Sensex today: IndiGo tanks 11% in a day, index slips 73 points; Kotak Bank, Asian Paints top losers
Sensex today: IndiGo tanks 11% in a day, index slips 73 points; Kotak Bank, Asian Paints top losers
The benchmark indices declined on Thursday, dragged down by IT and pharma stocks, while caution prevailed as hopes waned for real progress in Sino-US trade talks due later in the day. The Sensex ended at 35,103, down 73.28 points, while the broader Nifty50 closed at 10,679, down 38.40 points.
In the broader market, the BSE Midcap slipped over 1 per cent, while the BSE Smallcap dipped 0.8 per cent. Market breadth, indicating the overall health of the market, remained negative. On the BSE, 1,833 shares declined, 831 shares gained while 135 shares remained unchanged.
Asian shares fell, while the US dollar consolidated recent bumper gains after the Federal Reserve reaffirmed the outlook for more rate hikes. Reports that the Trump administration is considering executive action to restrict some Chinese companies’ ability to sell telecoms equipment in the United States were a dampener.
The MSCI world equity index, which tracks shares in 47 countries, traded flat in percentage terms. Europe’s pan-European STOXX 600 index was down 0.1 percent as the euro held firm.
As the Fed policy meeting threw up no surprises with rates left unchanged, the focus shifted back to simmering trade tensions between the United States and China, as well as the ongoing first quarter earnings season.
In Europe, earnings disappointments from medical technology company Smith & Nephew and postal services provider Bpost soured the mood as the stocks fell 5.9 percent and 10.9 percent respectively, while German drug and crop chemicals maker Bayer flagged a stronger euro in its update.
E-Mini futures for the S&P 500 crept 0.3 percent higher, with overnight results from Kraft Heinz, Tesla and Spotify in focus.
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Anand James, Chief Market Strategist, Geojit Financial Services
Market remained volatile throughout as US china talks rekindled fears of escalation of trade war. This meant that profit booking persisted, even in an otherwise buoyant IT sector, resigning Nifty to languish around the 10700 level. Expectation is that positive FOMC outcome and earnings positivity will seek to extend markets’ uptrend, but FII’s persistent remains a concern.
Sensex Heatmap at Close
Source: BSE
Markets at Close
The Sensex ended at 35,103, down 73.28 points, while the broader Nifty50 closed at 10,679, down 38.40 points. In the broader market, the BSE Midcap slipped over 1 per cent, while the BSE Smallcap dipped 0.8 per cent.
Buzzing Stock
Biocon’s shares lost as much as 5.1 per cent in their biggest daily percentage loss since Feb. 6, after its Bangalore sterile drug product facility got seven observations from US FDA and six from an European regulator.
PC Jeweller share price recovers after Zee Business speaks to MD Balram Garg
PC Jeweller share pirce recovered a whopping 32 per cent from its intraday low after jewellery firm's Managing Editor Balram Garg denied reports of his arrest and Central Bureau of Investigation (CBI) conducting searches at its Nagpur stores. At 2:15 pm, the stock was trading at Rs 114.55, up 3.5 per cent on the BSE. The stock had tanked as much as 14 per cent to Rs 95 in the morning trade. After Garg's clarification, the stock rallied to hit an intraday high of Rs 125.70.
"We don't know who are spreading these rumours. No investigation is going on. We have not received any notices from CBI, Sebi or other agencies. Keep faith in the company. Business is going on smoothely the way it was before the stock crash," said Balram Garg exlusively to Zee Business.
PC Jeweller share price tanks 68% in 9 days; big block deal reported
PC Jeweller share price on Thursday slipped below its crucial psychological level of Rs 100, extending losses for the ninth straight session. The stock recovered some lost ground after a huge block deal of about Rs 17 lakh shares took place in late morning deals.
In a fresh development, one of the investors Fidelity Magellan Fund sold nearly 2.5 per cent stake in PC Jeweller last week. "Fidelity managed funds have sold 46,88,466 shares (~1.19 per cent stake) on April 27, 2018 taking the total holding to 7.04 per cent. Fidelity sold its shares in open market," said PC Jeweller in a filing to BSE.
IndiGo share price goes into tailspin, plunges 17% after steep fall in Q4 profit
IndiGo share price tanked over 17 per cent on Thursday after the low-cost airline reported 73 per cent drop in profit after tax (PAT) to Rs 117.64 crore for the March quarter as higher fuel costs and foreign exchange loss took a toll on its bottom line. It had reported a PAT of Rs 440.31 crore in the year-ago period. The stock tanked as much as 17.57 per cent to Rs 1111.30 on the BSE.
In its report, brokerage Motilal Oswal Securities has maintained 'neutral' rating on the stock with a target price of Rs 1,318. "The stock is trading at 14.4 times FY20E EPS of Rs 94.1 and 8.4 times FY20E adj. EV/EBITDAR. Peak valuations leave little room for upside, in our view. We value INDIGO at 14 times FY20 EPS to arrive at a TP of Rs 1,318," said the brokerage in a results review report.
Fast Money: Top 20 intraday trading tips for Thursday's trade
Market Breadth Remains Negative
Market breadth, indicating the overall health of the market, remained negative. On the BSE 656 shares declined, 414 shares gained while 33 shares remained unchanged.
Markets at Open
At 9:25 am, the Sensex was trading at 35,152, down 23.59 points, while the broader Nifty50 was ruling at 10,702, down 15.60 points. In the broader market, BSE Midcap and the BSE Smallcap indices shed 0.3 per cent each.
Wall Street on Thursday
US stocks fell on Wednesday as potential U.S. restrictions on Chinese telecom companies reinforced investor concerns about worsening trade relations between the United States and China. Wall Street’s major indexes had briefly moved higher after the Federal Reserve left interest rates unchanged in its policy announcement on Wednesday but gave up gains as the session progressed. The Dow Jones Industrial Average fell 174.07 points, or 0.72 per cent, to 23,924.98, the S&P 500 lost 19.13 points, or 0.72 per cent, to 2,635.67 and the Nasdaq Composite dropped 29.81 points, or 0.42 per cent, to 7,100.90.
US Federal Reserve leaves interest rates unchanged, says inflation near goal
The Federal Reserve held interest rates steady on Wednesday and expressed confidence that a recent rise in inflation to near the U.S. central bank`s target would be sustained, leaving it on track to raise borrowing costs in June. The upgrading of the Fed`s inflation outlook represented a milestone after roughly six years of price gains falling short of its 2 percent goal, even as key aspects of the economy saw a healthy recovery from the 2007-2009 recession.
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The Sensex failed to hold the strong opening gains and managed to end a tad higher in a volatile trade today, tracking weak Asian cues ahead of US Federal Reserve policy decision. The broader Nifty, however, closed lower by over 21 points as losses in Tata Steel, HUL and SBI stocks offset gains in Kotak Mahindra Bank, ITC, HDFC and Reliance Industries.
So far, corporate earnings and positive auto sales have brought positivity among investors, but at the same time weakening rupee and surge in oil prices made investors a bit cautious.
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