MARKET WRAP: Sensex dips 219 points; Tata Motors, ICICI Bank top losers
Among sectoral indices, the Nifty PSU Bank index ended around 2% lower led by a fall in the shares of Allahabad Bank, Union Bank of India and Canara Bank.
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SMEs at large do not understand forex and the concept of hedging, which banks often exploit. (Photo: iStock)
Benchmark indices ended lower following Asian shares, that got the week off to a cautious start on Monday amid lingering concerns about escalating trade frictions while US oil prices maintained hefty gains made after major oil producers had agreed on a modest increase in production.
The S&P BSE Sensex ended at 35,470, down 219 points while the broader Nifty50 index settled at 10,762, down 59 points. Tata Motors was the top Sensex loser that ended nearly six per cent lower at Rs 290 levels, followed by ICICI Bank, Coal India, Adani Ports and Larsen & Toubro.
Among sectoral indices, the Nifty PSU Bank index ended around 2% lower led by a fall in the shares of Allahabad Bank, Union Bank of India and Canara Bank.
GLOBAL MARKETS
World shares fell on Monday, dented by worries over a worsening trade dispute between the United States and other major economies, while oil prices gave up some of the gains made after major exporters agreed a modest production increase.
S&P500 mini futures fell as much as 0.6 per cent while MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.95 per cent to 6-1/2-month lows. Japan's Nikkei lost 0.8 per cent.
The S&P BSE Sensex ended at 35,470, down 219 points while the broader Nifty50 index settled at 10,762, down 59 points. Tata Motors was the top Sensex loser that ended nearly six per cent lower at Rs 290 levels, followed by ICICI Bank, Coal India, Adani Ports and Larsen & Toubro.
Among sectoral indices, the Nifty PSU Bank index ended around 2% lower led by a fall in the shares of Allahabad Bank, Union Bank of India and Canara Bank.
GLOBAL MARKETS
World shares fell on Monday, dented by worries over a worsening trade dispute between the United States and other major economies, while oil prices gave up some of the gains made after major exporters agreed a modest production increase.
S&P500 mini futures fell as much as 0.6 per cent while MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.95 per cent to 6-1/2-month lows. Japan's Nikkei lost 0.8 per cent.
OIL PRICES
Oil shed some of the gains posted on Friday after OPEC and non-OPEC producers agreed a modest increase in production from next month. They did not however announce a clear target for the output hike, leaving traders guessing how much more will actually be pumped.
OPEC and non-OPEC said in a statement they would raise supply by returning to 100 percent compliance with previously agreed output cuts, after months of underproduction.
U.S. crude futures traded at $68.64 per barrel, up 0.1 per cent for the day after Friday's 4.6 percent rally. International benchmark Brent fell 1.2 per cent, however, to $74.61 per barrel, giving up nearly half of its gains made on Friday.
(With Reuters inputs)
3:43 PM![]()
Nifty PSU Bank index ended 2.09% lower today. Top losers:
| COMPANY | LATEST | PREV CLOSE |
LOSS( ) | LOSS(%) |
| ALLAHABAD BANK | 41.40 | 44.90 | -3.50 | -7.80 |
| UNION BANK (I) | 82.35 | 85.75 | -3.40 | -3.97 |
| CANARA BANK | 249.10 | 259.40 | -10.30 | -3.97 |
| BANK OF BARODA | 116.70 | 121.50 | -4.80 | -3.95 |
| ORIENTAL BANK | 75.45 | 78.45 | -3.00 | -3.82 |
3:41 PM
Nifty sectoral losers of the day
3:39 PM
BSE Sensex: Infosys top gainer of the day, Tata Motors, ICICI Bank top losers
3:35 PM
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Market at close
The S&P BSE Sensex ended at 35,470, down 219 points while the broader Nifty50 index settled at 10,762, down 59 points.
3:13 PM
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Tata Motors falls 5% on concerns of auto tariff fears in US
Tata Motors dipped 5% to Rs 292 on the BSE in intra-day trade amid concerns of auto tariff threat by US on European Cars. The stock trading close to its 52-week low of Rs 582 touched on May 31, 2018 on the BSE in intra-day trade. READ MORE
3:06 PM![]()
ICICI Securities on Heritage Foods
We came back positive after meeting management of Heritage Foods. The company’s all the initiatives such as 1) yoghurt plant, 2) Alpenvie premium ice creams and 3) animal feed business are on track. With fall in milk prices, we expect the company to report better margins in FY19. We expect Heritage to report revenue and PAT CAGR of 17.6% and 58.8% over FY18-20 with adjusted RoCE above cost of capital and retain BUY rating with target price of Rs 860 (29x FY20E).
3:05 PM![]()
HDFC Securities on Bajaj Auto
The stock trades at 15x FY20E earnings, which is attractive. We recommend BUY on Bajaj Auto, at CMP of Rs 2,835, and add on dips to Rs 2,670 with a target price of Rs 3,350. We have assigned a target price of Rs 3,350 based on ~18x PE of FY20 earnings. Strong volume growth led by robust sales from the three-wheeler segment and exports, healthy return ratios and robust balance sheet supports our positive view on the stock.
3:00 PM
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P-note investments dip to over 9-year low in May as Sebi tightens norms
Investments through participatory notes into Indian capital markets plunged to over 9-year low of more than Rs 930 billion at May-end amid stringent norms put in place by Sebi to check the misuse of these instruments.
P-notes are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be part of the Indian stock markets without registering themselves directly. They, however, need to go through a proper due diligence process. READ MORE
2:57 PM![]()
Recently listed IPOs
[*] IPO Price unadjusted> More Listed IPOs
| IPO NAME |
IPO PRICE() |
LATEST PRICE() | LIST DATE |
|---|---|---|---|
| ACCURACY SHIPPI. | 84 | 85.50 | JUN 22,2018 |
| PRITI INTERNATI. | 75 | 84.00 | JUN 21,2018 |
| SHREEOSWAL SEEDS | 26 | 28.10 | JUN 20,2018 |
| NAKODA GROUP | 35 | 36.50 | JUN 06,2018 |
| LATTEYS INDUSTR. | 66 | 58.00 | JUN 05,2018 |
2:50 PM
Stock Idea (Source: HDFC Securities)
2:45 PM![]()
Nifty PSU Bank index dowm almost 2%; Top losers in the pack
Click here for more
| COMPANY | LATEST | PREV CLOSE |
LOSS() | LOSS(%) | VOLUME |
|---|---|---|---|---|---|
| ALLAHABAD BANK | 41.95 | 44.90 | -2.95 | -6.57 | 4963430 |
| UNION BANK (I) | 82.80 | 85.75 | -2.95 | -3.44 | 4477334 |
| SYNDICATE BANK | 45.30 | 46.80 | -1.50 | -3.21 | 1921582 |
| BANK OF BARODA | 118.25 | 121.50 | -3.25 | -2.67 | 7365151 |
| ORIENTAL BANK | 76.45 | 78.45 | -2.00 | -2.55 | 1227638 |
Click here for more
2:43 PM![]()
Edelweiss on metal sector
Off late, metals & mining stocks world-wide have been roiled by macro factors—ongoing trade brawls and strengthening USD. Moreover, after a prolonged resilience, underlying commodity prices too are under pressure with copper, aluminium and zinc coming off 5-8% in the previous week. In this situation, reminiscent of FY14, we expect earnings growth, but valuations to remain subdued.
Despite risks to global growth and demand slowdown in China dampening stocks’ near-term performance, we believe supply discipline and robust trade flows will prevent the situation from snowballing into a FY16 like crisis. Maintain Vedanta (VEDL), Hindalco and Tata Steel as our top picks—trading at five-year low EV/EBITDA
Off late, metals & mining stocks world-wide have been roiled by macro factors—ongoing trade brawls and strengthening USD. Moreover, after a prolonged resilience, underlying commodity prices too are under pressure with copper, aluminium and zinc coming off 5-8% in the previous week. In this situation, reminiscent of FY14, we expect earnings growth, but valuations to remain subdued.
Despite risks to global growth and demand slowdown in China dampening stocks’ near-term performance, we believe supply discipline and robust trade flows will prevent the situation from snowballing into a FY16 like crisis. Maintain Vedanta (VEDL), Hindalco and Tata Steel as our top picks—trading at five-year low EV/EBITDA
2:30 PM
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Market cap of Bajaj Finserv crosses Rs 1 trillion mark; stock hits new high
Shares of Bajaj Finserv entered the elite club of Rs 1 trillion market capitalisation (market-cap) after the stock price of the company hit a new high on the National Stock Exchange (NSE) in intra-day trade on Monday. The market-cap of the company touched Rs 1,002 billion (Rs 1-trillion mark) on the NSE.
Thus far in the current calendar year 2018 (CY18), Bajaj Finserv has outperformed the market by surging 20% as compared to 4.5% rise in the S&P BSE Sensex. READ MORE
2:15 PM
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BSE PSU index hits 18-month low; Bank of Baroda, NTPC touches 52-week low
Shares of public sector undertaking (PSU) organisations were under pressure with the S&P BSE PSU index hitting its 18-month low on the BSE on Monday, after a fall in oil & gas and banking stocks. READ MORE
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Market Check
| S&P BSE Sensex | 35,608.62 |
 | -0.23% |
| Nifty 50 | 10,810.45 |
| -0.11% |
| S&P BSE 200 | 4,660.76 |
| -0.17% |
| Nifty 500 | 9,285.20 |
| -0.12% |
| S&P BSE Mid-Cap | 15,832.89 |
| -0.04% |
| S&P BSE Small-Cap | 16,496.50 |
| -0.26% |
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First Published: Jun 25 2018 | 8:15 AM IST
