Share market HIGHLIGHTS: Continuing the winning streak for the third consecutive session, Sensex and Nifty closed on a higher note on Wednesday on the back of positive global cues and short-covering ahead of November derivatives expiry. Trading with appreciable gains throughout the day, The BSE Sensex closed Wednesday’s trade 203.81 points or 0.57% higher at 35,716.95 points. The NSE Nifty 50 gained 43.25 points or 0.40% to end at 10,728.85 points. Yes Bank was the top loser, cracking nearly 12%
Today’s surge in the stock markets was led by IT stocks, with TCS and Infosys rising up to 5%. Among other gainers were IndusInd Bank, RIL, PowerGrid, HDFC Bank, HDFC, ICICI Bank, Hero MotoCorp and Tata Steel, advancing up to 2%. Yes Bank, on the other hand, was the biggest loser on both the bourses, cracking nearly 12%, after Moody’s Investors Service downgraded its ratings to non-investment grade and changed the bank’s outlook to negative from stable on the back of various resignations from the board. Other losers included Bharti Airtel, Tata Motors, ONGC, L&T, SBI, Coal India and Sun Pharma, falling up to 4%.
Hopes for a thaw in U.S.-China trade relations at the upcoming G20 summit helped world shares inch to a one-week high on Wednesday, though fears of a no-deal outcome weighed on European bourses and kept the dollar firm for the fourth day in a row, said a Reuters report. MSCI’s index of Asian shares outside Japan gained 0.7%. But the mood fizzled somewhat into the European session, with the pan-European index giving up opening gains to trade flat and Germany’s export-heavy bourse slipping 0.2%.
Hopes for a thaw in U.S.-China trade relations at the upcoming G20 summit helped world shares inch to a one-week high on Wednesday, though fears of a no-deal outcome weighed on European bourses and kept the dollar firm for the fourth day in a row, said a Reuters report. While President Donald Trump talked tough on the trade tariffs issue ahead of a meeting with Chinese President Xi Jinping on Saturday, markets focused on comments by White House economic adviser Larry Kudlow, who held open the possibility that the two countries would reach a trade deal. Kudlow's comments helped Wall Street close higher and allowed Chinese and Japanese shares to rally 1%. MSCI's index of Asian shares outside Japan gained 0.7%. But the mood fizzled somewhat into the European session, with the pan-European index giving up opening gains to trade flat and Germany's export-heavy bourse slipping 0.2%.
Yes Bank Wednesday said its board on December 13 will recommend names for new chairman to be approved by the RBI as well as consider appointment of independent directors. The private sector lender, which is grappling with governance as well as NPA issues, has seen resignations of three independent directors, including Chairman Ashok Chawla. In a regulatory filing, the bank said its Nomination & Renumeration Committee (N&RC) of the board and the board of directors are scheduled to meet on December 13. Yes Bank shares ended neaqrly 12% lower at Rs 161.70 per share on the BSE today.
The downgrade by the rating agency follows the Reserve Bank of India’s (RBI) decision to not extend the term of founder and CEO Rana Kapoor beyond January 21, 2018. “The rating action considers the resignation of various members of the board, which have raised concerns over corporate governance,” said Moody. Kapoor reportedly invited the regulatory outrage after the bank was found to have under-reported NPAs worth over Rs 10,000 crore for consecutive years in FY16 and FY17.
There are multiple reasons clouded on Yes Bank at present and they don't seem to fade away so early, even if the stock price is halved. The shock that came in September has very deep roots as the asset quality was a big concern coupled with the Director's extension from RBI being put down. IL&FS exposure and NBFC crunch that happened, With that, we have seen multiple directors resigning in the last few weeks along with recent concerns over its NCD's held by mutual fund houses. It will be important to see Q3 and Q4 results as the shock came late in September. The concerns over its rating are in Dalal Streets and are reflected in the stock price in terms of what we state "panic" or "fear". This is too far from the end as of now. If you look at the stock price which recently jumped in last month from 180 to 250 odd levels is back now to its lower levels. This is a clear indication of distribution at upper levels. The Stock below 160 will be looking to drift further to 133 levels. So at this point better to be risk averse than to come out and take it.
-- Mustafa Nadeem, CEO, Epic Research
Tracking positive global cues, the NSE Nifty 50 gained 43.25 points or 0.40% to end Wednesday's trade at 10,728.85 points. Yes Bank was the top loser, cracking nearly 12%.
Trading with appreciable gains throughout the day, The BSE Sensex closed Wednesday's trade 203.81 points or 0.57% higher at 35,716.95 points. The NSE Nifty 50 gained 43.25 points or 0.40% to end at 10,728.85 points. Yes Bank was the top loser, cracking nearly 12%.
European shares rebounded at the open on Wednesday as the trade war fears which had pushed indexes in the red during the previous session eased on the prospect of a meeting between the U.S. and Chinese presidents at a G20 meeting in Argentina, Reuters reported. The pan-European STOXX 600 benchmark was up 0.4% by 0814 with most major bourses trading comfortably in positive territory. Caution was nevertheless palpable on the trade front with the European automotive sector down about one percent after a German press report on Tuesday mentioned possible new U.S. tariffs on imported cars.
The dollar rose on Wednesday before a speech by the Federal Reserve's chairman that may provide insights into the central bank's plans for monetary tightening and its reaction to recent criticism by U.S. President Donald Trump, according to a Reuters report. The dollar has been under pressure in recent weeks on signs the Fed might slow the pace of rate increases amid slowing global growth, peak corporate earnings and escalating trade tensions. Scaling back rate increases could weaken the dollar, the world's most liquid currency, which has risen 10% since January.
PSU banks stocks slipped into the negative territory on Wednesday despite overall positive market sentiment. Punjab National Bank's shares were down over 3% in the late afternoon deals. Check all stocks here:
Yes Bank shares cracked nearly 10% to an intra-day low of Rs 165.20 per share on the BSE after rating agency downgraded it's rating yesterday. On Tuesday, Moody’s downgraded the bank’s foreign currency issuer rating to Ba1 from Baa3. The decision to cut ratings of the private sector lender was taken amid the top management change and governance issues at the bank.
Read here: Yes Bank share price crashes 10% in 2 days as Moody’s cuts rating; all you need to know
The Nifty IT index gained 2.54% in trade today, led by healthy gains in most IT stocks. Mindtree, TCS, Infosys, Oracle Financial Services Software and NIIT Technologies gained up to 4%.
Even as Sensex and Nifty continue to remain range-bound on the back of various domestic and international factors, Morgan Stanley’s Ridham Desai said that the 2019 Lok Sabha polls will add volatility to the domestic stock markets. “Elections are a binary thing. It’s very hard to judge ahead of time. It’s going to be a source of volatility. Had there elections not been around, we would’ve had a very strong 2019,” Ridham Desai, head of India equity research and India equity strategist said.
Read the full story here: 2019 Lok Sabha polls to add volatility to stock market, says Morgan Stanley’s Ridham Desai
The dollar held near two-week highs on Wednesday, as concerns about Sino-U.S. trade tensions propped up safe haven currencies and as investors awaited cues from the U.S. Federal Reserve on the path of future interest rate increases, said a Reuters report.The dollar has been under pressure in recent weeks on signs the Fed might slow the pace of future rate increases due to slowing global growth, peak corporate earnings and escalating trade tensions. Attention has now turned to a speech by Fed Chairman Jerome Powell later on Wednesday and the minutes from the Fed’s Nov. 7-8 meeting on Thursday. Markets hope to gain fresh insights into the Fed's thinking on the speed and number of rate hikes in the current cycle.
Positive global cues, along with healthy buying in nearly all sectors -- barring the realty and pharma indices -- pushed the NSE Nifty 50 higher during the late morning trade deals today. Around 11.10 am, the Nifty traded at 10,731.85 points, up 46.25 points or 0.43%.
PSU Banks shares traded on a mixed note on Wednesday, with SBI shares gaining 0.71%. Union Bank, PNB, IDBI Bank, Indian Bank and OBC shares traded in the red.
Shares of India's major private sector airline Jet Airways gained more than 7% on Wednesday morning after media reports said that top boss Naresh Goyal agreed to sell controlling stake in the firm. Jet Airways share price gained more than 6% to hit the day's high at Rs 312.70. CNBC TV18 reported citing sources that Naresh Goyal met with all the three potential investors, and has agreed to sell a controlling stake in the firm.
Read full story here: Jet Airways share price zooms 9% on reports that Naresh Goyal has agreed to sell controlling stake
Oil firms slipped in the morning trade on Wednesday as crude oil prices edged higher ahead of an OPEC meeting next week at which the producer club is expected to decide some form of supply cut to counter an emerging glut. IOC share price plunged more than 2.5% to Rs 135. HPCL shares dropped by more than 1.3% to Rs 243.10. BPCL share price lost more than 2% to intra-day low of Rs 328.05. West Texas Intermediate (WTI) crude futures were at $52.00 per barrel at 0027 GMT, up 44 cents, or 0.9 percent from their last settlement, Reuters reported.
The rupee depreciated by 10 paise to 70.89 against the US dollar in early trade Wednesday at the interbank foreign exchange amid strengthening of the US dollar against some currencies overseas. Forex traders told PTI that besides increased demand of the US currency from importers, the dollar’s strength against some currencies overseas weighed on the rupee but a higher opening of the domestic equity markets, capped the losses. The rupee opened lower at 70.88 per dollar against and dropped further to quote at 70.89, 10 paise down over its previous close.
Also read: Rupee falls 10 paise to 70.89 against US dollar in early trade
The 30-share Sensex extended rally on Wednesday morning, gaining more than 200 points. The Sensex zoomed more than 239 points to hit the day's high of 35,752.19. The index gained on the back of a rally in shares of Infosys, IndusInd Bank and TCS, which rallied more than 2% each. A look at the live Sensex heat map.
Shares of private sector lender RBL Bank plunged in the morning trade on Wednesday, after brokerage firm Kotak Insitutional Equities downgraded the stock to sell. RBL share price slipped by more than 4.15% to hit the day's low at Rs 552. Notably, the research and brokerage firm said that there is a limited room to remain positive on the bank at current price. The risk is unchanged with higher dependence on earnings via unsecured loans and the risk-reward is unfavorable though signs of a weak retail cycle not visible yet, it said. The firm has a target share price of Rs 500 on the shares.
Shares of India's major private sector lender Yes Bank dropped by more than 5% in the morning trade on Wednesday morning after rating agency downgraded it's rating yesterday. Yes Bank share price plunged by more than 5% to intra-day low of Rs 173.50. Moody’s has downgraded the bank’s foreign currency issuer rating to Ba1′ from Baa3. The downgrade by the rating agency follows the Reserve Bank of India’s decision to not extend the term of founder and CEO Rana Kapoor beyond January 21, 2018. “The rating action considers the resignation of various members of the board, which have raised concerns over corporate governance,” Moody’s said in a statement.
The headline indices-- Sensex and Nifty--opened higher on Wednesday, tracking positive global cues. Sensex zoomed more than 150 points on open to hit 35,635.52, while the broader Nifty 50 opened above the 10,700-mark. Yes Bank share price tanked more than 3% to emerge as the biggest loser in the morning trade. A look at live Sensex heat map.
Oil prices rose on Wednesday ahead of an OPEC meeting next week at which the producer club is expected to decide some form of supply cut to counter an emerging glut. U.S. West Texas Intermediate (WTI) crude futures were at $52.00 per barrel at 0027 GMT, up 44 cents, or 0.9 percent from their last settlement. International Brent crude oil futures had yet to trade. Despite Wednesday's rise, oil prices have still lost almost a third of their value since early October, weighed down by an emerging supply overhang and by widespread weakness in financial markets, Reuters reported.
Asian shares dithered on Wednesday and the dollar jumped to a near 1-1/2-year top as risk assets rowed back amid conflicting signals on prospects for de-escalating the Sino-U.S. trade dispute. MSCI’s broadest index of Asia-Pacific shares outside Japan see-sawed between positive and negative territory and last was flat. Australian and South Korean stocks were both down 0.2%. Japan’s Nikkei gained 0.7%. Chinese indices shed small early gains. The blue-chip index was flat.
Also read: Asian shares tentative ahead of Trump-Xi meeting, Fed speech
The S&P 500 and the Dow Jones Industrial Average edged higher on Tuesday after White House economic adviser Larry Kudlow said a meeting between President Donald Trump and his Chinese counterpart on Saturday was an opportunity to “turn the page” on a trade war. All three of Wall Street’s major indexes reversed losses following Kudlow’s comments days ahead of the high-stakes dinner between Trump and Xi Jinping after the G20 summit in Buenos Aires. But Kudlow also said the White House has been disappointed so far in China’s response to trade issues with the United States. On Monday, Trump threatened to move ahead with additional tariffs on Chinese goods, due to take effect on Jan. 1.
READ ALSO: US Stocks-Wall Street reverses losses after White House adviser’s trade remarks