Sensex skids 318 points to close at 38,897

 

 

Closing bell

Both the benchmark indices, the BSE Sensex and the NSE NIfty, dropped sharply lower ahead of the close on Thursday.

The Sensex shed 318 points or 0.81 per cent to trade at 38,897. The NSE Nifty dropped to 11,596, down 90 points or 0.78 per cent.

The YES Bank share lost 12.65 per cent to drag the 30-share index lower. ONGC, Tata Motors, Maruti and M&M also dropped more than 3 per cent during the session. The top gainers on the Sensex were HDFC, HDFC Bank, Kotak Bank and ITC. 

European shares hit 3-week low as SAP slides

 

Technology stocks pushed European shares to three-week lows on Thursday after software firm SAP reported poor results, the latest company to warn about damage from protracted trade tensions as gloom about earnings spreads across global equities.

Shares in Europe's most valuable tech company dove 6 per cent after it said investors would have to wait till next year for a major improvement in margins as the business software group reported a 21 per cent fall in quarterly operating profit. Click here to read in full the European stock markets report .

Sensex, Nifty drop lower

The benchmark indices, the BSE Sensex and the NSE Nifty, extended their losses ahead of the close on Thrusday. The Sensex was trading at 39,078, down 137 points or 0.37 per cent lower, while the Nifty was at 11,649, down 38 points or 0.33 per cent lower.

YES Bank dropped 12 per cent on the Sensex, following the release of its results on Wednesday. ONGC, Tata Motors, M&M and Vedanta also traded in negative territory.

The top gainers in the Sensex pack were HDFC, Bajaj Finance, HDFC Bank, Kotak Bank and Infosys.

All the sectoral indices on the BSE were trading in negative territory. The auto and metal index was down over 2 per cent, while consumer durables, energy, telecom, oil and gas, and technology shares dropped over 1 per cent during the session. 

Dollar slips on softer US yields; Aussie shines

 

The dollar broadly edged lower against its rivals on Thursday after softer US Treasury yields in the wake of weak US housing data sapped demand as investors focused their attention on a Fed meeting next week.

While expectations of a 25 basis point rate cut are baked into money markets, some investors are gunning for a 50 basis point cut. The Fed is widely expected to cut a total of 75 basis points by the end of the year.

Morgan Stanley strategists said in a daily note that the overall outlook for riskier assets remained bearish thanks to disappointing US earnings reports and weak prospects for global trade. Click here to read in full the dollar report .

 

Rana Kapoor’s wealth shrinks by $1 billion as Yes Bank shares tumble

 

A 78% drop in  Yes Bank ’s shares since August has left founder and former chief executive officer Rana Kapoor some $1 billion poorer.

The bank , which late Wednesday reported earnings that showed its capital buffers had weakened and bad loan ratio widened, plunged as much as 20% on Thursday. That’s contributed to a drop in Kapoor’s net worth to $377 million from $1.4 billion on Aug. 20, according to the Bloomberg Billionaires Index. Click here to read the full report on the drop in Rana Kapoor's wealth with fall in YES Bank shares .

Asan stocks wobble on trade, earnings anxiety

Asian share markets faltered on Thursday as Wall Street stocks dropped on early signs that the US-China trade war could hurt corporate earnings, which helped underpin solid demand for safe-haven US Treasuries.

MSCI's broadest index of Asia-Pacific shares outside Japan retreated 0.3 per cent, while Tokyo's benchmark Nikkei skidded 2.0 per cent, its biggest one-day fall in four months. Click here to read the Asian markets report .

Crude futures mixed; WTI extends losses after US oil products stocks gain

 

Oil prices were mixed on Thursday with US crude extending losses after falling in the previous session after data showed US stockpiles of products like gasoline rose sharply last week, suggesting weak demand during the peak driving season.

Brent crude futures were up 6 cents, or 0.1 per cent, at $63.72 a barrel by 0333 GMT. They fell 1.1 per cent on Wednesday. Click here to read in full the crude oil report .

Benchmark indices stuck in the red

The Sensex and Nifty maintained their weak undertone in the afternoon session on Thursday. The Sensex was down 110 points or 0.28 per cent at 39,106. The NSE Nifty was trading at 11,648, down 39 points or 0.34 per cent lower.

In the Sensex pack, YES Bank dropped 13.36 per cent, followed by Tata Motors, M&M, ONGC and Vedanta. The bank dropped sharply following the announcement of its results yesterday. Its shares tumbled after its profit missed estimates, bad-loan provisions swelled and capital buffers weakened. Though it has returned to profit in the three months ended June, its provisions almost tripled from a year earlier, results showed late Wednesday.

The top gainers on the Sensex were HDFC, HDFC Bank, Bajaj Finance, Kotak Bank and Infosys.

Nifty call: Go short on fall below 11,625 with fixed stop-loss

 

The Sensex and the Nifty began the session with a gap-down opening and continued to trade in negative territory. The market breadth of the Nifty index is biased towards declines. The India VIX is hovering flat at 11.8 levels. Witnessing selling interest, the Nifty mid and small-cap indices have slumped 1.5 per cent and 1 per cent respectively.

The July month contract began the session with a gap-down opening at 11,642. After marking an intra-day high at 11,665, the contract continued to trend downwards. Key support at 11,625 is providing a base for the contract. A decisive fall below this level will be a cue for initiating fresh short positions with a fixed stop-loss.  Click here to read the full Nifty call report .

Netflix shares fall on disappointing subscriber growth

 

Netflix Inc. shocked investors by reporting a drop in U.S. customers and much slower growth overseas, raising fears that the streaming giant is losing momentum just as competitors prepare to pounce.

The shares plunged as much as 13% to $314 in late trading after Netflix reported the loss of 130,000 customers in the U.S. -- the result of higher prices and a weak slate of TV shows. It signed up 2.8 million subscribers internationally in the period, roughly half what the company predicted. Click here to read the full report on Netflix shares fall on disappointing subscriber growth .

Sensex, Nifty keep losses of 0.25%

The Sensex and Nifty were range-bound in negative territory at mid-session on Thursday. The Sensex was quoted at 39,114, down 101 points or 0.26 per cent lower. The Nifty was also down 0.27 per cent or 31 points lower at 11,656.

The YES Bank share, which was down over 11 per cent, weigh on the BSE benchmark index. Among the other laggards on the index were Tata Motors, ONGC, Vedanta and M&M, while the top performing stocks were HDFC, Bajaj Finance, HDFC Bank, ITC and Kotak Bank.

All the BSE sectoral indices were in the red. The metals index was the preformer, down 1.82 per cent, followed by auto (down 1.67 per cent), realty (down 1.40 per cent), industrials (down 1.10 per cent) and consumer durables (down 1.3 per cent).

Yield-hungry foreigners snap up Indian bonds; local banks sell

 

The world’s mounting stock of negative-yielding debt is drawing foreigners to Indian bonds.

They are finding ready sellers in the nation’s state-run banks who are looking to trim holdings after a powerful rally

Global funds have snapped up Rs 66.27 crore of debt since the Government’s budget on July 5. State-owned lenders have offloaded an even bigger amount -- Rs 16,000 crore, according to data collected, suggesting local funds and other institutional investors were also buyers. Click here to read the full report on foreigners snap up Indian bonds .

SEBI chief wants govt to reconsider move on transfer of surplus cash

 

Ajay Tyagi, Chairman, SEBI, has appealed to the Prime Minister’s Office (PMO) and Finance Minister Nirmala Sitharaman to reconsider the Budget 2019 proposal to transfer 75 per cent of the regulator’s surplus funds to government coffers. Tyagi’s letter comes after SEBI employees last week wrote to Sitharaman to reconsider her proposal. Click here to read in full the report on SEBI chief wants rethink on move to transfer surplus cash .

First international bond sale: Former central bankers raise concerns; opposition from PM’s key ally

 

The plan to sell the country’s first foreign sovereign bonds is facing opposition from a key ally of Prime Minister Narendra Modi, and raising worries among investors and former central bankers.

A key nationalist ally of Modi’s ruling Bharatiya Janata Party (BJP) has called the proposal a dangerous idea, which could lead India into a debt trap. For central bank governors like Raghuram Rajan said India’s weak public finances and struggling banks should give the government reason to pause. Click here to read in full the report on opposition to international bond sale .

HDFC hits record high; chart points to more upside

Shares of  Housing Development Finance (HDFC)  gained as much as 1.78 per cent to a record high of Rs 2,327.45.

The stock broke above a resistance at Rs 2,309.02.

The breakout suggests that in the near term, stock may test the next resistance at Rs 2,396, the 86.4% projection level

The stock was up 16.2 per cent this year as of last close, outperforming the Nifty at 7.6 per cent gains in the same period.

Benchmark indices stuck in the red

The Sensex and Nifty continued to trade in the red in the mid-morning session on Thursday. The Sensex was at 39,113, down 101 points or 0.26 per cent lower, while the Nifty was at 11,655, down 32 points or 0.28 per cent weaker.

The Sensex was dragged down by a sell-off in the YES Bank share, which lost 12 per cent during the session. In results announced yesterday, the bank's profits missed estimates, bad-loan provisions swelled and capital buffers weakened.

While the Mumbai-based lender returned to profit in the three months ended June, its provisions for soured debts almost tripled from a year earlier, the results showed. YES Bank will need to issue fresh capital to give it room to boost revenue and profitability, a Bloomberg Intelligence analyst said.

Among the other shares which edged lower were Tata Motors, Vedanta, M&M and ONGC. HDFC, Bajaj Finance, HeroMotoCorp, HDFC Bank and ITC helped prop up the Sensex.

 

Shares of Punjab & Sind Bank, Allahabad Bank drop after lenders report fraud

The shares of  Punjab & Sind Bank  and  Allahabad Bank  on Thursday dropped as much as between 2.7 per cent and 6.4 per cent respectively.

Punjab & Sind Bank on Wednesday reported a ₹238 crore ₹ ($34.61 million) fraud to the Reserve Bank of India, relating to allegations of diversion of funds by the indebted Bhushan Power & Steel Ltd Click here to read the full report on PNB, Allahabad Bank share price movement.

Mindtree plunges to five-month low after drop in quarterly profit

 

Shares of IT services firm  Mindtree Ltd  fell 10.62 per cent to Rs 670.95, lowest since February 19.

On Wednesday, Mindtree posted quarterly results for the first time since conglomerate Larsen & Toubro Ltd (L&T) took a controlling stake in the firm. This was a 41.4 per cent drop in profit Click here to read in full the Mindtree share price report .

Dollar slips as US yields decline on risk aversion

 

The dollar slipped on Thursday as risk aversion in the broader markets pushed benchmark US yields to a nine-day low.

The dollar index versus a basket of six major currencies was down 0.2 per cent at 97.081. The index had climbed to a one-week peak of 97.444 the previous day on stronger-than-expected US retail sales and a slump in sterling.

But it edged lower as safe-haven Treasury yields fell in the wake of weak US housing market data and concerns about the prolonged US-China trade dispute. Click here to read in full the dollar report .

Crude futures steady after fall, US oil products’ stocks gain

Oil prices steadied on Thursday after falling in the previous session when official data showed United States (US) stockpiles of products like gasoline rose sharply last week, suggesting weak demand during the peak driving season.

Brent crude futures were up 13 cents, or 0.2 per cent, at $63.80 a barrel by 0237 GMT. They fell 1.1 per cent on Wednesday. Click here to read in full the oil markets report .

Gold retraces from 2-week peak on profit-booking

 

Gold prices pulled back from a two-week high to trade lower on Thursday, as some investors took advantage of the last session's gain to book profits.

Spot gold was down 0.3 per cent at $1,422.68 per ounce, as of 0350 GMT, after hitting its highest since July 3 at $1,428.40.

It rose nearly 1.5 per cent in the previous session as the dollar slipped after weaker-than-expected US housing data increased prospects for an interest rate cut by the Federal Reserve. Clck here to read in full the gold markets report .

Rupee rises by 9 paise to 68.73 versus USD in early trade

 

The rupee appreciated marginally by 9 paise to 68.73 against the United States (US) dollar in the opening trade on Thursday, driven by weakening of the US dollar vis-a-vis other currencies overseas.

Forex traders said the local unit rose tracking gains in other Asian peers. Moreover, selling of the American currency by exporters also supported the domestic unit. Click here to read in full the rupee report .

YES Bank tumbles after profit misses estimates on bad loans

The Yes Bank shares tumbled as much as 20% after after the Indian lenders profit missed estimates, bad-loan provisions swelled and capital buffers weakened.

While the Mumbai-based lender returned to profit in the three months ended June, its provisions for soured debts almost tripled from a year earlier, results showed late Wednesday. Yes Bank will need to issue fresh capital to give it room to boost revenue and profitability, a Bloomberg Intelligence analyst said.

The results turned out to be far worse than what we had anticipated, Jefferies analysts led by Nilanjan Karfa wrote in note, cutting their share price target for Yes Bank to ₹50 from ₹80 . Capital infusion is of utmost urgency. Click here to read in full the YES Bank share price report .

Wipro rises after announcing higher profit

 

Wipro shares were up 2.4 per cent at Rs 265.85 following the Q1 results. Wipro’s profit rose 13 per cent due to robust demand from financial clients and the company said its main information technology business could show modest growth in the current quarter.

Revenue rose 5.3 per cent, led by 13.5 per cent growth in its dominant banking, financial services and insurance unit. Click here to read in full the Wipro share price report .

Sensex, Nifty drop lower

The Sensex and Nifty dropped into the red in early trading on Thursday. The Sensex was trading at 39,125, down 89 points or 0.23 per cent lower, while the Nifty was at 11,652, down 34 points or 0.30 per cent lower.

The top gainers on the Sensex were HDFC, Bharti Airtel, HDFC Bank, ITC and Bajaj Finance, while the laggards were YES Bank, Tata Motors, ONGC, Vedanta, and HCL Tech.

According to an agency report, the BSE Sensex dropped sharply led by a heavy sell-off in YES Bank shares, amid weak cues from global markets and unabated foreign fund outflow. YES Bank was the biggest loser in the Sensex pack, cracking over 10 per cent, after the company reported a massive slump of 92.44 per cent in its consolidated net profit to Rs 95.56 crore due to a Rs 6,232 crore addition to non-performing assets, which resulted in a sharp rise in provisions.

All the BSE sectoral indices with the exception of the telecom (up 0.36 per cent) and finance index (0.06 per cent) were in the red. The metals, oil and gas, auto, energy, healthcare and industrials lost between 0.60 and 1.48 per cent.

NSEL issue: Lokpal seeks vigilance panel report within a fortnight

 

In what can be a test case for the anti-corruption body, the Lokpal has sought a status report from the Central Vigilance Commission (CVC) which is investigating complaints against Ramesh Abhishek, former head of then commodity market regulator Forward Markets Commission. An eight-member Lokpal bench headed by former judge of the Supreme Court Pinaki Chandra Ghosh sought the CVC report on Abhishek in a fortnight. Click here to read in full the report on Lokpal seeks vigilance panel report on former head of FMC .

Asian stocks wobble on earnings woes, trade worries

 

Asian shares wobbled in early Thursday trading as Wall Street stocks dropped on early signs that the U.S.-China trade war could hurt corporate earnings, helping to underpin solid demand for safe-haven U.S. Treasuries.

MSCI's broadest index of Asia-Pacific shares outside Japan was down a touch, while Japan's benchmark Nikkei fell 1.3% and Australian shares dropped 0.4%. Click here to read in full the Asian markets report .

YES Bank: For retail investors, is this a case of bottom fishing or catching a falling knife?

 

  YES Bank  turned attractive to retail investors in the April-June period when the stock crashed 60 per cent to ₹108.75 from ₹276 level. YES Bank attracted 3.7 lakh fresh retail investors — categorised as individuals holding shares worth up to ₹2 lakh — during the period. Thanks to these freshers, the retail shareholding in the private sector lender jumped to 11.13 per cent as of June 30, from 7.39 per cent at the end of March quarter.

This sharp rise in holding by retail investors was in contrast with the strategy adopted by foreign institutional investors and mutual funds. Click here to read in full prospects for the YES Bank stock .

 

 

Annai Infra Developers gets SEBI nod for IPO

 

Erode (Tamil Nadu)-based Annai Infra Developers which executes water management and irrigation EPC projects, has received approval from SEBI for an IPO. The total size of the IPO is expected to be in the range of ₹200-250 crore.

The IPO will be an offer-for-sale by Subramaniam Ashok Kumar and Duraisamy Kalaiselvi who are the promoters of the company. The company plans to use the money raised through the IPO for financing the purchase of plant and equipment and working capital requirements, among others. The regulator issued its final observations on the IPO proposal on July 12, according to the SEBI website.

Opening bell

The benchmark indices, the BSE Sensex and the NSE Nifty, opened Thursday's session flat. The Sensex was quoting at 39,204, down 11 points or 0.03 per cent lower, while the Nifty was at 11,665, down 22 points or 0.19 per cent lower.

On Wednesday, the Sensex closed at 39,215, a gain of 84 points or 0.22 per cent higher, while the Nifty was at 11,687, up 24 points or 0.21 per cent firmer.

Today's Pick: Equitas Holdings (₹128.2): Buy

 

Investors with a short-term view can buy the stock of Equitas Holdings at current levels. The stock had jumped 5.6 per cent with good volume on Wednesday, breaking a key resistance at ₹125 as well as 200-day moving average line.

Since October 2018 low of ₹78, the stock has been in an intermediate-term uptrend. But it encountered a resistance at ₹143 in early June, and began to decline. The stock was on a corrective decline until last week. Click here to read in full Today's Pick on Equitas Holdings.

 

Day Trading Guide for July 18, 2019

Given below are supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading:

₹2397 • HDFC Bank

 

₹794 • Infosys

 

₹272 • ITC

 

₹149 • ONGC

 

₹1280 • Reliance Ind.

 

₹372 • SBI

 

₹2117 • TCS

 

11675 • Nifty 50 Futures

 

S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2.