Indian markets are likely to open lower as Asian shares slid on Thursday, led by falls in South Korean tech shares, as investors locked in recent gains after Wall Street’s Dow Jones Industrial Average broke the 22,000 barrier for the first time in its 121-year history. The early indicator of NSE Nifty 50, SGX Nifty was little changed, down 0.14% at 10,073 points.
These stocks will be in action on Thursday ahead of their first quarter earnings:
Indian Oil Company Ltd, Titan, Bajaj Electricals, BSE, CEAT, Colgate, Cummins, ICRA, PNB Housing, Ujjivan, Greaves Cotton, Gujarat Alkalies And Chemicals, HCC, Jindal Saw, Jk Lakshmi Cement, Jyothy Laboratories, Majesco, Ramco Systems, Sequent Scientific, Tejas Networks, Ramco Cements, VIP Industries, Welspun Corp.
Shares of the following companies will be in focus after major announcements and earnings release:
State-owned Punjab National Bank yesterday reported an over 12 per cent rise in net profit at Rs 343.40 crore for the June quarter on robust retail income, better cost management and vigilance on stressed assets. The country’s second largest public sector bank had posted a net profit of Rs 306.36 crore in the corresponding April-June quarter of 2016-17.
Bajaj Finance yesterday said it will pick up nearly 11 per cent stake in mobile wallet company Mobikwik for about Rs 225 crore. In a BSE filing, Bajaj Finance said it has entered into a subscription agreement with One MobiKwik Systems.Under the agreement, it will acquire 10 equity shares and 271,050 compulsory convertible preference shares (CCPS) of Mobikwik.
Offer for sale: Institutional investors today put in bids worth Rs 327 crore for the government stake in Hindustan Copper Ltd (HCL). The government is selling 3.70 crore equity shares, or 4 per cent stake, in Hindustan Copper at a floor price of Rs 64.75 apiece through a two-day offer-for-sale (OFS), with an option to issue a similar number of shares in case of over subscription.
The Anil Ambani-led Reliance Infrastructure (RInfra) yesterday reported 23.91 per cent decline in consolidated net profit for the first quarter ended June 30 at Rs 334 crore.
UCO Bank yesterday said its net losses widened to Rs 663.02 crore for the first quarter ended June 30, as asset quality deteriorated in the period.Asset quality worsened with gross non-performing assets hitting 19.87 per cent of the gross advances as on June 30, from 17.19 per cent at the end of June 2016. Gross NPAs were 17.12 per cent as on March 31, 2017.
Realty firm Godrej Properties yesterday reported a 46 per cent decline in net profit to Rs 23.37 crore for the quarter ended June.
Drug firm Wockhardt yesterday reported a consolidated net loss of Rs 409.66 crore for the quarter to June 2017, hit by settlement cost of commercial litigation in the UK.
Shares of Hero MotoCorp yesterday rose by over 2 per cent after the country’s largest two-wheeler maker reported a 17.13 per cent increase in sales for July. The scrip gained 2.12 per cent to settle at Rs 3,800.35 on BSE. Intra-day, it went up by 3.12 per cent to Rs 3,838.
Monnet Ispat & Energy Ltd yesterday reported widening of its standalone net loss to Rs 400 crore for the quarter ended June 30 2017.
IT stocks yesterday came under selling pressure, losing up to 2 per cent, after the rupee gained strength against the dollar.
Shares of TCS fell by 1.30 per cent, Infosys declined 1.25 per cent, Hexaware Tech dipped 2.17 per cent, Tech Mahindra (0.22 per cent) and HCL Tech (0.05 per cent) on BSE. Led by losses in these stocks, the BSE IT index fell by 0.88 per cent to close at 10,348.89. IT companies receive major chunk of their revenue in dollar from their US clients.
India’s third-largest software exporter Wipro today said it has invested an undisclosed sum in a software testing company, Tricentis. The investment was made through Wipro Ventures, the strategic investment arm of the company, as part of their
(Tricentis) most recent funding round, Wipro said in a statement.
Initial Public Offerings:
The initial share sale offer of Security and Intelligence Services (India) Limited (SIS) was oversubscribed 7 times on the last day of bidding yesterday. The IPO to raise up to Rs 780 crore received bids for 3,72,20,814 shares against the total issue size of 53,16,187 shares, according to data available with the NSE till 1930 hours.
The initial share sale offer of Cochin Shipyard was oversubscribed 3.16 times on the second day of the three-day bidding yesterday. The IPO received bids for 10,72,21,140 shares against the total issue size of 3,39,84,000 shares, data available with the NSE showed.
Indian stock markets closing on Wednesday after RBI third bi-monthly monetary policy:
Indian equities continue to trade lower even after the Reserve Bank of India cut repo rate on Wednesday by 25 basis points to 6% in its latest credit and monetary policy review. The central bank of India has reduced the key policy rates for the first time in this fiscal year, as was expected given the constantly falling inflation. The benchmark Sensex was trading 236 points lower after the policy was announced while the broader Nifty 50 was slipped 48 points down to the day’s low of 10,066.95 points. The most awaited RBI’s decision to lower the policy rate to 6% failed to boost sentiment.
The revised repo rate at 6% is the lowest in six-and-a-half years since November 2010. The central bank also kept the policy stance ‘neutral’ with an eye on inflation, which it said will be watched for a rise later this year. Accordingly, the revised reverse repo rate and the marginal standing facility rate will now stand at 5.75% and 6.25%, respectively, the RBI said in a statement. This is the first rate cut since October 2016 and the interest rate is now at a 6-year low. They added that no change in cash reserve ratio too had a bearing.
Banking stocks on Wednesday after RBI’s action:
Interest rate sensitive stocks — banking, realty and auto — today fell by up to 4 per cent after the Reserve Bank cut benchmark lending rate by 0.25 per cent as it failed to enthuse investors. Kotak Mahindra Bank slipped 1.39 per cent, Indusind Bank (0.90 pc), SBI (0.37 pc), ICICI Bank (0.20 pc), Federal Bank (0.13 pc) and HDFC Bank (0.04 pc) on BSE.
The BSE bank index fell 0.16 per cent to close the day at 28,356.31.
Rupee closing on Wednesday:
Stamping its best single-day show this year, the rupee today surged by 37 paise to breach the the psychological 64-level against the US dollar and finally ended at a fresh two-year high of 63.70 after the RBI set the platform by lowering the repo rate by 0.25 per cent. This is the best closing for the home currency since July 22, 2015, when it had ended at 63.58 against the US dollar. The domestic currency today rode on high optimism as the central bank after a 10-month pause decided to cut the benchmark interest rate by 25 basis points to 6 per cent, the lowest in over 6 years.
Wall Street stocks record high:
The Dow Jones Industrial Average climbed above the 22,000 mark for the first time on Wednesday, buoyed by Apple’s healthy quarterly iPhone sales, while weakness in other tech stocks held back the Nasdaq and S&P 500. Apple jumped 4.73 percent to a record high after the world’s largest publicly listed company reported strong results. It is up 36 percent this year. The iPhone maker’s rise helped push the Dow to a record closing high, although tech heavyweights Microsoft, Facebook and Alphabet all lost ground following recent strong gains that have made the sector the strongest performer in 2017.