Share market highlights: The Sensex and Nifty extended losses in the afternoon trade on Monday, tracking global cues. The Sensex ended 372 points down to 37,090.82, while the Nifty closed below the 11,150-mark. Sun Pharma shares tanked by more than 9.4% to Rs 396.85, while Yes Bank shares closed 5.6% down at Rs 154.85, to emerge among the biggest Sensex losers.
US stock futures fell and Asian shares slipped on Monday on growing uncertainty over whether the United States and China will be able to reach a deal to end their escalating trade war. The United States and China appeared at a deadlock over trade negotiations on Sunday as Washington demanded promises of concrete changes to Chinese law and Beijing said it would not swallow any “bitter fruit” that harmed its interests, Reuters reported. We bring to you Live updates.
Highlights
The Sensex and Nifty extended losses in the afternoon trade on Monday, tracking global cues. The Sensex ended 372 points down to 37,090.82, while the Nifty closed below the 11,150-mark. Sun Pharma shares tanked by more than 9.4% to Rs 396.85, while Yes Bank shares closed 5.6% down at Rs 154.85, to emerge among the biggest Sensex losers. A look at Sensex heatmap at close.
Shares of India’s major engineering giant Larsen & Tuobro slumped in trade on Monday afternoon, after the firm reported Q4 results on Friday. L&T shares slipped 2.6% to hit the day’s low at Rs 1,319.55 on BSE. For the latest Jan-Mar period, L&T has reported a 8% rise in net profit to Rs 3,418 crore for the latest quarter. The firm had reported a net profit of Rs 3,167 crore in the comparable period previous fiscal.
Also read: L&T share price slumps post Q4 results; should you buy or sell stock?
Paytm’s e-commerce platform Paytm Mall has entered into a partnership with Ernst and Young before its touted global release, Paytm Mall said in a statement. With this, the company looks to build a fraud prevention system for its customers and partners alike. The 2016 founded company “will undertake frequent audits to identify, analyse and monitor various in-built and outsourced processes to recommend global practices,” which will be deployed in building “Technology-driven Fraud Prevention System”
Also read: Paytm Mall goes after fraud merchants; ropes in EY to build tech system before going global
The Lok Sabha elections 2019 commenced last month in India, and the final leg of polling is scheduled to be conducted on May 19. Amidst the political fervour, there is one demographic who is biting away at their nails for an entirely different reason - the fluctuating market. The question remains, should mutual fund investors really bother about market commotion and change their investment strategy? Let us find out.
Also read: Modi or not, here's how stock market investors can make election-proof portfolio
Oil futures were mixed on Monday, with U.S. crude edging lower, as investors and traders fretted over global economic growth prospects amid a standoff in Sino-U.S. trade talks.U.S. West Texas Intermediate (WTI) futures were at $61.58 per barrel, down 9 cents, or 0.2% at 0223 GMT, from their previous settlement. WTI closed the last session steady on the day. Meanwhile Brent crude futures were at $70.73 a barrel, up 11 cents, or 0.2%, from their last close. Brent ended the previous session little changed.
Also read: Oil prices mixed amid U.S.-China trade impasse
The Indian Rupee opened lower on Monday morning for the sixth consecutive session after US and China ended their two days trade negotiations in Washington on Friday. The world’s largest economies could not iron come to any conclusion last week. The Indian Rupee open at 70.05 per dollar as against previous close at 69.94 per dollar. “Spot INR likely to trade in a relatively higher range between 69.70-70.20 with an upward bias as the trade war deadlock persists between US & China,” Amit Sajeja, Associate Vice President, Motilal Oswal, told Financial Express Online.
Also read: Rupee opens lower at 70.11 per dollar amid US-China trade deadlock
The Sensex and Nifty opened lower on Monday morning, tracking weak global cues. The Sensex is down about 100 points to 37,362.99, while the Nifty is trading near the 11,250-mark. SBI shares are up 1.8% to Rs 313.50, while ONGC shares are trading 0.6% higher at Rs 167.80 to emerge among the biggest Sensex gainers. Tata Steel shares are down 2% to Rs 478.80, while Kotak Mahindra shares are down by 0.5%. A look at LIVE Sensex heatmap.
Bharti bucked the competition-driven downtrend of the past several quarters with a strong fourth-quarter performance. Consolidated Ebitda grew by a robust 7% q-o-q to Rs 66 bn (5% beat), with the margin expanding 150bp q-o-q (200bp beat) to 32.2%, led by a turnaround in the India wireless business margin (+410bp q-o-q). However, adj. net loss widened to Rs 12 bn (our estimate: Rs 7.2 bn) from Rs 10.4 bn in the previous quarter. For FY19, consolidated revenue/Ebitda/PAT declined by 2%/14%/ 63% y-o-y.
Also read: Bharti Airtel Rating: Buy; results bucked downtrend of last several quarters
In an attempt to bring down the compliance burden on companies, especially the small and medium enterprises (SMEs), the commerce ministry has urged the ministry of corporate affairs (MCA) to explore avenues where firms can opt for self-certifying their returns as well as clubbing all the returns to be filed in a year into a single annual return. Besides, it also wants that forms such as those related to certifying a company’s registered office and for becoming director in a company too should be clubbed with the annual return. Sources said that commerce ministry earlier this week approached the MCA requesting it to explore options regarding bringing down the number of compliances companies have to follow to reduce their regulatory burden.
Also read: Ease of Doing Business: Commerce Ministry seeks cut in compliant burden on firms
The earnings season has so far been an extremely dull one, with most companies reporting muted top line growth and a fall in net profits. Demand is clearly very weak; companies have been unable to hold on to their operating margins and even pushing through volumes has been difficult. With purchasing power being crimped, the competitive intensity has gone up.
Also read: Gathering storms: India Inc in deep trouble as sales slow, profits fall
Pakistan and the International Monetary Fund reached an agreement on a loan of about $6 billion designed to help the South Asian nation avert an economic crisis. The lender’s executive board will meet to approve the agreement for the 39-month loan, “subject to the timely implementation of prior actions and confirmation of international partners’ financial commitments,” IMF’s mission chief Ernesto Ramirez Rigo said in a statement. The loan would represent the 13th bailout since the late 1980s from the IMF to Pakistan, which is facing a balance-of-payments crisis triggered by high fiscal and current-account deficits and dwindling foreign exchange reserves. The pact was reached after Prime Minister Imran Khan overhauled his economic team, including the installation of Reza Baqir, who previously served in senior positions at the IMF, as the central bank governor.
Also read: Out of woods? Pakistan secures $6 billion IMF bailout to ease economic crisis
On Thursday, as his company booked a $3.8 billion gain from its stake in Uber Technologies Inc., Masayoshi Son told SoftBank Group Corp. investors that their time had finally come. Instead, they’re still waiting. The day after Son’s earnings presentation, SoftBank slid 5.4% and fell again on Monday, as dropping as much as 4.9%. Uber’s initial public offering was a flop with shares sliding on the first day of trading, at the same time the U.S. and China escalated tensions over their trade dispute. SoftBank has lost about $9 billion in market value despite reporting last week that profit more than tripled thanks to the valuation gain from its stake in the U.S. ride-hailing giant.
Also read: Uber IPO flops, SoftBank’s market value slides $9 billion
Bitcoin climbed to the highest since September, briefly surpassing $7,000, as a rally in cryptocurrencies gathered pace in trading over the weekend. Bitcoin advanced 11% from Friday to $6,957.73 as of 9:01 a.m. Tokyo time, having earlier hit $7,585, according to Bitstamp pricing. The Bloomberg Galaxy Crypto Index is up 7.6%. The largest cryptocurrency is on a tear after trading closer to $5,000 at the start of May and has more than doubled since mid-December. Still, it remains a long way off its 2017 peak that topped $19,000.
Also read: Back with a bang: Bitcoin climbs above $7,000 as cryptocurrency rally extends