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Podcast | An evening walk down Dalal Street: Sensex cracks over 100 points; Nifty below 10,750

The S&P BSE Sensex closed 114 points lower or 0.32 percent at 35,432 while the Nifty50 closed 30 points down or 0.29 percent at 10,741.

June 21, 2018 / 05:48 PM IST

Operating profit is the amount realized from a business's ongoing operations. It serves as a highly accurate indicator of the business's potential profitability because it excludes all extra factors. Moneycontrol analysis showed there are 7 companies from the BSE universe that have given at least 15 percent operating profit growth in FY20 compared to the previous fiscal year (FY19). We considered only companies where FIIs and MFs, both, increased stake in the first two quarters of FY21. Interestingly, in FY21 so far, all of them have been trading in the green and have gained between 20 percent and 190 percent. (Data Source: ACE Equity)

The S&P BSE Sensex slipped over 100 points on Thursday as trade tensions between the US and China is got escalated even India earlier in the day notified that its retaliatory tariff against 30 US products worth $240 million will come into effect starting 4 August.

India has increased import duties on some agricultural and steel products that are imported from the United States in retaliation against Washington's new global tariff on steel and aluminium.

Minutes of Reserve Bank of India (RBI) which hinted at the rise in inflation, as well as OPEC meeting on Friday are some of the other factors which weighed on sentiments.

The S&P BSE Sensex closed 114 points lower or 0.32 percent at 35,432 while the Nifty50 closed 30 points down or 0.29 percent at 10,741.

“Market continued to be under pressure as trade tensions between the U.S. and China is getting escalated. Emerging markets including India were underperforming due to FIIs selling,” Anand James, Chief Market Strategist, Geojit Financial Services Ltd told Moneycontrol.

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“OPEC meeting tomorrow will be a key event, relaxation in production cuts will provide some relief to Indian markets,” he said.

Sectorally, the S&P BSE oil & gas index rose 0.6 percent, followed by the S&P BSE Energy index which was up 0.85 percent.

The S&P BSE Telecom index slipped 1.6 percent, followed by the S&P BSE Healthcare index which slipped 1.1 percent, S&P BSE Capital Goods index which was down 1.09 percent, and the S&P BSE Metal index was down 0.98 percent.

The S&P BSE Midcap index slipped 0.53 percent, and the S&P BSE Smallcap index was down 0.79 percent.

Top Sensex gainers include names like ICICI Bank (up 1.4 percent), RIL (up 1.2 percent), HDFC (up 0.47 percent), Tata Motors (up 0.3 percent), and Infosys (up 0.24 percent).

Top Sensex losers include names like Dr Reddy’s Laboratories (down 2.2 percent), M&M (down 2.1 percent), ONGC (down 1.9 percent), Power Grid (down 1.8 percent), and SBI (down 1.6 percent).

Stocks in news:

ICICI Bank share price rallied 1.4 percent on Thursday on a media report that there could be the appointment of new chairman soon. The country's largest private sector lender may appoint former Bank of Baroda Chairman and Managing Director MD Mallya as a successor to the current ICICI Bank Chairman MK Sharma when his term ends on June 30.

Shares of Bank of Maharashtra continued to fall for the second straight session today, dropping over 7 percent intraday to hit a 52-week low, following the arrest of its serving and a former CMD in a cheating case. The stock finally closed 1.1 percent lower at 13.31.

Shares of Manpasand Beverages rose nearly 5 percent ahead of the board meeting to consider audited financial results for the quarter ended March 2018.

OMC stocks rose thanks to fall in crude oil prices. Brent crude futures, the international benchmark for oil prices, were trading below $74 per barrel.

Shares of Jindal Saw Ltd fell 5.3 percent, their lowest since 11 August 2017 and biggest intraday percentage loss since 5 June. The stock was down 34 percent this year, up to Wednesday’s close, said a Reuters report. The US commerce department on Wednesday said it finds welded pipe from four countries, including India, subsidized and that it was imposing preliminary duties that could top 500 percent.

In other news/Global Update:

The public issue of RITES was fully subscribed on the second day its initial public offering (IPO) on Thursday. The issue received bids for 2.75 crore shares against the issue size of 2.52 crore shares, as of 12:45 PM on June 21, 2018. The total issue was subscribed 1.09 times.

Asian markets closed mixed as investors monitor trade developments between world's largest economies US and China. China's Shanghai Composite, Hong Kong's Hang Seng and South Korea's Kospi closed down over a percent while Japan's Nikkei gained 0.6 percent and Australia's ASX 200 rose 1 percent.

European stocks were lower ahead of OPEC meeting and ECB rate decision. Germany's DAX was down 1 percent and France's CAC down half a percent at the time of writing this article.

Oil prices corrected sharply ahead of likely increase in crude output in the OPEC meeting. Brent crude futures, the international benchmark for oil prices, were down 1.65 percent at $73.51 a barrel.
Kshitij Anand is the Editor Markets at Moneycontrol.
first published: Jun 21, 2018 05:48 pm

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