Key indices settled with modest losses as investors await the Reserve Bank of India (RBI's) decision on interest rates. Domestic stock market remains closed tomorrow, 5 June 2019, on account of Id-Ul-Fitr (Ramzan Id).
The RBI's Monetary Policy Committee (MPC) meeting is scheduled from 3 to 6 June 2019. The MPC of the RBI will announce its resolution under the Second Bi-monthly Monetary Policy Statement for 2019-20 on Thursday, 6 June 2019.
The Sensex fell 184.08 points or 0.46% to settle at 40,083.54. The index rose 44.45 points or 0.11% at the day's high of 40312.07. The index fell 236.57 points, or 0.59% at the day's low of 40031.05.
The Nifty 50 index fell 66.90 points or 0.55% to settle at 12,021.65. The index rose 6.65 points, or 0.06% at the day's high of 12095.2. The index fell 82.7 points, or 0.68% at the day's low of 12005.85.
Indices cut losses soon after opening with downward gap. A bout of volatility was witnessed in morning trade as the key indices once again sank in negative zone after briefly turning positive. Stocks hovered in negative zone in mid-morning trade. Weakness persisted on the bourses in early afternoon trade. Stocks sharply pared losses after hitting fresh intraday low in afternoon trade. Key indices were trading with modest losses in mid-afternoon trade. Indices extended losses in late trade.
The S&P BSE Mid-Cap index fell 0.22%. The S&P BSE Small-Cap index fell 0.19%.
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The market breadth, indicating the overall health of the market, was negative. On the BSE, 1109 shares rose and 1453 shares fell. A total of 179 shares were unchanged.
Among the sectoral indices on BSE, the S&P BSE Information Technology index (down 1.63%), the S&P BSE Healthcare index (down 0.99%) and the S&P BSE Oil & Gas index (down 0.84%), underperformed the Sensex. The S&P BSE Telecom index (up 0.26%), the S&P BSE Metal index (up 0.28%), and the S&P BSE Capital Goods index (up 0.43%), outperformed the Sensex.
IT shares were under pressure amid profit booking after five-day rising streak. TCS (down 1.63%), Infosys (down 1.31%), HCL Technologies (down 2.26%), Oracle Financial Services Software (down 1.80%), Tech Mahindra (down 1.00%), MindTree (down 1.25%) and Mphasis (down 1.73%) declined.
Wipro rose 0.89% after the company fixed 21 June 2019, as the record date for the proposed buyback of shares. Wipro plans to buyback up to 32.30 crore fully paid-up equity shares of Rs 2 each, representing up to 5.35% of the total paid-up equity share capital of the company, at a price of Rs 325 per share, for an aggregate amount of up to Rs 10500 crore. The announcement was made after market hours yesterday, 3 June 2019.
The BSE IT index jumped 5.71% in past five trading sessions to 15,975.31 on 3 June 2019, from its recent low of 15,111.84 on 27 May 2019.
State-run bank stocks rose after media reports suggested that the government may infuse around Rs 40000 crore into state-run lenders in 2019-2020. The move is aimed at supporting credit growth and help weaker banks maintain regulatory norms. An announcement to this effect is reportedly expected in the Union Budget on 5 July 2019.
Among PSU banks, IDBI Bank (up 7.59%), Union Bank of India (up 1.70%), Syndicate Bank (up 2.37%), Allahabad Bank (up 1.68%), Bank of India (up 0.94%), Canara Bank (up 1.03%), Bank of Baroda (up 0.68%), Punjab National Bank (up 0.37%), Andhra Bank (up 0.40%), Punjab & Sind Bank (up 0.88%), UCO Bank (up 0.28%), United Bank of India (up 0.46%) rose. State Bank of India shed 0.72%.
Car major Maruti Suzuki India rose 0.24%. Maruti Suzuki India today flagged off one-of-its-kind mobile NEXA terminal, taking the NEXA experience to markets where it is currently not present. The NEXA terminal will reach out to prospective and existing customers throughout the country, giving them an opportunity to experience NEXA. The announcement was made during market hours today, 4 June 2019.
Dr Reddy's Laboratories lost 2.25%, reversing early gains. Dr Reddy's Laboratories announced the relaunch of Zenatane (lsotretinoin capsules), 10 mg, 20 mg, 30 mg and 40 mg, a therapeutic equivalent generic version of Accutane, which was approved by the US Food and Drug Administration (USFDA). The announcement was after market hours on Monday, 3 June 2019.
Adani Ports and Special Economic Zone rose 0.35% after the company announced buyback of shares. The company said that its board at its meeting held on 4 June 2019, approved the proposal for buying back up to 3.92 crore equity shares, or 1.89% equity, at maximum buyback price of Rs 500 per share, for an aggregate amount not exceeding Rs 1,960 crore. The announcement was made during the market hours on Tuesday, 4 June 2019.
GE Power India advanced 2.32% after the company was awarded a contract worth Rs 738.3 crore by Aravali Power Company (a Joint venture company of NTPC, Haryana Power Generation Company and Indraprastha Power Generation Company) for Design, Engineering, Civil Work, Supply, Erection and Commissioning of Wet FGD systems along with auxiliaries like Limestone and Gypsum Handling System and Wet Stack on full turnkey basis.
Indian Oil Corporation (down 2.28%), Bharat Petroleum Corporation (down 1.65%) and Hindustan Petroleum Corporation (down 1.93%), declined.
Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation have signed an agreement on 3 June 2019 for formation of a joint venture company for implementation and subsequent operation of 2757 km long LPG Pipeline from Kandla, Gujarat to Gorakhpur, UP. Indian Oil, BPCL and HPCL would have 50%, 25% and 25% equity holding in the JV Company. The proposed pipeline will source product from Kandla and other LPG import terminals on West Coast and two refineries at Koyali, Gujarat and Bina, MP and would directly link 22 LPG bottling plants in Gujarat (3), MP (6) and UP (13) owned by the three promoter companies. In addition, the pipeline would feed LPG through road-bridging to additional 21 LPG bottling plants in Rajasthan, Gujarat, MP, Maharashtra and UP. The announcement was made during market hours today, 4 June 2019.
Swaraj Engines rose 2.16% after Mahindra & Mahindra (M&M) purchased additional shares in the company. M&M purchased 1.77 lakh equity shares, or 1.46% stake, of Swaraj Engines at Rs 1,387 each. Jupiter India Fund sold 1.77 lakh shares of Swaraj Engines at Rs 1,387 each. Both the transactions took place on NSE yesterday, 3 June 2019. Post transaction, M&M's stake in Swaraj Engines increased to 34.76% from 33.30% earlier.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 69.275, compared with its close of 69.26 during the previous trading session.
Overseas, European shares reversed early losses. In Europe, Trump and first lady Melania Trump will be continuing their state visit in Britain on Tuesday.
Most Asian shares ended lower Tuesday as an intensifying US-China trade war inflamed concerns about global growth.
US stocks finished mostly lower Monday, as the government stepped up scrutiny of technology giants for possible violations of antitrust law.
Comments from the US Federal Reserve on Monday, meanwhile, raised expectations the US central bank is moving closer to a rate cut, as did a closely watched US factory survey.
In US economic data, the Institute for Supply Management said its US Manufacturing Purchasing Managers Index declined to 52.1 in May from 52.8 in April, marking the lowest level since October 2016.
Brent for August 2019 settlement was down 95 cents at $60.33 a barrel. The contract fell 71 cents, or 1.15% to settle at $61.28 a barrel during the previous trading session.
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