Nifty, Sensex May Continue to Trade Sideways in the Absence of Triggers – Weekly closing report
We had mentioned in last week’s closing report that Nifty, Sensex were range-bound. The major indices of the Indian stock markets closed with minor losses.
The indices opened in the green on Monday and closed with gains over Friday’s close. On the NSE, there were 701 advances, 1083 declines and 331 unchanged.
Former ICICI Bank CEO and managing director Chanda Kochhar on Monday skipped questioning by the Enforcement Directorate (ED) in connection with a Rs 1,875-crore Videocon loan case citing poor health. The stock of YES Bank was down 5% at Rs133 per share on Monday on concerns of eroding balance sheet strength, rising non-performing assets (NPAs), capital raising concerns and weak visibility of profits. Vodafone Idea on Saturday said that its shareholders and creditors have approved proposal to transfer optical fibre assets to its wholly-owned subsidiary Vodafone Towers Limited. Bharat Petroleum Corporation Ltd plans to invest Rs6,877 crore to modernise its Mumbai refinery complex by replacing the old Catalytic Cracking Unit and Fluidised Catalytic Cracking Unit with a new, state-of-the-art Petro Resid Fluidized Catalytic Cracking Unit and associated facilities, the State-run refiner said in an application seeking environment clearance for the project.
The markets traded on a flat note on Tuesday after opening in positive. The economic growth numbers have come back to haunt the government with former Chief Economic Advisor (CEA) Arvind Subramanian also questioning the change in GDP calculation methods and numbers effected last year. Shares of Sun Pharma dropped nearly 4% intraday on June 11 after brokerage firm Goldman Sachs downgraded the stock to sell and cut the target price from Rs437 to Rs355. It attributed the downgrade to Sun Pharma's spending in speciality pharma which will impact the company's profit growth.
On Wednesday, markets eneded with losses. On the NSE, there were 695 advances, 1,047 declines and 356 unchanged. The beleaguered public sector Punjab National Bank (PNB) has admitted that 1,142 big and small defaulters all over India have defaulted a stupendous Rs 25,090.3 crore. Of these 1,142, the PNB has so far initiated recovery proceedings by filing suits against 1,108 defaulters to recover Rs 23,879.8 crore. Shares of Tata Steel jumped close to 3% after the European Union's (EU) anti-trust authority on Tuesday blocked its merger with German industrial conglomerate Thyssenkrupp. Yes Bank shares slumped more than 3% on Wednesday after independent director Mukesh Sabharwal, chairman of the nomination and remuneration committee, quit on Tuesday citing personal reasons. Former interim CEO Ajai Kumar had quit on Monday, also on personal grounds. The private bank’s founder Rana Kapoor sent two letters seeking re-induction on the board and compensation for lost payment.
The indices opened lower on Thursday and ended flat. On the NSE, there were 598 advances, 1,164 declines and 334 unchanged. Shares of YES Bank fell 13% after foreign brokerage UBS cut its target on the stock to Rs90 from Rs170 earlier, a drop of 47%. UBS expects more asset-quality pressure than consensus, given the bank’s higher exposure to stressed corporates and lower recognition of these loans as gross non-performing loans. Shares of Jet Airways plunged more than 14% intraday after stock exchanges decided to impose trading restrictions on the troubled airline. According to a circular issued by NSE, the decision was taken as a part of preventive surveillance measures to curb excessive volatility.
The indices opened on a negative note on Friday with the BSE Sensex losing nearly 140 points, tracking weakness in the major Asian markets. Sensex and Nifty ended about .75% lower while Bank Nifty was down 1.17%.
Tata Communications has divested its remaining 26 per cent stake in its Singapore-based subsidiary engaged in the data centre business. The amount was not disclosed. "This divestment is in line with our strategy to evolve on offering digital infrastructure services through growth and innovation service portfolio complementing the asset light growth model," the company informed the exchanges.
Lower prices of manufactured items and key transportation fuels eased India's annual rate of inflation based on wholesale prices to 2.45% in May from 3.07 per cent in April, official data showed on Friday. Even on a year-on-year (YoY) basis, May's WPI inflation rate was lower than 4.78% reported for the corresponding period of previous year, showed the data furnished by the Ministry of Commerce and Industry.
Biocon said it has received good manufacturing practice compliance certificate from the European Medicines Agency (EMA) for its biologics facilities in Bengaluru. This certification will enable the company to continue addressing the growing needs of patients in the EU markets and enhance access to its high quality biosimilars, the company said in a filing to BSE.
Sun Pharma announced promising interim results from a Phase 2 study on Ilumya, a drug used to treat active psoriatic arthritis in patients. Ilumya is already approved in the US for the treatment of adults with moderate-to-severe plaque psoriasis and is now being investigated for psoriatic arthritis.
Mortgage lender HDFC on Friday said it has sold over 4.22% stake in subsidiary Gruh Finance Ltd (Gruh), which is proposed to be amalgamated with Bandhan Bank for Rs 899.43 crore. The sale of 3,10,00,000 equity shares was carried out through stock exchanges at the prevailing market price, HDFC said in a regulatory filing. Gruh fell by 5% today.