Sensex, Nifty Post Worst Week Since February
Most Asian stocks rose, with Japan shares rallying to the cusp of a bull market.
Closing Bell
Indian shares declined marginally to end their worst week since February as investors struggled to assess the full impact of Prime Minister Modi’s move to ban high denomination banknotes.
Adding to the pressure was the Indian currency’s fall past the 68-per dollar mark for the first time since June as rising possibility of a U.S. interest-rate increase triggered outflows from Indian assets.
The S&P BSE Sensex dropped 0.3 percent to 26,150, extending its losing streak to day five while the NSE Nifty ended little changed at 8,074. Both the indices were down over 5 percent for the week, which makes it their worst weekly close since February this year.
However, the market breadth was encouraging at 836 advances, 775 declines and 266 stocks remaining unchanged on the NSE at close.
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Foreigners have been pulling out of the emerging markets as signs the U.S. economy improving become stronger. This is likely to go on for a while, and India is unlikely to remain unscathed, especially after the demonetisation move, said Nipun Mehta, founder and CEO Blue Ocean Capital.
Mehta expects to see earnings downgrades for quite a few of the consumer companies. While he believes the downside for the market seems limited, he said the indices might linger in a 10 percent range for an extended period of time until businesses show some sort of normalcy.
Nevertheless, Mehta said this is a great time to build a strong portfolio. “Investors can go out and buy stocks that they thought were out of their reach earlier,” he told BloombergQuint in a phone conversation.
Earnings Reaction: Deepak Fertilizer Sinks 8 Percent
Shares of the company fell as low as 11 percent to Rs 178 after it reported a five percent drop in net profits for the second quarter of the current financial year. The company posted a net profit of Rs 26.96 crore as compared to Rs 28.31 crore in the year ago period.
Total income too fell to Rs 938 crore from Rs 1,095 crore in the corresponding quarter last year.
Petronet LNG Gains Most in 9 Months on Earnings Boost
Shares of the country’s largest importer of liquid gas climbed as much as 7.6 percent, the most since February 15 with volume around 1.4 times its three-month full-day average. The stock was also the best performer on the S&P BSE 200 and BSE 500 indexes.
The energy producer clocked a net profit of Rs 460 crore for quarter-ended September, against an estimate of Rs 354 crore. Its revenue too beat estimates at Rs 6,610 crore.
Following the earnings announcement, broking firm Citi has maintained its “Buy” rating on the stock with a price target of Rs 422.
Movers & Shakers: TCS, Reliance Industries, Gujarat Gas, Cadila And More
Rupee Drops Past 68 to Dollar First Time Since June
The rupee weakened past the 68-per dollar mark for the first time since June as rising possibility of a U.S. interest-rate increase triggered outflows from Indian assets.
The currency dropped 0.4 percent to 68.1050 a dollar as of 9:07 a.m. in Mumbai, declining for the fifth time in six days. It has lost 1.3 percent this week.
From Bloomberg News
Opening Bell
Indian shares swung between gains and losses as extended decline in consumer durable and select auto stocks countered a rally in energy producers.
The S&P BSE Sensex was little changed at 26,233 and so was the NSE Nifty at 8,087. The market breadth was skewed in favour of the bears with 749 declines, 668 advances and 430 stocks remaining unchanged.
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Money Market Heads Up
Earnings Reactions To Watch
- Petronet LNG
- Infibeam Incorporation
- HMT
- Astral Poly Technik
- Deepak Fertilizers and Petrochemicals Corporation
- Ashiana Housing
- MVL
Earnings To Watch Today
- Gujarat Gas
- NBCC
- NHPC
- Rashtriya Chemicals & Fertilizers
- JB Chemicals And Pharmaceuticals
- 3M India
- Precision Camshafts
- Sarda Energy & Minerals
- Visa Steel
5 Things to Watch Today
Stocks to Watch
- Cadila Healthcare: Approves transfer of group’s India human formulations business to unit Zydus Healthcare
- Petronet LNG: Q2 profit Rs 460 crore; beats estimate Rs 354 crore; to import first LNG cargo from Gorgon in January.
- Reliance Industries: Forms partnership with GE to provide Industrial IoT software
- Pratibha Industries: Receives a contract for a water treatment plant in Nepal worth Rs 97.8 crore. The company has won orders worth Rs 609 crore in recent times.
For a complete list of stocks to watch, click HERE
- ICICI Prudential Life rated new hold at HSBC
- JK Tyre & Industries raised to buy at ICICIdirect
- Kalpataru Power raised to buy at Anand Rathi Securities
- Mt Educare cut to accumulate at Arihant Capital
- Titan cut to neutral versus overweight at JPMorgan
Talking Points
- India central bank to impose Rs 2,000 limit on note exchange
- India clarifies on transactions with mandatory disclosure of PAN
- India said to plan tougher laws to penalize tax evaders
- RBI allows FPIs to invest in unlisted corporate debt securities (More details HERE)
- India Oct. crude oil imports rise 17 percent YoY to 18.15 million tonne: PPAC
- EDF expects to sign Indian Atomic-Plant Framework Deal in months
- India focusing on cutting coal dependence for electricity: Goyal
- India wary as Beijing seeks Asia-wide trade pact in Trump era
- India’s Power Grid seeks $1 billion ADB loan for green energy corridor
- NHPC to consider raising Rs 2,250 crore via bonds issue
- Global funds sell Rs 984 crore of local stocks; domestic funds buy Rs 1,140 crore yesterday: Provisional data
- Trump’s election victory raises global uncertainties: Fitch
- NTPC defers Rs 500 crore rupees 10-yrs bond sale
- Tata Consultancy to convene shareholders’ meet seeking Mistry’s removal
Good Morning!
The Nifty Futures on the Singapore Exchange, an early indicator of Nifty’s performance in India, is little changed at 8,089.
Most Asian stocks rose, with Japan shares rallying to the cusp of a bull market, while dollar extended its advance after Fed Chair Janet Yellen signalled an interest-rate hike could be imminent.
Yellen, who made no mention of the prospective policies of the incoming administration of President-elect Donald Trump, reiterated the expectation of Fed officials that future rate increases will be “gradual”. Pricing in federal funds futures contracts already imply a greater than 95 percent chance of a quarter-point hike next month.
Following her statements, the S&P 500 Index neared an all-time high while Treasuries along with crude oil prices. Copper rebounded, ending a two-day slide, amid signs of resilient demand from U.S. home builders.