Nifty Clocks Longest Losing Streak Of 2017

Indian shares declined with a key equity benchmark posting its longest losing streak of the year ahead of derivatives expiry on Thursday. Investors have turned risk-averse ahead of the implementation of a nationwide tax regime anticipated to cause disruption initially.

The S&P BSE Sensex fell 0.4 percent to 30,824 – its lowest in little over a month. The NSE Nifty 50 dropped 0.2 percent to 9,491, its sixth day of losses. This was the 51-share index’s first close below the 9,500-mark since May 25.

The market breadth, however, recovered at the end of trade. About 742 stocks advanced while 719 declined on the NSE.

Dipan Mehta, member of BSE said further downside cannot be ruled out from current levels. “The GST rollout is likely to take a toll on corporate earnings,” he told BloombergQuint by phone.

Mehta is bullish on private sector banks and consumption-related stocks.

• Natco Pharma has 11 shares change hands in a block
• Axis Bank has 65.9 lakh shares change hands in a block

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the Mukesh Ambani-led firm snapped a nine-day gaining streak, after it fell 2.7 percent to Rs 1,397. It was the worst performer on the Nifty index.

Shares of the software services provider gained nearly 3 percent, making it the best performer on the Nifty index. It has gained only for the second time in nine trading sessions.

BoAML Cuts Target Price

The technology company’s margin concerns have surfaced yet again on estimates of "sluggish earnings" despite promises to improve the cost structure, according to a report by brokerage firm Bank of America Merrill Lynch (BofAML).

It has reiterated the ‘Underperform’ rating, and lowered the target price to Rs 380 from Rs 415 earlier, citing the four-quarter sequential decline in net profits.

Shares of the Punjab-based firm recovered from losses and rose nearly 3 percent after the company said it has secured an export order worth $150,000 for supply of steel wheels to European and Canadian market.

The orders cover supply of around 15,500 caravan and winter wheels and would be dispatched by the end of July from the company's Chennai plant, it said in a filing to the exchanges.

Maruti Suzuki India deserves “premium valuations” on high growth visibility and improving free cash flow. That’s according to brokerage house Nomura, which has raised its price target on the stock to Rs 8824, implying a 23 percent upside from Wednesday’s close.

Shares of the drug maker pared opening gains and declined 0.2 percent, snapping a three-day winning streak.

The stock has risen over 18 percent so far this year, compared to 4.4 percent gain in the Nifty Pharma index.

The company received the final approval from the U.S drug regular to market Oxybutynin Chloride Extended-Release Tablets, used for the treatment of overactive bladder and urinary incontinence. The estimated sale for the tablet is $150.9 million, the company release said quoting IMS Health April data.

On Tuesday, Antique Stock Broking initiated coverage on the stock with a ‘Hold’ rating with a price target of Rs 530.

Shares of the oil marketing firms snapped a four-day losing streak as the commodity resumed its decline after the longest run of gains in a month.

Top Gainers

• HPCL (+1.8%)
• BPCL (+1.6%)
• Indian Oil Corp. (+1.5%)
• Oil India (+0.6%)
• ONGC (+0.6%)

AU Small Finance Bank’s initial public offering opens on Wednesday even as the lender has been put under the caution list by the central bank as its foreign shareholding hovers around the 49 percent cap.

The company is looking to raise up to Rs 1,912 crore by selling up to 21 percent post-issue stake. The offer for sale closes on Friday.

To know more about the new offer for sale, click right HERE

The rupee declined 0.1 percent to 64.59 against the U.S. dollar in early trade, pressured by a lower opening in the domestic stock market.

Increased demand for the American currency from importers and banks added to the dollar’s strength. Forex dealers said the euro hitting a 10-month high against the greenback, however, capped the rupee's fall.

Yesterday, the rupee had settled almost flat at 64.53 against the US currency following fag-end dollar demand.

With inputs from PTI

Shares of the Jaiprakash group companies extended their rally for at least a second day after its lenders gave an in-principle nod to a debt restructuring plan.

The restructuring would involve division of the nearly Rs 30,000-crore debt into three parts, two people close to the development told BloombergQuint requesting anonymity.

• Jaypee Infratech (+13.7%)
• Jaiprakash Power (+4.6%)
• Jaiprakash Associates (+0.6%)
• Japrakash Power Ventures (+3.7%)

To read the full report, click here

Indian shares extended losses, once again led by banks as a key equity benchmark struggled near an important technical support.

The S&P BSE Sensex was little changed at 30,937 after losing 0.2 percent in opening trade. The NSE Nifty struggled to hold the 9,500 level. Analysts said a close below the level in the upcoming derivatives expiry could further downside in the 51-share index.

The market breadth was firmly skewed towards the sellers. About 853 stocks declined and 616 advanced on the NSE.

Also Read: It’s A ‘Sell-On-Rise’ Market After Nifty’s Five-Day Fall

Consumer price inflation should remain below 4 percent till November and this should provide the central bank room to reduce policy rate by 50 basis points. This is the view from the head of treasury of India's largest lender State Bank of India.

And mind it, he isn’t the only one holding the view.

Yield on the benchmark bond has dropped 20 basis points so far this month and with monsoon progressing in line with the forecast, a strong case is building up for further easing.

For today, U.S. Fed's continued stance on raising rates gradually may offset the positive sentiment and keep yields in a range of 6.42-6.50 percent.

Janet Yellen's comment that asset valuations are rich has triggered a correction in equity markets across the region. This is weighing on all major currencies. Rupee is likely to open lower and may trade under pressure in a range of 64.50-64.65 a dollar in the day.

• Jaiprakash Associates: Lenders agree to restructure debt
• SBI: Initiates insolvency proceedings against three companies at NCLT- Monnet Ispat, Electrosteel Steel and Jyoti Structure
• Dena Bank: Shareholders approve raising funds up to Rs 1,800 crore via QIP
• Hero MotoCorp: LIC sold 2.03 percent stake in the company
• Jagran Prakashan: Blackstone GPV sold its entire stake in Jagran Prakashan founder Jagran Media Network Investment Pvt. Ltd. (JMNIPL)
• Cadila Healthcare: Received U.S. FDA nod for generic Hepatitis B drug
• Federal Bank: Approves closure of its QIP and sets its issue price at Rs 116 per share

For the complete list of Stocks To Watch, click HERE!

• India’s largest container operation down on global malware attack (More details here)
• RBI said total foreign investment in AU Small Finance Bank reached trigger limit of 49 percent
• Prime Minister Narendra Modi seeks Dutch pension funds’ investments in India infrastructure fund
• General Motors’ dealers say 15,000 will lose jobs; protest against poor compensation
• ‘Assembled in India’ iPhones hit Delhi, Mumbai and Bengaluru stores
• Bombay Dyeing to consider dividend for FY17
• Biogen sues to block Teva, Amneal from selling generic Tecfidera

Good Morning!

The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India, was down 0.3 percent to 9,486.

Stocks across Asia were flat while bonds slumped as Janet Yellen signaled the U.S. economy can withstand higher interest rates and said that asset valuations were rich.

Stocks in Japan and Australia fluctuated after the S&P 500 Index posted its biggest loss in more than a month. Yields on 10-year debt in Australia soared the most since November. volatility in U.S. equities jumped the most in six weeks amid of host of issues weighing on investors.

West Texas Intermediate crude fell 0.8 percent after climbing 4 percent in the previous four sessions. Oil tumbled into a bear market last week on concerns that expanding global supply will counter output cuts from the Organization of Petroleum Exporting Countries and its partners including Russia.

Gold rose 0.2 percent to $1,249.44 an ounce, climbing for a second day. The yield on 10-year Treasuries fell one basis point, after jumping seven basis points to 2.21 percent.