year earlier, the company said. READ MORE

Stock Quote:

3:15 PM

RCom gains as company files appeal before NCLAT against NCLT order

Reliance Communications (RCom) has moved higher by upto 19% to Rs 15.95 in noon deal, bouncing back 24% from its early morning low on the BSE after the company filed appeal before the Hon’ble National Company Law Appellate Tribunal (NCLAT) against the Hon’ble National Company Law Tribunal (NCLT) order. The stock hit an intra-day low of Rs 12.90 on the BSE. READ MORE
 

3:05 PM

SBI Q4 loss widens to Rs 77.18 bn as higher NPAs worsen asset quality

State Bank of India (SBI) reported whopping Rs 77.18 billion loss in its fourth quarter, against Rs 28.14 billion profit in the same quarter an year ago, as asset quality worsened significantly and the lender provided huge money as provision against its stressed loans READ MORE

Rajnish Kumar. (Photo: Reuters)

2:59 PM

Sugar stocks rise up to 20% Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN( )	GAIN(%)
RAJSHREE SUGARS	33.10	27.65	5.45	19.71
SIR SHADI LAL	37.95	34.45	3.50	10.16
BALRAMPUR CHINI	71.85	66.00	5.85	8.86
DWARIKESH SUGAR	25.55	23.50	2.05	8.72
DHAMPUR SUGAR	100.90	93.15	7.75	8.32

2:45 PM

Q4 results: Amara Raja trails Exide for third straight quarter

 

The Amara Raja stock corrected over 8 per cent intraday on its weak March quarter performance, and downward revision of margin estimates by brokerages for FY19. While the stock recovered from its intraday lows, a weak industrial segment as well as any upward movement of lead prices will be overhangs.

 

A major headwind is margin pressure because of the lead prices, which have hit their highest levels in at least five years in the March quarter. READ MORE

2:30 PM

NEWS ALERT SBI reports loss of Rs 77.18 billion vs PAT of Rs 28.14 billion

Earnings Impact

2:15 PM

Political overhang on fuel pricing amid elections to keep OMC stks in check

 

A rise in crude oil prices, especially in an election year, has seen oil marketing companies – Hindustan Petroleum (HPCL), Bharat Petroleum (BPCL) and Indian Oil (IOC) – underperform the markets thus far in calendar year 2018 (CY18).

 

Analysts attribute this underperformance to the fear government intervention to keep prices of auto fuels – petrol and diesel – under check amid rising crude oil price (up 16 per cent YTD and around 45 per cent y-o-y) since it is a politically sensitive issue. READ MORE

Daily fuel revision

2:02 PM

Market Check

 

S&P BSE Sensex	34,670.95		0.16%
Nifty 50	10,531.95		0.14%
S&P BSE 200	4,569.98		0.34%
Nifty 500	9,141.15		0.36%
S&P BSE Mid-Cap	15,735.20		0.64%
S&P BSE Small-Cap	17,071.69		0.74%

1:46 PM

As rising oil prices combine with politics, rupee may fall to record low

Prime Minister Narendra Modi and the rupee face a similar predicament -- old foes have re-emerged to keep them in check. Brent crude rose above $80 a barrel last week for the first time since 2014, and is looking ominous for the nation’s budget deficit, inflation and the currency. READ MORE
 

1:32 PM

Gold prices slip as investors eye riskier assets

Gold prices dipped slightly on Tuesday, hovering not far off a 2018 low struck in the previous session as a firm dollar near five-month highs and optimism in global markets curbed appetite for the precious metal.

 

Spot gold was down 0.2 per cent at $1,290 per ounce. In the previous session, it slid to $1,281.76, its lowest since Dec. 27. US gold futures for June delivery slipped 0.1 per cent to $1289.8 per ounce. READ MORE

Gold

1:17 PM

Strong Q4 result lift Action Construction Equipment

Action Construction Equipment gained 4.1% to Rs 170.20 on BSE, after net profit jumped 921.9% to Rs 21.46 crore on 59.24% rise in total income to Rs 369.91 crore in Q4 March 2018 over Q4 March 2017. The result was announced after market hours on Monday, 21 May 2018. READ MORE