Markets live: Sensex falls 232 points

Sensex plunged 232 points to end at 34,616.13 today, extending its fall to the fifth straight session over political and macroeconomic concerns. Investors were wary after BJP’s BS Yeddyurappa resigned as the chief minister of Karnataka on Saturday minutes before he was to face a floor test to prove his contested majority in the hung assembly, paving the way for the JD(S)-Congress combine to form the government.

Sentiment got another jolt after Moody’s Investors Service downgraded PNB’s rating, citing the impact of recent fraud on its capital as well as weak internal controls, brokers said.

The 30-share Sensex had soared about 126 points to hit a high of 34,973.95 in early trade but gave up its gains following a widespread sell-off, which dragged it down to 34,593.82.

The gauge finally ended at a nearly one-month low of 34,616.13, down 232.17 points or 0.67 per cent. This is its weakest closing since April 25 when it had finished at 34,501.60. It had lost 708.41 points in the previous four sessions.

The broader NSE Nifty closed lower by 79.70 points, or 0.75 per cent, at 10,516.70, after hovering between 10,621.70 and 10,505.80.

A plunge in the rupee’s value and sustained foreign fund outflows added to the gloom. (PTI)

Moody's downgrades PNB rating

Moody’s Investors Service has downgraded Punjab National Bank’s rating citing the impact of recent fraud on its capital as well as weak internal controls. Read more

Gold prices slipped by Rs 75 to Rs 31,875 per 10 grams at the bullion market today on easing demand from local jewellers amid weak trend overseas. Silver cracked below the Rs 41,000-mark by falling Rs 440 to Rs 40,760 per kg due to reduced offtake by industrial units and coin makers. Read more

Leading stock exchange NSE has decided to delist Vijay Mallya-promoted Kingfisher Airlines, Plethico Pharmaceuticals and 16 other companies from May 30. This comes after BSE delisted over 200 companies from May 11 as trading in their shares remained suspended for over six months. Read more

NSE to delist 18 companies from the stock exchange. File Photo

Shares in pharmaceutical company Strides Shasun Ltd slipped for a second session. They fell as much as 8.7 per cent to Rs 353.40, the lowest since April 2014. Read more

Three of the four directors of the Fortis board, whose ouster was demanded by a group of minority shareholders of the company, have resigned from their positions a day before their fate was to be decided in an extraordinary general meeting. Read more

Shares of Amara Raja Batteries Ltd slid as much as 9.1 per cent to Rs 756.45, the biggest intra-day percentage loss since November 15, 2016. The stock hit its lowest level since February 6. Read more

AmaraRaja

Nifty 50 May Futures (10,535)

After a flat start, the benchmark indices -- the Nifty and the Sensex have decisively entered the negative territory. The Asian markets are showing mixed signs. In Japan, the Nikkei 225 index is up 72 points to 23,002 while the Topix index is down by 2 points to 1,813 levels. Hang Seng index has surged 257 points or 0.8 per cent to 31,305 levels.  Read more

Shares slipped for a fifth straight session on Monday as the political situation in Karnataka clouded the outlook for general elections next year and left markets uneasy. This alliance between the Congress party and JDS is expected to galvanise opponents of Prime Minister Narendra Modi ahead of elections that must be held by May next year.

The broader NSE index slipped 0.63 per cent to 10,529.85 as of 1 pm, while the benchmark BSE index was 0.49 per cent or 171.23 points at 34,677.07.

The Sensex heatmap at about 1 pm

“We have this continuing downward momentum from last week. Secondly, Karnataka elections is weighing on the markets as the outlook of the 2019 election is looking dicey,” Deepak Jasani, Head of Retail Research at HDFC Securities, said.

“Political situation till 2019 could continue to be very volatile. The clarity around a party getting majority in the 2019 election is getting a little diluted,” he added.

Financial stocks such as HDFC Bank Ltd, which fell 1.1 per cent, were among the biggest drags on the NSE index. Metals stocks took a hit for a fourth session, with the Nifty metal index down as much as 1.4 per cent to its lowest since April 5. Tata Steel Ltd was down 1.3 per cent, while Vedanta Ltd dropped 2.1 per cent.

Among the decliners, Amara Raja Batteries Ltd posted its biggest intra-day percentage loss since November 15, 2016 on missing analysts expectations for March-quarter results.

Meanwhile, shares in UltraTech Cement Ltd rose after its merger deal with Century Textiles and Industries . -- Reuters

Shares of Kitex Garments slumped to a near 4-year low on fall in Q4 profit. The garment manufacturer's shares fell as much as 18.9 per cent to Rs 183.15, their lowest since August 8, 2014. Read more

Shares of infrastructure company Jaiprakash Associates Ltd slumped as much as 29.51 per cent in their biggest percentage loss since June 2015. Read more

In a retaliatory move, India has told the WTO that it proposes to raise duties by up to 100 per cent from next month on 20 products imported from the US — such as almonds, apples and specific motorcycles — if Washington does not roll back high tariffs on certain steel and aluminium items. Read more

Gazlast/shutterstock.com

L&T Hydrocarbon Engineering, a subsidiary of engineering and construction major Larsen & Toubro Limited (L&T), in consortium with UK-headquartered TechnipFMC providing subsea, onshore, offshore, and surface technologies bagged two contracts from Hindustan Urvarak and Rasayan Limited (HURL). Read more

The key Indian equity indices on Monday slipped into the red after rising over 120 points. At about 11.40 am, the 30-scrip Sensex was trading 108.92 points or 0.31 per cent down at 34,739.38.  The wider 50-scrip Nifty also fell 45 points or 0.42 per cent to 10,551.40.

The Sensex heatmap at 11.40 am

Among the BSE sectoral indices, Realty, consumer durables, metal, auto and healthcare were down by up to 2.09 per cent.

Shares in UltraTech Cement Ltd rose as much as 4.2 per cent to Rs 4,019. It posted its biggest intra-day percentage gain since April 19. Read more

Automaker Ashok Leyland Ltd's shares fell as much as 6.6 per cent to Rs 138.65, their biggest daily percentage loss since February 6. Q4 profit jumped 40 per cent to Rs 667 crore ($97.97 mln), beating analysts' estimate of Rs 642 crore. Read more

It’s high time we developed  a fixed income market

Making vainglorious announcements is the easy part. Planning to achieve them is difficult. On a visit to Beijing in June 2016, Arun Jaitley announced the intention to spend $1.5 trillion on infrastructure alone, over the next decade. Has he planned how to finance this?  Read more

Shares of Indostar Capital Finance Ltd rose as much as 6.01 per cent on their trading debut on Monday after the non-banking finance firm's initial public offering raised Rs 1,844 crore ($270.65 million). Read more

Stocks rose on Monday as US Treasury Secretary Steven Mnuchin declared the US trade war with China “on hold” following an agreement to drop their tariff threats that had roiled global markets this year. US S&P mini futures rose 0.60 per cent in Asian trade on Monday. Read more

Rupee update

The rupee declined 12 paise to a fresh 16-month low of 68.12 against a strengthening US dollar in early trade today after China and the US struck a deal to avert a trade war.  Read more

Early trade : Markets saw a positive start today as the benchmark Sensex bounced by about 126 points, reversing its four-session losing streak, on the back of a firming trend at other Asian markets. The 30-share barometer recovered 125.65 points, or 0.36 per cent, at 34,973.95. It had lost 708.41 points in the previous four sessions largely on political uncertainty in Karnataka.

PSU, banking, metal, IT capital goods and teck indices rose by up to 0.43 per cent. The NSE Nifty moved up by 25.30 points, or 0.23 per cent, to 10,621.70.

Support came from TCS, SBI, ICICI Bank, Bharti Airtel, ONGC, L&T, Tata Steel, IndusInd Bank, Adani Ports, Yes Bank, Power Grid, NTPC and HDFC Bank, which climbed by up to 2.05 per cent.

Meanwhile, foreign portfolio investors net sold shares worth Rs 166.15 crore, while domestic institutional investors bought equities to the tune of Rs 149.58 crore on Friday, as per provisional data.

Stock call on Apollo Tyres: buy

The company’s good run is expected to continue, thanks to better sales and cheaper rubber

While prices of most commodities have been heating up, natural rubber prices have seen a slide in the last one year. Domestic natural rubber prices of the RSS-4 variety now hover around ₹120 a kg, down from the ₹140 levels seen a year ago.  Read more

Our weekly trading guide for SBI, ITC, Infosys, RIL, Tata Steel

Read full technical view here

The BSE index Sensex opened marginally higher by 25 points at 34873.16 against the previous close of 34,848.30 and the NSE index rose 20.3 points to 10,616.70 against 10,596.40.

Index outlook

Indices retreat on selling pressure

The Nifty and the Sensex have reversed direction. Investors must remain cautious. Read more