At 10:21 a.m. ET the Dow Jones Industrial Average was down 68.16 points, or 0.27%, at 25,463.89, the S&P 500 was down 2.12 points, or 0.07%, at 2,832.29 and the Nasdaq Composite was up 18.00 points, or 0.23%, at 7,752.50.
For now, Nifty can remain sideways with a negative bias. Traders can initiate short position on any breach of the 11,100 mark and look for a modest target of 11,020 with a stop loss above the day’s high
- Mazhar Mohammad, Chartviewindia.in
The medium-term moving average is placed at 11,134, and Nifty may see a bigger fall on a close below this level. The immediate support for the index lies at 11,036
- Arun Kumar, Reliance Securities
Nifty has formed an Inside bar on the daily chart. The breakout range is between 11,108 and 11,294. As per the wave structure, there is scope for the last leg of the pullback to play out on the upside. If the bulls manage to surpass the swing high of 11,294, Nifty can stretch towards 11,370-11,400
- Gaurav Ratnaparkhi, Sharekhan
Nifty failed to hold its gains and selling pressure was visible on every small bounce. Nifty formed a Bearish Candle on the daily scale and till it holds below 11,250, it can extend its weakness towards 11,118 and then 11,000 levels, while on the upside hurdle is seen at 11,250 and 11,333 levels
Nifty’s immediate support stands at 11,100, a trade below which may extend the ongoing correction to 11,070-11,030 range where the 200-DMA lies. A trade above 11,230 with good volume can trigger a short-covering rally towards 11,300-11,375
Tata group on Wednesday decided to demerge consumer business of Tata Chemicals (TCL) and merge it with Tata Global Beverages (TGBL). TGBL will be renamed as Tata Consumer Products, the group announced.
Under the scheme, every shareholder of TCL will get 1.14 new equity shares of TGBL for every one equity share held in TCL. It means that shareholders having 100 shares in TCL will receive 114 shares in TGBL.
In the near-term, we expect volatility to continue in the backdrop of US-China trade tension as well as weak domestic cues owing to nervousness surrounding elections. Further, oil price and rupee-dollar movement will also be on investors’ radar
- Jayant Manglik, President - Retail Distribution, Religare Broking
Broader market continues to trade with a negative bias with pressure seen in the midcap space. Support is seen in the range of 10850-10900 and we expect the same to hold going ahead. Volatility to remain high on account of the upcoming election results. Post the recent correction, we remain structurally positive above 10850 and await broader market health to improve before initiating aggressive longs.
- Sahaj Agrawal, VP – Research (Derivatives) – Kotak Securities
CLOSING BELL: Sensex gives up 240 pts gains, ends 204 pts lower; Nifty barely holds 11,150; YES Bank plunges 8%
Oil supply drops as Iran sanctions bite: IEA
The world's oil supply fell last month, the International Energy Agency said Wednesday, amid rising global tensions as US sanctions on Iran tightened and OPEC+ members produced less crude in line with their pact.
In its latest monthly report on the global oil market, the Paris-based IEA said that while geopolitics and industry disruptions were clouding the outlook it believes that the market balance is set to flip from surplus into deficit, a development that would favour efforts by oil producing nations to keep prices high.
As of now, the market is not positioned for a unstable coalition that is our view. So, either ways if there is a stable government then I think the markets will focus on fundamentals and the recovery from the current down cycle that we are seeing. But, if there is a unstable coalition we might see a further round of uncertainty and volatilities in the market, there still might be some downside left.
European shares fell on Wednesday after a rebound the day before as a softer tone from U.S. President Donald Trump calmed investor worries over worsening trade relations between China and the United States.
The pan-European STOXX 600 index fell 0.4 per cent by 0743 GMT. Bank-heavy Italian and Spanish indices led the losses after some dour results from their lenders.
Indian voters look determined to shatter past turnout records this election.
Going by the trend seen till the end of the sixth phase of voting on May 12, brokerage Nomura India has projected that the ongoing elections may see record voter turnout of nearly 67 per cent, which would surpass the previous record of 66.4 per cent see during the 2014 Lok Sabha polls.
Sugar production likely drop 8.4 pc; to fall for 2nd straight year in 2019-20: USDA
India's sugar production is likely to decline 8.4 per cent to 30.3 million tonnes for the second straight year in the 2019-20 marketing year that would begin from October because of likely fall in sugarcane output, a latest USDA report said. The sugar output in the ongoing 2018-19 marketing year (October-September) is pegged at 33 million tonnes, lower than 34.3 million tonnes achieved in the previous year.
The National Stock Exchange (NSE), after monitoring compliance of listing regulations of all its listed entities, imposed fines and issued notices to more than 250 non-compliant companies for March quarter, the exchange said on Wednesday.
Big names on the list included Adani Ports and Special Economic Zone, The New India Assurance Co, Indraprastha Gas, Mannapuram Finance, Bharat Petroleum Corporation, Jet Airways (India), Bharat Electronics and Oil India, among others. As many as 31 companies on the list are liable to pay a fine of Rs 4,50,000 each.
Foreign brokerage UBS says the risk of a full-blown trade war between the US and China has increased, but hopes the issue will be resolved in the next couple of months without the US raising tariffs on the rest of $300 billion worth of Chinese goods.
It said India has not been able to gain much from the trade war and has managed only a marginal growth from the increment that it was already witnessing from usual diversification away from China.
Stocks that hit fresh 52-week lows on NSE
Price as on 15 May, 2019 12:35 PM, Click on company names for their live prices.
Monsoon to hit India on June 6: IMD
Monsoon rains are likely to enter India through the southern coast on June 6, the state-run India Meteorological Department said on Wednesday, marking the start of the four-month rainy season that is crucial for the country’s farm-dependant economy.
Largecaps are the place to be on Dalal Street as investors navigate multiple headwinds and brace for key event risks in the foreseeable future.
In signs of acute risk aversion, India’s top fund managers are currently betting on the bluest of the blue chips – leaders from banking, oil & gas, auto, FMCG and IT. These are the sectors that can potentially be on the forefront in the next bull run.
Union Bank falls on widening Q4 net loss
Shares of Union Bank of India (UBI) fell as much as 7.4 per cent to Rs 73.45 in Wednesday's trade.
The majority state-owned lender posted March-quarter loss of Rs 33.69 billion, or $14.2 million, on Tuesday, while provisions for non-performing assets rose by 2.6 per cent. UBI's forward PE of 19.96 is above the sector average of 18.31.
About 6.6 million shares of the company changed hands in early trading hours, compared to 30-day average of around 9.2 million shares. In comparison, peers State Bank of India has a forward PE of 54.47 and Bank of India of -3.28.
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Nestle rises 3% as brokerages stay positive post March quarter numbers
Shares of Nestle India climbed nearly 3 per cent in morning trade on Wednesday, a day after the company reported a 9.25 per cent rise in profit at Rs 463.28 crore for the first quarter ended March 31, 2019.
Following the March quarter numbers, global brokerage CLSA maintained its outperform view on the stock with an unchanged target price of Rs 11,750.
Citi maintained its buy rating on the stock with a target price of Rs 12,480 per share, underscoring that the focus on innovation is likely to remain a key growth driver for the company.
Shares of Jet Airways plunged almost 7 per cent in morning trade on Wednesday and looked on course to extend its losing streak into the third successive session. Shares of the company have been falling in the wake of a series resignations by the company's top brass. CEO Vinay Dube, CFO Amit Agarwal and head of human resources Rahul Taneja quit within a span of 24 hours, raising serious doubts over the revival of the debt-laden airline.
Rupee gains 23 paise to 70.21 vs dollar in early trade
Rupee appreciated by 23 paise to 70.21 against the US dollar in opening trade Wednesday. Easing crude prices, higher opening in domestic equities and US-China trade talk hopes lent support
Forex dealers said, investors sentiments were buoyed after US President Donald Trump on Tuesday hoped that the world's top two economies would be able reach an agreement.
The rupee opened strong at 70.32 at the interbank forex market then gained further ground and touched 70.21 amid a positive opening in domestic equities, displaying gains of 23 paise over its last close.
DHFL declines over 4% on rating downgrades
Shares of Dewan Housing Finance Corporation (DHFL) cracked over 4 per cent in morning trade on Wednesday after the rating agency Icra downgraded the company's payouts or pass through certificates (PTCs).
Icra downgraded the PTCs issued under six mortgage loan securitisation transactions by DHFL, a PTI report said.
The rating of these instruments has been downgraded from BBB (SO) to AA -(SO). The Icra downgrade followed a downgrade from Crisil on Monday.
Brokerages on HDFC post Q4 numbers
YES Bank, Voda Idea, RPower among most active stocks on NSE
Price as on 15 May, 2019 09:29 AM, Click on company names for their live prices.
Sensex jumps 250 points, Nifty50 nears 11,300; rupee trades at 70.32 against the US dollar.
Singapore trading sets stage for negative start
Nifty futures on the Singapore Exchange were trading 14.50 points, or 0.13 per cent, lower at 11,246.50, indicating a negative start for the Nifty50.
Tech view: Nifty forms bullish candle
Nifty50 snapped a nine-day losing streak on Tuesday and ended above the 11,200 mark. The index formed a bullish candle on the daily chart, but analysts said the trend is still more or less negative and a fall towards the 11,000 level cannot be ruled out. Followup buying is required to instil confidence, they said
Asian shares wobble
Asian stocks struggled near a 3-1/2-month low on Wednesday on lingering concerns over the economic impact of a US-China trade war, although an overnight bounce on Wall Street helped limit the losses. Australian stocks added 0.07 per cent, South Korea’s KOSPI slipped 0.1 per cent and Japan’s Nikkei shed 0.4 per cent.
Oil prices ease on rising US stockpiles
Oil eased on Wednesday after closely watched data showed a surprise rise in US crude stockpiles, but prices were supported by mounting tensions in the Middle East, Reuters reported. Brent crude futures were at $70.90 a barrel at 0100 GMT, down 41 cents, or 0.7 per cent, from their last close.
US stocks bounce back
US stocks climbed in overnight trade as investors were heartened by a tonal shift in US-China trade rhetoric, Reuters reported. The Dow Jones Industrial Average rose 207.06 points, or 0.82 per cent, to 25,532.05, the S&P500 index gained 22.54 points, or 0.80 per cent, to 2,834.41, and the Nasdaq Composite added 87.47 points, or 1.14 per cent, to 7,734.49.
Skymet sticks to weak forecast
The chances of the monsoon-disrupting El Nino developing this year have receded as per international meteorologists, but private forecaster Skymet is holding on to its prediction of rainfall being below normal and said the rains may arrive three days late. The IMD had predicted nearnormal rainfall last month.
Re to feel the heat of yuan devaluation
With Wall Street turning bearish on the Chinese yuan, it is bad news for the rupee, which now appears to be heading to its record low against the dollar amid escalating trade tensions. Traditionally, New Delhi's currency follows its rival in Beijing as both countries aim to remain export competitive.
DIIs buy Rs 2,243 crore worth of equities
Foreign portfolio investors (FPIs) sold Rs 2,011.85 crore worth of domestic stocks on Tuesday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 2,242.91 crore, data suggested.
Sensex on Tuesday
BSE Sensex jumped 227 points or 0.61 per cent to 37,319 with 17 of 30 constituents in the green. NSE Nifty rose gained 74 points or 0.66 per cent to settle at 11,222.
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