MARKET WRAP: Sensex, Nifty end flat with negative bias; PSBs, IT slip

The S&P BSE Sensex touched an intra-day low of 39,461 levels while the Nifty50 drifted to 11,817 levels during the day before staging a limited recovery. Banking stocks were among the key losers

BSE Sensex

Markets ended flat on Thursday with gains being capped by banking and auto stocks. Weak global cues and rising retail inflation, too, contributed to a lackluster trade.

The S&P BSE Sensex ended 15 points, or 0.04 per cent, lower at 39,741 levels dragged by select blue-chip counters like IndusInd Bank, Reliance Industries, YES Bank and Infosys. While PowerGrid and M&M were the top gainers, YES Bank and IndusInd slipped the most.

The broader Nifty50 settled just above the psychological level of 11,900 at 11,914 mark, up a modest 8 points, or 0.07 per cent. Among sectoral indices, public sector banks, metals and IT stocks lost ground.

The S&P BSE Sensex touched an intra-day low of 39,461 levels while the Nifty50 drifted to 11,817 levels during the day before staging a limited recovery. The broader market, S&P BSE Mid-Cap index settled 49 points lower at 14,873 levels, while the S&P BSE Small-Cap index lost 72 points to close at 14,476 levels, taking deeper cuts than benchmark indices.

Bad loan risk from related firms likely: UBS

A recent report by global research and brokerage house, UBS, suggests that the next level of risk could appear from leveraged corporates' inter-related companies (their network).

"We believe the market is not pricing in the structural opportunity available to ICICI Bank, Axis Bank and SBI due to near-term issues. NPL risk for YES Bank and IndusInd does not seem to be fully priced in," the report said. YES Bank and IndusInd Bank were among the top losers in the Nifty Bank index on Thursday, slipping nearly 13.5 per cent and 5 per cent, respectively by close.

UBS, which expects the NPL cycle to be extended due to the emergence of new stressed accounts, studied 5,600 companies and their links to around 200 large corporates with an aggregate debt of about $250 billion. READ MORE

Buzzing stocks

Shares of Jet Airways (India) slipped 15 per cent to Rs 93 apiece during the morning deals on Thursday to hit a fresh lifetime low on the BSE and National Stock Exchange (NSE). The fall comes on the back of the exchanges' decision to switch deals on the stock to ‘trade-to-trade’ segment with effect from June 28, 2019 till further notice.

Shares of Indiabulls Group companies soared up to 16 per cent from their respective intra-day lows on the BSE on Thursday after Abhay Yadav, the petitioner who had filed a public interest litigation (PIL) against the housing finance major for siphoning off funds worth Rs 98,000 crore, withdrew the writ petition in the Supreme Court.

Click here to read on more buzzing stocks

Global cues

Shares in Asia Pacific were mixed on Thursday on an intractable US-China trade war and oil prices that soared during the afternoon session.

Hong Kong’s Hang Seng index closed fractionally lower at 27,295 while Japan’s Nikkei 225 slipped 0.46% to close at 21,032. South Korea’s Kospi shed 0.27% to close at 2,103.

4:05 PM

Market View :: Jayant Manglik, President - Retail Distribution, Religare Broking

Though the benchmark index is somehow holding around its record high, broader indices are under tremendous pressure. It shows lack of buying interest among the participants, citing uncertain global markets and not so encouraging domestic cues. We maintain cautious view on markets and suggest focusing on trade management. Nifty has immediate support at 11,800 and its breakdown could trigger fresh fall else consolidation will continue

4:04 PM

TECHNICAL CHECK :: Nagaraj Shetti - Technical Research Analyst, HDFC Securities

Nifty showed upside bounce from the lows and closed on a minor gains today. A small positive candle was formed today with lower shadow, which indicates a minor comeback of bulls from the lows. The overall chart pattern now suggests a broader range movement around 11,780 to 12,000 levels and the Nifty is expected to move within this range for the next one - two sessions. Expect selling near 12,000 mark

3:47 PM

Top gainers and losers on S&P BSE Sensex

3:46 PM

MARKET AT CLOSE

3:44 PM

MARKET AT CLOSE

3:13 PM

NEWS ALERT | NCLT adjourns operational creditors' plea against Jet Airways to June 20: CNBC TV18

3:07 PM

NEWS ALERT | Jet Airways' officials asked to calculate ending payment to vendors: CNBC TV18

3:03 PM

NEWS ALERT | Jet Airways' officials asked to prepare list of vendors to enable resuming operations: CNBC TV18

3:02 PM

NEWS ALERT | Jet Airways' stakeholders looking at limiting fleet size below 20: CNBC TV18

2:48 PM

NPL risks from associated firms likely; IndusInd, YES Bank vulnerable: UBS

UBS, which expects the NPL cycle to be extended due to the emergence of new stressed accounts, studied 5,600 companies and their links to around 200 large corporates with an aggregate debt of about $250 billion.

The 200 corporates have aggregate debt of around $250 billion, of which only 25 per cent is investment grade. In other words, 75 per cent of this sample is either rated below investment grade (BB or below), with an interest coverage ratio (EBIDTA/Interest) of less than 1.5x, or where no recent credit rating data has been found. CLICK TO READ FULL REPORT

2:40 PM

NEWS ALERT | No SEBI approval yet for management control change in asset arm, says Dewan Housing: CNBC TV18

2:29 PM

Indiabulls Housing up 10% on withdrawal of PIL in fund siphoning off case

Shares of Indiabulls Group companies soared up to 16 per cent from their respective intra-day lows on the BSE on Thursday after Abhay Yadav, the petitioner who had filed a public interest litigation (PIL) against the housing finance major for siphoning off funds worth Rs 98,000 crore, withdrew the writ petition in the Supreme Court. READ MORE

2:19 PM