Business News›Traders' Diary: Nifty to see support at 8,888 level
Economic Times | 27 May, 2020 | 10.56AM IST
Traders' Diary: Nifty to see support at 8,888 level
In the 30-pack Sensex, 18 stocks ended in the green today.
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Sebi slaps Rs 7 lakh fine on NHAI for disclosure lapses
Capital markets regulator Sebi on Tuesday imposed a penalty of Rs 7 lakh on the National Highways Authority of India (NHAI) for delay in making timely disclosure about financial results. Sebi had conducted an examination in the matter of NHAI from financial year 2015-16 to 2018-19.
Max Financial Services Q4 results: PAT plunges 96% on Covid-19 impact
Max Financial Services on Tuesday reported a steep 96 per cent plunge in consolidated profit after tax to Rs 6.67 crore for the January-March quarter 2020 due to the impact of a tax dispute settlement and the coronavirus pandemic. The company had registered a profit after tax of Rs 199.91 crore during the January-March quarter of the previous fiscal year.
No restriction on broker’s power of attorney: Sebi
Sebi on Tuesday clarified that there is no restriction imposed on the use of Power of Attorney (POA) between the broker and client in the equity markets. The clarification came after a media report said that the market regulator has discontinued the use of POA.
Crypto exchange CoinDCX raises $2.5 million in fresh funding
Cryptocurrency exchange CoinDCX has raised Rs 18.98 crore (about $2.5 million) in a follow-on investment round led by Polychain Capital and Coinbase Ventures, the investment arm of American cryptocurrency major Coinbase. The fresh round of funds are intended to help the startup drive crypto adoption in India and support its plan of increasing crypto investors/traders in India to 50 million.
Nifty seemed to be in consolidation mode on Tuesday, as it traded in the 8,960-9,180 range. Analysts said the formation of a Hammer-type candle on the weekly chart signalled that any minor weakness from here on could be a buying opportunity in the short term.
Torrent Pharma Q4 results: Posts net profit of Rs 314 crore
Drug firm Torrent Pharmaceuticals on Tuesday reported a consolidated net profit of Rs 314 crore for the quarter ended March 31, mainly on account of cost control and productivity improvements. The company had posted a net loss of Rs 152 crore for the corresponding period of the previous financial year, Torrent Pharma said in a filing to the BSE.
Bulk deals: Societe Generale buys 3.53 crore Bharti Airtel shares
Promoter firm Bharti Telecom sold 2.75 per cent stake in Bharti Airtel to institutional investors in the secondary market, raising over Rs 8,433 crore. The sale proceeds will be fully utilised to repay debt at Bharti Telecom and will make the promoter holding company a ‘debt-free company’. Societe Generale lapped some of these shares, BSE bulk deals data showed.
S&P 500 breaches 3,000 mark for first time since early March
US stocks surged at the open and S&P 500 breached a major technical barrier on Tuesday as business restarts and optimism about a potential coronavirus vaccine helped investors overlook Sino-US tensions. The S&P 500 rose 2.2 per cent to 3,020 points at the open, rising above 3,000, a key psychological level for the first time since March 5.
Mukesh Ambani prepares Facebook-backed Jio Platforms for overseas IPO
Reliance Industries Ltd. is working with banks on early preparations for an overseas listing of its digital and wireless business, people with knowledge of the matter said, after the unit attracted more than $10 billion of investment in a month.
Broader market rallies
Broader market indices bucked the trend in their headline peers and rallied on the back of demand from buyers. Nifty Smallcap index gained 0.76 per cent while Nifty Midcap index rose 1.32 per cent and the broader Nifty500 added 0.11 per cent. But Nifty50 dipped 0.11 per cent.
Demand rise, output cuts could mean oil market balance in June
Recovering demand as coronavirus lockdowns ease combined with output cuts by top producers could balance global oil markets as soon as June, some analysts and banks predict. "Bullish sentiment continues to gather momentum as we move closer to June, when ... the global crude balance is set to reach net short territory, to the tune of a non-negligible 1.5 million barrels per day (bpd), its tightest point since August 2019," JBC Energy said.
Cement stocks rally
Shares of cement companies gained in hopes of a spike in demand as construction works started coming back on track. Ultratech Cement added 3.64 per cent to Rs 3,771 while Shree Cement gained 3.29 per cent to Rs 20,570. Indian Cements, Ambuja Cements and JK Cements also rose up to 6 per cent.
Going forward, the 9,150 – 9,180 zone would act as a crucial hurdle. As long as it remains below the same zone, the weakness may persist and keep the market range-bound.
Support placed at 8,888 level: Chandan Taparia
"Going forward, the 9,150-9,180 zone would act as a crucial hurdle. Weakness could persist below this range. Support is placed at 8,888 level," said Chandan Taparia of Motilal Oswal Securities.
Earnings of Sensex companies to decline up to 8%: Analyst
Earnings of BSE Sensex companies will contract by up to 8 per cent in 2020-21 on the broader economic worries, and hopes of gains in equities should be pinned on a decrease in infections or a fiscal stimulus, an analyst said on Tuesday. Majority of the countries world over like Singapore and the US have given large fiscal stimulus packages which India is yet to announce, Bank of America Securities' India equity strategist Amish Shah said.
BoE not remotely close to any decision on negative rates: Haldane
The Bank of England is not remotely close to any decision to take interest rates below zero for the first time as a way to help Britain's economy cope with the coronavirus crisis, the central bank's Chief Economist Andy Haldane said. Haldane said the key factors for the BoE to consider were the consequences of negative rates for Britain's banks and lenders, which would see a squeeze on margins, and how such a move would affect confidence in the broader economy.
BOJ to pump nearly $16 billion to economy via loan scheme, amount doubles on new incentive
The Bank of Japan offered on Tuesday to pump 1.7 trillion yen ($15.8 billion) into the economy under its lending scheme aimed at boosting loans to companies hit by the widening fallout from the coronavirus pandemic. The amount offered to financial institutions at Tuesday's auction was nearly double that of the previous auction held on May 14, BOJ data showed, a sign that the programme is helping to channel money to cash-strapped firms suffering from the pandemic.
RBI to raise Rs 80,000 crore via cash management bills
The Reserve Bank of India will raise Rs 80,000 crore by selling Cash Management Bills (CMBs) or shorter duration sovereign debt instruments on Thursday as the government would be requiring money to meet immediate debt obligations amid coronavirus outbreak. Those securities will mature in the next 84 days on August 20, 2020.
CLOSING BELL: IT stocks drag Sensex into the red; index ends 63 pts lower; Nifty settles at 9,029; Airtel drops 6%, TCS 4%
12 of 30 Sensex stocks end the day in the green
Index contributors: TCS, Airtel, Infosys, HDFC, Bajaj Fin
Top Index losers: Bharti Airtel (5.95%), TCS (3.56%), Bajaj Fin (3.15%)
Top Index gainers: Titan (4.96%), Ultra Cement (3.64%), IndusInd Bank (3.37%)
S&P BSE Telecombiggest sectoral loser, down 4.64%
S&P BSE METAL biggest sectoral gainer, up 2.84%
Volume toppers: Airtel, HDFC Bank, RIL, Bajaj Fin, HDFC
At a time when other investors were taking shelter in defensives like pharma, telecom FMCG and IT in a challenging environment, high net-worth individuals went on to buy riskier bets of casino owners, airline operators, housing finance companies and auto makers in March quarter.
BSE Midcap in the green even as Sensex trades on a weak note
S&P BSE Basic Materials up nearly 3%; Jindal Steel surges 13%, Godrej Industries 12%. This is how the index stocks are faring
Forex Center: This is how the major currencies are trading against each other
Be optimistic. The world belongs to optimists and not pessimists. Now is the time to buy stocks, said Mobius.
All cement stocks trading in the green. Birla Corp surges 12%, JK Lakshmi Cement 9%
Price as on 26 May, 2020 02:20 PM, Click on company names for their live prices.
This is how the S&P BSE SmallCap has performed in the last 3 months
The index hit an all-time low of 8622.24 on March 24 2020
Here are the top gainers and losers in the tourism & hospitality sector.
Price as on 26 May, 2020 01:40 PM, Click on company names for their live prices.
Here are the index gainers in the 30-pack Sensex
Glenmark to study efficacy of two antiviral drugs for treating COVID-19
Glenmark Pharmaceuticals on Tuesday said it will undertake a new study to test the combined efficacy of two antiviral drugs, Favipiravir and Umifenovir, as a potential COVID-19 treatment regimen. The two antiviral drugs have different mechanism of action, and their combination may demonstrate improved treatment efficacy by effectively tackling high viral loads in patients during early stage of COVID-19, Glenmark said in a statement.
S&P BSE METAL biggest sectoral gainer, up over 3%. Here is how the index stocks are doing
European shares near 11-week high, UK stocks surge
European shares hovered near a 11-week high on Tuesday, with UK markets surging after a long weekend, as businesses worldwide gradually reopened following a months-long lockdown. The pan-European STOXX 600 rose 1% by 0708 GMT after hitting its highest level since March 10. Returning from a bank holiday, UK's FTSE 100 surged 1.9% as Prime Minister Boris Johnson said on Monday Britain will reopen thousands of high street shops, department stores and shopping centres next month.
JSPL shares zoom 10% after strong Q4 results
Shares of Jindal Steel and Power Ltd (JSPL) on Tuesday rallied 10 per cent after the company reported a consolidated net profit of Rs 305.62 crore during the quarter ended March 31, 2020. The stock advanced 9.95 per cent to Rs 106 on BSE. On NSE, it jumped 9.93 per cent to Rs 106.20.
These 10 stocks defy market mood, fall up to 10% on NSE
Price as on 26 May, 2020 12:13 PM, Click on company names for their live prices.
A 22 per cent drop in profit that HDFC reported for March quarter met consensus expectations, but a deterioration in asset quality disappointed many. Analysts expect the risks to escalate, but are confident of HDFC's risk management practices, given its strict underwriting norms and provision buffer. Most analysts maintained a 'buy' rating on the stock with target prices ranging from Rs 1,900 to Rs 2,200. The stock traded around the Rs 1,490 level on Tuesday.
TVS Motor implements temporary pay cuts for employees
TVS Motor Company has cut staff salaries by up to 20 per cent for a period of six months, beginning May, amid coronavirus pandemic. The two-wheeler major has decided to reduce salaries at executive level, barring entry level workmen, from May till October this year. "In the wake of the unprecedent crisis, the company has rolled out a temporary salary reduction across different levels for a period of six months (May to Oct, 2020)," a TVS Motor Company spokesperson told PTI.
BSE Telecom drops over 3% to emerge as biggest sectoral loser; Airtel top index drag
Sensex off day's high, up just 200 points
Indian stocks' performance this year to be worst since 2011
Over 55% of 34 strategists who answered a separate question said the benchmark BSE Sensex Index would revisit this year's low of 25,638.90 hit on March 24. All but one said it would happen by the end of September.
ICICI Securities maintains 'Hold' on Bajaj Finserv post Q4 results
"Business momentum is expected to remain slow though the bank remains a beneficiary of the credit guarantee scheme announced by GoI. However, given substantial exposure to MSME & LAP, we remain cautious in the current environment. Focus on containing opex does provides cushion but lower business growth & expected asset quality woes are seen keeping RoE lower at 8-11% in FY20-22E. Hence, we maintain HOLD rating with a revised target price of Rs 59, valuing the business at ~0.5x FY22E ABV," says ICICI Securities.
Shares of Bharti Airtel tanked 5 per cent in Tuesday's trade as parent Bharti Telecom was looking to raise $1 billion by selling shares in the mobile phone operator through a block deal at Rs 558 a unit, according to a term sheet of the planned sale seen by ET. The deal price was 6 per cent discount to Friday closing price of Rs 593.20. Markets were closed on Monday on account of Eid.
These bank stocks gain in today's session
Price as on 26 May, 2020 09:59 AM, Click on company names for their live prices.
Gold and silver prices gained on Tuesday as escalation of hostilities between the US and China forced investors to seek refuge in the safe haven counter. A sharp increase in Covid-19 cases also triggered investors' migration to precious metals. Gold futures were up 0.28 per cent or Rs 132 at Rs 47,105 per 10 grams. Silver futures added 1.39 per cent or Rs 670 to Rs 48,927 per kg.
Vodafone Idea, Airtel, IDFC First Bank among most active stocks on NSE
Price as on 26 May, 2020 09:24 AM, Click on company names for their live prices.
Nifty50 snapped a three-day winning streak on Friday and formed an indecisive Doji on the daily chart. On weekly charts, the index formed a Hammer candle, indicating an intra-week recovery. The bias still remains negative, said analysts. The index may face immediate resistance in the 9,150-9,200 zone and see support near the 8,900 level, they said.
Oil steadies as demand uncertainty tempers supply cuts
Oil prices, which have been driven higher for the past four weeks, were steady on Monday, with holidays in Singapore, London and New York dampening trade, as rising concerns over demand recovery offset supply cuts. Brent had eased by 5 cents, or 0.14% to $35.08 a barrel.
Asian shares gain in early trade
Japan's Nikkei 225 index was up 0.86 per cent at 20,919.56 in early trade. Hong Kong's Hang Seng index gained 1.07 per cent to 23,198.34. China's benchmark Shanghai Composite index added 0.35 per cent to 2,827.90.
US stocks ended mixed on Friday
US markets were closed on Monday for Memorial Day. US stocks closed mixed on Friday as investors grappled with uncertainties over the COVID-19 pandemic. The Dow Jones Industrial Average decreased 8.96 points, or 0.04 per cent, to 24,465.16. The S&P 500 rose 6.94 points, or 0.24 per cent, to 2,955.45. The Nasdaq Composite Index increased 39.71 points, or 0.43 per cent, to 9,324.59.
Sensex, Nifty on Friday
The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) of India were closed on Monday on account of Eid-ul-Fitr. On May 22, the BSE S&P Sensex closed 260 points or 0.84 per cent lower at 30,673 while the Nifty 50 fell by 67 points or 0.74 per cent at 9,039 after the Reserve Bank of India (RBI) unexpectedly reduced rates to boost the liquidity into the system in challenging times.
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