Sensex, Nifty Fall For Second Session On Growth Concerns

Indian equity benchmarks extended their decline for the second session in a row led by losses in Tata Motors and Yes Bank.

The S&P BSE Sensex fell as much as 0.72 percent to 37,060.37 and the NSE Nifty 50 declined as much as 0.89 percent to close at 10,918.70. The broader markets represented by the NSE Nifty 500 Index fell 1.04 percent.

“Investors are pinning hopes on any stimulus or measures from the Indian government to lift the sentiments,” said Ajit Mishra, vice president (Research) at Religare Broking in an emailed statement.

The indices could "certainly" correct another 2-3 percent in the short-term, said Vikas Sethi, managing director, Sethi Finmart, in an interview to BloombergQuint. “However, it is a right time to buy good quality stocks with 9-12 months time frame,” Sethi said.

The market breadth was tilted in favour of sellers. About 1,341 stocks declined and 441 shares advanced on National Stock Exchange.

All 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty PSU Bank Index’s 2.95 percent fall.

Shares of the consumer staple major jumped 5.7 percent intraday to a lifetime high of Rs 12,646.50 each.

The trading volume was more than five times the 20-day average for this time of the day, Bloomberg data showed.

Shares of the cable operator was locked in the upper circuit after it rose 20 percent intraday to Rs 32.50 each. The Reliance Industries-group company has gained nearly 65 percent in the last six sessions.

The trading volume was more than nine times the 20-day average, according to Bloomberg data. The relative strength index on the stock was above 70, indicating it may be overbought.

Indian equity benchmarks extended their decline for the second session in a row led by losses in Tata Motors and Yes Bank.

The S&P BSE Sensex fell as much as 0.75 percent to 37,040.95 and the NSE Nifty 50 declined as much as 0.94 percent to 10,913.55. The broader markets represented by the NSE Nifty 500 Index fell 1.04 percent.

The market breadth was tilted in favour of sellers. About 1,371 stocks declined and 407 shares advanced on National Stock Exchange.

All 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Metal Index’s 2.95 percent fall.

ITC Ltd., Asia’s largest cigarette maker by market value, is considering a bid to buy a stake in Coffee Day Enterprises Ltd. as it seeks to diversify away from tobacco products, people familiar with the matter told Bloomberg News.

Here are the other details from the Bloomberg report:

• ITC has been given access to Coffee Day’s assets and financials for due diligence.
• Coca-Cola Co. has evaluated Coffee Day but hasn’t made a formal offer.
• ITC's deliberations are at preliminary stage and may not lead to a formal offer for Coffee Day.

Shares of Coffee Day were already locked in the upper circuit of 5 percent at Rs 72.50 each. ITC pared losses to trade 1.4 percent lower at Rs 241 apiece. ITC shares had fallen as much as 2.2 percent intraday.

About 16 lakh shares changed hands in a block deal on National Stock Exchange. The buyers and sellers were not known immediately.

Shares for the power generator pared losses to trade 4 percent lower at Rs 52.90 each.
The shares as much as 6.1 percent intraday.

Indian equity benchmarks traded near their intraday lows in afternoon session. Tata Motors and Yes Bank were among the worst performers on the indices.

The S&P BSE Sensex fell as much as 0.37 percent to 37,182 and the NSE Nifty 50 declined as much as 0.50 percent to 10,963.90. The broader markets represented by the NSE Nifty 500 Index fell 0.58 percent.

"Markets are extremely volatile led by negative global cues such inverted U.S. yield curve," said Vikas Sethi, managing director, Sethi Finmart, in an interview to BloombergQuint. "It is a right time to buy good quality stocks with 9-12 months time frame." However, the indices could "certainly" correct another 2-3 percent in the short-term, he added.

The market breadth was tilted in favour of sellers. About 1,206 stocks declined and 493 shares advanced on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty PSU Bank Index’s 2.24 percent fall. On the flipside, the NSE Nifty IT Index was the only sectoral gainer, up 0.20 percent.

Shares of the country’s largest truck maker declined 5.3 percent intraday to Rs 117.20 apiece.

India's waning vehicle shipments, squeezed by a liquidity crunch in non-banking finance, are likely to hurt Tata Motors' shipments and margins in coming months, according to a Bloomberg Intelligence report. Also, Tata Motors is likely to face stiffer competition as Maruti Suzuki and Hyundai expand their production capacities, the report said.

Credit rating firm Care Ratings cut the company’s long-term bank facilities and debt instruments to AA- from AA, according an exchange notification on Monday. The downgrade was on account of subdued operating performance at Jaguar-Land Rover, the notification said.

Shares of drugmaker fell 3.3 percent to hit a two-week low of Rs 148.65 each.

Complaint has been filed against the company by Abraxis Biosciences in the U.S. Court, according to an exchange filing. The complaint alleged the company’s new drug application for Taclantis injection was an act of patent infringement, the filing added.

The stock fell 62 percent in the past 12 months compared to 2.5 percent in the Sensex.

To beat India’s worst auto slowdown in a decade, the nation’s largest leisure motorcycle maker launched the cheapest version of its second best-selling model. But Eicher Motors Ltd., the maker of Royal Enfield motorcycles, could be battling a bigger problem—brand fatigue.

Read more on why the Chennai-based company is spluttering.

Shares of the Wadia-Group company declined for the third session in a row after it fell close to 4 percent to Rs 2,300 each.

The trading volume was more than seven times the 20-day average for this time of the day, according to Bloomberg data. The relative strength index was below 30, indicating the stock may be oversold.

The company’s profit missed estimates in the June quarter results announced earlier this month.

Shares of the chemicals manufacturer rose 3.4 percent to Rs 283.85 each.

ICRA upgraded long term ratings to ‘AA-’ from ‘A+’ and outlook was changed from ‘Positive’ to ‘Stable’, according to an exchange notification.

The stock traded at 10 times its estimated earnings per share for the coming year, according to Bloomberg data.

Shares of the drugmaker snapped its two-day rally and fell 2.5 percent intraday to Rs 2,491 each.

The Hyderabad-based company received eight Form 483 observations by U.S. FDA in the audit of formulations manufacturing plant at Duvvada, Vishakapatnam, according to exchange filing.

The stock traded 11 percent below the Bloomberg consensus one-year target price.

Indian equity benchmarks were off to a tepid start in today’s opening trade as businesses awaited stimulus from the government to revive growth.

The S&P BSE Sensex fell as much as 0.10 percent to 37,283.80 and the NSE Nifty 50 declined as much as 0.15 percent to 11,002.60. The broader markets represented by the NSE Nifty 500 Index fell 0.16 percent.

The market breadth was tilted in favour of sellers. About 883 stocks declined and 606 shares advanced on National Stock Exchange.

Seven out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Realty Index’s 1.33 percent gain. On the flipside, the NSE Nifty IT Index was the top sectoral gainer, up 0.40 percent.

August Futures

• Nifty futures closed at 11,028, premium of 11 points versus 4.2 points.
• Nifty futures open interest up 3 percent, adds 5.2 lakh shares in open interest.
• Bank Nifty futures closed at 27,995, premium of 12.6 points versus 16.9 points.
• Bank Nifty futures open interest down 4 percent, sheds 60,000 shares in open interest.

Options

• Nifty PCR at 1.12 versus 1.17 (across all series).

Nifty Weekly Expiry Aug. 22

• Max open interest on call side at 11,100 (18.7 lakh shares).
• Max open interest on put side at 11,000 (17.4 lakh shares).
• Max open interest addition seen in 11,000C (+6.3 lakh shares), 10,950P (+4.4 lakh shares).
• open interest shedding seen at 11,100P (-2.8 lakh shares), 11,050P (-2.7 lakh shares).

Nifty Monthly Expiry Aug. 29

• Max open interest on call side at 11,000 (26 lakh shares).
• Max open interest on put side at 11,000 (38 lakh shares).
• open interest shedding seen at 10,700P (-5.6 lakh shares), 11,500C (-3 lakh shares).

The Indian rupee opened higher against the U.S. dollar. The home currency appreciated as much as 0.32 percent to Rs 71.48 against the greenback.

Rupee's outperformance against more export-dependent currencies such as the Korean won has likely come to an end, according to JP Morgan, which is seeing risks shifting to the downside.

The currency weakened 0.4 percent to close at 71.71 to the dollar on Tuesday.

• NMDC: Karnataka government withdrew approval to extend mining lease for Donimalai and will auction the block. The company filed revised application against the Karnataka government’s order and requested it to withdraw its Aug. 17 letter. Hearing for the order was fixed on Aug. 21.
• Dr. Reddy’s Laboratories received eight Form 483 observations by U.S. FDA in the audit of formulations manufacturing plant at Duvvada, Vishakapatnam.
• Sun Pharma Advanced Research: Complaint has been filed by Abraxis Biosciences in the U.S. Court which alleges the company’s filing of new drug application for Taclantis injection as an act of infringement of the Orange Book listed patents for Abraxane.
• Alembic Pharma received zero Form 483 observations by the U.S.FDA at the end of the inspection of company’s Bioequivalence facility in Vadodra.
• Mahindra Logistics to manage Volkswagen India’s parts distribution. The company will service two lakh square feet of warehousing space and PDC operations to the Volkswagen Group.
• Deepak Nitrite: ICRA upgraded long term ratings to ‘AA-’ from ‘A+’, with outlook changes from ‘Positive’ to ‘Stable’.
• Essel Propack: Blackstone Group has launched into syndication a five-year term facility backing the purchase of a 75 percent stake. (Bloomberg News)
• KRBL obtained trademark registration of its Flagship Brand ‘India Gate’ on Aug. 12, with user claim since January 1979.
• Tourism Finance Corporation: Shapoorji Pallonji Finance reduced stake in the company from 6.61 percent to 4.41 percent via release of pledge.
• SpiceJet to shift its entire operations in Mumbai to Terminal 2 from Oct. 1.
• Dabur to contribute $16 million as share capital in its wholly owned arm Dermoviva Skin Essentials.
• Reliance Capital: Jupiter Asset Management sold 4.65 percent stake in the company on Aug. 16.
• IOL Chemicals and Pharma stated that they have made pre-payment of term loan of Rs 9.52 crore due to banks in addition to scheduled pre-payment. Current prepayment of term loan stands at Rs 107.7 crore for this financial year.
• Allahabad Bank has appointed five companies to help with the share sale to large investors, Managing Director and Chief Executive Officer Mallikarjun Rao said.  The planned share sale will bring government’s stake in the bank by 8-10 percent.  The capital to be raised via QIP will last the bank until June 2020 to support credit growth, after which the bank might look to raise funds again. (Bloomberg News)
• Oriental Bank of Commerce said customers can now avail home and vehicle loans at repo-linked interest rates starting from 8.35 percent and 8.70 percent, respectively. (PTI)
• HDIL has been admitted under Insolvency and Bankruptcy Code as per National Company Law Appellate Tribunal order, pursuant to an application filed by Bank of India.
• BEML: L&T Mutual Fund increased its stake in the company from 4.97-5.11 percent.
• Jai Prakash Associates stated that the Competition Commission of India had imposed a penalty of Rs 13.82 crore during financial years 2010-2012.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, declined 0.20 percent to 11,007.50 as of 8:40 a.m.

Stocks in Asia declined on low volumes as investors assessed the latest news on trade talks and awaited more clues on U.S. monetary policy. Japanese equities bore the brunt of losses, with stocks falling lower in Australia and South Korea as well.

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