MARKET WRAP: Sensex ends 115 pts lower, Nifty at 10,741; PSU banks slip

The indices ended lower on Thursday led by a fall in the shares of public sector banks and metal stocks amid lack of any strong developments in domestic and global markets. The S&P BSE Sensex ended at 35,432, down 115 points while the broader Nifty50 index settled at 10,741, down 31 points.

Among sectoral indices, the Nifty PSU Bank index ended nearly 2% lower led by a fall in the shares of Syndicate Bank, Union Bank of India and Punjab National Bank.



Shares of Bank of Maharashtra hit a record low of Rs 12.50 per share, falling 7% on the BSE in intraday trade, after a media report suggested that the Economic Offences Wing (EOW) arrested Ravindra P. Marathe, the Chairman and Managing Director (CMD) of the bank, in a case of Rs 30 billion fraudulent loans extended to Pune's DSK Group.

GLOBAL MARKETS

Shares crept higher in most major markets on Thursday as a lull in the Sino-US trade tussle and talk of more stimulus in China helped calm nerves, though the nagging trade tensions caused Chinese shares to slip, dragging other Asian markets lower.

MSCI’s broadest index of Asia-Pacific shares outside Japan had gained as much as 0.5 per cent before falls led by Chinese shares pushed it down 0.4 per cent. The CSI300 index of Shanghai and Shenzen shares dropped 0.4 per cent, while Japan's Nikkei added 0.6 per cent.

OIL PRICES

Oil prices eased a touch as nerves grew ahead of Friday’s meeting between OPEC and other big producers, including Russia, with growing expectations that the Vienna talks could result in an agreement to increase crude supplies.

RBI REVIEW MEETING

Back home, minutes of the June 4-6 review meeting suugested that the monetary policy committee (MPC) of the Reserve Bank cited volatility in the price of imported crude oil as the biggest concern for the economy, nudging the panel to effect a rate hike after years.

All six members of the MPC maintained their neutral policy stance and also voted in favour of a repo rate increase of 25 basis points to 6.25 per cent, reveal the minutes of that June 4-6 meeting. The minutes were published on Wednesday. 

(with Reuters inputs)

3:54 PM

MARKET COMMENT Mustafa Nadeem, CEO, Epic Research 

Indecisiveness, Bank Nifty expiry along with negative global cues saw Nifty drift below 10,800 and lose marginal points to make a 'Bearish belt hold' pattern. A bearish belt hold is a one candle bearish formation which has a Shaven head; The high and Open for the day is identical while the close is just a tad higher from the days low. A shaven head indicates the selling pressure on the upside which persists as it was heavy since the open of the day. A close near to the day low indicates the further bearish sentiment. 

 

It has been the sixth consecutive day where we have seen Nifty trading between the range of 10850. It was bank Nifty weekly expiry that called in writers to take advantage. We expect the market to remain positive while the time may further test the patience of bulls. We maintain the 'buy on a dip' strategy though all eyes will be on the OPEC meet and price of crude oil. 

 

3:51 PM

COMMENT Indranil Sen Gupta, economist, AsiaPac, India, Bank of America Merrill Lynch

 

Dovish Reserve Bank of India (RBI) minutes support our call that the RBI Monetary policy committee (MPC) will be on hold if rains are normal. We would have preferred that the RBI MPC wait out growth/inflation base effects rather than hike rates on 6 June at this stage of recovery. Still, this puts policy uncertainty out of the way. ‎That said, markets do need to calm down and stop wishing rate hikes on itself (and the RBI).  In fact, the retention of neutral stance should indicate that this is not a tightening cycle. 

3:37 PM

Nifty sectoral losers of the day

3:34 PM

BSE Sensex: ICICI Bank, Reliance among top gainers of the day, M&M, ONGC top losers

3:31 PM

Market at close

 

The S&P BSE Sensex ended at 35,432, down 115 points while the broader Nifty50 index settled at 10,741, down 31 points.

3:11 PM

Jubilant FoodWorks, Emami turn ex-bonus in ratio of 1:1

Shares of restaurant company Jubilant FoodWorks and personal products firm Emami have turned ex-bonus in the ratio of 1:1 today.

The board of directors of Jubilant FoodWorks and Emami at their respective board meetings, have announced issue of bonus shares in the ratio of 1:1 i.e. 1 equity share for every 1 equity share held as on the record date. READ MORE

3:03 PM

Gold prices drop to six-month low on strong dollar, US rate outlook

Gold prices posted a six-month low on Thursday, weighed down by a firm dollar and as the US Federal Reserve Chair kept its outlook for higher interest rates. Spot gold fell 0.4 per cent to $1,262.88 an ounce. It hit its lowest since Dec. 20 at $1,261.36 earlier, having lost about 3 per cent over the last five sessions. READ MORE

2:45 PM

Manpasand Beverages rebounds from record low; stock tanks 70% in one month

 

Shares of Manpasand Beverages are locked in upper circuit of 5% at Rs 142 per share, bouncing back 9.5% from their intra-day low on the BSE, after the company said that its board will meet on June 27, to consider audited financial results for the quarter and year ended March 31, 2018 and to recommend dividend.

 

The stock of the fruit juice maker hit a record low of Rs 129 in intra-day trade earlier today, and has tanked 70% in past one month, as compared to 4.4% rise in the S&P BSE Sensex. The stock hit an all-time high of Rs 512 on September 15, 2017 on the BSE in intra-day deal. READ MORE

2:30 PM

Crude Update: 

 

Oil prices dipped as Iran signaled it could be won over to a small rise in OPEC crude output, likely paving the road for the producer cartel to agree on a supply increase during a meeting on June 22.

 

However, prices were prevented from falling further by record refinery runs in the United States and a large decline in US crude inventories, a sign of strong fuel demand in the world's biggest economy.

2:15 PM

Shares in PNB fall after internal probe finds widespread lapses

Shares in India's Punjab National Bank fell as much as 3 percent on Thursday, a day after Reuters reported the bank's internal investigation into its $2 billion fraud had found widespread risk-control and monitoring lapses in many areas of the bank. READ MORE

2:00 PM

Market Check

 

S&P BSE Sensex	35,562.21		0.04%
Nifty 50	10,774.05		0.02%
S&P BSE 200	4,651.43		-0.07%
Nifty 500	9,269.15		-0.08%
S&P BSE Mid-Cap	15,822.90		-0.18%
S&P BSE Small-Cap	16,596.01		-0.38%

1:46 PM

China's stock market staring at a nightmare, thanks to trade war with US

The nightmare is returning, three years after China’s last futile attempt to save its stock market. On Tuesday, 1,023 companies fell by the daily 10 per cent limit amid concerns over escalating trade conflict with the U.S. Already among the worst performers in Asia this year, the benchmark Shanghai Composite Index plunged 3.8 per cent to bring its 2018 loss to about 11 per cent. READ MORE

1:31 PM

Headwind for silver before outshining gold: Analysts

Bullion traders are waiting with bated breath for the bearish trend in gold to silver ratio to resume during which silver outperforms gold. They expect the gold to silver ratio to fall to 72 and then to 68 before it starts rising again. However, international experts suggest headwind for silver before it outperforms gold.

 

During the recent rout in base metals, following the trade war triggered by the US, ratio punters were proved wrong and silver price fell sharply compared to gold. As a result, the ratio of gold to silver price has also seen some increase in the last few days. READ MORE

1:16 PM

Cement companies under pressure; UltraTech Cement, Ambuja hit 52-week low

Shares of cement companies were under pressure with most of the frontline stocks hitting 52-week lows on concerns of a delay in the pickup of demand trends, lower-than-expected pricing realizations and higher-than-expected increases in costs.

 

UltraTech Cement, Ambuja Cement, ACC, JK Cements, Shree Cement, India Cements and Panyam Cement have hit their respective 52-week lows on the BSE in intra-day trade on Thursday. READ MORE

1:00 PM

Volume Toppers

COMPANY	PRICE( )	CHG( )	CHG(%)	VOLUME
ADANI PORTS	371.25	5.25	1.43	55352942
INFIBEAM INCORP.	155.00	-0.30	-0.19	6676787
JP ASSOCIATES	17.00	0.05	0.29	3021342
REL. COMM.	15.05	-0.25	-1.63	2952624
H F C L	32.30	-1.65	-4.86	1994333