Share market highlights: Sensex ends 67 points higher, Nifty above 11,900; Yes Bank, Infosys top gainers

Telecom operator Bharti Airtel Tuesday said Airtel Africa plans to go for an initial public offer and listing on London Stock Exchange. "In furtherance to our previous intimations in this regard, we wish to inform you that Airtel Africa, a subsidiary of the company, has announced its potential intention to undertake an initial public offering for listing its equity shares on London Stock Exchange...," Bharti Airtel said in a filing to BSE.

Punjab National Bank Tuesday said it has narrowed its loss to Rs 4,750 crore in the last quarter of the fiscal ended March 2019. The scam-hit lender had posted a staggering loss of Rs 13,417 crore during the corresponding January-March period of 2017-18.

The GDP growth may moderate to 5.9 to 6.1 per cent in Q4FY19, pulling down growth rate for entire fiscal to below 7 per cent, the SBI research report said. The decline in economic growth may push the RBI to reduce rates by 0.50 per cent in the June monetary policy review so as to boost weak economy, said the SBI Ecowrap report.

Read more: GDP growth may fall to 5.9-6.1% in Q4, says SBI report; what RBI is likely to do in June monetary policy

Dabur is yet to revive from the consumer slowdown that has hit major FMCG brands in the previous quarter, however, the company is hopeful that the demand will grow from the current levels, Dabur CFO Lalit Malik told CNBC TV- 18. With the ongoing distress in rural demand, big players including Britannia, ITC, Patanjali, Emami have acknowledged that the prolonged winters and rural distress combined have affected their growth. Dabur and Britannia lamented their inability to reach double-digit growth in the Jan-Mar quarter. However, the same is expected to reverse soon with the promise of favourable monsoon and structural reforms by the government, several industry experts such as Vinita Bali, former MD, Britannia and veteran analyst Rama Bijapurkar believe.

Also read: Dabur hopes for consumer revival soon; suggests these measures to tackle rural distress

After Interglobe Aviation (IndiGo) reported a five-fold jump in its Q4 profit, the stock is trading higher in the intraday trade today. The shares jumped as much as 3 per cent on BSE after closing at Rs 1662.15 on Monday. The company posted a net profit of Rs 589.6 crore in Q4FY19 up from Rs 117.6 crore in the corresponding period of the last fiscal. In the December quarter, the company had posted a 75 per cent year-on-year fall in profit after tax (PAT). The brokerages have come out with their analysis on how to go about trading the shares of the airline. Here’s what should the investors do going ahead.

Also read: After IndiGo’s stellar Q4 result, should you buy or sell stock?

The Sensex and Nifty are off highs on Tuesday afternoon. The Sensex is down about 70 points to 39,618.19, while the Nifty is trading near the 11,900-mark. Yes Bank, Tata Motors shares are among the top gainers, trading up to 2.5% higher. A look at live Sensex heatmap. 

After receiving a strong response for its offer for sale (OFS), Anil Ambani-led Reliance Capital has exercised the “Green-Shoe” option to sell further stake in Reliance Nippon. The firm seeks to sell over 8% of its shareholding in RNAM through this OFS aggregating to Rs 1,100 crore. Earlier, Reliance Capital had announced an Offer for Sale (OFS) of its shareholding in RNAM in order to comply with the mandatory requirement of achieving Minimum Public Shareholding of 25% by reducing the promoter stake.

Also read: Anil Ambani's Reliance Capital uses 'Green-Shoe' option to sell more stake in RNAM after robust OFS

Asian shares edged up on Tuesday lifted by gains in China and as auto firms climbed on merger news, but broad uncertainties over trade and economic growth kept a lid on gains. MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.31%, and U.S. S&P 500 e-mini futures rose 0.19% to 2,837.25. Chinese blue-chips rose 1.02% a day after data showed Chinese industrial firms’ profits shrank in April, which is expected to prompt more government stimulus to support the slowing economy. A planned increase in the weighting of Chinese A-shares in MSCI indexes after the market close later on Tuesday also boosted shares. Seoul’s KOSPI added 0.13%, while Australian shares were up 0.45%. Japan’s Nikkei stock index gained 0.39%. Despite the day’s gains, Joanne Goh, Asia equity strategist at DBS in Singapore, said that broad market sentiment remained uncertain ahead of a possible meeting between the Chinese and U.S. presidents at the G20 summit next month.

Also read: Asian equities buoyed by China, auto merger but gains capped

The Indian rupee opened lower at 69.65 per dollar on Tuesday morning against the previous close of 69.49. Yesterday, the Indian currency opened higher at 69.40 and further rose to hit the day’s high of 69.34.The market experts expect rupee to remain higher for a couple of weeks after BJP’s sweeping success in the elections as the continuity in administration would bring stability in reform policies and create job opportunities. Crude oil prices and the foreign investment flows will also have an impact on the Indian currency. The USD-INR is likely to trade in the range of 69.23-69.79. Rupee ended with flat node on Monday amid selling by foreign banks tracking an overall weakness in the greenback and helped by FII inflows into local stocks, according to Kedia Advisory.

Also read: Rupee opens lower at 69.65 per dollar against the previous close of 69.49

The Sensex and Nifty opened mildly higher on Tuesday morning, tracking global cues. The Sensex is up about 70 points to 37,747.76, while the Nifty is trading above the 11,900-mark. Yes Bank, Tata Motors shares are among the top gainers, trading up to 2.5% higher. A look at LIVE Sensex heatmap.

The strict stance adopted by the US government on the H-1B visa policy would put the profit margins of Indian information technology (IT) services companies at risk in the current financial year, as staff onsite costs continue to rise. An increase in employee costs can be attributed to tightening of visa norms for Indian players, resulting in higher onsite costs for them. Ever since the US government tightened its H-1B visa policy in 2017, challenges have mounted for the sector, according to ratings firm Crisil. “Employee expenses which account for nearly 60-65% of total operating costs and cost per employee for Tier 1 players rose faster at about 17% and around 9% on-year in fiscal 2019, respectively, compared with nearly 6% and about 3% a year before,” analysts at Crisil noted.

Also read: H-1B visa policy: Tough US stance to put profit margins of Indian IT firms at risk

The dollar nudged up against its key rivals in early trade on Tuesday as investors waited on more catalysts after the European Union parliamentary elections showed a polarisation of the 28-member block. The yen was in a holding pattern as U.S. President Donald Trump, who is visiting Japan, is seen putting pressure on Tokyo to reduce the nation’s large trade surplus with the United States. Many of the currency pairs hugged recent ranges, as activity thinned out overnight with stock exchanges in the United States and Britain closed for market holidays.

Also read: Dollar nudges up, euro’s post-EU vote bounce proves short-lived

Oil prices were mixed on Tuesday, pressured by a weakening economy, especially in China, yet still supported by ongoing supply cuts from producer club OPEC and U.S. sanctions against Iran and Venezuela. Front-month Brent crude futures, the international benchmark for oil prices, were at $69.90 at 0106 GMT. That was 21 cents, or 0.3%, below the last session’s close, when Brent rose 2.1%. U.S. West Texas Intermediate (WTI) crude futures were at $59.03 per barrel. They did not trade on Monday due to a public holiday in the United States, but stood 40 cents, or 0.7%, higher than their last close on Friday. Traders said Brent prices were under pressure from an economic slowdown hitting China as a result of the ongoing trade war with the United States, which is also expected to dent fuel consumption.

Also read: Oil mixed as China’s economy weakens, but OPEC cuts still support crude

Narendra Modi will be sworn-in as the Prime Minister of India for the second term on May 30 at the Rashtrapati Bhavan by President Ram Nath Kovind in the presence of leaders of BIMSTEC nations. Besides Modi, a host of NDA leaders will also be administered the oath of the office and secrecy by the President. With this, the process of forming a new Cabinet will begin which is set to witness a significant makeover.

Also read: Piyush Goyal may become full-time Finance Minister, Arun Jaitley ‘Minister Without Portfolio’: Report

Australian shares gained on Tuesday and were on track to snap a three-session losing streak with mining major Rio Tinto leading the charge to touch its best level in over a decade, bolstered by firm iron ore prices. The S&P/ASX 200 index traded 0.5%, or 34.5 points higher, at 6,486.4. The benchmark had closed 4.1 points lower in the previous session. “We’ve got commodities and iron ore specifically, but also the global trade concerns that have been really pushing down on the Australian market, they’re receding a touch and that’s why we are seeing a decent start to the day,” said Nick Twidale, chief operating officer at Rakuten Securities Australia.

Also read: Australian shares up as iron ore rally backs miners, NZ lower