Nifty, Sensex Continues to Move Sideways – Monday closing report

We had mentioned in Friday’s closing report that Nifty and Sensex would move in a narrow range. The major indices of the Indian stock markets were range-bound on Monday and closed with gains over previous week’s close. On the NSE, there were 1,011 advances, 739 declines and 351 unchanged. The major trends of the Indian stock markets in the course of the day’s trading are given in the table below:

 

 
The S&P BSE Sensex advanced 138 points or 0.36% to 38,905. The broad-based Nifty gained 47 points or 0.40% to end Monday at 11,690.
 
TCS led the gains on the Sensex as the investors reacted positively to its fourth quarter earning outcome of Friday. It finished nearly 5% higher. Infosys on the contrary fell steeply after it missed Dalal Street's earning expectation.
 
The Nifty IT and metal index led the gains on the bourses. While metal stocks rose on cooling US-China trade tension and encouraging China's trade data released over the weekend, the export-oriented IT stocks gained owing to the weakening rupee.
 
The India Meteorological Department (IMD) has predicted that the monsoon will be near-normal this year. "India is going to have a near normal monsoon in 2019 as the south-west monsoon is likely to be near-normal," said M. Rajeevan Nair, Secretary Ministry of Earth Sciences. He said that over a Long Period Average, they expect 96% rainfall of 89 cms.
 
India's inflation based on the Wholesale Price Index (WPI) -- which tracks the price of goods sold in bulk -- rose for a second consecutive month owing to a rise in fuel prices. Inflation based on WPI rose to 3.18% in March, from a rise of 2.93% in February, official data showed on Monday.
 
In a decision likely to have major impact on insolvency proceedings, the Chennai bench of the National Company Law Tribunal (NCLT) has said that any lender with vested interest in, or having relations with, a corporate debtor should not be part of the Committee of Creditors (CoC) in a resolution process.
 
The results of TCS and Infosys were announced on Friday. While the results from both the companies were on expected lines, those of Infosys seem to pale in comparison. 
 
While TCS reported revenue growth of 19% and a profit growth of 21.9%, Infosys reported revenue growth of 17.2% and an EPS degrowth of 0.3%. Expect price movement in the two counters on similar lines where shares of TCS rise while those of Infosys remain subdued. Both the results were announced post market closure on Friday. 
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 
 

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Nifty, Sensex moves in a narrow range – Weekly closing report
We had mentioned in last week’s closing report that Nifty, Sensex might head higher. The major indices of the Indian stock markets were range-bound during the week and closed on Friday with weekly losses over last Friday’s close. The trends of the major indices in the course of the week’s trading are given in the table below:
 
 
The major indices of the Indian stock markets fell on Monday and closed with losses over Friday’s close. On the NSE, there were 739 advances, 1,026 declines and 335 unchanged. The Sensex reversed early gains to fall over 340 points owing to sharp rise in crude oil prices. The benchmark crude oil, Brent crude futures surged above the $70 per barrel. Market participants also said that markets slid in response to the Bharatiya Janata Party's manifesto. Several welfare schemes were announced, which would have a huge cost and impact the country's fiscal deficit, they said. Besides, analysts said that broadly negative Asian markets and profit booking also impacted investor sentiments.
 
The major indices were range-bound on Tuesday and closed with gains over Monday’s close. On the NSE, there were 786 advances, 966 declines and 334 unchanged. Oil prices were already on the rise over US sanctions in Iran and Venezuela which has curtailed global crude oil supply. Moreover, the OPEC-led production cut also pushed up the prices. The benchmark, Brent Crude surged over the $71 a barrel mark. At close, the Sensex was up 238.69 points at 38939.22, while Nifty was up 67.50 points at 11,672.
 
The Punjab National Bank (PNB)'s 13% stake sale in PNB Housing Finance for Rs18.5 billion will strengthen the bank's capital, said Moody's on Monday. The report said that it estimates the sale will increase PNB's Common Equity Tier 1 (CET1) ratio by about 40 basis points from the 6.9% reported in December 2018.
PNB shares closed at Rs94.25, up 1.24% on the NSE.
 
The stock markets suffered a correction on Wednesday and closed with losses over Tuesday’s close. On the NSE, there were 757 advances, 974 declines and 356 unchanged. Hindalco Industries temporarily shut its operations of its alumina plant in Jharkhand after a spillage incident injured four people. The incident occurred in the red mud (bauxite residue) storage area connected to the alumina plant in Muri. Hindalco Industries shares closed at Rs211.60, down 2.56% on the NSE.
 
The Reserve Bank of India (RBI) may take more time to examine the Lakshmi Vilas Bank (LVB) and India Bulls Housing Finance Ltd (IHFL) merger deal, an official source said on Wednesday. The board of Lakshmi Vilas Bank have approved a scheme of amalgamation with the IHFL. 
 
On Thursday, the indices were range-bound and closed with gains over Wednesday’s close. On the NSE, there were 778 advances, 938 declines and 373 scrips remain unchanged.
 
Despite a muted trend in Asian markets, the Indian market opened higher on Thursday as the first phase of the Lok Sabha Polls began with voting in 91 seats. As many as 28 stocks advanced in the Nifty 50 index, while 22 stocks declined.
 
Indian equities fell on Wednesday after the International Monetary Fund (IMF) revised down the global growth forecast fuelling fears of a global slowdown. 
 
Investors were also cautious ahead of the polls, which began on Thursday morning.
 
The 30-share BSE Sensex rose 21.66 points to 38,607.01 and the Nifty50 gained 12.40 points at 11,596.70. The market breadth remained in favour of bears as about 1,325 shares declined against 1,153 advancing shares on the BSE. Caution was also seen among investors ahead of the start of earning season and for fresh trade tensions between the US and the EU. On Thursday, Asian indices were showing mostly a negative trend. 
 
In a new twist to the Jet Airways saga, its erstwhile promoter Naresh Goyal is said to be planning to bid for the airline from which he had to step down as chairman last month only. Separately, Mr Goyal has pledged his 26% stake in the carrier for loan from state-run Punjab National Bank (PNB).
 
Telecom major Bharti Airtel fixed a "record" date to determine the shareholders eligible to apply for equity shares in the proposed rights issue. The "Special Committee of Directors for Fund Raising" of the company decided that it would select the eligible applicants for the rights issue on April 24, 2019. The company plans to raise Rs25,000 crore through the rights issue. Bharti Airtel shares closed at Rs346.80, up 2.00% on the NSE.
 
At a time when the struggling-to-stay-afloat Jet Airways has created a capacity short fall in the Indian aviation sector, SpiceJet is set to induct 16 Boeing aircraft on lease in the next 10 days. The company said in a BSE filing on Friday, that SpiceJet will induct 16 Boeing 737-800 NG aircraft on dry lease and has applied to the Directorate General of Civil Aviation (DGCA) for a No Objection Certificate (NOC) to import the aircraft.
 
"Subject to regulatory approvals, the aircraft would begin joining SpiceJet fleet in the next 10 days." "This is the first lot of Boeing 737s that we are inducting in our fleet. The sudden reduction of aviation capacity has created a challenging environment in the sector," Ajay Singh, Chairman and Managing Director, SpiceJet said. The debt-ridden Jet Airways fleet size is down to 14 aircraft from around 120 last year. Jet is in the midst of a severe liquidity crisis that has affected its operations and resulted in the grounding. SpiceJet shares closed at Rs109.90, up 8.54% on the BSE.
 
The key Indian equity indices opened on a positive note on Friday, with the Sensex gaining around 95 points. Buying in the oil and gas and IT (information technology) stocks helped the indices rise, while a largely negative global market capped gains in the domestic market, analysts said. The major indices closed with gains on Friday with Thursday’s close. 
 
India’s second largest IT (information technology) firm Infosys has reported results better than expectations as net profit came in at Rs4,070 crore, as against an ET Now poll of Rs3,957 crore. The firm has set FY20 growth guidance at 7.5%-9.5% versus CNBC TV18 poll of 8%-10%. The EBIT (Earnings before interest and taxes) margin guidance for FY20 was maintained as compared to the channel’s poll. Earlier, Infosys had raised its full-year revenue outlook to 8.5%-9% in terms from the earlier 6%-8%. Some analysts expect Infosys to guide for a higher growth in FY20. Infosys shares closed at Rs748.00, up 0.71% on the NSE.
 
Engineering and construction conglomerate Larsen and Toubro (L&T) announced it has bought the 3% stake in its subsidiary -- L&T Shipbuilding Ltd -- previously held by the state-run Tamil Nadu Industrial Development Corporation for Rs32.74 crore. L&T Shipbuilding was incorporated on November 13, 2007, and currently operates a modern shipyard from Kattupalli, Chennai, carrying out shipbuilding and ship related activities, the filing said. The company undertakes manufacture and building of warships, auxiliary vessels and specialised commercial ships, and had a turnover of over Rs730 crore in fiscal 2017-18, it added. Larsen & Toubro shares closed at Rs1,359.75, down 1.32% on the NSE.
 

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Uber files for IPO, says 'may never make profits'
Global ride-sharing major Uber has warned in its IPO filing that the company may never make profits as its operating expenses are likely to increase "significantly in the foreseeable future".
 
The company filed for its Initial Public Offering (IPO) on Thursday and would be listed on the New York Stock Exchange (NYSE) under the symbol "UBER".
 
"We have incurred significant losses since inception, including in the United States and other major markets. We expect our operating expenses to increase significantly in the foreseeable future, and we may not achieve profitability," the company said in the "S-1" form or the IPO Prospectus submitted to the Securities and Exchanges Commission.
 
It further said that to remain competitive in certain markets, it has lowered the fares in the past and may continue to offer "significant driver incentives and consumer discounts and promotions".
 
The decade-old company also warned that it may fail to develop and successfully commercialise autonomous vehicle technologies and expected that its competitors would develop such technologies before it.
 
"Such technologies may fail to perform as expected, or may be inferior to those developed by our competitors," said the company in the IPO Prospectus.
 
The company noted that as of December 31, 2018, it had 91 million or 9.1 crore monthly active platform users. There were 3.9 million or 39 lakh drivers on the platform by the end of 2018.
 
According to market sources, the company may provide a price range for its shares later this month and would go public in May.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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