Sensex, Nifty End Lower In See-Saw Trade; Small Caps Worst Hit
Indian equity benchmarks edged lower dragged by recent outperformers like HDFC Bank, Kotak Mahindra Bank and Infosys.
The S&P BSE Sensex fell 0.27 percent or 95 points to 35,227 and the NSE Nifty 50 index declined 0.37 percent or 40 points to 10,696.
The benchmarks rose for second week in a row led by energy shares. The Sensex advanced 0.87 percent and Nifty climbed 0.86 percent.
Meanwhile, in today’s session, sixteen out of 19 sector gauges compiled by BSE ended lower led by the S&P BSE Utilities index's 1.7 percent drop. On the flipside, the S&P BSE Auto index was top gainer, up 0.67 percent.
Mid- and small-cap shares underperformed their larger peers as the S&P BSE MidCap index fell 1 percent and the S&P BSE SmallCap index plunged 1.57 percent.
Stocks Rise Amid Italy Relief; Treasuries Slip
Stocks headed for a positive end to a tumultuous week in which political developments in Europe and escalating trade tensions roiled markets. Treasuries edged lower and the dollar was steady.
Aviation Stocks Fall After Jet Fuel Prices Raised For Eleventh Month In A Row
Shares of aviation companies were trading lower after prices of aviation turbine fuel (ATF) were raised for 11-month in a row.
ATF prices were raised by 7 percent, the highest in 17 months, to Rs 71,245 per kilolitre.
Higher fuel prices to impact the financials of aviation companies as fuel accounts for more than a third of airlines’ operating costs.
- SpiceJet fell 6.2 percent
- Jet Airways declined 2.6 percent
- Interglobe Aviation tumbled 3 percent
Tata Motors Gains After May Sales Rise 58%
Shares of the Mumbai-based auto maker rose 2 percent to Rs 288.35 after its sales rose 58 percent to 54,295 units in May, according to its stock exchange filing. The sales was driven by its commercial and passenger vehicle businesses in the domestic market.
Key sales highlights (May, YoY):
- Domestic passenger vehicle sales rose 61 percent at 10,855 units.
- Domestic commercial vehicle sales rose 56 percent at 36,806 units.
- Medium and heavy commercial vehicle segment’s sales rose 90 percent at 36,806 units.
Dilip Buildcon Rebounds After Two-Day Fall
Shares of the Bhopal-based road developer rebounded after posting losses in previous two sessions. The stock rose as much as 5 percent to Rs 874 after brokerages maintained their stance on the stock despite the recent selloff.
Citi in a note said:
- Maintained ‘Buy’ with a price target of Rs 1,405.
- Stock fell on unconfirmed market rumors relating to resignation of statutory auditors.
- Exceptional losses booked to get reversed when remaining roads move out of books.
- Debt increased due to interest cost, capex and investment in SPVs.
Nomura in a note said:
- Maintained ‘Buy’; cut price target to Rs 1,322 from Rs 1,347.
- March quarter witnessed a strong execution; stock down on speculation.
- Believe reported operating margin is credible in our view.
- Not concerned about the ability of Shrem Infraventures to fund the asset sale deal.