Sensex tanks 232 points, Nifty ends at 10,516; Sun Pharma, Dr Reddy's top losers
Summer vacations are on our heads and airlines are eyeing holiday travellers to give them a big boost in the hot summer months. Families would be out for a good time as schools are set to close and airlines have already started presenting mouth-watering offers in India and abroad. However, the airlines, whether affordable or premium, have been hit by the fuel bomb. There is simply no relief in sight from rising prices of this commodity and it has changed the nature of prospects in coming months from calm to volatile. And not just airlines, even investors in the stocks of these airlines would have been eyeing gains to be milked from this yearly opportunity. But right now, they have been left bleeding badly. Jet Airways, SpiceJet and InterGlobe Aviation share prices today tanked by up to 12 per cent as investors fear that rising fuel prices will inflate the cost of aviation turbine fuel (ATF), putting pressure on airlines' margins even further.
D-Mart tanks 10.5% in two days
Shares of Avenue Supermarts - the operators of retail chain D-Mart, have fallen 6 per cent to Rs 1,338 per share, extending their 5 per cent drop on the BSE on Friday after the company announced that promoter R K Damani would pare his stake to comply with the shareholding norms.
CS share price hits record high on Monday, gains over 2 per cent after the IT major fixed June 2, 2018 as the record date for issuing bonus shares. The stock gained as much as 2.5 per cent to Rs 3591.85 on the BSE even as the benchmark indices remained under pressure. TCS is India's most valued firm in terms of market capitalisation and among 60-odd firms worldover whose market cap rules above $100 billion. The stock has rallied over 32 per cent on a year-to-date basis. By comparison, the Sensex added just 2 per cent.
Markets at Open
At 9:18 am, the Sensex was trading at 34,841, down 7.10 points, while the broader Nifty50 was ruling at 10,598, up 2.55 points. In the broader market, the BSE Midcap and the BSE Smallcap indices underperformed to lose 0.3 per cent and 0.4 per cent, respectively.
The benchmark indices pared opening gains within minutes on Monday as investors reacted to power change in Karnataka after Bhartiya Janta Party failed to win confidence vote in the Parliament. A positive trend in global markets, however, capped the losses.
JD(S) leader H D Kumaraswamy is all set to take over as Karnataka Chief Minister on Wednesday. The Congress JD(S) combine with a claimed strength of 117 with the support of others has been invited by Governor Vajubhai Vala to form the government, giving Kumaraswamy a 15 day window to prove his majority on the floor of the Assembly.
Global Markets Trend
Stocks rose on Monday as US Treasury Secretary Steven Mnuchin declared the U.S. 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.
MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.55 per cent in early trade, led by strong gains in greater China. Hong Kong’s Hang Seng was up 1.0 per cent, Taiwanese shares 1.1 per cent and mainland shares 0.4 per cent. Japan’s Nikkei gained 0.4 per cent.
Mnuchin and US President Donald Trump’s top economic adviser, Larry Kudlow, said the agreement reached by Chinese and American negotiators on Saturday set up a framework for addressing trade imbalances in the future.
FPIs on selling spree
Foreign investors pulled out nearly Rs 18,000 crore from capital markets so far this month primarily due to surge in global crude prices and heightened U.S.-Iran tensions. Foreign portfolio investors had taken out more than Rs 15,500 crore from capital markets (equity and debt) in April.
According to the latest depository data, foreign portfolio investors withdrew a net sum of Rs 4,830 crore from equities and another Rs 12,947 crore from the debt market during May 2-18, taking the total to Rs 17,771 crore.
Markets on Friday
The uncertain political environment in Karnataka along with high global crude oil prices and consistent outflow of foreign funds pulled the key Indian equity indices deep in the red on Friday. Index-wise, the wider Nifty50 of the National Stock Exchange (NSE) ended lower by 86.30 points or 0.81 per cent at 10,596.40 points from its previous close of 10,682.70 points.
Similarly, the barometer 30-scrip Sensitive Index (Sensex) of the BSE declined to end in the negative territory. It had opened at 35,143.59 points, closed at 34,848.30 points -- down 300.82 points or 0.86 per cent -- from its previous session`s close of 35,149.12 points.