Sensex settles above 31100, Nifty nears 9600 at close; US Fed minutes in focus

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Updated: Jun 13, 2017 4:37 PM

Domestic stock market ends flat after erasing the morning gains with the benchmark Sensex up 0.03% at 31,103.49 points while the broader Nifty 50 close in red, down 0.1% at 9,606.9 points. The caution prevails over markets as the upcoming figures of the current account are due later today evening and the most anticipated US Federal Reserve meeting starting from today.

Indian benchmark indices opened flat on Tuesday as the India’s consumer inflation dipped to a five-year low in May while April IIP growth slipped to a disappointing 3.1%. BSE Sensex opened 4 points lower at 31,091.1 points while NSE Nifty opened at 9,615.55 points. Meanwhile, Asian stocks crept higher on Tuesday, defying a weak lead from Wall Street, which was dragged lower by technology stocks for the second day. South Korea’s KOSPI gained 0.3 percent, with the biggest stock Samsung Electronics flat after Monday’s 1.6 percent slump.

The key macro data release lined up for the week includes current account figures to be announced later today followed by the (Wholesale Price Index)WPI– food, fuel, manufacturing, inflation due tomorrow and the balance of trade data for the month of May.

Yesterday, the retail inflation slumped to record low of 2.18% in May driven by a sharp drop in kitchen staples like vegetables and pulses, strengthening government’s case for lowering the interest rate by RBI. For the first time since January 2012, food prices saw deflation in May (-1.05%) and the prospect of good monsoon rains is likely to keep food inflation in check. Inflation apart, industrial output too slipped to 3.1% in April from 6.5% a year ago, possibly because of lagged impact of demonetization, government data showed today. The CPI based retail inflation stood was at 2.99% in April 2017. In May 2016, it was at 5.76%.

On Wall Street, tech giants including Apple, Alphabet, Facebook and Microsoft continued to be sold off for the second consecutive day. That dragged the Nasdaq down 0.5 percent, the S&P 500 0.1 percent and the Dow Jones Industrial Average 0.2 percent.

Here are the live updates:

03:30 pm: Domestic stock market ends flat after erasing the morning gains with the benchmark Sensex up 0.03% at 31,103.49 points while the broader Nifty 50 close in red, down 0.1% at 9,606.9 points. The caution prevails over markets as the upcoming figures of the current account are due later today evening and the most anticipated US Federal Reserve meeting starting from today.

03:15 pm: Gitanjali Gems’ arm Nakshatra World has received capital markets regulator Sebi’s go-ahead to float an initial public offering. The company had filed draft red herring prospectus (DRHP) with Sebi in March and obtained its ‘observations’ on June 9, which are necessary for launching any public offer, as per the latest update. Going by the draft papers, the IPO comprises 1.8 crore equity shares of Nakshatra World, which offers jewellery under the brands Nakshatra, Gili, Asmi, Sangini, Diya, Parineeta and Rivaaz.

03:00 pm: Most urban-dwelling Indians might have cheered the inflation data released yesterday, which showed that the consumer price index inflation fell to a five-and-a-half-year low of a mere 2.18% for the month of May as compared to the same month a year ago. What must have brought more joy to most households is the fact that food inflation was in negative, which means that prices of food actually fell. However, standing opposite this widespread smile of relief is the face of sobbing Indian farmers, agitating, protesting, and more recently, getting killed while taking bullets.

02:45 pm: E-way bills may cause major hiccups even as the government seems committed to launching GST, India’s biggest tax reform, from 1 July, less than three weeks from today. E-way bill is integral to GST, which talks about the seamless movement of goods and services, as it enables movement of goods worth more than Rs 50,000. Of the many issues that plague e-way bills, the bedrock for GST, the major ones are that they will be valid only for a certain number of days based on the distance of movement of goods, and that a robust IT infrastructure is required to generate the e-way bills something which seems highly unlikely at the moment as even GSTN’s own system is not ready to enable such transactions.

02:30 pm: Private equity and venture capital investments in India in May rose to a 10-year high of $3.1 billion, mainly driven by the Japanese major Softbank’s $1.4 billion investment in the mobile wallet company Paytm, audit and consulting firm EY said on Tuesday. PE/VC investments in May also crossed the $2 billion mark for the third consecutive month, the firm said in a statement. The rising PE/VC investment showed the maturity of the market and widening of available resource pool for entrepreneurs to raise funds, EY said.

02:10 pm: Domestic markets off from day’s high but still trading in green with BSE Sensex up 94 points at 31,189 points while NSE Nifty continued to trade below 9,650, up 16 points at 9,632.5 points.

01:45 pm: Regulator Sebi today barred Shreebhumi Constructions and its directors from the capital market for not complying with public issue norms. A probe by Securities and Exchange Board of India (Sebi) found that the company had allotted redeemable preference shares worth Rs 1.95 crore to 241 people in 2011-12 and 2012- 13. Since these shares were issued to more than 50 investors by the company, this qualified to be a public issue, which requires compulsory listing on recognised stock exchanges.

01:30 pm: Prices of a majority of essential drugs will increase by up to 2.29% when the Goods and Services Tax regime kicks in from next month. The government has fixed GST rate of 12 per cent on most of the essential drugs as against the current tax incidence of around 9 per cent. However, some select medicines such as insulin will see a reduction in prices with the government revising GST rate downwards to 5 per cent from 12 per cent proposed earlier. The National List of Essential Medicines includes the likes of Heparin, Warfarin, Diltiazem, Diazepam, Ibuprofen, Propranolol and Imatinib.

01:15 pm: Fast food chain Wow! Momo today said it has raised Rs 44 crore in Series B funding from venture capital firm Lighthouse Funds and angel investor group Indian Angel Network (IAN). The latest round of funding led by Lighthouse Funds, which invests in mid-market consumer-driven firms, values the company at Rs 230 crore, the Kolkata-based firm said in a statement. Besides, it also provided “a highly profitable” exit to the tune of Rs 10 crore to some of the IAN investors who decided to sell their shares partly/completely to Lighthouse, it added.

01:00 pm: In a range-bound trade, the rupee ruled steady against the American currency at 64.43 per dollar in the late morning trade despite weakness of dollar in the overseas market. The domestic unit hovered in a range of 64.41 and 64.49 before quoting at 64.43 per dollar at 1115 hours. Overseas, the US dollar edged lower against its major peers yesterday, but climbed against the British pound as investors questioned what would be next for the UK government as it struggles with a hung Parliament just before Brexit talks are scheduled to begin in a week.

12:42 am: Domestic markets extend the morning gains with BSE Sensex rising over 140 points to trade at 31,242.25 points while NSE Nifty nears 9,650, up 33 points at 9,649.5 points. The financial services and FMCG index of NSE, Nifty Fin Service and Nifty FMCG hit the record high at 9,701.35 points and 25,965.3 points respectively.

12:05 am: One of the most anticipated IPOs of the year, that of BSE Ltd’s subsidiary Central Depository Services (India) Limited, is set to open for subscription later this month. The issue will open for bidding on 19 June and close on 21 June with a price band of Rs 145-149 per share. The minimum bid size is 100 shares with a total of 35,167,208 shares on offer. The shares with a face value Rs 10 each will list on NSE and the retail allocation has been fixed at 35%.

11:45 am: Sun Pharma shares surged over 3 per cent in early trade today on the BSE and NSE after the country’s largest drugmaker said it has got final approval from the USFDA for launching in the US a generic version of the anti-cholesterol medicine Zetia tablets. Sun Pharma shares were trading at Rs 540 on BSE, up 1.35 per cent after rising to a high of Rs 551.40. Yesterday too, Sun Pharmaceutical’s shares rose 1.6 percent due to a reduction in GST rates for insulin.

11:30 am: Gold prices softened by 0.12 per cent to Rs 28,957 per 10 grams in futures trade today as speculators trimmed their positions, tracking a weak trend overseas. At the Multi Commodity Exchange, gold for delivery in August declined by Rs 36, or 0.12 per cent to Rs 28,957 per ten grams in business turnover of 411 lots. Likewise, the metal for delivery in October contracts shed Rs 32, or 0.11 per cent to Rs 29,112 per ten grams in 2 lots. Market analysts said offloading of positions by participants in line with a weak trend overseas, mainly led to decline in gold prices at futures trade.

11:10 am: Domestic markets hold the morning gains with BSE Sensex up 100 points at 31,195 points while NSE Nifty inches up to 9,650, up 35 points at 9,641.05 points. The shares of HDFC and HDFC Bank continue to shine, hit a fresh lifetime high of Rs 1,678.95 and Rs 1,681 respectively on NSE while the blue-chip drugmaker Sun Pharma rose over 1.5% after the later has received final approval from US FDA for its Abbreviated New Drug Application (ANDA) for generic version of Zetia, (ezetimibe) Tablets 10mg. These generic ezetimibe tablets are therapeutic equivalents of Merck’s Zetia tablets. As per IMS, ezetimibe tablets had annual sales of approximately US$2.7 billion in the US for the 12 months ended April 2017, Sun Pharma said in a press release.

10:55 am: Indian bonds and shares rose on Tuesday after much softer-than-expected inflation data fuelled hopes of a rate cut by the central bank at its next policy review in August, with some traders even pushing for a move ahead of the meeting. The five-year benchmark overnight indexed swap, which closely tracks rate expectations, fell 4 bps to 6.21 percent. The one-year swap was down 5 bps at 6.20 percent. Shares edged higher, with the broader NSE index up 0.2 percent, led by gains in banks such as ICICI Bank. But the rupee was steady at 64.46 per dollar, compared with its previous close of 64.45.

10:40 am: Wipro’s ADRs fell over 47 percent to $10.45 in pre-market trading on the New York Stock Exchange yesterday on the news of fixing the record date for bonus share issue in India before the company moved in to contain the damage, while the exchange suspended trading in Wipro ADRs. ADRs are instruments denominated in US dollars and the underlying shares are that of a foreign company. Wipro’s ADRs have seen steep volatility after the company fixed June 14 as the record date for a bonus share issue to the shareholders in India. Wipro quickly moved in to control the situations, clarifying that the dates for bonus payout in American ADRs are yet to be finalised.

10:25 am: The US Federal Reserve is widely expected to hike the policy rate this time, markets will also keenly watch its communication on US economic growth and future rate hike trajectory. More importantly, it remains to be seen when Fed Chairman Yellen and other policymakers on penal will look at downsizing the Fed balance sheet.

10:05 am: Stocks got back into shape today as the Sensex recovered 102 points to 31,198 in early session —
chiefly buoyed by a cooling inflation — amid mixed Asian cues. Sectoral indices such as healthcare, realty, capital goods, power and consumer durables looked good. Sun Pharma, Lupin, GAIL, L&T, Axis Bank and Bajaj Auto, among others supported the up move, which rose by up to 2.34%. The NSE index Nifty bounced 30.10 points, or 0.31%, at 9,646.50.

09:40 am: The rupee today saw a subdued start with a loss of just one paise at 64.45 against the US dollar. Strength in the dollar against other currencies overseas made the rupee keep a low profile. Yesterday, the rupee was down 20 paise to end at a one-week low of 64.44 amid concerns about a probable Fed rate increase.

09:15 am: Indian markets open flat as the inflation figures dropped to five-year low and the caution ahead of the current account figures to be announced later today. The benchmark Sensex opens at 31,091.1 points while the 50-share barometer was at 9,615.55 points. 

With inputs from Reuters and Press Trust of India.

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