Sensex, Nifty End Lower For Third Straight Week

Indian equity benchmarks extended declines for the third straight week, clocking their worst week in over a month.

The S&P BSE Sensex closed 0.65 percent lower this week to end at 39,194.49 and the NSE Nifty 50 closed at 11,724.10, down 0.84 percent. The broader market index represented by the NSE Nifty 500 Index closed 0.91 percent lower this week.

Today, the 31-stock index closed 407 points or 1.03 percent lower and the 50-share gauge closed 0.91 percent lower. The 500-share index ended 0.67 percent lower.

The declines in the benchmark indices were led by fall in HDFC, Reliance Industries and Kotak Mahindra Bank.

The market breadth, however, was tilted in favour of buyers. About 892 stocks advanced and 862 shares declined on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Pharma Index’s 1.46 percent decline. On the flipside, the NSE Nifty PSU Bank Index was the only sectoral gainer, up 0.65 percent.

Sobha

• Stock fell as much as 10.9 percent to Rs 500.
• Trading volume was 40 times its 20-day average.

Shriram City Union Finance

• Stock rose as much as 2.4 percent to Rs 1,402.
• Trading volume was around 10 times its 20-day average.

eClerx Services

• Stock fell as much as 8.6 percent to Rs 838.35.
• Trading volume was almost eight times its 20-day average.

Jet Airways

• Stock rose as much as 30 percent to Rs 81.70.
• Trading volume was more then six times its 20-day average.

Lakshmi Vilas Bank

• Stock hit an upper circuit of 10 percent.
• CCI approved the lender’s merger with Indiabulls Housing Finance.

Suzlon Energy

• Stock rose 7.3 percent.
• The bankers are set to bankers meet today to resolve $1.4 billion debt, according to Bloomberg report.

HEG

• Stock halted seven-day losing streak and rose 6 percent
• Trading volume was three times its 20 day average

MRPL

• Stock rose 4 percent.
• Fresh longs seen with high OI of 18.18 percent.

Indian equity benchmarks are set to post their third straight week of losses.

The S&P BSE Sensex has declined 0.65 percent so far this week and the NSE Nifty 50 fell 0.86 percent. Today, Sensex fell over 400 points as of 3 p.m. to 39,172 and the NSE Nifty 50 traded near 11,700, down 0.94 percent.

The markets are currently trading about 500 points away from their record, which is a healthy correction and that is a good sign for Nifty going forward, SMC Global Securities' Senior Equity Research Analyst Shitij Gandhi told BloombergQuint in an interaction.

Gandhi said that 11,600 is a crucial level in the downside to watch out for the Nifty moving forward.

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

The S&P BSE Sensex fell over 400 points as of 2 p.m. and the NSE Nifty 50 fell as much as 0.89 percent to 11,726.20.

The market breadth was tilted in favour of sellers. About 892 shares declined and 832 advanced on National Stock Exchange.

The declined in the benchmark indices were led by HDFC Ltd. and Reliance Industries Ltd.

European shares were steady, poised for their longest streak of weekly gains since March, amid optimism looser monetary policy will support economic growth.

The Indian rupee traded off day’s low against the U.S. dollar. The home currency depreciated 0.29 percent to 69.63 against the greenback as of 1:45 p.m. The local legal tender depreciated 0.49 percent intraday.

The small-cap index represented by the NSE Nifty SmallCap 100 fluctuated between gains and losses to trade a 0.1 percent lower.

Indian equity benchmarks struggled to recover from their day’s low.

The S&P BSE Sensex fell 250 points to 39,350 as of 1 p.m. and the NSE Nifty 50 traded near 11,750. Down 0.49 percent. The mid-cap index represented by the NSE Nifty MidCap 100 Index fell 0.3 percent.

Shares of UPL was in focus after the stock rose as much as 5.1 percent, the most since May 20, to Rs 914.75. The scrip slumped over 15 percent in the past two sessions.

Shares of UPL rose as much as 5.1 percent, the most since May 20, to Rs 914.75.

The stock slumped over 15 percent in the last two sessions as China reduced soybean imports after an African swine fever outbreak amid an ongoing trade war with the U.S.

“Soybean pesticide consumption forms close to 55 percent of the Latin America market and assuming no substitution, lower China demand could lead to a near 7 percent decline in Brazil soybean exports,” HSBC said in the report.

Mahindra Finance’s subsidiary Mahindra Asset Management Company and Manulife today announced the formation of Asset Management Joint Venture in India.

“The 51:49 joint venture aims to expand the depth and breadth of fund offerings and retail fund penetration in India,” Mahindra Finance said in a stock exchange filing.

Shares of Mahindra Finance traded 1.64 percent lower at Rs 396.25 after the announcement.

“There are a lot of micro parameters where the country is waiting for positive developments. It is about a lot of the news flow you see at the micro level which is making investors cautious. Having said that, valuations are getting attractive for the mid-cap space.”

That’s the word coming from Principal Mutual Fund's Chief Investment Officer Rajat Jain.

Watch the full interaction here:

Indian equity benchmarks recovered some of its intraday losses and traded off day’s low.

The S&P BSE Sensex traded 160 points lower at 39,437 as of noon after falling over 270 points intraday. The NSE Nifty 50 traded near 11,800. The broader market index represented by the NSE Nifty 500 Index fell as much as 0.54 percent.

Shares of Jet Airways were in focus after the stock recovered from its 40 percent drop to surge 30 percent intraday. The stock traded 14 percent higher as of noon.

Shares of Jet Airways fell as much as 40 percent to Rs 37.80.

The National Company Law Tribunal in Mumbai admitted Jet Airways (India) Ltd. to the corporate insolvency resolution process under the Insolvency and Bankruptcy Act, 2016.

The stock surged as much as 150 percent yesterday, before closing 89 percent higher.

Ten out of 11 sectoral gauges compiled by NSE fell, led by the NSE Nifty Pharma Index’s 1.29 percent decline. On the flipside, the NSE Nifty PSU Bank Index was the only sector that was witnessing minor gains, up 0.03 percent.

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

The S&P BSE Sensex traded 241 points lower at 39,360 and the NSE Nifty 50 traded around 11,770.

The NSE Nifty Pharma Index was the top sectoral loser among the 11 sectoral gauges compiled by NSE.

Nifty’s 11.800 put option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract rose 32.96 percent to Rs 76.45. Over 3.91 lakh shares were added to the open interest which stood at over 28.80 lakh shares.

Indiabulls Housing Finance today said in an exchange filing that the company received an approval from Competition Commission of India for merger with Lakshmi Vilas Bank.

Shares of Indiabulls Housing Finance traded 2.5 percent lower at Rs 584 after falling nearly 7 percent intraday, while shares of Lakshmi Vilas Bank rose as much as 9.7 percent to Rs 63.40.

Shares of Sobha fell as much as 10.9 percent, the most since October 2017, to Rs 500.35.

About 39.2 lakh shares or 4.1 percent equity of the real estate developer changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

Trading volume was almost 50 times its 20-day average, Bloomberg data showed.

The investors need to stay away from the markets at present, due to the volatility that the market is experiencing, which suggests that we are headed for more trouble.

That's the word coming from Deven Choksey, managing director of KR Choksey Securities.

"The significant rally in many good companies are not due to fundamental reasons, but largely due to derivative markets, contract expiry, and some stocks getting out of the F&O," Choksey told BloombergQuint in an interaction.

Indian equity benchmarks extended their opening losses, led by the declines in Reliance Industries Ltd., and HDFC twins.

The S&P BSE Sensex fell 178 points to 39,423 as of 10 a.m. and the NSE Nifty 50 traded below 11,800, down 0.43 percent.

Aurobindo Pharma was in focus today as the stock traded near a 11-month low after the U.S. FDA issued warning letter to the company.

Besides, Balaji Telefilms surged the most in nearly 19 months after the company sold rights for upcoming slate of four movies for over Rs 100 crore.

Shares of the media company extended gains for the second consecutive trading session and rose as much as 8.7 percent, the most since November 2017 to Rs 65.70.

Balaji Telefilms completed sale of rights for upcoming slate of four movies for over Rs 100 crore, according to an exchange filing. Pen Marudhar Entertainment (subsidiary of Pen Studios) has acquired the distribution rights for Mental Hai Kya, Jabariya Jodi, Dream Girl & Dolly Kitty Aur Woh Chamakte Sitaare, the filing said.

The stock traded 61 percent below the Bloomberg consensus one-year target price.

Shares of Aurobindo Pharma fell as much as 7.7 percent to Rs 578.65, the lowest in nearly 11 months.

The pharmaceutical company received a warning letter from the U.S. FDA for Srikakulam plant, according to its statement on the exchanges. “Aurobindo Pharma is committed in resolving issues at the earliest and the existing business won’t be impacted from plant,” the statement added. (Read the full story here)

The stock traded at 12 times its estimated earnings per share for the coming year, Bloomberg data showed.

Shares of the country’s largest carmaker fell as much as 3.3 percent to Rs 6,400.

Brokerage and research firm UBS downgraded the stock rating to ‘Sell’ from ‘Buy’ and cut price target to Rs 5,800 from Rs 8,000, according to their research report.

Here’s what UBS had to say:

• Downgrade on rich valuations; current valuation ahead of fundamentals.
• Like trusted brand name, asset-light business model and pace of new project addition.
• Cut FY20/21 EPS estimates by 6 percent/1 percent to factor Ind-AS impact, higher interest and selling cost.

Shares of Tata Motors fell as much as 3 percent to Rs 154.50, making them the worst performer on Sensex and Nifty.

Moody's Investor Services Inc. downgraded the company’s corporate family rating and senior unsecured instruments rating, citing sustained deterioration in the company's credit profile due to Jaguar Land Rover Plc 's weak performance, according to a PTI report.

Trading volume was triple its 20-day average, Bloomberg data showed. Of the shares traded, 52 percent were at the ask price and 34 percent were at the bid.

Indian equity benchmarks opened lower in today’s trade.

The S&P BSE Sensex fell as much as 187 points or 0.47 percent to 39,415 and the NSE Nifty 50 fell much as 0.47 percent to 11,776.55. The broader market index represented by the NSE Nifty 500 Index fell as much as 0.48 percent.

The market breadth was tilted in favour of sellers. About 877 shares declined and 593 stocks advanced on National Stock Exchange.

All the 11 sectoral gauges compiled by NSE declined, led by the NSE Nifty Auto Index’s 0.93 percent fall.

The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.49 percent to 69.77 against the greenback.

Indian equity benchmarks are set to open mixed.

The S&P BSE Sensex and the NSE Nifty 50 were little changed at 39,640 and and 11,834 respectively.

June Futures

• Nifty futures closed at 11,849.4, premium of 17.7 points
• Nifty futures open Interest down 2 percent, sheds 4.2 lakh shares in open Interest
• Bank Nifty futures closed at 30,768, discount of 13 points versus 12 points
• Bank Nifty futures open Interest up 15 percent, adds 2.3 lakh shares in open Interest

Options

• Nifty PCR at 1.59 versus 1.15 (across all series)

Nifty Monthly Expiry June 27

• Max Open Interest on call side at 12,000 (27.9 lakh shares)
• Max Open Interest on put side at 11,700 (35.8 lakh shares)
• Open Interest addition seen at 11,800P (+11.6 lakh shares), 11,700P (+10.5 lakh shares), 12,200C (+8.7 lakh shares)

Stocks In F&O Ban

• In Ban: IDBI, Jain Irrigation, Reliance Capital, Reliance Infra
• New In Ban: Jain Irrigation, Reliance Capital
• Out Of Ban: DHFL, Jet Airways, PC Jeweller

• About 14 lakh shares or 1.93 percent equity of Eveready Industries were invoked by Vistra (ITCL) India Ltd (Trustee for the joint lenders namely- IL&FS Financial Services, IL&FS Infra Debt fund, Aditya Birla Finance
• Apollo Tyres promoter pledge additional 34.5 lakh shares.
• Max Financial Services promoter pledge additional 12.3 lakh shares
• Zuari Agro Chemical promoter pledge additional 3 lakh shares
• Satin Creditcare promoter pledge additional 5 lakh shares
• Emami promoter pledge additional 6.99 lakh shares
• Coffee Day Enterprises promoter (V G Siddhartha) pledge additional 16.9 lakh shares
• Max India promoter pledge additional 1.66 crore shares

• Jet Airways admitted to insolvency by NCLT Mumbai. NCLT sought the progress report in 3 months instead of 180 days. Resolution professional also directed to submit reports every 15 days, starting July 5.
• Tata Motors’ corporate family rating and the company's senior unsecured instruments rating to Ba3 from Ba2. downgrade reflects the sustained deterioration in credit profile led by the weak performance of its 100 percent owned subsidiary Jaguar Land Rover. Moody’s also downgraded the corporate family rating (CFR) of Jaguar Land Rover Automotive Plc to B1 from Ba3 and probability of default rating (PDR) to B1-PD from Ba3-PD. Moody's has also downgraded the instrument ratings on the bonds to B1 from Ba3. The outlook remains negative.
• Balaji Telefilms completed sale of rights for upcoming slate of four movies for over Rs 100 crore. Pen Marudhar Entertainment (subsidiary of Pen Studios) has acquired the distribution rights for Mental Hai Kya, Jabariya Jodi, Dream Girl & Dolly Kitty Aur Woh Chamakte Sitaare.
• Welspun Corporation commenced production of pipes at spiral pipe plant in Jamunia (near Bhopal) in Madhya Pradesh. This plant has a capacity of around 175 KMT p.a.
• AU Small Finance Bank Board approved issue of Basel II compliant, Tier II, unsecured redeemable NCDs upto Rs 500 crore in one or more tranches
• Bombay Dyeing CFO resigned on account of personal reasons. He will continue to serve as CFO till August 31, 2019.
• Maruti Suzuki increased price in all variants of Dzire. Price shall now vary from Rs. 5,82,613/- to Rs. 9,57,622/- (ex-showroom price in Delhi & NCR). Dzire is now compliant with "AIS-145 Safety Norms" and Dzire Petrol is also now BS-VI compliant.
• Andhra Bank board meet on June 25 to consider capital raising plan of the bank for 2019-20.
• Sunil Hitech: Resolution Professional has filed for liquidation of the company on receipt of any resolution plan within the stipulated time period of 270 days under CIRP.

• Brent crude rose 0.65 percent to $64.87 a barrel. It ended 4.3 percent higher yesterday
• West Texas Intermediate rose 0.5 percent to $57.34 a barrel.
• Gold was at $1,391.50, up 0.2 percent.

London Metal Exchange

• Copper resumed gains after a one-day blip, closed 0.93 percent higher.
• Nickel ended higher for the third day, up 1.74 percent.
• Zinc ended lower lower for the second day, down 0.4 percent.
• Aluminium halted a two-day gains, closed 0.17 percent lower.
• Lead resumed gains after a one-day blip, closed 0.48 percent higher.
• Tin ended 1.46 percent higher.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fluctuated between gains and losses to trade little changed at 11,860.50 as of 8:10 a.m.

Asian stocks were mixed on Friday, while heading for their biggest weekly gain since January as investors embraced the decisive shift by central banks back to stimulus mode. Japanese, South Korean and Australian shares dipped, while Hong Kong’s benchmark fluctuated and Shanghai shares rose at the open.

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