MARKET WRAP: Sensex down 363 pts on weak global cues; Eicher Motors dips 9%

The benchmark equity indices settled over 1 per cent lower on Wednesday driven by losses in heavyweight stocks such as  Reliance Industries, HDFC and  HDFC Bank amid weakness in the Asian markets.

The S&P BSE Sensex ended at 35,892, down 363 points or 1.00 per cent, while the broader Nifty50 index settled at 10,793, down 118 points or 1.08 per cent.

Among the sectoral indices, the Nifty Auto index fell 3.05 per cent weighed by Eicher Motors, Mahindra & Mahindra and Maruti Suzuki. The Nifty Metal index declined 3.41 per cent weighed by Tata Steel and Vedanta.

The broader market indices too fell in line with the benchmarks. The S&P BSE Midcap index fell 1.26 per cent to end at 15,232, while S&P BSE SmallCap settled at 14,658, down 0.74 per cent.

Buzzing Stocks

Eicher Motors fell 8.71 per cent to settle at Rs 21,164 on the BSE after Royal Enfield (RE), the motorcycle franchise owned by the company, reported a 13 per cent year-on-year (Y-o-Y) decline in total sales at 58,278 units in December 2018. It had sold 66,968 motorcycles during the same month last year. On a month-on-month basis, the volume declined by 11 per cent. It sold 65,744 motorcycles in November 2018.

Shares of cash-strapped airline Jet Airways fell 6.16 per cent to end at Rs 264 apiece on the BSE after the company defaulted on the debt payments to banks.

In a BSE filing, Jet Airways said, "the payment of interest and principal installment due to the consortium of Indian Banks (led by State Bank of India) on 31st December 2018 has been delayed due to temporary cashflow mismatch and the company has engaged with them in relation to the same." Following this, ratings firm ICRA downgraded rating to 'D' from 'C'. The short term rating has been revised to D from A four.

Global Markets

Asian shares turned tail on the first trading day of the new year as more disappointing economic data from China darkened the mood and upended US stock futures.

MSCI’s broadest index of Asia-Pacific shares outside Japan skidded 1.6 per cent as a private sector survey showed China manufacturing activity contracted for the first time in 19 months. The Japanese stock markets were closed for a public holiday.

Oil Prices

Oil markets slid by around one percent in 2019's first trading on Wednesday, pulled down by surging output in the United States and Russia and concerns about on an economic slowdown, especially in Asia's main growth region of China.

Brent crude futures were at $53.22 per barrel, down 58 cents, or 1.1 per cent, from their final close of 2018. West Texas Intermediate (WTI) futures were at $44.89 per barrel, down 52 cents, or 1.2 per cent.

(with Reuters input)

3:37 PM

Top sectoral gainers and losers on NSE

3:36 PM

S&P BSE Sensex: Top gainers and losers

3:34 PM

Market at close

 

The S&P BSE Sensex lost 363 points or 1 per cent to settle at 35,892 while the NSE's Nifty50 index dropped 118 points or 1.08 per cent to end at 10,793. 

3:16 PM

NEWS ALERT RBI Governor to hold meetings with MSME association and representatives of NBFCs nex week, reports CNBC TV18

3:14 PM

TVS Motor dips 6% on single-digit sales growth in December

Shares of TVS Motor Company dipped 6 per cent to Rs 531 on the BSE after the two and three- wheeler company reported a single- digit 6% year-on-year growth in sales in December 2018. The growth was lowest since October 2017. The company registered 4 per cent growth in two-wheeler sales during December 2018 at 258,709 units as compared with 247,591 units, a year ago. READ MORE

2:58 PM

NEWS ALERT Sources To Reuters: OMCs may recover margin hit on fuel sales by march end

2:57 PM

NEWS ALERT Sources To Reuters: Oil marketing cos allowed to recoup losses limiting fuel price cuts

2:39 PM

Top gainers and losers on S&P BSE Sensex

2:28 PM

Web Exclusive Chart Reading: 'Golden crossover' on Nifty Bank to fuel banking stocks

 

The Nifty50 index is heading towards breakout level, while Nifty Bank is trading with positive sentiment. The scenario signals stocks in the indices are showing patterns that will attract buying. The Nifty Bank with positive sentiment is on the verge of making 'Golden crossover' as per the daily chart.

 

A Golden Crossover occurs when the short-term average crosses/moves above the long-term moving average. The scenario depicts a short-term trend getting stronger as compared to the long-term trend. It helps traders and investors to acknowledge the strength of the overall index. Click here to read more

2:20 PM

IPO launches fell in last two pre-election periods, will 2019 be different?

The six-month period before Lok Sabha elections has historically been good for secondary markets. However, this cannot be said of initial public offerings (IPOs). Issuances dropped six months ahead of the previous two Lok Sabha elections. Six months ahead of the 2009 elections, only two IPOs were launched, and before the 2014 elections, only one had hit the market. Investment bankers say the uncertain market environment is not conducive to capital raising. Read more

 

1:59 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	35,824.55	-430.02	-1.19
S&P BSE SENSEX 50	11,274.77	-140.46	-1.23
S&P BSE SENSEX Next 50	32,584.11	-397.98	-1.21
S&P BSE 100	11,063.17	-137.44	-1.23
S&P BSE Bharat 22 Index	3,454.51	-57.02	-1.62

1:47 PM

Ás many as 27 scrips hit their 52-week lows on NSE

Symbol	Security	New 52W/L	Prev. Low	Prev. Low Date	LTP	Prev. Close	Chng	% Chng
ABSLNN50ET	Aditya Birla Sun Life Nifty Next 50 ETF	277.07	280.76	28-Dec-2018	287.99	292.00	-4.01	-1.37
ARROWTEX	Arrow Textiles Limited	22.00	23.10	26-Dec-2018	22.25	24.00	-1.75	-7.29
CALSOFT	California Software Company Limited	22.00	22.00	01-Jan-2019	22.05	23.15	-1.10	-4.75
CHROMATIC	Chromatic India Limited	0.95	0.95	01-Jan-2019	0.95	.95	0.00	0.00
CURATECH	Cura Technologies Limited	1.25	1.25	01-Jan-2019	1.25	1.25	0.00	0.00

Click here to view the full list

(Source: NSE)

1:34 PM

Prabhudas Lilladher on Confidence Petroleum India

 

Confidence Petroleum India (CPIL) is expected to have strong performance going forward. In 1HFY19, the company has reported over 50 per cent growth in operating profits and we expect the trend to continue as the benefits from earlier capex starts getting reflected in the ensuing period. CPIL is expected to report an earnings per share (EPS) of Rs 2.4 for FY19, 3.7 for FY20 and 4.9 for FY21. The stock at the current price of Rs 40, trades at a Target price of Rs 65, trades at a PER of 17.5x FY20 earnings and 13.2x FY21 EPS. 'BUY'.

1:26 PM

Expenditure cuts imminent in 4QFY19: Kotak Securities 

 

With GST revenues continuing to remain well below budgeted targets, it will be difficult for the central government to meet its GFD/GDP target of 3.3% without expenditure cuts. With the monthly GST run rate remaining at around Rs896 bn for 9MFY19 and a likely shortfall of around Rs1 tn, we maintain our GFD/GDP estimate at 3.5% including expenditure cuts in 4QFY19.

1:15 PM

MARKET CHECK | S&P BSE Midcap index drops over 100 points