Sensex, Nifty Log Second-Worst Post-Budget Session In A Decade

Indian equity benchmarks registered their second-worst single-day fall in over a decade on the first trading session after the Union Budget, after it did not turn out to be favourable to the investors.

The S&P BSE Sensex closed 793 points or 2.01 percent lower at 38,720.57 and the NSE Nifty 50 ended at 11,558.60, down 2.14 percent. These were the worst fall for the benchmark indices on the second day after Budget since Feb 17, 2009. Besides, the 31-share index and the 50-stock gauge clocked their worst fall of the year.

The broader market index represented by the NSE Nifty 500 Index closed 2.73 percent lower.

The budget was ‘not market friendly’ and nothing turned out positive for the investors, Joindre Capital Services’ Research Head Avinash Gorakshakar said.

“The biggest negative has been on the tax on buybacks, which will hit sentiments here bad as companies will now avoid buybacks as it becomes tax unfriendly. Besides, the proposal to raise the minimum public shareholding limit to 35 percent dissapointed investors,” he added.

The market breadth was tilted in favour of sellers. About 1,382 stocks declined and 387 shares advanced on National Stock Exchange.

All the sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Realty Index’s 6.7 percent decline.

In the currency market, the rupee depreciated 0.32 percent against the dollar to 68.72 as of 3:40 p.m.

The bond market, however, dropped 13 basis points to its 22-month low.

Stocks in Europe edged lower with U.S. equity futures after steep declines in Asia as investors kicked off the busy week in a cautious mood.

• Futures on the S&P 500 Index decreased 0.2 percent.
• The Stoxx Europe 600 Index dipped 0.1 percent.
• The U.K.’s FTSE 100 Index declined 0.1 percent, the lowest in a week.
• Germany’s DAX Index fell 0.2 percent.
• The MSCI Asia Pacific Index declined 1.2 percent, the lowest in more than a week on the largest drop in two months.

Catch all the global markets update here.
Source: Bloomberg

The Nifty is set to level at 11,400, Trader Atul Suri said after the 50-share index’s 250-point drop.

“The confusion on tax provisions post budget has impacted the correction in the markets today,” Suri told BloombergQuint in an interaction.

Yes Bank

• Stock rose as much as 7.3 percent to Rs 94.60.
• The lender refuted speculations in a statement today.
• The bank’s financial position is sound and stable and its liquidity and operating performance continue to be robust, it said.

Jindal Steel

• Stock rose as much as 2.8 percent to Rs 137.90.
• The company achieved 17 percent growth YoY in steel and related products production in Q1, exceeding the estimates.

Aavas Financiers

• Stock rose as much as 2.9 percent to Rs 1,513.75.
• Trading volume was five times its 20-day average.

Dishman Carbogen Amcis

• Stock halted its six-day losing streak and rose as much as 3.6 percent to Rs 219.60.
• Trading volume was double its 20-day average.

• NCLT directs SEBI to complete investigation in the Hotel Leelaventure matter before July 25.
• NCLT had restrained Leela from proceeding with its transaction with Brookfield till the pendency of SEBI investigation.
• In its April 25 order, NCLT had directed SEBI to complete investigation by July 8.

Source: NCLT Proceedings

Indian equity benchmarks are set to clock their worst single-day fall in over a decade on their first trading session after the Union Budget.

The S&P BSE Sensex fell over 800 points or 2.05 percent to 38,705 as of 3 p.m. and the NSE Nifty 50 traded near 11,550, down 2.2 percent. The broader market index represented by the NSE Nifty 500 Index fell 2.3 percent.

The centre may cut its stake below 51 percent in GAIL, NALCO, NTPC and Container Corp., Bloomberg reported quoting Department of Investment and Public Asset Management Secretary Atanu Chakraborty.

The indirect holding by the government through its arms, such as LIC of India, would stay above 51 percent, Chakraborty told Bloomberg in an interaction.

About 28.8 lakh shares of Dish TV changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

European shares trade mixed following declines in Asian markets as investors re-calibrated expectations for monetary easing.

The issue of foreign portfolio investors coming under the purview of increased surcharge on high-income earners was brought to the government’s notice today, Bloomberg reported quoting Central Board of Direct Taxes Chairman PC Mody.

The government is examining issue of surcharge on foreign investors, the report added.

Indian equity benchmarks continued to trade at day’s low.

The S&P BSE Sensex fell nearly 800 points to 38,735 as of 2 p.m. ad the NSE Nifty 50 traded below 11,600, down 2 percent.

The 50-stock index was also trading below its 50-day moving average of 11,723.

The market breadth was tilted in favour of sellers. About 1,465 stocks declined and 283 shares advanced on National Stock Exchange.

Shares of Maruti Suzuki extended decline for the second consecutive trading session. The Stock fell as much as 5.8 percent to its lowest level since March 2017 to Rs 5,990.

Trading volume was almost three times its 20-day average, Bloomberg data showed. The Relative Strength Index on the stock was below 30, indicating that it might be oversold.

The stock fell 7.3 percent in the past five days and declined 13 percent in the past 30 days.

Shares of Hindustan Copper fell 2 percent to Rs 38.65 after falling nearly 3 percent intraday.

The company plans to consider borrowing of up to Rs 2,500 crore and raising up to Rs 1,400 crore via QIP, according to its stock exchange filing.

Of the shares traded, 38 percent were at the ask price and 53 percent were at the bid, Bloomberg data showed.

Shares of the non-banking finance company declined as much as 8.9 percent, its biggest intraday fall in over five months, to Rs 3,390 each.

The trading volume was more than three times the 20-day average, Bloomberg data showed. Trading in the company's call options totalled 11,595 contracts, compared with the average of 5,039 over the past 20 days. Trading in the company's put options totalled 16,705 contracts, compared with the average of 4,113 over the same period.

Shares of the clinical-laboratories chain rose as much as 5.4 percent, the most nearly three weeks, to Rs 1137 apiece.

The stock advanced 23 percent in the past 12 months compared to a 9 percent gain in the Sensex. The shares traded at 40 times its estimated earnings per share for the coming year, Bloomberg data showed.

Indian equity benchmarks were trading at day’s low.

The S&P BSE Sensex fell 663 points or 1.68 percent to 38,850 as of 1 p.m. and the NSE Nifty 50 traded around 11,600, down 1.74 percent.

The mid- and small-cap index represented by the NSE Nifty MidCap 100 and the NSE Nifty SmallCap 100 2.5 percent and 2.1 percent respectively.

• Crompton Greaves: About 10 lakh shares changed hands in a block deal.
• Yes Bank: About 16.1 lakh shares changed hands in a block deal.

Buyers and sellers were not known immediately.
Source: Bloomberg

The Department of Telecommunications challenged Telecom Disputes Settlement and Appellate Tribunal order on Vodafone Idea in the Supreme Court.

A three-judge Supreme Court panel headed by Chief Justice Ranjan Gogoi has agreed to hear government’s plea challenging an order to refund Vodafone‘s bank guarantee, according to a Bloomberg report.

Economic slowdown fears are hurting market sentiment, Deven Choksey of KR Choksey told BloombergQuint in an interaction. “Not much growth is being seen in the economy.”

Choksey attributed negative sentiments prevailing in the investor community as the sole reason behind the sharp fall in indices. "Banks and NBFCs have indicated that credit offtake has been muted last month. Therefore, not much growth is being seen in the economy."

India’s benchmark bond yield fell for the fifth consecutive trading session. The 10-year bond yield fell nearly eight basis points to 6.61 percent after dropping over 10 basis points intraday.

The Supreme Court today ordered a status quo for 15 days on the Bharti-Tikona merger.

Shares of Bharti Airtel pared opening losses to trade 0.7 percent lower at Rs 362.30 after the development.

Aviation stocks extended their fall, led by Jet Airways, which hit lower circuit of 5 percent for the fourth consecutive trading session.

This after the Brent crude fluctuated between gains and losses to trade 0.1 percent higher at $64.28 as of 11:50 a.m. The Asian crude benchmark ended nearly 1.5 percent higher on Friday.

Click here to catch all the updates on global oil prices.

Indian equity benchmarks recovered marginally from day’s low.

The S&P BSE Sensex traded 560 points lower at 38,952 as of noon, after falling over 650 points intraday. The NSE Nifty 50 traded 1.5 percent lower to hover around 11,600. The broader market index represented by the NSE Nifty 500 Index fell 1.6 percent.

About 44 stocks out of 50 in the NSE Nifty 50 traded lower, led by the declines in ONGC, Hero MotoCorp Ltd., Bajaj Finance Ltd. and State Bank of India.

India’s Union Budget 2019 favours the bond market over equities, according to Morgan Stanley’s Ridham Desai.

“The government bonds are in a bull run,” Desai, the head of India equity research and India equity strategist at the investment banking firm, told BloombergQuint in a conversation.

Read the full story and watch the full interaction here.

About 45 stocks out of 50 in the NSE Nifty 50 traded lower, led by the declines in ONGC, Hero MotoCorp Ltd., Bajaj Finance Ltd. and State Bank of India.

On the flipside, Yes Bank Ltd. was the top sectoral performer, followed by HCL Technologies Ltd. and Bharti Infratel Ltd.

All the sectoral gauges compiled by NSE declined, led by the Nifty PSU Bank Index’s 5.4 percent drop.

Shares of the oil marketing companies extended declines for the second consecutive trading session.

This after the Brent crude fluctuated between gains and losses to trade 0.1 percent higher at $64.26 as of 11 a.m. The Asian crude benchmark ended nearly 1.5 percent higher on Friday.

Besides, the government increased excise duty and cess on petrol and diesel to recover losses incurred in the last financial year. (Read the full story here)

“Instead of being a consumption expenditure growth driven budget, what was presented was exactly the opposite with an increase petrol and diesel prices amongst other thing,” Ajay Shrivastava, managing director at Dimensions Consulting told BloombergQuint in an interaction. “The revenue projections are also way off, so we have more cuts in government expenditure.” He added.

Click here to catch all the updates on global oil prices.

Indian equity benchmarks extended declines to trade at day’s low.

The S&P BSE Sensex traded 550 points or 1.4 percent lower at 38,962 as of 11 a.m. and the NSE Nifty 50 traded below 11,650, down 1.45 percent.

Shares of Mindtree and L&T declined after the former’s top executives quit. Mindtree is currently trading ex-dividend.

Besides, Yes Bank was the top performer on the Sensex and Nifty after the lender said that its financial position is sound and stable and its liquidity and operating performance continue to be robust.

Shares of Quick Heal Technologies rose as much as 3.7 percent to Rs 170.

The Pune-based firm was granted U.S. patent for anti-ransomware technology, according to its statement on the exchanges. The technology is based on artificial intelligence and machine learning and detects and blocks ransomware on a real-time basis, the statement added.

The company’s annual general meeting is scheduled on July 15.

Nifty’s 11,800 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the weekly contract which is set to expire Thursday fell 73 percent to Rs 19.85. Over 15.82 lakh shares were added to the open interest which stood at over 22.46 lakh shares.

Indian markets could see further pressure in the near term on the downside with the poor financials expected in the first half of the current financial year, Joindre Capital Services’ Research Head Avinash Gorakshakar said.

“The markets are also concerned on recent global news flows like Morgan Stanley’s downgrade on global equities and Deutsche Bank’s exit from Asia,” Gorakshakar told BloombergQuint.

Besides, the news flow from the Federal Reserve is not encouraging, he said.

Commenting on the Union Budget outcome, Gorakshakar said that it was ‘not market friendly’ and nothing turned out positive for the investors.

“The biggest negative has been on the tax on buybacks, which will hit sentiments here bad as companies will now avoid buybacks as it becomes tax unfriendly. Besides, the proposal to raise the minimum public shareholding limit to 35 percent dissapointed investors,” Gorakshakar said.

On the June quarter earnings forecast, he said, “We expect very few positive surprises from few sectors but broadly the earnings growth across sectors largely will be under pressure as demand is weak and no major improvements are expected until Sept 2019.”

Indian equity benchmarks continued to trade lower, extended their declines for the second consecutive trading session.

The S&P BSE Sensex fell 0.92 percent to 39,149.74 as of 10 a.m. after falling over 450 points intraday and the NSE Nifty 50 traded below 11,700, down 0.96 percent.

The market breadth was tilted in favour of sellers. About 1,280 stocks declined and 332 shares declined on National Stock Exchange.

Shares of Yes Bank halted their four-day losing streak. The stock rose as much as 7 percent to Rs 94.35.

The Mumbai-based lender refuted speculations over the lender’s board and management stability, asset portfolio, future growth prospects, among other things which have emerged over the past few weeks, according to its statement on the exchanges.

“We suspect it is a deliberate and malicious attempt to create instability in the institution by undermining investor and client confidence. We have apprised the authorities of these developments,” Yes Bank said.

Besides, the company said that its financial position is sound and stable and its liquidity and operating performance continue to be robust.

The stock declined 14 percent in the past five days and dropped 33 percent in the past 30 days, according to Bloomberg data.

Shares of Mindtree extended declines for the fourth consecutive trading session. The stock fell 3.8 percent to Rs 831.55 as of 9:40 a.m. The scrip is currently trading ex-dividend.

The company’s CEO and Managing Director Rostow Ravanan resigned. Krishnakumar Natarajan too resigned as executive chairman. Besides, NS Parthasarathy resigned as executive vice chairman and chief operating officer. They will continue to stay as board members and employees till July 17, in-line with their contracts.

The Relative Strength Index was below 30, indicating that the stock may be oversold, according to Bloomberg data.

Besides, shares of L&T extended fall for the third consecutive trading session and fell as much as 4.2 percent, the most since Oct 2018, to Rs 1,492.45.

Shares of Punjab National Bank fell as much as 7.5 percent, the most since May 13, to Rs 75.70.

The state-run lender said that it has detected a fraud of over Rs 3,800 crore by Bhushan Power & Steel Ltd., according to its stock exchange filing. (More details here)

Trading volume was more than eight times its 20-day average, Bloomberg data showed. The stock was the worst performer on the NSE Nifty PSU Bank Index.

Indian equity benchmarks opened lower, extending their decline for the second consecutive trading session.

The S&P BSE Sensex fell as much as 435 points or 1.1 percent to 39,078.16 and the NSE Nifty 50 fell as much as 1.09 percent to 11,682.90. The broader market index represented by the NSE Nifty 500 Index fell as much as 0.98 percent.

The market breadth was tilted in favour of sellers. About 1,093 stocks declined and 370 shares advanced on National Stock Exchange.

All the sectoral gauges compiled by NSE declined, led by the NSE Nifty PSU Banbk Index’s 1.7 percent fall.

The Indian rupee opened lower against the U.S. dollar after rallying for 10 consecutive trading sessions.

The home currency depreciated as much as 0.34 percent to 68.65 against the greenback.

Indian equity benchmarks are set to open lower today.

The S&P BSE Sensex traded little changed at 39,510 during the pre-market trade and the NSE Nifty 50 traded at 11,761, down 0.4 percent.

In the currency market, the Indian rupee opened lower against the U.S. dollar after rallying for 10 consecutive trading session.

The home currency depreciated as much as 0.34 percent to 68.65 against the greenback.

July Futures

• Nifty futures closed at 11,820.9, premium at 10 points versus 33 points
• Nifty futures open interest up 1 percent, adds 1.3 lakh shares in open interest
• Bank Nifty futures closed at 31,503, premium of 28 points versus 76 points
• Bank Nifty futures across series open interest up 4 percent, adds 69.8k shares in open interest

Options

• Nifty PCR at 1.09 versus 1.48 (across all series)

Nifty Weekly Expiry 11-July

• Max open interest on call side at 12,000 (35.7 lakh shares)
• Max open interest on put side at 11,700 (12.7 lakh shares)
• open interest addition seen in 12,000C (+23 lakh shares), 12,100C (+15.7 lakh shares), 11,900C (+13.8 lakh shares)

Nifty Monthly Expiry 25-July

• Max open interest on call side at 12,000 (23.1 lakh shares)
• Max open interest on put side at 11,500 (16 lakh shares)

Stocks In F&O Ban

• In ban: DHFL, Reliance Capital

• GSS Infotech to move into short term ASM Framework
• MT Educare to move into ASM Framework
• Multibase India price band revised to 5 percent
• 8K Miles Software Services to move out of short term ASM Framework

Bulk Deals

• Natco Pharma: East Bridge Capital Master Fund acquired 15.77 lakh shares (0.86 percent) at Rs 528 each.

Westlife Development

• Allard Growth Fund acquired 16.95 lakh shares (1.09 percent) at Rs 306 each
• Tree Line Advisors sold 31.3 lakh shares (2.01 percent) at Rs 305.7 each

Block Deals

Lakshmi Vilas Bank

• Narantak Dealcomm acquired 14.1 lakh shares (0.44 percent) at Rs 71 each
• Belgrave Investment Fund sold 14.1 lakh shares (0.44 percent) at Rs 71 each

Earnings To Watch

• Delta Corp
• Steel Strips Wheels
• Goa Carbon

• Mindtree: Rostow Ravanan resigned from the post of CEO and managing director. Krishnakumar Natarajan too resigned as executive chairman. Besides, NS Parthasarathy resigned as executive vice chairman and chief operating officer. They will continue to stay as board members and employees till July 17, in-line with their contracts.
• Siemens sold its lease hold interest in Gujarat for Rs 158.5 crore to LM Wind Power Bladed and further assignment to be sold worth Rs 35 crore is subject to receipt of approval from authorities.
• HT Media, Hindustan Media Ventures: PricewaterhouseCoopers resigned as statutory auditors with effect from July 5. The auditor stated that it is desirous of having a single auditor for all listed companies. The accounting firm stated that there are restrictions on the firm to undertake on new listed companies, hence the resignation has been tendered.
• Team Lease Services increased its stake by 26 percent to 76 percent in Cassius Technologies.
• Unichem Laboratories incorporated its China arm under the name of Younikaimo Pharma for sale in China of formulations and API ingredients manufactured by the company.
• Piramal Enterprises: Board approved issuing NCDS worth Rs 1,500 crore.
• KRBL clarified that it is not involved in the Embraer deal case and authorities have provisionally attached land and building worth Rs 15 crore.
• Eid Parry June sugar sales down 15 percent.
• Lemon Tree Hotels: Board has executed share purchase agreement to acquire Key Hotels.
• Oil India clarified that it has only given consent to explore possibilities of Russia block’s sale. No firm decision has been undertaken on the sale.
• Aster DM Healthcare incorporated Aster Clinical Lab for a proposed Rs 40 crore. Company to carry on the pathology business.
• Quickheal Technologies granted U.S. patent for anti-ransomware technology.
• PPAP Automotive: Manish Dhariwal resigned from CFO’s after on July 5
• Cox & Kings stated that interest payment date of NCD was mistakenly as June 30, instead of August 5 in the Master Creation Form issued from NSDL. The company said that the interest will be paid on fifth of each month. It has requested the exchanges to disregard the announcement made by company on July 3, informing delay in servicing debt obligations as the company has been informed by the trustee Axis Bank that there is no delay in debt servicing.
• PNB Housing Finance: Credit Watch Rating assigned to PNB Housing Finance’s long term instruments/ bank facilities removed by CARE Rating and revised to CARE AA+; stable. Rating assigned on short term instruments/ commercial paper has been reaffirmed.
• Zuari Agro Chemicals: Informs about the shutdown of Urea/ Ammonia plants due to tube leak of PG-Reboiler in the CO2 removal section of the plant.
• Edelweiss Financial Services: CARE Ratings downgraded ratings on NCDs worth Rs 284 crore to CARE AA- from CARE AA. The rating revision takes into account increasing risk averseness in the market towards NBFC sector in general and wholesale lending focussed NBFCs in particular which pose challenges in resource mobilisation.
• The Indian Hume Pipe: Government of Andhra Pradesh terminated two contracts worth Rs 701.7 crore related to construction of drinking water supply projects, owing to change in the policy of the Government. The Company will explore legal remedies.
• Reliance Capital: CARE Ratings revised its rating outlook to credit watch with negative implications on long-term debt program, market linked debentures and subordinated debt worth Rs 21,000 crore. The ratings have been revised on account of the likely utilization of part proceeds of divestments to meet the debt guaranteed by Reliance Capital which was not factored as per the earlier plan submitted. The repayment schedule of the guaranteed debt has not yet been provided. Hence, CARE does not have clarity on the impact of these payments on the liquidity profile of RCL.
• India Grid Trust: Completed acquisition of two power transmissions assets from Sterlite Power for an enterprise value of Rs 5,025 crore. Asset acquisition from Sterlite Power to boost IndiGrid’s AUM to Rs 10,660 crore.

• U.K. Conservative Party members vote on Monday by post to choose Theresa May’s successor. Front-runner Boris Johnson and Jeremy Hunt will appear at events through the week to try and secure votes, including a TV debate on July 9.
• Federal Reserve Chairman Jerome Powell testifies before Congress on monetary policy and the state of the U.S. economy on Wednesday and Thursday
• A key measure of U.S. inflation, the core consumer price index, is expected to increase 0.2 percent in June from the prior month, while the broader CPI is forecast to remain unchanged from May.

• Gold fell 0.2 percent to $1,396.77 an ounce.
• West Texas Intermediate crude rose 0.1% to $57.57 a barrel.
• Brent crude fluctuated between gains and losses to trade little changed at $64.21 a barrel.

London Metal Exchange

• Copper halted a two-day fall, closed 0.3 percent lower.
• Lead resumed declines after a one-day breather. ended 0.5 percent lower.
• Tin ended flat after gaining for two consecutive trading sessions.
• Zinc ended lower for the third day, down 0.74 percent.
• Aluminium halted a two-day gains, ended 0.22 percent lower.
• Nickel ended 1.13 percent higher.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.4 percent to 11,769.50 as of 8 a.m.

Stocks in Asia retreated as investors turned their attention to upcoming testimony from the Federal Reserve chairman after a strong jobs report cast doubt on the pace of rate cuts.

Stocks fell across the region with Chinese and South Korean stocks underperforming. S&P 500 futures edged lower.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.