Sensex, Nifty Fall Most Since Brexit; Adani Ports Up 7.8%, Grasim Down 7% Ahead of Results

Closing Bell

Indian shares extend their losses on Wednesday, falling most since global selloff after the U.K. decision to leave the European Union on June 24.

The S&P BSE Sensex declines 1.1 percent to 27,774; while the NSE Nifty drops 1.1 percent to 8,575.

All 19 sectoral gauges on the Bombay Stock Exchange ended lower, with the Energy, Auto, Healthcare and Consumer Discretionary benchmarks falling the most.

The market breadth is skewed in favour of the bears at 1,893 declines, 835 advances and 137 stocks remaining unchanged on the Mumbai-based exchange.

Closing Bell

Indian shares extend their losses on Wednesday, falling most since global selloff after the U.K. decision to leave the European Union on June 24.

The S&P BSE Sensex declines 1.1 percent to 27,774; while the NSE Nifty drops 1.1 percent to 8,575.

All 19 sectoral gauges on the Bombay Stock Exchange ended lower, with the Energy, Auto, Healthcare and Consumer Discretionary benchmarks falling the most.

The market breadth is skewed in favour of the bears at 1,893 declines, 835 advances and 137 stocks remaining unchanged on the Mumbai-based exchange.

M&M Drops After Q1 Margins Disappoint Street

Shares of auto maker drop as much as 3 percent to Rs 1,435 despite beating street estimates with its first quarter earnings.

Net profit increased 12.4 percent to Rs 955.2 crore, from Rs 850.1 crore in the April-June quarter last year, according to the company’s filing on the Bombay Stock Exchange. The profit performance surpassed the Rs 893.5 crore consensus of analysts tracked by Bloomberg.

The earnings included Rs 91 crore from the profit of transfer of agri-business to a fully owned subsidiary, the company added.

Revenue rose 14 percent to Rs 11,800 crore in the quarter. Other income stood at Rs 216.8 crore from dividend received from subsidiaries and joint ventures.

Earnings before interest, tax, depreciation and amortisation grew 3.2 percent to Rs 311.7 crore. EBITDA margin, however, dropped 113 basis points to 10.76 percent, according to BloomberQuint’s calculations.

More Earnings

Thermax’s First Quarter Net Profit Drops 19%

Europe Snaps 5-day Rally

Europe Snaps 5-day Rally

European shares slip for the first time in six days, dragged down by energy producers. In the past five days, fresh Bank of England stimulus measures, better-than-expected jobs data in the U.S. and corporate earnings helped the gauge of European equities rebound 12 percent from its Brexit lows.

Cement Stocks Continue to Crumble

Shares of cement companies continue to fall for a second day as investors are taking some profit off the table after a rally triggered by better-than-expected first quarter earnings season.

“We are seeing profit booking in cement stocks, which had run quite a lot on the back of a decent June quarter results,” Siddharth Purohit, senior research analyst at Angel Broking told BloombergQuint in a phone interview.

Despite the fall in share prices, Purohit remains positive on the sector anticipating the infra push by government to aid cement sales. “We remain bullish on the sector with a medium term outlook,” he said.

Top losers

• Ambuja Cements (-2.7% to Rs 262)
  
• ACC (-2% to Rs 1651)
  
• Grasim Industries (-5.1% to Rs 4,916)
  
• Ramco Cements (-1.2% to Rs 554)
  
• Shree Cements (-1.2% to Rs 16,925)
  
• UltraTech Cement (-1.1% to Rs 3,761)
  
• J.K. Lakshmi Cements (0.6% to Rs 438)
  
• India Cements (-4% to Rs 120)

Tata Chemicals Jumps to 52-Week High on Urea Plant Sale

Shares of the Tata group firm jump as much as 8 percent to Rs 501, a new 52-week high for the stock, after it decided to sell its urea plant and distribution business for $400 million to Norway’s Yara International.

The divestment of the Urea Business by Tata Chemicals will unlock value for the Company, strengthen its Balance Sheet and will help to pursue growth potentials and opportunities in line with its strategic directions.

The company said in its press release. 

Market Update: Sensex, Nifty See Profit Booking

There is a sudden sell-off in Indian equities, led by lenders, autos, energy and healthcare companies, amid concerns the rally fuelled by capital inflows has outpaced the outlook for earnings growth.

The S&P BSE declines 0.7 percent to 27,882; while the Nifty slips 0.8 percent to 8,606. The 50-share benchmark briefly dipped below the 8600-mark, a crucial psychological support.

Motherson Sumi Skids 5% After Q1 Sales Miss Mark

Shares of auto part maker drop as much as 5.1 percent to Rs 334, most since June 24, after its June quarter revenue performance missed analyst estimates and margins contracted. (More details HERE)

India’s July Passenger Vehicles Sales Rise 17%

Passenger vehicle sales, which includes sports utility vehicles and vans, rise 17 percent to 259,685 units last month, according to data released by the Society of Indian Automobile Manufacturers. This compares to the 222,368 units sold in the July of last year.

• Local car sales 177,604 units versus 162,022 units YoY
  
• Two-wheeler sales 1.48 million units versus 1.3 million
  
• Truck, bus sales 51,853 units versus 51,795

India’s July Passenger Vehicles Sales Rise 17%

Passenger vehicle sales, which includes sports utility vehicles and vans, rise 17 percent to 259,685 units last month, according to data released by the Society of Indian Automobile Manufacturers. This compares to the 222,368 units sold in the July of last year.

• Local car sales 177,604 units versus 162,022 units YoY
  
• Two-wheeler sales 1.48 million units versus 1.3 million
  
• Truck, bus sales 51,853 units versus 51,795

Also Read: Renault’s Sevenfold Surge Extends India Auto Sales Growth Run

Opening Bell

Indian shares fluctuate between gains and losses as investors stop for a breather after a rally that saw benchmarks hitting record highs.

The S&P BSE Sensex is little changed at 28,061 and so is the NSE Nifty at 8,671.

Also Read: India Stock Volatility Close to 2016-lows as Nifty Enters Consolidation Mode

Opening Bell

Indian shares fluctuate between gains and losses as investors stop for a breather after a rally that saw benchmarks hitting record highs.

The S&P BSE Sensex is little changed at 28,061 and so is the NSE Nifty at 8,671.

Also Read: India Stock Volatility Close to 2016-lows as Nifty Enters Consolidation Mode

Stocks Radar: Jubilant Life, M&M, IOB and More

A 600 Percent Jump in Share Price in 2 Months!

Earnings to Watch

• Aarti Industries
  
• Adani Transmission
  
• Balmer Lawrie & Co
  
• Birla Corporation
  
• Bombay Dyeing
  
• Chambal Fertilizers & Chemicals
  
• City Union Bank
  
• Corporation Bank
  
• Dynamatic Technologies
  
• Honeywell Automation India
  
• HSIL
  
• Indiabulls Real Estate
  
• Indian Hotels
  
• ITD Cementation India (Q2)
  
• Jammu & Kashmir Bank
  
• Mahindra & Mahindra
  
• Motherson Sumi Systems
  
• MT Educare
  
• Punj Lloyd
  
• Punjab & Sind Bank
  
• Rajesh Exports
  
• Suven Life Sciences
  
• Thermax

Earnings Reaction to Watch

• Astrazeneca Pharma: Q1 profit Rs 10.57 crore versus Rs 2.72 crore
  
• Jagaran Prakashan : Q1 profit Rs 73.64 crore versus Rs 69.86 crore
  
• JK Tyre: Q1 net income Rs 100 crore versus Rs 117 crore
  
• Power Finance: Q1 net Rs 1,710 crore versus Rs 1,580 crore
  
• Natco Pharma: Q1 profit Rs 47.65 crore versus Rs 28.07 crore
  
• Container Corp: Q1 profit Rs 178 crore versus Rs 207 crore
  
• Indian Overseas Bank: Q1 loss Rs 1,450 crore versus Rs 14.76 crore profit; Gross NPA 20.48 percent end-June versus 17.4 percent end-March
  
• UCO Bank: Q1 loss Rs 441 crore versus profit Rs 257 crore YoY
  
• United Bank of India: Q1 net down 27 percent YoY to Rs 38.3 crore, to make up to Rs 810 crore preferential allotment to government

IPO Watch

• RBL Bank may announce shares price band, offer period for IPO
  
• No immediate plans for Tata Technologies IPO, says Cyrus Mistry (Mint)

Stocks to Watch

• Aptech: Rakesh Jhunjhunwala buys 700,000 shares in company (NSE)
  
• Bharat Financial: Raises Rs 50 crore via commercial papers
  
• Lupin: Expects to resolve all FDA issues in 3-6 months, says CEO
  
• Tata Motors: Mistry asks shareholders to be patient for higher dividends (PTI)
  
• Reliance Industries: Rivals allege Reliance Jio bypassing rules (Economic Times)
  
• Grasim Industries: Aditya Birla Group may merge Grasim, parts of Nuvo (Economic Times)
  
• Hindustan Zinc: Plans to double silver output in next five years (Financial Express)

For a more comprehensive list of stocks to watch, click HERE

Data/Events to Watch

• 10:30am: India car sales data for July (prior 154,237)
  
• 08/10-08/16: India July exports(prior +1.3%)
  

*Imports; no estimate (prior -7.3%)
*Trade Balance; estimate -$8.7b (prior -$8.12b)

Talking Points

• India net indirect tax revenue up to July rises 30 percent YoY *April-July direct tax collection +24.01% to 1.59t rupees
  
• India monsoon rainfall 3 percent above normal as of August 9
  
• India June natural rubber output 50,000 tonnes versus 47,000 year ago
  
• India sugar output may fall to 22.4 million metric tonne in 2016-17 (Datagro)
  
• Essar Oil U.K. in pact to supply jet fuel to Emirates
  
• Kotak Realty Fund predicts prolonged slump in home sales (Full report HERE)
  
• Jammu & Kashmir Bank to consider issue of Rs 1000 crore of bonds
  
• India mulls green power exchange to spur Modi’s renewable target (More details HERE)
  
• Global funds buy Rs 144 crore of local stocks; domestic funds sell Rs 610 crore yesterday: Provisional data

Starting 2017, finance minister could deliver 1 consolidated budget, scrapping tradition of separate railway budget https://t.co/Nged4AjsJA

— BloombergQuint (@BloombergQuint) August 10, 2016

Also Read: Brokerages Expect RBI to Cut Rate in October, Achieve CPI Inflation Target by March

Good Morning!

The Nifty Futures on the Singapore Exchange, an early indicator of Nifty performance in India, is little changed at 8,713.

Asian equities retreated after climbing 4.2 percent over the previous four days, erasing declines since last month’s Brexit vote as speculation grew that central banks will step forward with stimulus measures.

U.S. stocks eked out gains on Tuesday following a strong session for European stock markets, with Germany’s DAX index jumping 2.5 percent to its highest of 2016 due to strong earnings from reinsurer Munich Re and telecoms group Altice.

Asian stocks fall after 4-day rise. Dollar declines, gold gains. https://t.co/FurDug4eQx pic.twitter.com/Z5LTtijBMJ

— BloombergQuint (@BloombergQuint) August 10, 2016

U.S. crude lingered below $43 a barrel after industry data showed American oil stockpiles -- already at seasonal highs -- increased last week. Meanwhile, the dollar dropped as bets of a Federal Reserve rate hike in 2016 remained below 50 percent.

Gold extended its rally from its lowest price this month, as investors returned to safe havens.

Here's your Wednesday morning briefinghttps://t.co/Smzb6YUMli pic.twitter.com/1BIA3htNyp

— BloombergQuint (@BloombergQuint) August 10, 2016