Indian benchmark indices opened flat on Friday tracking the global cues with BSE Sensex edges below 31,200, down 16 points at 31,196.36 points while NSE Nifty was down 8 points at 9,638.55 points. Sterling fell sharply on Friday as British elections seemed to leave no single party with a clear claim to power, sideswiping investors who had already weathered major risk events in the United States and Europe.
The pound shed as much as three US cents at one point in hectic trade, or close to 2%, before steadying as the results waxed and waned. Futures for the British stock exchange, FTSE eased 0.3%, while yields on 10-year gilts dipped 3 basis points to 1%. The euro eased 0.2% to $1.1193 against US dollar. The single currency had slipped overnight when the European Central Bank cut forecasts for inflation and said it had not discussed scaling back its massive bond-buying campaign, sending bond yields to multi-month lows.
Meanwhile, Japan’s Nikkei soared on Friday as index heavyweight SoftBank leapt 7% after its unit agreed to buy a robotics firm, but traders said chances of a shock election result in the UK, where the vote was underway, had put investors on edge.
The Nikkei share average, built on early gains to stand 0.8% higher at 20,065.89 points by midmorning. South Korean shares hit a fresh record high on Friday, taking their gains this year to more than 17 percent, as investors snapped up shares of tech and brokerage firms on expectations of stronger earnings.
Here are the live updates:
03:30 pm: Stock Markets end marginally higher after recovering the morning losses with the benchmark Sensex up 0.16% at 31,262.06 points while the broader Nifty 50 ends above 9,650, up 0.22% at 9,668,25 points. The major gainers on Sensex includes Maruti Suzuki (up 3%), Tata Steel (up 1.47%), Tata Motors (up 1.4%), HDFC Bank (up 1.3%). The IT major Infosys which tumbled over 3% in the morning trade ended 0.8% lower at Rs 948.65.
03:07 pm: Domestic markets recovers and trade marginally higher with BSE Sensex up 0.23% at 31,286.28 points while NSE Nifty firms above 9,650, up 0.29% at 9,675,4 points. The benchmark indices for the banking, auto stocks of NSE namely Nifty Bank and Nifty Auto hit the record highs at 23,707.65 points and 11,054.25 points respectively.
02:45 pm: Online tax filing portal ClearTax today launched a software which will help dealers and retailers in the preparation of tax returns under the Goods and Services Tax (GST) regime. The ClearTax GST software prevents mismatches and has separate versions for CAs and Enterprises — GST Pro and GST Biz. It reinforces ClearTax’s commitment to simplifying indirect taxes after taking a lead in simplifying direct taxes, ClearTax said in a statement.
02:30 pm: BSE has asked stock brokers to submit details on training programmes for their staff with respect to anti-money laundering and combating the financing of terrorism, for the past three fiscals, by June 19. Amid the crackdown on shell companies, the Finance Ministry has sought detailed information with respect to stock brokers in order to understand their compliance levels in terms of norms pertaining to curb money laundering and terror financing activities. Following a directive from the Department of Economic Affairs, markets regulator Sebi, on June 1, had asked BSE to provide the relevant details of the stock brokers by June 20.
02:15 pm: Drug firm Wockhardt has received shareholders’ approval to raise up to Rs 1,000 crore through equity shares or other securities. The company sought approval through postal ballot for raising additional capital by way of one or more public or private offerings including through a Qualified Institutional Placement (QIP) for an amount not exceeding Rs 1,000 crore. Shares of Wockhardt were trading at Rs 636.30 per scrip in the afternoon trade on the BSE, up 0.15% from the previous close.
01:50 pm: Infosys Ltd’s shares partially recovered from the day’s lows but were still among the top losers on the BSE Sensex after the company denied the news report that the original founders are planning to sell their entire 12.75% equity stake. Infosys shares, which have vastly underperformed the benchmark indices in the last 1-2 years have been rated at ‘buy’ by several brokerages. HDFC Institutional Research put a target price of Rs 1,130 on Infosys shares in a report dated 13 April 2017 on the back of steady operational performance. Motilal Oswal has a target price of Rs 1,200 on Infosys shares, implying about 29% upside, despite its recovery taking a pause because of unexpected blips through the year.
01:30 pm: The stocks heavyweight companies rise to record highs despite the weak trade in the benchmark indices. Shares of blue-chips hit the record high on NSE with the Automobile major Maruti Suzuki (at Rs 7,424.05), most valuable private sector lender HDFC Bank (at Rs 1,663), the largest housing finance firm HDFC (at Rs 1,644.75). Kotak Mahindra Bank, IndusInd Bank also hit the fresh lifetime highs at Rs 986 and Rs 1,538 respectively.
01:15 pm: Inflation in India is expected to have cooled to a new record low in May, a Reuters poll found, which could add pressure on the Reserve Bank of India to cut interest rates later in the year. The consumer price index likely rose 2.60 percent in May from a year earlier, dipping from 2.99 percent in April, due to a fall in the cost of pulses, cereals and perishable goods, according to the poll of 25 economists.
01:00 pm: Indian shares fell on Friday, with Infosys dragging benchmark indexes lower following a report its founders were preparing to exit the IT bellwether, while the prospects of a hung parliament in the UK also hurt sentiment. Infosys was trading 1.62 percent lower, after falling as much as 3.5 percent, despite the company denying a Times of India report that said the company’s promoters were looking to sell their entire stake. Both the BSE and NSE indexes were headed for their first weekly fall in five. Global market sentiment took a hit after British elections left no single party with a clear claim to power ahead of talks to exit the European Union
12:45 pm: The pound fell sharply on Friday after British Prime Minister Theresa May’s Conservative Party lost its parliamentary majority in a general election, throwing the country’s politics into turmoil and potentially disrupting Brexit negotiations. Sterling was down 1.6 percent at $1.2761 after sliding to as low as $1.2693, down about 2 percent and the weakest since April 18. But reactions in other major currencies such as the dollar, euro and yen were limited, also having taken in stride testimony by former FBI Director James Comey, which was initially expected to be the other big event of the week.
12:30 pm: Indian markets continue to trade lower amid the global cues with the benchmark Sensex down 61.58 points or 0.2% at 31,147.6 points while the broader Nifty 50 down 19.8 points or 0.21% at 9,627.45 points. The shares of the IT major Infosys which fell over 3% in the early morning trade recovers partially but still trade down 1.7% at Rs 940.
12:05 pm: Infosys Ltd’s shares continued to trade under heavy pressure after weak opening on the bourses today on news report that India’s bellwether information technology services company’s original founders are looking to sell their entire 12.75% equity stake and sever their all ties with the firm after a bitter feud with the current management over corporate governance. While the BSE Sensex has returned 17.86% in the last two years and 15.51% in the last one year, Infosys shares have lost 4.38% in two years and 22.77% in the last one year alone. Infosys scrip, down 1.63% at Rs 940.7 in late morning trade, was the top laggard dragging the benchmark BSE Sensex, which was down 0.12%. The Times of India reported that founders N R Narayana Murthy, Kris Gopalakrishnan, Nandan Nilekani, S D Shibulal and K Dinesh are planning to cut all their ties with the company they founded back in 1981.
11:50 am: The IndusInd Bank has entered into an agreement with Overseas Private Investment Corporation to raise $225 million loans to support expansion of its micro, small and medium enterprise lending programmes across India. At least 25 per cent of the proposed facility will support women entrepreneurs and reach to populations who previously had no access to banking facility. The eight-year loan is part of the bank’s programme to support $1 billion in loans to undeserved small and medium enterprises in India, a statement said yesterday.
11:35 am: The rupee recovered from initial losses and was trading almost flat at 64.22 against the US dollar in late morning deals on fresh selling of the American currency by banks and exporters. Earlier, the domestic currency resumed lower by 6 paise to 64.27 as against yesterday’s closing level of 64.21 per dollar at the Interbank Foreign Exchange. The domestic unit hovered in a range of 64.2750 and 64.1750 per dollar during the morning deals before quoting at 64.22 at 1025 hours. The dollar index was trading down 0.01 per cent at 97.20 against a basket of six currencies in the global market.
11:15 am: Continuing its losing streak for the third straight day, gold prices fell by another 0.21 per cent to Rs 29,199 per 10 grams in futures trade today as speculators engaged in reducing their bets in line with a subdued trend overseas. At the Multi Commodity Exchange, gold for delivery in far-month October declined by Rs 60, or 0.21 per cent, to Rs 29,119 per 10 grams, in a business turnover of three lots. Similarly, the yellow metal for delivery in August shed Rs 56, or 0.19 per cent, to Rs 29,075 per 10 grams in 401 lots.
11:00 am: The pound fell sharply on Friday after British Prime Minister Theresa May’s Conservative Party lost its parliamentary majority in a general election, throwing the country’s politics into turmoil and potentially disrupting Brexit negotiations. Sterling was down 1.6 percent at $1.2761 after sliding to as low as $1.2693, down about 2 percent and the weakest since April 18. May faced calls to quit on Friday after her election gamble to win a stronger mandate backfired, leaving no single party with a clear claim to power just 10 days ahead of the start of negotiations on Britain’s divorce from the European Union.
10:40 am: Shares of Infosys fell as much as 3.5% to their lowest in over a month on Friday after a newspaper reported the company’s founders were planning to sell their stakes, citing people familiar with the development. Earlier today morning the company said in a press release that “Infosys would like to clarify reports in the media speculating on plans of stake sale by the promoters. This speculation has already been categorically denied by the promoters. The company further reiterates that it has no information on any such development. We would like to appeal to the media not to fuel such speculative stories as they are likely to harm the interests of the company and all its stakeholders.
10:18 am: The shares of heavyweight companies pulling the Sensex down with the IT major Infosys (- 41.9 points), FMCG blue-chip ITC (- 18.55 points), one of the biggest private sector lender ICICI Bank (-12.4 points), India’s largest multi-port operator firm Adani Ports (- 6.32 points) and the largest Indian lender SBI (- 4.88 points).
09:50 am: In line with domestic equities, the rupee opened 6 paise lower at 64.27 a dollar in early trade today due to increased demand for the US currency from importers and banks amid cautious global sentiment. Global investors appeared cautious in view of exit polls suggesting chances of hung Parliament in the UK, while the testimony by former FBI Director James Comey before the US Senate also affected global trading.
09:30 am: Sectoral indices led by IT, tech, consumer durables, auto, realty, healthcare and banking stocks were trading in the negative zone. Major losers were Infosys, GAIL, Wipro, Adani Ports, ICICI Bank and State Bank of India, falling by up to 2.28%.
09:15 am: Domestic markets open flat on the global cues with the benchmark Sensex down 16 points at 31,196.36 points while the broader Nifty 50 opens below 9,650, down 8 points at 9,638.55 points. The shares of Infosys, Cipla, HDFC and Reliance Capital are in focus today.
With inputs from Reuters and PTI.