Sensex, Nifty Halt Four-Day Losses; Jet Airways Slumps 40%

Indian equity benchmarks snapped their four-day fall and ended higher, paced by gains in metal stocks. Cash strapped airline Jet Airways slumped 40.8 percent— its worst intraday after lenders took the company to National Company Law Tribunal to cover their dues.

The S&P BSE Sensex closed 0.22 percent higher at 39,046.30 and the NSE Nifty 50 ended at 11,691.50, up 0.17 percent. The broader market index represented by the NSE Nifty 500 Index closed marginally higher at 0.1 percent.

"Easing macro global situation in anticipation of Trump’s re-election and the rupee strengthening thereof has resulted in investors settling for defensive stocks like metals and IT services," said Avinash Gorakshakar, head of research, Joindre Capital Services to BloombergQuint. He said the markets may move up further after Budget or submission of Bimal Jalan committee report on RBI's excess reserves.

The market breadth, however, was tilted in favour of sellers. About 1,092 stocks declined and 688 shares advanced on National Stock Exchange.

Seven out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty IT Index’s 0.58 percent gain. On the flipside, the NSE Nifty Pharma Index was the top sectoral loser, down 0.73 percent.

The shares of the water technology company pared losses to trade at 3 percent lower at Rs 305 per share.

The company secured an order worth Rs 1,477 crore from Uttar Pradesh government as a part of Clean Ganga mission, according to an exchange notification. The contract is for operation and maintenance of sewage treatment plants in Agra and Ghaziabad for 10 years, the filing said.

The stock declined 27 percent in the past 12 months compared with 9.4 percent to Sensex.

European equities rose, reversing earlier losses, after European Central Bank President Mario Draghi said interest rate cuts remain “part of our tools”.

Indian benchmark bond yields drop to 20-month low as investors step up purchases amid lower global growth worries and changed RBI stance.

The yield on 10-year bonds fell 10 basis to 6.81 percent Tuesday after touching 6.8 percent, the lowest for the benchmark botes since October 2017.

Shares of the IT services provider snapped a five-day rose as much as 1.1 percent to Rs 744 apiece.

To buy Canada’s Objectwise Consulting for CAD 2.75 million (about Rs 14.33 crore), according to an exchange filing. The all-cash transaction is expected to close by 31 July, the filing said.

The stock traded at 14 times its estimated earnings per share for the coming year, according to Bloomberg data. Thirty six of the 48 analysts tracked by Bloomberg had a ‘Buy’ rating on the stock. Seven analysts recommended ‘Hold’ while five had a ‘Sell’ rating.

The S&P BSE Sensex advanced nearly 0.46 percent to 39,141 and the NSE Nifty 50 traded at 11,721, up 0.42 percent, hovering near their intraday highs.

Also, oil retailers were among the top performers as Brent crude prices fell 0.7 percent to $60.51 per barrel. Also, Jet Airways slumped around 53 percent as lenders plan take the company to NCLT to seek resolution under insolvency law.

Shares of the Kolkata-based cement maker rose as much as 12.6 percent intraday to Rs 131.80 each.

The company’s board is set to consider share buyback proposal on June 21, it said in an exchange filing.

The stock traded at 14 percent below the Bloomberg consensus target price. The trading volume was more than twice the 20-day average for this time of the day.

The impending U.S.-China trade war and supply-demand pressures are taking a toll on ferrous companies such as Tata Steel and JSW Steel. That’s according to Mayuresh Joshi, Fund Manager (PMS), Angel Broking.

“Looking at the volume growth and demand dynamics, their global operations are currently sticky” said Joshi in an interview with BloombergQuint. “The only silver lining is their abysmally low inventory levels and any resolution or change which comes through in the next few quarters could have a huge impact.”

Shares of the low-cost carrier snapped its two-day blip and rose as much as 2 percent to Rs 1,674.10 each.

The airline ordered CFM International LEAP1A engines to power 280 Airbus A320neo and A321neo aircraft. The contract, which includes spare engines and an overhaul support agreement, is valued at more than $20 billion. Delivery of the first LEAP-1A-powered A320neo is scheduled in 2020.

The stock traded at 33 times its estimated earnings per share for the coming year, Bloomberg data showed.

Shares of consumer staple companies declined in today’s trade, down 0.38 percent. The sectoral gauge was the only loser among the 11 indices compiled by National Stock Exchange.

The markets are expected to correct 5-10 percent and that cannot be ruled out, due to NBFC crisis.

That's according to Renaissance Investment's Chief Investment Officer Pankaj Murarka. "There is a turbulence being played out in the NBFCs, which is having robust effect in the financial sector and the markets are concerned about the banks that have exposure to the NBFCs," Murarka told BloombergQuint in an interaction.

Shares of the steel pipes maker erased opening losses surged nearly 6 percent to Rs 249.70 apiece.

The New Delhi-based company bagged an order worth Rs 151.8 crore from Bharat Gas Resources Limited to supply pipes, according to its notification to the exchanges.

The shares fell over 29 percent in the past 12 months compared to with a 10 percent gain in the Sensex.

The S&P BSE Sensex advanced nearly 162 points or 0.41 percent to 39,116 and the NSE Nifty 50 traded marginally 11,700, up 0.33 percent.

Shares of Zee Entertainment rose close to 2.6 percent to Rs 346.80 apiece, topping the Nifty Index. HDFC AMC plans to purchase Essel Group companies’ non-convertible debentures of up to Rs 500 crore to rescue the asset management company's fixed maturity plan investors.

Shares of the auto-parts maker ended its seven-day gaining streak and fell 2.9 percent intraday to 4,555 apiece.

Bajaj Holdings paid Rs 222 crore to WMDC to acquire 27 percent stake in Maharashtra Scooters and hiked shareholding to 51 percent, according to an exchange filing.

The trading volume was nearly four times the 20-day average for this time of the day, Bloomberg data showed. Bajaj Holdings and Investment rose 3.3 percent to Rs 3,654 apiece.

Shares of the cash-strapped airline slumped 10 percent intraday to hit an all-time low of Rs 61.60 each.

Lenders of Jet Airways will take the company to National Company Law Tribunal and will seek resolution under the Insolvency and Bankruptcy Code, according to a statement issued on behalf of lenders on Monday.

The stock has fallen 84 percent in the past 12 months compared with a 10 percent gain in the Sensex.

Shares of the asset management company fell as much as 6 percent, the most since Dec. 21, 2018, to Rs 1,816.60.

In a move to rescue investors of its fixed maturity plans, the asset management company will purchase Essel Group companies’ non-convertible debentures of up to Rs 500 crore, thereby transferring any loss (or gain) due to the investment from investors to itself. (More details here)

Trading volume was 1,532 times its 20-day average, Bloomberg data showed. Of the shares traded, 46 percent were at the ask price and 37 percent were at the bid.

Indian equity benchmarks opened higher, led by the gains in Vedanta Ltd. and private lenders.

The S&P BSE Sensex rose as much as 0.35 percent to 39,093.80 and the NSE Nifty 50 gained as much as 0.27 percent to 11,704. The broader market index represented by the NSE Nifty 500 Index rose close to 0.25 percent.

The market breadth was tilted in favour of buyers. About 806 stocks rose and 640 shares declined on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE rose, led by the NSE Nifty Metal Index’s 0.92 percent advance. NSE Nifty Media Index was the top sectoral loser, down 0.58 percent.

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.12 percent to 69.82 against the greenback.

Today, rupee is expected to gain as dollar fell ahead of the U.S. Federal Reserve’s policy meeting later this week. The Fed is expected to take another dovish turn, just as it’s done all year, on weak inflation, deteriorating growth and U.S. trade policy uncertainty. Yesterday, rupee weakened 0.02 percent to close at 69.90 to the dollar.

June Futures

• Nifty futures closed at 11,697.5, premium of 25.5 points versus 14.7 points.
• Nifty futures open interest up 2 percent, adds 3.8 lakh shares in open interest.
• Bank Nifty futures closed at 30,325, premium of 52.7 points versus discount of 3 points.
• Bank Nifty futures open interest down 10 percent, sheds 1.7 lakh shares in open interest.

Options

• Nifty PCR at 1.08 versus 1.25 (across all series).

Nifty Weekly Expiry June 20

• Max open interest on call side at 11,900 (28.8 lakh shares), 12,000 (25.6 lakh shares).
• Max open interest on put side at 11,700 (11.2 lakh shares).
• open interest addition seen at 11,800C (+17.8 lakh shares), 11,700C (+10.4 lakh shares).
• open interest shedding seen at 11,800P (-5 lakh shares), 11,900P (-3.6 lakh shares).

Nifty Monthly Expiry June 27

• Max open interest on call side at 12,000 (25,800 shares).
• Max open interest on put side at 11,500 (25.5 lakh shares).

• In a move to rescue investors of its fixed maturity plans, HDFC Asset Management Company Ltd. will purchase Essel Group companies’ non-convertible debentures of up to Rs 500 crore, thereby transferring any loss (or gain) due to the investment from investors to itself. (More details here)
• Biocon approved the sale of branded formulations India business of the company on a 'going concern' basis to Biocon Biologics India for Rs 45 crore.
• Jet Airways lenders will take the company to NCLT and will seek resolution under the Insolvency and Bankruptcy Code.
• Tata Consultancy Services partners with SAP to launch an lntelligent Field lnventory Management solution, powered by SAP Leonardo, which leverages loT and blockchain to help medical device manufacturers streamline surgical kit handling.
• AU Small Finance Bank Board said they will meet on June 20 to consider issue of Basel II compliant, tier II NCDs in one or more tranches.
• Bajaj Holdings paid Rs 222 crore to WMDC to acquire 27 percent stake in Maharashtra Scooters and hiked shareholding to 51 percent.
• DHFL makes interest payment worth Rs 5 crore with the payment due on June 17.
• ICRA downgraded ratings of long term and short term borrowings of the McLeod Russell to ‘Issuer Not Cooperating’ category.
• Reliance Industries: Fire occurred in Linear Alkyl-Benzene (LAB) plant at Patalganaga while restarting the plant from a routine maintenance shutdown. There is no loss of life or injury to anyone. All other plants at the site are operating normally.
• InterGlobe Aviation: Ordered CFM International LEAP1A engines to power 280 Airbus A320neo and A321neo aircraft. The contract, which includes spare engines and an overhaul support agreement, is valued at more than $20 billion. Delivery of the first LEAP-1A-powered A320neo is scheduled in 2020.
• Sandhar Tech: Entered into a JV with Winnercom Co., Ltd for manufacturing and selling, inter-alia, electronic parts and accessories for the automotive industries in India.
• Repro India: Board approves the draft scheme of demerger between company and its wholly owned subsidiary company Repro Innovative Digiprint Limited (demerged company)
• Binani Industries: Ratan Kumar Sarawagi, an independent director of the company has resigned from the directorship
• Cox & Kings: CARE reaffirmed rating on commercial paper issue of Rs 375 crore at A1+, but revised rating on non-convertible debentures and long term bank facilities from AA/Stable to AA-/Stable
• Tech Mahindra: To buy Canada’s Objectwise Consulting for CAD 2.75 million (about Rs 14.33 crore). The all-cash transaction is expected to close by July 31, 2019.

• Brent crude traded 0.20 percent lower at $60.82 per barrel.
• Gold was little changed at $1,339 an ounce.
• West Texas Intermediate crude slid 0.1 percent to $51.87 a barrel.

London Metal Exchange

• Copper ended 0.40 percent higher.
• Zinc ended its two-day fall and closed 0.69 percent higher.
• Nickel closed 0.80 percent lower.
• Aluminium ended lower for the third day, down 0.34 percent.
• Lead snapped its three-day fall and ended 1.13 percent higher.
• Tin ended lower for the second session in a row, down 1.33 percent.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.15 percent to 11,714.50 as of 7:20 a.m.

Asian stocks saw muted gains Tuesday as markets entered a holding pattern ahead of this week’s key Federal Reserve decision.

Stocks ticked higher in Japan, Korea and Australia with little in the way of fresh catalysts.

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