1. Sensex ends below 31100, Nifty settles above 9600; PSU bank stocks dive, macro data eyed

Sensex ends below 31100, Nifty settles above 9600; PSU bank stocks dive, macro data eyed

Indian equities close lower ahead of the domestic WPI, IIP data release and caution over US Federal policy due on Wednesday. The benchmark Sensex ends below 31,100, down 166.36 points or 0.53% at 31,095.7 points while the 50-share broad index of NSE ended 51.85 points or 0.54% lower at 9,616.4 points. The worst hit sectoral index was Nifty PSU Bank (down 1.96%), Nifty Pvt Bank (down 1%), Nifty Bank (down 0.93%).

By: | Updated: June 12, 2017 4:11 PM

Indian benchmark indices opened marginally lower on Monday as the investors remain cautious ahead of the key macroeconomic data release later in the week and the ongoing pressure on global markets ahead of the US Federal Policy and the sharp fall in the heavyweight technology stocks of US on Friday last week. BSE Sensex opened marginally lower, down 37 points at 31,225.43 points while NSE Nifty edged below 9,650, down 21 points at 9,646.7 points. The IT index of NSE witnessed a major drop followed by media, bank, auto and FMCG.

The key macro data release lined up for the week includes May inflation rate, manufacturing and industrial production figures which are expected to be out later today followed by the current account figures, WPI– food, fuel, manufacturing, inflation and balance of trade data for the month of May.

Meanwhile, most of the Asian shares which fell in the opening trade with electronics heavyweights such as Samsung Electronics knocked lower by a slide in US tech shares and caution ahead of this week’s US Federal Reserve policy meeting.

Earlier on Friday, US Technology stocks sold off sharply on Friday, taking a toll on the Nasdaq and dragging on other major Wall Street indexes, which touched record highs earlier in the day. The technology sector, which soared this year and led the market’s rally, finished down 2.7 percent, after paring declines.

The Nasdaq Composite dropped 113.85 points, or 1.8 percent, to end at 6,207.92. The Dow Jones Industrial Average rose 89.44 points, or 0.42 percent, to 21,271.97, while the S&P 500 lost 2.02 points, or 0.08 percent, to 2,431.77. Apple Inc shares fell 3.9 percent in their biggest daily percentage decline since April 2016. Facebook Inc fell 3.3 percent, its biggest decline since November 2016, and Alphabet ended down 3.4 percent, its worst day since June 2016, Microsoft Corp fell 2.3 percent.

Here are the live updates:

03:30 pm: Indian equities close lower ahead of the domestic WPI, IIP data release and caution over US Federal policy due on Wednesday. The benchmark Sensex ends below 31,100, down 166.36 points or 0.53% at 31,095.7 points while the 50-share broad index of NSE ended 51.85 points or 0.54% lower at 9,616.4 points. The worst hit sectoral index was Nifty PSU Bank (down 1.96%), Nifty Pvt Bank (down 1%), Nifty Bank (down 0.93%). The major gainers on the Sensex include Infosys (up 1.6%), Sun Pharma (up 1.59%), HUL (up 0.42%).

03:05 pm: Domestic markets continues to trade weak as global cues weigh. BSE Sensex falls below 31,100, down 170 points at 31,092.57 points while NSE Nifty sheds 53 points to trade at 9,614.95 points. Nifty PSU Bank index worst hit today amid all the sectoral indices, down over 1.9% with all the underlying scrips trading in red with losses up to 4.4%.

02:50 pm: High demand for electronics could outpace domestic production, leading to an import requirement of about $300 billion by 2020, a report by Assocham-NEC today said. The report pointed out that while demand for electronic products in India is expected to grow at a CAGR (compound annual growth rate) of 41 per cent to reach $400 billion by 2020, domestic production is growing at a CAGR of 27 per cent. This leaves a huge gap for import to the extent of $300 billion, the joint study said.

02:30 pm: Today Arun Jaitley acknowledged that there’s challenge to credit growth as well as the need for a speedy resolution for all pending NPA cases. Jaitley is reported to have discussed NPA resolution, finances of banks, review of financial inclusion with heads of public banks. Nifty PSU Bank index, which was under pressure since the beginning of trade today, slipped further after this meeting and recorded its biggest intraday percent loss of 1.72% since May 29, while the Nifty Bank index slipped as much as 0.82%. At 1:55 p.m., was down over 1.62% at 3,461.95 points with all the constituent scrips trading lower, while the Nifty Bank index was down 0.74% at 23,516.20 points.

02:05 pm: With GST set to be implemented from July 1, here’s the updated guide to how much tax you’ll have to pay for most daily use items, especially after the council reduced GST rates on 66 items such as jewelry making charges, cashews, raisins, agarbattis, cutlery, etc, and left it unchanged for others such as sanitary napkins and hybrid cars. The Goods and Services Tax (GST) Council on Sunday decided to revise tax rates on 66 products after it received representations on 133 items.

01:50 pm: Investors have pulled out nearly Rs 41,000 crore from various mutual fund schemes in May, with liquid funds witnessing most of the outflows. This comes following an inflow of about Rs 1.51 lakh crore in the preceding month.  Morningstar Investment Adviser Director of Fund Research Kaustubh Belapurkar attributed the outflow to withdrawal from liquid funds, which are susceptible to sharp inflows and outflows as corporates park short term money in these funds.

01:35 pm: Mukesh Ambani-owned Reliance Jio today said telcos not investing in new technology and instead leveraging their balance sheet are themselves to blame for financial difficulties.  Newcomer Reliance Jio, which met the Interministerial Group (IMG) today said operators need to raise funds by selling stake or invest in new technology through internal accruals.  “Operators (excluding Jio) need to invest Rs 1,25,000 crore, pay back debt and they need to invest in technology, as growth is happening in data…they can do this by selling the stake,” said a senior Jio official who did not want to be named.

01:20 pm: Hong Kong stocks fell the most in nearly two months on Monday, as a slump in tech shares – fanned by the sell-off in their U.S. counterparts – triggered broader profit-taking in what had been one of the world’s best-performing equity markets this year. The sentiment was also hurt by worries that tighter credit in China could slow growth in the world’s second-biggest economy.

01:00 pm: China stocks fell on Monday as tech plays succumbed to a sell-off in the U.S. and other Asian markets, and as investors worried that tighter credit will drag on corporate profitability and economic growth in coming months. The blue-chip CSI300 index ended little changed at 3,574.39 points, while the Shanghai Composite Index lost 0.6 percent to 3,139.88. Tech shares dropped sharply, following a sell-off on Wall Street on Friday triggered by concerns about Apple’s new iPhones and a cautious Goldman Sachs report about the sector.

12:40 pm: Daily revision of petrol, diesel prices: The Federation of All India Petroleum Traders (FAIPT) is up in arms against the government’s decision to revise the price of petrol and diesel on a daily basis. The Federation has written to Union Minister for Petroleum and Natural Gas, Dharmendra Pradhan to tell him that the petrol pumps associated with the body will not sell fuel on June 16, the day from which prices will fluctuate daily.

12:20 pm: Indian shares fell on Monday as investors booked profits in recent outperformers including lenders ahead of inflation data due later in the day, while sentiment was cautious ahead of the US Federal Reserve policy meeting this week. Banking stocks fell as sentiment took a hit after India’s western state of Maharashtra agreed on Sunday to write off all loans availed by farmers. The broader NSE index was down 0.51 percent at 9618.55, while the benchmark BSE index was 0.53 percent lower at 31096.40.

11:55 am: The jewellery industry got much-awaited relief from the Goods and Services Tax (GST) Council on Sunday, which in its 16th meeting reduced the applicable tax rate on jewellery making charges from 18% decided earlier to 5%. This sharp cut in the making charges has been welcomed by the jewellery sector. Stocks of jewellery companies were trading higher in early trade today on the back of this positive news. At 10:45 a.m., shares of Gitanjali Gems was trading up Rs 1.80 or 2.77% at Rs 66.80; Tribhovandas Bhimji Zaveri up Rs 2.30 or 2.58% at Rs 91.60; Lypsa Gems and Jewellery up Rs 1.20 or 1.99% at Rs 61.50; PC Jeweller up Rs 7.80 or 1.47% at Rs 538.00 and Titan Company up Rs 7.10 or 1.35% at Rs 532.05.

11:40 am: The Rs 15,000 crore fund-raising by the country’s largest lender SBI is credit positive for the bank and will eliminate its dependence on capital infusion from the government, Moody’s said today. In a report, the US-based agency said any capital infusion from the government will further strengthen the bank’s capitalisation. “The capital increase is credit positive for SBI because it strengthens the bank’s capitalisation and supports credit growth, given the increasing requirements for equity under Basel III,” the rating agency said.

11:20 am: Indian benchmark indices started the week on a negative note, as investors seemed unimpressed by the revised rates on 66 items by the GST Council in its 16th meeting on Sunday and await the macroeconomic data to be released later today. BSE Sensex continues to trade lower, down 119 points at 31,143.4 points while NSE Nifty hovers below 9,650 at 9,632.2 points.

11:05 am: The Goods and Services Tax (GST) Council Sunday revised downward tax rates for 66 items including movie tickets of Rs 100 and below, incense sticks, insulin, school bags, computer printers among others. The tax rate on certain packaged food items like pickles, mustard sauce, murabba, ketchup has been reduced to 12 per cent from the earlier decided 18 per cent, while that on cashew nuts has been cut to 5 per cent from 12 per cent. Relief was also given to small and medium enterprises, with the threshold for composition scheme raised to Rs 75 lakh from the earlier decided level of Rs 50 lakh.

10:43 am: The information technology index of NSE, Nifty IT extend morning losses, down 0.95% at 10.343.15 points followed by the consumer goods index, Nifty FMCG which also trade down 0.62% at 25,780.45 points.

10:20 am: Indian bank stocks fall, with the Nifty PSU bank index down as much as 1.34%, while the Nifty Bank index slips as much as 0.62%. The major decliners include Bank of India, Bank of Baroda, PNB, Federal Bank, Canara Bank, SBI with loss up to 2.8%.

10:00 am: The ongoing political churn in the UK cast its cloud on the rupee as it depreciated 15 paise to 64.39 against the US dollar in early session today ahead of the release of key IIP and inflation data later in the day.

09:45 am: Sensex pick up cues from a lacklustre Asia as it tumbles 156 points after investors started to take profit ahead of key IIP and inflation numbers due later in the day. The 30-share index edges down 155.91 points, or 0.49%, to trade at 31,106.15 points.

09:22 am: Eight out of eleven sectoral indices trade in red in the opening bell with Nifty IT (down 0.63%) witnessing the major drop followed by Nifty Media (down 0.52%), Nifty bank (down 0.39%), Nifty Auto (down 0.35%), Nifty FMCG (down 0.27%); while Nifty Realty (up 0.54%), Nifty Metal (up 0.3%), Nifty Pharma (up 0.19%) gain.

This image shows all the sectoral indices of NSE with Index name in column 1, Index Value in column 2 and Percentage Change in column 3.

With inputs from Reuters and PTI.

 

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