The 30-share BSE hit a fresh record high of 36,747.87 before closing 146.52 points lower at 36,373.44 while the Nifty Midcap index lost a percent.
The Nifty after opening at 11,060.20 moved close to last week's high to hit an intraday high of 11,076.20, but selling pressure in afternoon dragged it below the psychological 11,000-mark to hit day's low of 10,956.30.
The index closed 27.50 points lower at 10,980.50, but managed to hold its 5-DEMA of 10,972.
"Bulls appear to be in a dilemma as the market is not witnessing follow through buying post breakout as another attempt to get past 11,078 failed in Wednesday’s session which resulted in a bearish candle formation with a potential Double Top kind of formation," Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol.
India VIX moved up by 6.70 percent at 13.68 levels. VIX has gone to its highest levels in last 12 sessions amid political concern.
According to Pivot charts, the key support level is placed at 10,932.47, followed by 10,884.43. If the index starts moving upwards, key resistance levels to watch out are 11,052.37 and 11,124.23.
The Nifty Bank index closed at 26,880.9 on Wednesday. The important Pivot level, which will act as crucial support for the index, is placed at 26,747.8, followed by 26,614.7. On the upside, key resistance levels are placed at 27,100.6, followed by 27,320.3.
Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines from across news agencies.
S&P 500 climbs to over 5-month high on strong earnings
The S&P 500 rose to its highest in more than five months and the Dow climbed for a fifth session on Wednesday as solid earnings boosted financial and industrial stocks and reinforced expectations for a strong second-quarter reporting season.
The Dow Jones Industrial Average rose 79.4 points, or 0.32 percent, to 25,199.29, the S&P 500 gained 6.07 points, or 0.22 percent, to 2,815.62 and the Nasdaq Composite dropped 0.67 point, or 0.01 percent, to 7,854.44.
Asian shares edge higher
Asian shares register moderate gains on Thursday trade, taking cues from Wall Street's overnight advance as investors there parsed through stronger-than-expected corporate earnings. The Nikkei 225 edged higher by 0.15 percent while the broader Topix slipped 0.08 percent. The Kospi tacked on 0.2 percent as automakers rebounded from the last session's declines.
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the broader index in India, a gain of 30 points or 0.27 percent. Nifty futures were trading around 11,012-level on the Singaporean Exchange.
Fed report shows tariff concerns rising among business contacts
Manufacturers in every one of the Federal Reserve’s 12 districts worried about the impact of tariffs, a Federal Reserve report said on Wednesday, even as the US economy continued to expand at a moderate to modest pace.
The latest snapshot of the health of the economy, derived from the central bank’s discussions with business contacts around the country, echoed anecdotes from lawmakers in Congress on Tuesday and Wednesday of the impact in their districts of tariffs during a two-day hearing with Fed Chairman Jerome Powell.
Oil rises on bullish demand signals
Oil prices rose on Wednesday after US government data indicated bullish demand for gasoline and distillates, which overshadowed a surprise build in US crude inventories and US crude oil production hitting 11 million bpd for the first time.
Brent crude futures rose 74 cents to settle at USD 72.90 a barrel, a one percent gain. The contract hit a session low of USD 71.19 a barrel, its lowest since April 17. West Texas Intermediate (WTI) crude futures rose 68 cents, or one percent, to settle at USD 68.76 a barrel.
US 'especially vulnerable' in trade war: IMF
The US economy is "especially vulnerable" to damage from the burgeoning global trade war, which could shave hundreds of billions of dollars off global GDP, IMF chief Christine Lagarde said yesterday.
In remarks ahead of this weekend's meeting of Group of 20 finance ministers in Argentina, Lagarde said there were signs global growth could begin to decline and called on policymakers to prepare. The International Monetary Fund on Monday called the increasing trade restrictions "the greatest near-term threat" to the world economy.
Finmin to provide capital to more banks by Sept
After approving capital support for five public sector banks (PSBs), the finance ministry is assessing the needs of 2-3 more banks and fund infusion in them would be done by the end of the second quarter of the current fiscal.
Two or three more banks will need capital to meet the norms in the coming few weeks, the official said, adding that they would get funds by September. These banks have come under pressure because of interest paid to their bondholders of Additional Tier 1 (AT-1) bonds. Five banks which will soon get capital include Punjab National Bank (PNB), hit by Nirav Modi scam, which will get the highest amount of Rs 2,816 crore out, while Allahabad Bank to get Rs 1,790 crore.
Opposition parties move no-confidence motion against Modi govt
The monsoon session kicked off yesterday adding to uncertainty when a no-confidence motion against the Narendra Modi government was moved in the Lok Sabha which added to uncertainty in markets. The nervousness is likely to remain till Friday when the trust vote will happen. Analysts feel that markets are likely to remain under pressure although BJP enjoys full majority
“Vote of no confidence motion was admitted in the Lok-Sabha by opposition parties, which was admitted by the speaker. Lok Sabha will debate on the fate of BJP government on Friday. Though BJP enjoys full majority, this development added to uncertainty in markets,” VK Sharma, Head Private Client Group & Capital Market Strategy at HDFC Securities told Moneycontrol.
Govt introduces bill to check unregulated deposits
A bill proposing a ban on unregulated deposits and up to 10-year jail term for perpetrators of Ponzi schemes was introduced in the Lok Sabha yesterday. The 'Banning of Unregulated Deposit Schemes Bill, 2018, introduced by Minister of State for Finance Pon Radhakrishnan, provides for punishment for fraudulent default in repayment to depositors and attachment of assets of entities engaged in such activities.
"The Bill seeks to put in place a mechanism by which the depositors can be repaid without delay by attaching the assets of the defaulting establishments," said the Statement of Objects and Reasons of the bill.
Domestic airlines may post Rs 3,600 cr losses in FY19: Icra
The domestic airline industry is expected to post losses to the tune of Rs 3,600 crore in the current fiscal on rise in crude oil prices and falling rupee, Icra said in a report. The losses would come despite around 15 percent expected average annual growth in passenger traffic over the medium-term due to conducive factors, support from regulatory environment and development of new airports, it added.
Higher crude prices, due to which most airlines saw a decline in their yields during the second half of FY18, resulted in a higher than estimated aggregate loss for the domestic aviation industry to around Rs 2,400-2,500 crore in the previous fiscal, the report said.
US tariffs could raise auto prices by $83 bn: Trade Group
A group representing major automakers will tell the US Commerce Department on Thursday that imposing tariffs of 25 percent on imported cars and parts would raise the price of US vehicles by USD 83 billion annually and cost hundreds of thousands of jobs.
The Alliance of Automobile Manufacturers, whose members include General Motors Co, Volkswagen AG and Toyota Motor Corp said it plans to issue the warning at a public hearing on Thursday. “Higher auto tariffs will harm American families and workers, along with the economy” and “would raise the price of an imported car nearly $6,000 and the price of a US built car USD 2,000,” the group said in its testimony released on Wednesday.
Kotak Mahindra Bank net profit expected to rise 28% in Q1
Private sector lender Kotak Mahindra Bank is expected to post a 28 percent increase in its standalone net profit for the first quarter at Rs 1,165.40 crore on stable asset quality and healthy growth in net interest income (NII), according to a Reuters poll of equity analysts.
The net interest income (NII) – difference between interest earned and expended — is projected by the Reuters poll to grow at a rate of 19 percent to Rs 2,670.3 crore compared to Rs 2245.6 crore in the year ago period.
Bajaj Finance likely to report strong earnings in Q1
Bajaj Finance is expected to report another robust set of numbers for the June quarter on July 19. Brokerages estimate the company's bottomline to rise 35-45 percent YoY and its net interest income to increase 30-40 percent. Assets under management (AUM) are seen increasing 35 percent compared to last year's quarter.
"For Bajaj Finance, Q1 and Q3 are seasonally strong quarters in terms of asset growth. We expect AUM to increase by 37 percent YoY to Rs 94,093 crore led by the consumer finance segment and in that mainly aided by the consumer durable segment," ICICI Securities said in its research note.
The company's calculated NIMs are expected to come in higher than 11 percent. "No negative surprise is expected on the asset quality front. PAT of Rs 869 crore is estimated, up 44 percent YoY," it said.
24 companies to report June quarter numbers today
As many as 24 companies are likely to report June quarter numbers today including names like Bajaj Finance, Bajaj Finserv, Kotak Mahindra Bank, RBL Bank and ABB among others.
TCNS Clothing IPO subscribed 10% on Day 1
The initial public offer of women's apparel maker TCNS Clothing was subscribed 10 percent on the first day of bidding yesterday. The IPO, to raise Rs 1,125-crore, received bids for 10,75,880 shares against the total issue size of 1,09,99,828 shares, data available with the NSE showed. The portion set aside for qualified institutional buyers (QIBs) was subscribed 29 percent, non-institutional investors 1 percent and retail investors 3 percent.
The IPO is of 1,57,14,038 shares, including anchor portion of 47,14,210 shares. Price band for the offer, which would close on July 20, has been fixed at Rs 714-716 per share. Kotak Mahindra Capital Company and Citigroup Global Markets India are managing the issue.
2 stocks under ban period on NSE
Securities in ban period for the next day's trade under the F&O segment includes companies in which the security has crossed 95 percent of the market-wide position limit.
For July 19, Adani Enterprises and Adani Power are present in this list.
Inputs from Reuters & other agencies
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