Share market highlights: Sensex ends 174 points down, Nifty below 11,500; Bajaj Finance, Tata Steel top losers

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Updated:Jul 10, 2019 3:41:47 pm

Share market highlights: After opening higher, the headline indices Sensex and Nifty erased gains and came under pressure in the afternoon trade. The Sensex closed 174 points down to 38,557.04 while the Nifty is ended below the 11,500-mark.

Sensex, Sensex today, Sensex share, Sensex news, Tata Steel, NTPC , Bajaj Auto, HDFC Bank, Axis Bank, Hero MotoCorp, PowerGrid, Tata Motors, SBI, Yes Bank, Bharti Airtel, Maruti, HCL Tech, HUL, RILThe 30-share index was trading 249.57 points, or 0.63 per cent, higher at 39,644.21 at 0930 hours. (File Photo)

Share market Highlights: After opening higher, the headline indices Sensex and Nifty erased gains and came under pressure in the afternoon trade. The Sensex closed 174 points down to 38,557.04 while the Nifty is ended below the 11,500-mark. Shares of private sector lender Yes Bank and Sun Pharma were among the top gainers, closing more than 1% up each. Bajaj Finance, Tata Steel, Tata Motors shares were among the biggest losers, tanking up 5.5% at close. The earnings season kicked off yesterday, with IT giant TCS reporting earnings beating street expectations. Meanwhile, Asian shares inched ahead on Wednesday while higher Treasury yields lifted the dollar as markets wondered if the world’s most powerful central banker would confirm or confound expectations for US policy easing this month. MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.2 percent, after three sessions of losses. South Korea climbed 0.6 percent, but Japan’s Nikkei lagged with a loss of 0.15 percent. E-Mini futures for the S&P 500 added a slim 0.08 percent. We bring to you LIVE updates. 

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Highlights

    15:41 (IST)10 Jul 2019
    BSE live: Sensex ends 174 points down, Nifty below 11,500; Bajaj Finance, Tata Steel top losers

    After opening higher, the headline indices Sensex and Nifty erased gains and came under pressure in the afternoon trade. The Sensex closed 174 points down to 38,557.04 while the Nifty is ended below the 11,500-mark. Shares of private sector lender Yes Bank and Sun Pharma were among the top gainers, closing more than 1% up each. Bajaj Finance, Tata Steel, Tata Motors shares were among the biggest losers, tanking up 5.5% at close. 

    15:05 (IST)10 Jul 2019
    IndiGo CEO calms employees fears, says all is well for airline amid Bhatia-Gangwal spat

    Amid the open-for-all feud that has erupted between IndiGo’s two promoters Rakesh Gangwal and Rahul Bhatia, CEO Ronojoy Dutta is trying to assuage employee fears by saying that the “difference of opinion” between its promoters will not hamper the airline’s functioning. He also said that the issue will be sorted eventually. However, if Gangwal’s accusatory letter is to be believed, the matter is now not in the hands of either of them and is far from getting sorted. In a 14-page letter to capital markets regulator SEBI, IndiGo’s Rakesh Gangwal has raised serious concerns with the governance at the company; his primary concern being the excess control that IndiGo’s parent company InterGlobe exercises over crucial decisions in the airline. On Bhatia’s part, he denied the accusations and instead blamed Gangwal for trying to dilute the rights of InterGlobe. 

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    14:38 (IST)10 Jul 2019
    IndiGo shares tank 19 per cent as promoters’ spat spills out in public

    Shares of InterGlobe Aviation, operator of the low-cost carrier IndiGo tanked more than 19 per cent after one of the company’s co-founders Rakesh Gangwal approached market regulator Securities and Exchange Board of India or SEBI over alleged corporate governance issues at the airline. The shares fell by 19 per cent to touch their lowest since March at Rs 1,264.85 per share on NSE. The shares of the airline had opened at Rs 1,409.70 against the last close of Rs 1,566.30 on NSE. The InterGlobe Aviation shares opened Wednesday at Rs 1,409.20 per share against the previous close of Rs 1,565.75 per share on BSE. 

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    13:32 (IST)10 Jul 2019
    Budget advances reforms, but fiscal settings not changed much; Fitch explains why

    Even as the budget proposed some economic reforms to boost the economy, the fiscal scenario has remained largely unchanged, a global rating agency. Finance Minister Nirmala Sitharaman hasn’t outlined any plans for ‘meaningful’ consolidation in the union budget 2019, Fitch Ratings also said. The budget’s thrust on the policy measures and fiscal targets is majorly consistent with the interim budget announced before general elections, it added.

    Read also: Nirmala Sitharaman’s budget advances reforms, but fiscal settings not changed much; Fitch explains why

    13:22 (IST)10 Jul 2019
    TCS share price slumps after Q1 results; should you buy or sell stock?

    Shares of India’s largest IT giant TCS slumped in trade on Wednesday morning, after the firm’s revenue growth came in lower than consensus expectations. TCS share price slumped more than 3% to hit the day’s low at Rs 2,070.10 on BSE this morning. The firm had reported a 10.80% jump in net profit to Rs 8,131 crore. The IT giant’s revenue stood at Rs 38,172 crore implying a 11.4% jump on-year. In constant currency terms the revenue growth increased  10.6% on-year. Taking stock of the reported earnings, global firm Jefferies has maintained a buy call on the stock with a target ptice of Rs 2,380.

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    12:45 (IST)10 Jul 2019
    How raising debt from overseas markets may help in maintaining fiscal prudence

    After Chief Economic Advisor (CEA) Krishnamurthy Subramanian, Principal Economic Advisor with the Finance Ministry, Sanjeev Sanyal too has batted for the government’s move on the issuance of sovereign bonds. Supporting Subramanian’s view, Sanjeev Sanyal said Tuesday that the low-cost debt from the external market would largely reduce the crowding out effect in the domestic debt market and help maintain fiscal prudence.

    Read more: Sovereign bonds: How raising debt from overseas markets may help in maintaining fiscal prudence

    12:21 (IST)10 Jul 2019
    Did budget really impact stock markets as negatively as it seems?

    In economics, it is extremely common to fall into the fallacy of attributing causality to correlation. Often events may occur seemingly in tandem, but in reality may be disparate processes just coming to a head at the same time. Such events have just occurred in the Indian market from late last week to date. Though the Finance Minister’s inaugural budget, unveiled On July 5th, could be faulted for not bringing urgently needed tax relief, it certainly was a budget with great positives. Most importantly, it put the development of bond markets back on centre stage, which has been a crying macroeconomic need for the longest time, and by so doing, firmly brought the growth impetus right back into the budgetary discourse.

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    11:52 (IST)10 Jul 2019
    Pre-filled ITR Form: Here’s all you need to know about this new initiative of I-T Department

    The Economic Survey 2018-19, tabled on July 4 by the Union Finance Minister, mentioned that the government is leveraging on the Behavioural Economics of “Nudge” to create a change from “Tax evasion” to “Tax Compliance”. This was reflected in the Budget presented on July 5 wherein various measures have been rolled out towards implementation of digital governance in the tax department. The introduction of pre-filled returns is yet another milestone in this direction. In order to make the tax compliance process more convenient, pre-filled income tax returns (ITR) will be provided to individual taxpayers by the Income Tax Department. The ITR form, downloaded from the e-filing account of individuals, would now contain pre-filled details of salary income, house property income, capital gains from securities, bank interests, dividends, etc. and tax deductions. 

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    10:47 (IST)10 Jul 2019
    BSE live: Sensex under pressure, Nifty above 11,500; Tata Motors, Bajaj Finance among top losers

    After opening higher, the headline indices Sensex and Nifty erased gains and came under pressure in the late morning trade. The Sensex is down 100 points to 38,637.02 while the Nifty is trading above the 11,500- mark. Shares of private sector lenders Yes Bank and IndusInd Bank were among the top gainers jumping up to 2%. TCS, Bajaj Finance shares were among the biggest losers, tanking up to 2% in the morning trade. Tata Motors shares are trading 3% down at Rs 151. A look at LIVE Sensex heatmap.

    10:30 (IST)10 Jul 2019
    Budget 2019: FPI surcharge may stay, ‘trust route opaque’, feels government

    The Budget proposal to impose a higher surcharge on the super rich — also applicable on capital gains made by foreign portfolio investors (FPIs) so long as they use the preferred trust route — is likely to stay, as the government on Tuesday seemed averse to making any relaxations in this regard. Speaking to FE, senior tax officials justified the move saying scores of FPIs were apparently using the trust route to invest in India to circumvent the Sebi’s disclosure norms. Central Board of Direct Taxes (CBDT) chairman PC Mody said at a post-Budget event organised by industry body Ficci that, the board saw “no need to clarify the matter over and above what finance minister Nirmala Sitharaman had said on Monday.”

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    10:12 (IST)10 Jul 2019
    Amazon, Flipkart, Snapdeal barred from selling Amway, other direct sellers’ goods; accused of tampering at warehouse

    India’s leading e-commerce platforms such as AmazonFlipkartSnapdeal have once again been caught in the regulatory quagmire as the Delhi High Court has restrained them from enabling the sale of products of direct selling companies — Oriflame, Amway, and Modicare on their platform, as per a PTI report. The order came after the three companies had filed pleas alleging their products being sold at cheaper rates on the e-commerce platforms leading to financial losses. The court noticed that conditions of the products at the warehouses of the e-commerce companies including 1MG and Healthkart were changed. Also, increased prices of products, incorrect attribution of names, tampered codes and inner seals, expired products with new manufacturing dates were found, as per the report submitted by local commissioners based on the inspection of the warehouses.

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    09:43 (IST)10 Jul 2019
    Analyst corner: Drug makers see mixed sales trend in Q1

    In this report, we pull in data on key molecules of several pharma companies in an attempt to gauge the sales progress and ramp up in prescriptions through Q1FY20. Apart from small molecules, we also look biosimilar offtake and highlight interesting data on Pegfilgrastim sales in the first two months of the quarter. We begin our assessment with Ilumya, the most important specialty brand for Sun; Ilumya volumes in both retail and institutional channels have picked up since March 2019, though growth trajectory has eased from April. Notably, scanning the competitive landscape, we find Taltz (Eli Lily) institutional and retail sales have surged 66% and 28%, respectively, between March and May 2019. AbbVie debuted its IL-23 brand Skyrizi, which is already doing 5x the retail prescriptions of Ilumya in May 2019 and 10% of Tremfya, another IL-23-based MAB and brand of J&J, in the first month of sales.

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    09:25 (IST)10 Jul 2019
    BSE live: Sensex up 50 points, Nifty near 11,550; Yes Bank, IndusInd Bank top gainers

    The headline indices Sensex and Nifty opened higher on Wednesday morning, tracking positive global cues. The Sensex is up about 50 points to 38,787.02 while the Nifty is trading above the 11,550- mark. Shares of private sector lenders Yes Bank and IndusInd Bank were among the top gainers jumping up to 2%. TCS, Bajaj Finance shares were among the biggest losers, tanking up to 2% in the morning trade. A look at LIVE Sensex heatmap.

    09:08 (IST)10 Jul 2019
    Titan: Maintain ‘buy’ with a target price of Rs 1,500

    TITAN delivered lower-than-targeted jewellery sales growth of 13% y-o-y in Q1FY20 on account of tough macroeconomic environment and high gold prices (particularly in June). However, the company continued capturing market share in the segment. Akshay Tritiya sales were robust. This festival was celebrated in the initial part of the quarter. In fact, the first half of the quarter was good in terms of sales, with 19% y-o-y growth till 7th May’19 (as mentioned in Q4FY19 earnings call). However, gold prices increased toward the second half, which, in our view, led to demand postponement, impacting segmental growth for the quarter. 12 Tanishq stores were opened during the quarter, with net retail space addition of 34k sq. ft. The division saw its semi-annual activation in both ‘Titan’ and ‘Fastrack’ brands during the quarter.

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    09:07 (IST)10 Jul 2019
    Budget 2019: Stage set for $5 trillion economy

    As acknowledged by the finance minister, the Union Budget 2019 was presented on the back of an unprecedent large mandate granted by the Indian electorate. The expectation was for announcement of big reforms leading to employment generation and growth of the economy. The FM set the tone by announcing that the economy was on course to be a $3 trillion economy this year and $5 trillion economy in a few years. The FM made some significant announcements relating to the Foreign Direct Investment (FDI) regime, including a proposal to consider relaxation of FDI in sectors such as aviation, media and insurance. There was a clear thrust on moving towards a cashless economy.

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    09:06 (IST)10 Jul 2019
    Budget 2019: Disappointing to see continued incrementalism on disinvestments of PSUs

    In trying to raise resources to achieve its very ambitious social intervention, the government is taking taxes to too high a level, which is impeding entrepreneurship, investment growth and jobs. It is making the classical mistake of first delineating its spending list and then looking for resources, instead of defining the optimally available resources and then prioritising allocations. The good intention of doing the maximum for the most and, consequently, living beyond its means—this leads to desperation and irrationality in raising resources. Taxing dividend distribution is damaging. It is not a tax on income, but an impediment to capital mobility. It curtails the proclivity to move capital from an inefficient allocator to an efficient one. When you have a problem of transmission from M1 to M3 in the economy, not abrogating it was a big miss.

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    08:55 (IST)10 Jul 2019
    Telecom firms need help, government will decide on penalties first!

    It may have been nothing but a coincidence, but at a time when the government needed to be finalising a relief package for an industry bleeding from excessive government levies, one of the first things the Digital Communications Commission—DCC includes finance and industry secretaries apart from the telecom one–did after the new government came to power was to decide, last month, on Trai’s Rs 3,050-crore penalty recommendation for the older telcos like Bharti Airtel, Vodafone and Idea (BVI). For context, keep in mind the DCC had been sitting on Trai’s recommendation for over two-and-a-half years—presumably because it thought it made little sense, so it could have continued to ignore it after the NDA came to power again. 

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    08:51 (IST)10 Jul 2019
    Investment tips: How portfolio choice can help you make money in volatile times

    Modern portfolio theory (MPT), was proposed by professor Harry Markowitz in 1952 for which he was awarded the Nobel Prize in 1990 in economics. Does this theory still holds true and will it improvise your investment returns? Let us discuss this in detail. Markowitz, who is the father of modern portfolio theory, explained various aspects investments and its impact on the individual investor. His theory explains how to construct an investment portfolio by optimising expected returns based on the level of market risk.

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    08:50 (IST)10 Jul 2019
    Trading charges: Public spat between Indigo co-owners turns ugly

    The public spat between Rahul Bhatia and Rakesh Gangwal, co-promoters of Interglobe Aviation, turned ugly on Tuesday with Gangwal reaching out to the regulator with a string of charges against Bhatia. The Securities and Exchange Board of India (Sebi) has asked the company which runs the Indigo airline to respond by July 19. In a 49-page letter to Sebi that charged Bhatia with multiple violations, Gangwal alleged Bhatia had carried out related-party transactions (RPT) without the approval of the audit committee, violated corporate governance regulations and also breached the code of conduct for directors and senior management. 

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    08:44 (IST)10 Jul 2019
    Global markets: Asia cautious as everything rides on dovish Federal Reserve Chair Jerome Powell

    Asian shares inched ahead on Wednesday while higher Treasury yields lifted the dollar as markets wondered if the world’s most powerful central banker would confirm or confound expectations for U.S. policy easing this month. MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.2%, after three sessions of losses. South Korea climbed 0.6%, but Japan’s Nikkei lagged with a loss of 0.15%. E-Mini futures for the S&P 500 added a slim 0.08%. Federal Reserve Chair Jerome Powell testifies before the U.S. Congress on Wednesday and Thursday and investors have a lot riding on him sounding suitably dovish. Futures are still fully priced for a 25-basis-point cut at the Fed’s July 30-31 meeting, but have abandoned wagers on a half-point move. They had implied a 25% probability of an aggressive cut before Friday’s upbeat jobs report.

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    08:42 (IST)10 Jul 2019
    Gold dips as dollar ticks higher, all eyes on Fed

    Gold prices slipped on Wednesday as higher Treasury yields lifted the dollar, while markets awaited testimony from Federal Reserve Chair Jerome Powell for clarity on an expected U.S. rate cut. Spot gold was down 0.4% at $1,391.98 per ounce at 0103 GMT. U.S. gold futures slipped 0.4% to $1,394.40 an ounce. The dollar index edged toward a three-week high against a basket of major currencies on Wednesday, as easing bets of deep U.S. interest rate cuts pushed Treasury yields higher.

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    08:41 (IST)10 Jul 2019
    Oil rises more than 1% after US stockpile drop; Brent nears $65

    Oil prices gained more than 1% in early trade on Wednesday, led by U.S. crude after an industry group reported that U.S. stockpiles fell for a fourth week in a row, alleviating concerns about oversupply. West Texas Intermediate (WTI) WTI futures rose 90 cents, or 1.5%, to $58.73 by 0027 GMT. Brent was up 69 cents, or 1.1%, at $64.85. The U.S. and global benchmarks have risen this year as OPEC and big producers like Russia have honoured commitments to cut production and support prices. But investors have been looking for signs that unrelenting production from the United States is being consumed, leading to inventory declines.

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    08:39 (IST)10 Jul 2019
    US, China negotiators resume trade war talks

    Top US and Chinese negotiators held phone talks on Tuesday as the world’s top two economies seek to resolve their trade war, more than a week after they declared a truce. Talks had broken down in May over US accusations that Beijing had reneged on its commitments, and the dispute escalated with the two sides exchanging steep increases in punitive tariffs. But US President Donald Trump and Chinese leader Xi Jinping agreed to revive negotiations when they met on the sidelines of the G20 summit in Japan on June 29. US Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer spoke with Chinese Vice Premier Liu He and Commerce Minister Zhong Shan on Tuesday. White House economic adviser Larry Kudlow told reporters the talks “went constructively” but it was “too soon for details.”

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    08:38 (IST)10 Jul 2019
    TCS declares interim dividend of Rs 5 per share; key figures from Q1 results

    India’s largest IT behemoth TCS has declared an interim dividend of Rs 5 per share in the latest quarter. TCS has scheduled July 17th, Wednesday as the record day for the same. Notably, the Interim Dividend shall be paid on Tuesday, July 23, 2019 to the equity shareholders of the Company, whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners. The firm has reported a 10.8% increase in profit to Rs 8,131 crore in the latest quarter. The revenue stood at Rs 38,172 crore implying a 11.4% jump on-year. The results came in better than expectations. Earlier, Kotak Securities had estimated a total profit after tax of Rs 7,670 crore.

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