Sensex ends 227 points lower, Nifty dips below 10,250 on inflation fears

All that happened in Tuesday's trade

The benchmark indices settled lower on Tuesday on concerns that higher global crude oil prices would stoke inflation and impact future interest rate decisions by the Reserve Bank of India (RBI), with oil marketers and bank stocks weighing on the Nifty50.

Brent crude oil, the international benchmark for oil prices, jumped above $65 per barrel for the first time since 2015 after the shutdown of the Forties North Sea pipeline knocked out significant supply from a market that was already tightening due to OPEC-led production cuts.

The Nifty Bank index fell as much as 1% after gaining 2.2% in the last three sessions. Oil marketers Hindustan Petroleum Corporation, Bharat Petroleum Corporation and Indian Oil Corp lost as much as 2-3%.

Overseas, Asian shares took a small step back on Tuesday after three straight sessions of gains, with markets consolidating in the hope an upswing in global growth could outlast a likely hike in US borrowing costs this week.

4:13 PM

Vinod Nair, Head of Research, Geojit Financial Services  

 

Profit-booking on the broader indexes capped the previous day’s gain as rising oil price casts caution over the inflation trajectory. Rate sensitive stocks underperformed ahead of today’s economic data CPI inflation & IIP. Mixed trend in global market ahead of two days of US Fed meet also slowed down the domestic sentiment.

3:55 PM

Nikhil Kamath, Co-Founder and Head of Trading, Zerodha

 

Markets opened slightly higher in trade on Tuesday, constant selling through the session took the indices lower to close with losses of close to one percent. Banking stocks underperformed with Bharti Infratel, TataPower, BPCL, IOC being the worst performers of the session, with crude prices rallying on the back of the North sea pipeline outage.

 

The issue inherently is that we are constantly underperforming our global peers and prices seem to have run up without the underlying fundamentals catching up yet.

 

We continue to maintain a negative outlook and advocate holding shorts at the current juncture.

3:47 PM

Sensex heatmap at close 

Source: BSE

3:40 PM

Markets at close

The S&P BSE Sensex ended at 33,227, down 227 points, while the broader Nifty50 settled at 10,240, down 82 points.

S&P BSE SENSEX	33,227.99	-227.80	-0.68
S&P BSE SENSEX 50	10,692.83	-75.98	-0.71
S&P BSE SENSEX Next 50	35,410.92	-426.71	-1.19
S&P BSE 100	10,717.78	-84.78	-0.78
S&P BSE Bharat 22 Index	3,688.35	-32.94	-0.89

Source: BSE

3:25 PM

Sectoral trend in last leg of trade 

Source: NSE

3:13 PM

Repro India dips 8% post Q2 results

 

Repro India has dipped 8% to Rs 793 on the BSE in noon deal after the company reported a 85% year on year decline in consolidated net profit at Rs 2.54 crore in September quarter (Q2FY18), due to lower operational income and higher other expenses. It had profit of Rs 17.42 crore in year ago quarter. READ MORE

3:08 PM

Markets check

At 3:05 pm, the S&P BSE Sensex was trading at 33,235, down 220 points, while the broader Nifty50 was ruling at 10,244, down 77 points.

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	33,230.05	-225.74	-0.67
S&P BSE SENSEX 50	10,695.71	-73.10	-0.68
S&P BSE SENSEX Next 50	35,438.06	-399.57	-1.11
S&P BSE 100	10,721.65	-80.91	-0.75
S&P BSE Bharat 22 Index	3,687.68	-33.61	-0.90

Source: BSE

2:55 PM

Nifty slips below 10,250; top five losers 

Source: NSE

2:39 PM

Kotak Securities on Petronet LNG

 

We expect Petronet LNG’s earnings to grow at a CAGR of 15% over the next two years driven by a volume growth, benefiting from contractual commitments of 17.2 mn tons and commissioning of Kochi-Mangalore pipeline. We expect PLNG to report an EPS of Rs.14.1 for FY18E and an EPS of Rs.15 for FY19E. We expect FY18E to be better driven by acceleration in volume growth, supported by expansion. At CMP, we believe that the stock is reasonably valued at 16.7x FY19E earnings. We recommend BUY rating on the stock with a price target of Rs 285/- including equity value of 26% stake in Dahej Port. Given that most of the capacity at Dahej is tied-up, there is strong visibility on the free cash flow yield.

2:17 PM

Bitcoins a highly speculative investment: Why caution is required

 

With the price of a bitcoin reaching record highs of more than $10,000, more and more ordinary people consider investing in the cryptocurrency. The recent price surge, however, comes with tremendous risks. Investors should be prepared for the possibility that they could lose their entire investment. READ FULL ANALYSIS HERE 

1:59 PM

Buzzing stock 

 

HEG was up nearly 5% to Rs 1,957 on the BSE in intra-day trade after the rating agency India Ratings & Research (Ind-Ra) has upgraded the credit rating of the company as 'IND A+' with positive outlook.

 

The upgrade reflects the consolidation in the graphite electrode industry with the merger of Showa Denko K.K. and SGL Carbon SE to create the world’s largest graphite electrode manufacturing company with a capacity of 225ktpa. Moreover, private equity group Brookfield Asset Management Inc acquired Graf-tech International Limited (160ktpa) in August 2015. CLICK HERE FOR DETAILS 

1:39 PM

Markets check

At 1:37 pm, the S&P BSE Sensex was trading at 33,304, down 151 points, while the broader Nifty50 was ruling at 10,268, down 53 points. 

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	33,299.50	-156.29	-0.47
S&P BSE SENSEX 50	10,722.45	-46.36	-0.43
S&P BSE SENSEX Next 50	35,632.55	-205.08	-0.57
S&P BSE 100	10,753.55	-49.01	-0.45
S&P BSE Bharat 22 Index	3,697.76	-23.53	-0.63

Source: BSE

1:26 PM

Edelweiss Securities on Bharti Airtel

 

We attended Bharti Airtel’s (Bharti) analyst meet held at Uganda, Africa. Key takeaways: 1) rationalisation of network, leveraging improvement in coverage and capacity with launch of 3G in 900MHz band, and rationalisation of SG&A costs has led to margin improvement, and is sustainable; 2) higher tower sharing by operators is necessary for further improvement in margins; 3) Bharti is targeting increased bundle sales to improve ARPUs; 4) capex is likely to increase to USD600-800mn for investments towards 3G/4G expansion; 5) opportunity in Africa remains strong with favourable demographics, high urbanisation, low mobile penetration; and 6) Bharti is in the fray for acquiring Etisalat’s Nigerian operations, which on successful operations will boost EBITDA due to synergies. Maintain ‘BUY’ with TP of Rs 625 on industry consolidation that will trigger structural improvement in profitability.

1:02 PM

Punjab National Bank trades firm after QIP launch

 

Punjab National Bank (PNB) was trading firm, up 1% at Rs 175 on the National Stock Exchange (NSE), after state-owned bank announced the opening of the qualified institutions placement (QIP).

 

The shareholders of the bank at their extra ordinary general meeting (EGM) held on December 4, 2017 approved the raising of common equity tier-I capital of the bank in aggregating not exceeding Rs 5,000 crore including premium by way of FPO (Follow on Public Offer)/ QIP (Qualified Institutional Placement) /Rights Issue/ ESOP (Employees Stock Option Plan) and/ or any other mode or combination(s) thereof, as may be decided by the Board.

 

PNB said it intends to use the net proceeds of the Issue to augment its CET I capital and for general corporate purposes.

12:45 PM

Sectoral Trend

Source: NSE