Sensex Holds On To Gains, Nifty Not So Lucky
Closing Bell: Sensex Ends Higher For The Straight-Second Session
Sensex extended gains helped by buying in the last hour trade while Nifty ended unchanged.
The 31-stock index closed 66 points or 0.17 percent higher at 39,112.74. The NSE Nifty 50 Index was at 11,691.45 at close. The broader market index represented by the NSE Nifty 500 Index closed 0.26 percent lower.
“Going forward, the near-term movement is likely to be driven by monsoon progress as well as global indicators,” said Jayant Manglik, President - Retail Distribution, Religare Broking Ltd. “The recent retaliatory tariff by India could escalate trade war tensions between U.S. and India. This could further induce volatility into Indian markets.”
The market breadth was tilted in favour of sellers. About 1,292 stocks declined and 486 shares advanced on National Stock Exchange.
Six the 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Realty Index’s 1.1 percent gain. NSE Nifty Pharma Index was the top loser, down 1.6 percent.
Rajesh Exports Rises After Winning Rs 942-Crore Order
Shares of the Bengaluru-based jewellery exporter rose for the sixth-straight session and rose nearly 1.2 percent to Rs 696.35 each.
The company bagged an export order worth Rs 942-crore from Germany, according to an exchange notification. The order is slated to be completed by August 2019, the notification said.
The stocks traded 30 percent below the Bloomberg one-year consensus target price.
Liquidity Crisis, Budget Fears Dragging Down Benchmarks, Says Motilal Oswal
Indian equity markets are witnessing a sudden fall on account of liquidity issues and panic tied with Budget slated to be presented next month.
“There is a set of stocks having issues with the leveraged balance sheets. Liquidity crunch has impacted lot of companies in terms of higher cost of borrowings,” said Siddaratha Khemka, head of research at Motilal Oswal Securities. “Also, fears of a new wealth tax, real-estate tax announcement is creating panic. One must wait for the budget to go ahead and take positions.”
Markets Check: Sensex, Nifty At Day's Low As Auto Stocks Drag
Indian equity benchmarks declined led by losses in Indiabulls Housing Finance and automakers.
Sensex traded flat at 39, 051 while Nifty Index was down 0.1 percent at 11,681.30. Automobile manufactures in the Index—Tata Motors, Hero Motocorp, Tata Motors and Mahindra & Mahindra were among the top losers. Indiabulls Housing Finance continued to remain the top Nifty loser, down 12.6 percent to Rs 536.40, recovering from an intraday low of 20 percent.
Jain Irrigation Slumps Over 28% After Rating Downgrade
Shares of the Maharashtra-based company declined for the fourth day in a row after it slumped 28.9 percent to Rs 19.50 apiece.
India Ratings cuts its long term issuer Rating to BBB with outlook at 'Watch Negative', according to its statement. The downgrade reflects deterioration in the liquidity profile on account of delay in realisation of receivables from its micro-irrigation systems (MIS) segment, the statement said.
The trading volume was over 10 times the 20-day average for this time of the day, bloomberg data showed.
Oil Retailers Fall As Brent Crude Prices Climb
Shares of the oil marketing companies fell in today’s trade after a one-day rally. Crude Oil prices gained as much as 0.6 percent to $62.55 per barrel.
- Indian Oil fell as much as 2.6 percent intraday to Rs 153.50 apiece.
- BPCL declined 1.7 percent to Rs 378.85.
- HPCL fell 3.3 percent to Rs 291.70.