Sensex today: Bharti Airtel, Infosys top losers; index ends flat on global trade war fears
Sensex today: Bharti Airtel, Infosys top losers; index ends flat on global trade war fears
Sensex today: The benchmark indices ended flat on Friday, tracking negative trend in global markets after Asian markets and US futures slipped as US President Donald Trump proposed additional tariffs on China, aggravating trade tensions and smothering a revival in broader investor risk appetite. The Sensex ended at 33,626, up 30.17 points, while the broader Nifty50 closed at 10,331, up 6.45 points. In the broader market, the BSE Midcap and the BSE Smallcap indices gained 0.6 per cent each.
Trump said on Thursday that he had directed US trade officials to identify tariffs on $100 billion worth additional Chinese imports, escalating the dispute between the world’s two largest economies. Asia shares ex-Japan slipped 0.13 per cent, while US stock futures fell more than 1 percent. Global markets have been volatile this week amid the back-and-forth of the US-China trade conflict.
Losses may however get capped by positive sentiment created by RBI monetary policy which sounded dovish and triggered a sharp rally in the previous session. "The RBI has left the repo rate unchanged at 6% as was widely expected. However, the policy undertone was more neutral this time versus the hawkish stance in the previous policy. Specifically, CPI projection for FY19 has been marked down by ~30‐40bps to 4.6%, reflecting the downward surprise in the incoming data in recent months. Still, the RBI feels that the risks are tilted to the upside given uncertainty around MSP hikes, fiscal slippage and crude oil prices. Meanwhile, the policymakers see the growth momentum picking up helped by early signs of capex revival and improving global demand, although GDP forecast for FY19 has been retained at 7.4%. Overall, it was a status quo policy review with neutral bias. We continue to expect a pause in the rates going forward as well," said Edelweiss Securities.
Overseas, global markets fell after US President Donald Trump’s threat to impose an extra $100 billion in tariffs on China exacerbated fears of a more serious trade dispute, while the dollar paused ahead of crucial US payrolls data.
European shares followed their Asian counterparts into the red but the falls were limited, and the broader ups and downs for markets this week suggest investors are not yet convinced the row will escalate into a full-blown trade war that threatens global economic growth.
Britain’s FTSE 100 dropped 0.3 per cent while the German Dax was down 0.56 per cent and France’s CAC 40 0.41 per cent.
The MSCI World Index slipped 0.15 per cent while S&P 500 E-mini futures were down 1 per cent, pointing to a lower start for Wall Street when it opens.
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Vinod Nair, Head of Research, Geojit Financial Services
Market was range bound as investors are still nervous about global trade tensions while better domestic triggers is providing support. Focus has shifted to earnings growth which is at an early stage of revival, any scope of upgrade will subside volatility due to global headwinds. PSU Banks & Pharma stocks outperformed due to gradual accumulation and USFDA approvals.
Markets At Close
The Sensex ended at 33,626, up 30.17 points, while the broader Nifty50 closed at 10,331, up 6.45 points. In the broader market, the BSE Midcap and the BSE Smallcap indices gained 0.6 per cent each.
Buzzing Stock
Reliance Communications rallied over 4 per cent after Supreme Court allowed the Anil Ambani-owned telco to sell most of its assets to Reliance Jio Infocomm to pare its nearly Rs 45,000-crore debt. However, RCom will require separate approval for selling tower and fibre assets, from the National Company Law Appellate Tribunal (NCLAT).
Nifty PSU Bank top loser
After a 5 per cent rally in the previous session, Nifty PSU Bank shed over 1 per cent and was the top sectoral loser among NSE indices. Bank of India, Oriental Bank, Union Bank and IDBI shed the most, slipping up to 2 per cent.
Nifty Outlook by IIFL
Nifty finds support around 10,250 while 10,400 will act as resistance. Bank Nifty finds support around 24,500 while 24,860 will act as resistance on the upside.
Stocks in News
- Reliance Communications: The company hopes to cut debt by Rs 25,000 crore after SC allows asset sale
- Eros International: The company has partnered Royal Challengers Bangalore as title sponsor
- Tata Motors: the company launched three CVs in Malaysia
- Larsen & Toubro: SFIO has received a complaint against L&T Group of financial irregularities
- Kridhan Infra: Gets order worth Rs 134 crore in Singapore
- Kirloskar Oil Engines plans to double topline this year
- Tata Comm shareholders meet on May 10 for surplus land transfer
- IndiGo rules out bidding for Air India
- Cochin Shipyard setting up 42-acre ship repair facility
- NALCO signs MoU on commercial use of Nano based Emrion tech
- HCL Technologies acquires life sciences and consumer services provider C3i solutions
- Sobha says new sales volume in fourth quarter up 40.4 percent at 10.15 lakh. square feet from 7.23 lakh square feet earlier. New sales value up 30 percent and price realisations down 7.5 percent.
- Coal India sets Rs 9,500 crore capex target for FY19. Company may hike salaries of executives in 2 months
- Indian Oil acquires 17 percent stake in Mukhaizna oil field in Oman from Shell for $329 million.
- Sona Koyo says promoter JTEKT Corp proposed to sell 35.14 lakh shares (1.8 percent) via an offer for sale at Rs 85 per share.
- Majesco says Tier one specialty insurer has signed 3-year agreement for application management services with company.
- Ballarpur Industries has signed agreement to sale its Malaysian subsidiary for USD 310mn. Seems sold at lower value
- Magma Fincorp Approved QIP floor price at Rs.154.47
- Diamond Power Infrastructure: The CBI today said it had registered a criminal case against a Vadodara-based company, Diamond Power Infrastructure, dealing in electric cable and equipment and its directors for allegedly cheating various banks to the tune of Rs 2,654 crore. The central probe agency also launched searches at the official and residential premises of the company
- Sagar Cement reported dispatched 0.31 Mln MT in March 2018 as compared to 0.28 Mln MT in March -2017 and 0.25 Mln MT in Feb 2018. Company acquires two mini hydel power plants in Andhra Pradesh
Source: Nirmal Bang
Axis Capital on RBI policy
We think the RBI has erred on the side of dovishness despite uncertainties to both the growth and inflation outlook. It could be that the central bank has found comfort that these risks can be managed. The downward revision in inflation projection and more conviction in the growth recovery is a signal that the RBI is likely to stay on hold through the year. Despite this, we believe that market rates will be higher than 6 months ago given stricter NPA rule on the banking sector and lingering fiscal concerns. GST collection improvement is the next big trigger for market interest rates.
Market Outlook by Emkay
In the last two sessions, the Nifty has managed a ‘V’ shape recovery. On a strong day, the Nifty breached its immediate Downward Sloping Line and surpassed its immediate resistance of 10280. However, it has closed around its minute resistance of 10350. Overall bias remains positive and sustainability above 10350 can lead to further upside up to 10420 - around which the index could witness stiff resistance. On downside, 10220 and 10120 seem to be good support levels.
- Resistance: 10350/10420
- Support: 10220/10120
Sensex Heatmap at Open
Source: BSE
Market Breadth
Market breadth, indicating the overall health of the market, turned negative. On the BSE, 843 stocks declined, 577 stocks rallied, while 45 stocks remained unchanged.
Market at Open
At 9:20 am, Sensex was trading at 33,582, down 14 points, while the broader Nifty50 was ruling at 10,312, down 12 points. In the broader market, the BSE Midcap and the BSE Smallcap indices were little changed.
Rupee at Open
Rupee opens at 64.93/$ against Thursday’s close of 64.97/$
Idea Cellular, Reliance Communications among key intraday trading ideas
Idea (Sell)
Target: Rs 75
Stoploss: Rs 78- Trai demands Open architecture-based Wi-Fi services
- Data tariff may come down sharply on Trai demand
- The stock trading below all important moving averages
Global markets update
US stock futures slid and the yen rose against the dollar on Friday after U.S. President Donald Trump proposed additional tariffs on China, aggravating trade tensions and smothering a revival in broader investor risk appetite. MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.25 percent. The index has spent the week swinging wildly in and out of negative territory amid the back-and-forth of the U.S.-China trade dispute.
Australian stocks slipped 0.35 percent and South Korea's KOSPI lost 0.3 percent. Japan's Nikkei fell 0.15 percent. The S&P 500 E-mini futures were down 1.2 percent ESc1, pointing to a lower start for Wall Street later in the session.
The Dow and the S&P 500 posted gains for a third day in a row on Thursday, the longest stretch of gains in about a month, as investor fears of an escalating trade conflict between the United States and China abated, turning the focus to upcoming earnings.
Trade tensions, however, returned to the fore after Trump said late on Thursday that he had instructed US trade officials to consider $100 billion in additional tariffs on China, fuelling the trade dispute between the world’s two economic superpowers.
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The benchmark indices ended higher on Thursday after the Reserve Bank of India (RBI) maintained status quo in its first bi-monthly monetary policy review of 2018-19 in line with the expectations. The Sensex ended at 33,596, up 577.73 points, while the broader Nifty50 closed at 10,325, up 196.75 points. Stocks from the rate sensitive sectors rallied. Nifty Bank, Nifty Auto and Nifty Realty indices gained up to 3 per cent. Nifty PSU Bank rallied 5 per cent, top sectoral gainer.
In the broader market, the BSE Midcap and the BSE Smallcap indices outperformed to rally nearly 2 per cent each. Market breadth, indicating the overall health of the market, remained positive. On the BSE, 2,071 stocks rallied, 631 stocks declined, while 133 stocks remained unchanged.
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