MARKET WRAP: Sensex tanks 491 pts, ends below 39k at 1-month closing low

All that happened in the markets today

8:42 AM

Returns from consumption stocks could be muted, says Kenneth Andrade

As the markets now await the policies from the new government to revive growth in its upcoming Budget and corporate earnings for the first quarter of financial year 2019-20 (FY20), Kenneth Andrade, founder and chief investment officer, Old Bridge Capital Management, tells Puneet Wadhwa that the country needs fiscal consolidation before kick-starting the economy. CLICK HERE TO READ FULL INTERVIEW

8:33 AM

NEWS ALERT | China to roll out rare earths policies soon: Reuters

- China’s state planner said on Monday it will study and roll out relevant polices on rare earths as soon as possible.

- The government resolutely opposes any attempt to use products made with China’s exported rare earths to suppress the country’s development, Meng Wei, spokeswoman for the National Development and Reform Commission(NDRC), said. 

8:32 AM

Street signs: Fed to drive Nifty, firms defer IPOs in weak market, and more

Monsoon, US Fed to drive Nifty The Nifty moved in a narrow band and tested 12,000-point level last week, but failed to hold on to its early momentum. Analysts believe that the upside may be capped for the Nifty and the index may fall further if it fails to hold 11,800, with the next crucial support at 11,650. The market will take its cues from the progress of the US-China trade war, the outcome of the US Federal Reserve policy outcome on June 19, and the progress of monsoon this week.  READ MORE

8:29 AM

Trade war to slowdown in demand: Margin pressure on metals to continue

The metal sector saw the sharpest fall in profitability with their margins down 1,600 basis points year-on-year in the March quarter to 23.3 per cent. The sector was a laggard even on the net profit front as falling prices and weak global demand put pressure on realisations. In addition to the fall in prices, input costs such as coking coal, as well as iron ore, remained on the higher side, leading to a double whammy on margins. READ MORE

8:24 AM

Stocks to watch

Lupin: Drug maker Lupin is recalling more than 18,000 bottles of an antibiotic drug used to treat bacterial infections from the US market. The drug is being recalled due to a “complaint received of metal piece identified in the product bottle prior to the reconstitution," USFDA said.

 

Aurobindo Pharma: Aurobindo Pharma Limited will invest up to $200 million on Capex and over five percent of sale value on Research and Development (R&D) during the current financial year. READ MORE

8:19 AM

Derivatives View by Angel Broking

Nifty current month future closed with a premium of 14.75 points against a premium of 30.10 points to its spot. Next month future is trading with a premium of 49.40 points.
 

As far as Nifty options activities for the week are concerned, except for some build-up in 11,900-12,000 calls, we hardly saw any relevant activity last week. Maximum open interest for coming weekly series now stands at 12,000 call and 11,800 put options.
 

During the week, we hardly saw any major build-up in Nifty as well as BankNifty futures. In fact, stronger hands too hardly added fresh positions in index and stock futures segment. They preferred lightening their existing positions in this consolidation phrase. To conclude, the week gone by has left us with no major evidence in F&O space.

At this point in time, 11,800-11,850 remains an immediate base for the Nifty; whereas, resistance is placed around the psychological mark of 12,000. At this point in time, we would advise to wait for the follow-up development in the coming week. However, we had witnessed decent activity in individual counters;

especially in the Metal counters have been showing some respite after quite some time.

8:16 AM

Tatas to avoid big-ticket acquisitions for now, focus on debt reduction

The group will also avoid big-ticket acquisitions, preferring to grow businesses organically. This is after group company Tata Steel made big-ticket, successful acquisitions of Bhushan Steel and Usha Martin last year. “Tata Steel, Tata Motors, and Tata Power will be cutting debt in the near future,” said a senior group official. READ MORE

8:14 AM

Market Ahead, June 17: All you need to know before the Opening Bell

Trade war will be one of the biggest factors for markets this week. India has raised tariffs on 28 items exported from the US with effect from Sunday in retaliation to America’s withdrawal of preferential access for Indian products from June 5.

CLICK HERE TO LISTEN TO OUR PODCAST

8:12 AM

Rainfall deficiency hits 43%; monsoon progress likely in 2-3 days: IMD

By now, monsoon should have reached the central India, including parts of Madhya Pradesh, Rajasthan, eastern Uttar Pradesh and Gujarat, but it is yet to reach Maharashtra.

 

It still remains over Mangalore, Mysore, Cuddalore over the southern peninsula and Passighat, Agartala in the northeast, according to the Indian Meteorological Department. READ MORE

8:09 AM

Commodity picks: June 17, 2019

Turmeric
 

Turmeric prices in Nizamabad are trading at Rs 6,533 per quintal. Prices are expected to trade higher towards Rs 6,650 per quintal. This is on the back of purchases at lower price levels from stockists as well as upcountry buyers. READ MORE

8:07 AM

Lupin recalls more than 18,000 bottles of antibiotic drug in US market

Drug maker Lupin Ltd is recalling more than 18,000 bottles of an antibiotic drug used to treat bacterial infections from the US market.

 

Lupin Pharmaceuticals Inc, the US unit of the Indian company, is recalling the drug due to a “complaint received of metal piece identified in the product bottle prior to the reconstitution,” according to information on the US Food and Drug Administration, or USFDA, website. READ MORE

8:06 AM

Karvy on Adani Ports

BUY ADANIPORTS (Jun Future) | CMP: 426.25

The stock has witnessed a secular upside move from its breakout levels of 390-392 zone on weekly chart. However, from past two weeks, the stock has been witnessing some consolidation and is trading in a tight range of 415-430 levels. Technically, the stock is placed above all its major moving averages and on oscillator front, 14 period RSI has witnessed positive crossover and is comfortably placed around 62-64 levels suggesting more upside room in the counter.

On derivatives front, the stock has seen long addition on both daily and weekly basis indicating bullishness in the counter. Hence, it is advisable to go long in

the counter keeping a stop loss placed below the support levels of 414 levels for an upside of 432 levels.

8:01 AM

Cement production likely to grow by 5-7% in FY20, prices to remain stable

Cement production in the country is likely to remain steady with total production expected to grow by 5-7 per cent during FY20. Roads, urban infrastructure and commercial real estate are seen as the key demand drivers for cement.

 

During 2018-19, cement production grew by 13.3 per cent to 337.3 million tonne (mt) against 6.3 per cent growth in FY18, the fastest growth in production of cement recorded in one single year over the last decade. READ MORE

7:59 AM

5G reserve price is just too high for telecom companies, say experts

As India readies for its ambitious 5G spectrum auctions, at the current base price, (which the industry finds overly expensive), analysts point out that the internal rate of return (IRR) on incremental investment will be as low as 7 per cent for the telcos. READ MORE

7:58 AM

RBI joins peers to buy gold insurance as US-China trade war escalates

All countries have their own unique reasons, but central banks, mandated with the financial stability of their countries, are finding reassurance in the world’s oldest insurance against uncertainties — gold. READ MORE