Sensex, Nifty Snap 6-day Winning Streak on Weak Europe Cues; Utilities, Telcos Drag
Global equity markets which have been on a denial mode all through last week, reassessed the bullish intent, allowing prices to ease further for the second day. Trading holiday in US on Monday, and in India on Wednesday, also seems to have clipped the momentum, while the US jobs data and FOMC minutes scheduled for release later in the week ensured that buyers were less inclined to chase prices higher. The expansion of cabinet evoked no major positivity, while data showing June service sector PMI falling to 7 month low gave additional reasons for investors to skim profits from the recent rally, especially ahead of the Q2 earnings season.”Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services said in an email statement.
Closing Bell
Indian equity benchmarks snapped their six-day winning streak as renewed concerns around the “Brexit” forced investors to once again take up a cautious stance.
The S&P BSE Sensex closed 0.4 percent lower at 27,166, while the NSE Nifty also settled 0.4 percent lower at 8,335.
The market breadth was in skewed favour of the bears at 822 declines and 637 advances.
Closing Bell
Indian equity benchmarks snapped their six-day winning streak as renewed concerns around the “Brexit” forced investors to once again take up a cautious stance.
The S&P BSE Sensex closed 0.4 percent lower at 27,166, while the NSE Nifty also settled 0.4 percent lower at 8,335.
The market breadth was in skewed favour of the bears at 822 declines and 637 advances.
Check out: U.K.’s FTSE 100 Has Lagged Non-EU Europe Gauges Since ’93: Chart
Aurobindo Pharma Up 1.27%; Second Best Performer On Nifty
The drug maker is said to be among companies considering bids for Teva Pharmaceutical’s portfolio of drugs in the U.K., Ireland and Iceland, people familiar with the matter told Bloomberg.
Read the full copy HERE
Fertiliser stocks are down following the government move to cut retail prices by around Rs 5,000 per tonne. (Read full report HERE)
But according to Satish Chander of the Fertiliser Association of India (FAI) these price cuts have already been implemented in the month of June. He said any further price cuts will depend on whether the government chooses to pay the fertiliser companies their subsidies amount on time.
We will pass on the benefits of saving in the interest cost by reducing the prices of the fertilisers further.”Satish Chander told BloombergQuint in a phone interview.
Bharti Airtel Worst Performer on Sensex, Nifty
India’s largest telecom firm fell around 2.4 percent to Rs 364, making it the worst performer on both the key equity benchmarks.
Crisil expects India’s telecom operators to fork out around Rs 1 lakh crore to buy spectrum at the forthcoming auction. Of this nearly 75 percent will be spent by private telecom operators, the research firm said.
The top three operators are expected to account for around 55-60 percent of the total spending at the auctions.”Crisil said in a research note.
European Stocks Slide for Second Day
European shares extended their decline into a second day, with Brexit adding to worries about global growth and the effectiveness of central bank stimulus.
European Stocks Slide for Second Day
European shares extended their decline into a second day, with Brexit adding to worries about global growth and the effectiveness of central bank stimulus.
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Reliance Rises After Getting Green Nod to Dig More Wells
Mukesh Ambani-backed firm advances over 1.2 percent after gets green nod from the Tamil Nadu government to drill eight additional exploratory wells at a project cost of Rs 800 crore. According to a PTI report, RIL has nine wells and discovered hydrocarbons in three wells.
The New Look Cabinet
Prime Minister Narendra Modi inducted 19 new faces in his union council of minister ahead of the crucial assembly elections in Uttar Pradesh and the monsoon session of the Parliament.
A notable elevation, Prakash Javadekar has been sworn in as a cabinet minister.
Get full details of on the new cabinet HERE
Meanwhile PTI reports that five ministers were dropped from the union council of ministers.
- Ram Shankar Katheria, MoS, Ministry of Human Resource Development
- Nihalchand, MoS, Panchayati Raj
- Sanwar Lal Jat, MoS Water Resources, River Development and Ganga Rejuvenation.
- Mohanbhai Kalyanjibhai Kundaria, MoS, Agriculture
- Mansukhbhai Dhanjibhai Vasava, MoS, Tribal Affairs
Adani Ports Extends Gains on Second Day
The Gujarat-based firm is up over 0.6 percent to Rs 214 on the BSE. The stock has risen over 5 percent since yesterday, after it raised Rs 252 crore through issuance of non-convertible debentures (NCDs) on a private placement basis.
The said NCDs will be listed on the Wholesale Debt Market segment of BSE Limited.”Adani Ports said in its filing to the exchanges.
Alembic Jumps on USFDA Approval
The midcap pharma firm climbs as much as 2.5 percent after it gets a U.S. FDA tentative approval for generic version of Takeda’s Uloric indicated for chronic management of hyperuricemia in patients with gout.
Alembic Pharma settled its case with Takeda and will launch its generic as per terms of the settlement, the company said in its filing to the exchanges.
Stronger Manufacturing Industry Lifts India’s Economy
The seasonally adjusted Nikkei India Composite PMI Output Index rose to 51.1 in June versus 50.9 in May powered by manufacturing production at a three-month high. However, business activity in the Indian service sector increased at the second-slowest rate in the current 12-month period of growth at 50.3 in June versus 51.1 in May.
The Indian service sector saw a further cooling of growth momentum in June, the third in consecutive months, with a weaker rise in new business leading to a softer expansion in activity. Moreover, future expectations dipped to the lowest since February, highlighting concerns regarding the sustainability of the economic upturn. Although manufacturing shifted into a higher gear in June, variables such as new orders, employment and production stayed below their respective long-run averages. Nonetheless, India remains a leading performer within emerging markets at a time when many of its peers are struggling.”Pollyanna De Lima, economist at Markit said in a press release.
Interested in reading more? Click HERE
Jaiprakash Shares Surge After UltraTech Deal
The debt-laden firm surged as much as 34 percent to Rs 12.14 a share after the company announced a revised deal to sell its cement business to UltraTech Cement. (More details on the deal HERE)
Shares of Jaiprakash Power too surged over 14 percent to Rs 5.90.
Jaiprakash Shares Surge After UltraTech Deal
The debt-laden firm surged as much as 34 percent to Rs 12.14 a share after the company announced a revised deal to sell its cement business to UltraTech Cement. (More details on the deal HERE)
Shares of Jaiprakash Power too surged over 14 percent to Rs 5.90.
Momentum indicator Relative Strength Index (RSI) for JP Associates shot close to 90, a threshold that some traders are likely to see as a sell signal.
Opening Bell
Indian equity benchmarks open lower, snapping a six-day rally, weighed down by fresh concerns emanating out of the European region. The S&P BSE Sensex fell 0.1 percent to 27,244, while the NSE Nifty fell 0.2 percent to 8,353.
Both the indices were up in pre-market trading.
Opening Bell
Indian equity benchmarks open lower, snapping a six-day rally, weighed down by fresh concerns emanating out of the European region. The S&P BSE Sensex fell 0.1 percent to 27,244, while the NSE Nifty fell 0.2 percent to 8,353.
Both the indices were up in pre-market trading.
Pre-Market Update
The Sensex rises 0.2 percent, while the Nifty climbs 0.1 percent in pre-market trading.
Gainers
- Ultratech Cement (+1.6%)
- Eicher Motors (+1.5%)
- ITC (+1.2%)
- ICICI Bank (+1.2%)
- Adani Ports (+.0.8%)
Decliners
- GMR Infra (-1.7%)
- Ashok Leyland (-1.4%)
- Ambuja Cements (-1.1%)
- IndusInd Bank (-1%)
- JSW Steel (-0.7%)
Data/Event to Watch- 10:30am: Nikkei India services PMI for June (prior 51.0)
- 10:30am: Nikkei India composite PMI for June (prior 50.9)
- 3:30pm: BSE to auction Rs 8,114 crore of government debt quota for FIIs
- RBI to conduct Rs 18,500 crore 14-day term repo auction
- Government to sell Rs 9,000 crore 91-day, Rs 6,000 crore 364-day T-bills
- Government to sell Rs 15,000 crore four dated bonds on July 8
Stocks to Watch- Chambal Fertilisers, Deepak Fertilisers, Gujrat Narmada, National Fertilisers etc: Non-urea prices cut by as much as Rs 5,000 per tonne.
- Miners (Adhunik, Deccan Gold, Hindalco, Hindustan Copper, Hindustan Zinc, MOIL etc: On new mineral exploration policy
- Bhushan Steel: To shut Dhenkanal mill for 20-days to expand capacity
- HDFC: To consider Rs 35,000 crore of NCDs in private placement on July 27
- Grasim: Says Nagda plant operations resumed
- IFCI: Says sold 225,000 shares in NSE at Rs 3,950/share
- Jaiprakash Associates: To amend cement business sale pact with UltraTech
- Southern Online Bio Tech: Wins orders for supply bio diesel of Rs 799.9m/yr to ASRTC
- Usher Agro: Lenders decided to invoke strategic debt recast
- GM Breweries to announce first quarter earnings
- AGMs for today: Ajanta Pharma, Pfizer India
- LKP Finance: Trades ex-spinoff of unit LKP Securities; Unit’s investors will get 6 shares for each they held in parent
- Modison Metals: Signs accord with Russia’s Ekaterinburg plant
- Southern Online: Gets around Rs 80 crore a year bio diesel supply order from Andhra Pradesh
- State Bank of Travancore, State Bank of Mysore, State Bank of Bikaner: Staff union plans strike July 12-13
- Techno Electric (TEEC): To consider free share issue on July 14
- Ultracab: To consider free share issue July 11
- Usher Agro: Lenders plan company’s debt recast
- Walchandnagar: No talks held for any coastal missile system
Get the full list of Stocks to Watch HERE
Talking Points - Government to announce cabinet expansion plan
- Mines ministry releases National Mineral Exploration policy
- RBI will intervene to tackle volatility from FCNR outflows: Deputy Governor Khan
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India cuts non-urea fertiliser prices by up to Rs 5,000/tonne (more details)
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Tata Sons: To invest Rs 3000 crore in Tata Teleservices (Business Standard)
- Global funds sell Rs 182 crore of local stocks; domestic funds buy Rs 377 crore yesterday: Provisional data
Good Morning!
The early indicator SGX Nifty fell around 0.27 percent to 8,369, reflecting weak Asian market setup as fears of an economic slowdown in the U.K. halted the run up in European shares. Silver climbed with the yen and Treasuries amid an uptick in demand for safe haven investments.
Asian markets retreat after 4-day rally. SGX Nifty trades 0.39% lower at 7 am. pic.twitter.com/ee5g2XER81
— BloombergQuint (@BloombergQuint) July 5, 2016
Also Read: European Stocks Halt Rebound With Italian Lenders Declining
Post - #Brexit optimism fades. Asia opens lower. SGX Nifty indicates a weak start for India. pic.twitter.com/ix8XPZQ3A5
— BloombergQuint (@BloombergQuint) July 5, 2016
Financial and commodities markets in the United States were closed for the July 4 public holiday.
Yesterday, the Sensex and Nifty closed 0.5 percent higher, extending their winning streak to sixth day, spurred by stability in domestic fundamentals and high prospects of GST bill getting passed in the monsoon session of Parliament.
For a recap of yesterday’s market action click HERE
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