Share Market Update: Benchmark indices Sensex and Nifty extended losses to closed on a anegative note on Thursday, as investors remained on the sidelines amid Reserve Bank of India's (RBI) repo rate revision, global trade war concerns, Weekly Nifty and Bank Nifty expiry.
S&P Sensex declined by 553 points to close at 39,529, with 23 compenents declining, while broader index Nifty was down by 177 points to 11, 843 level, with 36 stocks declining on the closing bell. All the sectoral indices closed on the red, with major declines seen in PSU Bank, which was down by almost 5.20 % and PVT bank down at 2%, followed by other major indices like Pharma, Realty, Media and Metal, each declining over 1%.
AD ratio for NSE was down at 0.30, with only 382 stocks advancing over 1283 declining ones and other 73 that remained unchanged. Similarly on BSE, overall 1837 stocks traded on the negative against 685 advancing and 149 stocks that remained unchanged, at an advance decline ratio of 0.37.(advance decline ratio less than 1 implies more stocks had negative movement in the index)
RBI announced the outcome of its second bi-monthly MPC meeting today. The Reserve Bank of India's monetary policy committee cut the key repo rate by 25 bps to 5.75 percent with an accommodative stance from neutral. The central bank had cut the short-term lending rate (repo rate) by 25 basis points each in its last two policy reviews. Banking and auto stocks were trading lower ahead of the RBI monetary policy.
Globally, investor sentiments had soured on a lack of progress on trade war tensions, amid talks between U.S. and Mexican officials and President Donald Trump issuing a fresh threat to hit China with tariffs on "at least" another $300 billion worth of Chinese goods.
Here's a look at live updates for the Indian share market today:
3: 45 pm
S&P Sensex declined by 553 points to close at 39,529, with 23 compenents declining, while broader index Nifty was down by 177 points to 11, 843 level, with 36 stocks declining on the closing bell.
All the sectoral indices closed on the red, with major declines seen in PSU Bank, which was down by almost 5.20 % and PVT bank down at 2%, followed by other major indices like Pharma, Realty, Media and Metal, each declining over 1%.
Salzer electronics to acquire stake in Kaycee Industries throufgh Open offer
3: 25 pm
Salzer Electronics Limited. has filed a draft letter with SEBI in regards to Open offer for the acquisition of 16,503 fully paid-up equity shares of Rs 100 each, representing 26% of the equity share & voting capital at Rs 3,475 per fully paid-up equity share payable in cash by Salzer Electronics Limited to the eligible equity shareholders of Kaycee Industries Limited.
Mr. Sujan Hajra, Chief Economist and Executive Director, Anand Rathi Shares & Stock Brokers on the RBI Monetary Policy
3: 20 pm
"RBI carried out the third successive rate cut. Low inflation and subdued growth are the drivers of the move. Yet, the real concern is lack of transmission of rate cuts into effective lending rate. Liquidity conditions also remain tight for large part of the corporate sector. Effective transmission and adequate liquidity remain key challenges."
Infosys Collaborates with Microsoft to Accelerate Digital Transformation and Innovation in Smart Buildings & Spaces
3: 15 pm
Infosys announced a collaboration with Microsoft to deliver smart buildings and spaces (SB&S) solutions for the architecture, engineering, construction, facilities management and real estate development markets.
The collaboration will benefit from Microsoft Azure services, and sensor enabled devices along with Infosys' global network of innovation hubs, experience design and expertise in building connected ecosystems to develop SB&S solutions that will improve energy efficiencies, optimize space utilization, enable higher people productivity and deliver differentiated user experiences.
CRISIL rating for Tata Power
3: 05 pm
CRISIL reaffirms Tata Power's long-term loan rating at AA- and revises the outlook to positive from stable. The rating agency has reaffirmed rating at AA-, with outlook revised to positive from stable for NCDs and Perpetual NCDs as well.
For short term loan rating and commercial paper program, the agency has reaffirmed A1+ rating.
Stovec Industries Ltd acquires Service and Spare Parts Business from SPG Prints
2: 45 pm
Stovec Industries Ltd informed the exchanges that it is to acquire service and spare parts business relating to rotary printing equipment from SPG Prints B.V. Company further added in the filing that the acquisition of the said business and hence the referred transaction is completed.
Clarification on price movement by Hindustan Wires
2: 30 pm
Hindustan wires has informed the exchnages, in realtion to a price clarification query, that the BoD of the firm has taken on record the proposal of promoters to consider voluntary delisting of the equity shares.
L&T buys 25000 shares of Mindtree
2: 15 pm
Midtree informed the bourses that L&T has acquired 25000 equity shares of the company with a FV of Rs 10 today.
Eros International hits all-time low on downgrade by CARE Ratings
2: 10 pm
Eros International Media share price tanked in trade today after rating company CARE cut its long-term bank facilities rating to default from BBB- on delay in debt servicing. Eros International share price tanked 20% to 53.10 level in trade today compared to the previous close of 66.35 level on BSE. Eros International share price's intra day low is also the fresh 52 week and all-time low for firm on BSE.
Cravatex Brands acquires India rights to sell footwear brand Vans
2: 00 pm
Cravatex Ltd clarified to the bourses that CBl, that is in the footwear, sports and wellness brand business and has licence to run several brands in the country, has taken distribution rights for Vans India.
Experts' views on RBI Monetary policy
1: 45 pm
Mr Ajay Bodke, CEO, PMS Prabhudas Lilladher Pvt Ltd, commented on the RBI Monetary Policy that , "No specific measure has been announced that would provide immediate relief to the much-troubled NBFC sector. In the presser the Governor did reiterate multiple times that RBI will do whatever it takes to ensure financial stability of the system. Jittery markets are facing a crisis of confidence with respect to the precariously perched NBFC (including HFCs) & fixed-income mutual fund sectors. It looks highly unlikely that these broad, motherhood statements will assuage market concerns.
"Specific & targeted solutions to rescue these besieged sectors alone can stem the panic and stop a further contagion. Inadequately forceful response to the ILFS bankruptcy has already created fear psychosis among market participants which is getting compounded by an almost blase regulatort treatment towards other troubled groups like DHFL, Essel, ADAG etc," he further added.
Vinod Nair, head of research at Geojit said, "The well-addressed decisions of RBI could not pacify the market as it lacked any concrete steps toward the ongoing NBFC crisis and liquidity issue. Though the central bank was comfortable with the inflation level, its muted growth outlook and downgrade in GDP weighed on the market. Now, the dynamics depend on the government to address this issue with new reforms and corrective actions to reinforce the financial situation."
RBI says its done away with charges on NEFT and RTGS transactions
1: 25 pm
"In order to provide an impetus to digital funds movement, it has been decided to do away with the charges levied by the Reserve Bank for transactions processed in the RTGS and NEFT systems. Banks will be required, in turn, to pass these benefits to their customers. Instructions to banks in this regard will be issued within a week," the central bank said in a statement.
LIC Housing Finance appoints Sudipto Sil as CFO
1: 15 pm
Compay has informed the bourses that the firm has appointed Sudipto Sil as its Cheif Financial Officer. He was earlier working as Deputy CFO and Investor Relation manager with the housing finance firm.
Tata-Teleservices de-merger of the Registry business from TSRDL to TSRDCPL
1: 00 pm
Firm's Registry Business of TSR Darashaw Limited (TSRDL), the share transfer agent of the company to be transferred to a new entity TSR Darashaw Consultants Private Ltd. (TSRDCPL).
News in the Media related to merger of one or two Banks with OBC
12: 45 pm
Oriental Bank of Commerce has informed the exchanges that, in reference to some news in media related to amalgamation of one or two Banks with OBC, the bank would like to clarify that neither any such specific proposal has been approved by the Board of the Bank nor has the Bank sought any approval from the Finance Ministry in this regard.
Visaka Indstry expands v-boards division - setting up of new unit in Tamil Nadu
12: 30 pm
Visaka Industries, with a view to cater the south Indian markets more efficiently as well as to retain its position as the largest production capacity company in Fibre Cement Boards, is undertaking expansion ofits V-Boards division by setting up a new unit in the state of Tamil Nadu. The faciltiy with 1,70,000 MTs existing capacity, plans to add further 50,000 MTs proposed capacity at 15 months period, with an investment up to 10,000 Lacs. Existing capacity utilisation stands at 80%.
Dilip Buildcon announces completion of Kakinada Bypass section
12: 20 pm
Dilip Buildcon informed the bourses that the project 'Rehabilitation and upgradation of Kathipudi-Start of Kakinada Bypass section from Km 0/000 to Km 27/500 of NH-214(New NH-216) to Four Lane with paved shoulder in the State of Andhra Pradesh Under NHDP -IV through Engineering, Procurement & Construction (EPC) basis' has been provisionally completed.
The Provisional Completion Certificate has been issued by the authority and has declared the project fit for entry into commercial operation as on March 28, 2019.
Natco Pharma press release on USFDA for Hyderabad facility
12: 10 pm
Natco Pharma Limited informed the exchnages about the completion of a regulatory inspection from the USFDA for its formulation facility in Kothur Village, Hyderabad, at the end of which, the facility received nine observations, with no repeat observations and mostly procedural in nature. The company believes that none of observations are related to data integrity and that all of the observations can be addressed within a short period of time. The company will provide due justifications and corrective action plan within the next fifteen (15) working days to address the USFDA observations.
RBI cuts Repo Rate by 25 Bps
11: 50 am
RBI announced the outcome of its second bi-monthly MPC meeting today. The Reserve Bank of India's monetary policy committee cut the key repo rate by 25 bps to 5.75 percent with an accommodative stance from neutral. RBI says MPC unanimously votes 6-0 for rate cut by 25 bps.
11: 40 am
"What RBI is going to do, we'll have to wait and see," said AK Prabhakar, head of research at IDBI Capital in Mumbai. "There is some selling, maybe it is profit booking. But one has to be a bit careful."
11: 25 am
India vix, today stood at 15.59, down by 0.23% against yesterday's close. Except FMCG, at a gain of 0.20%, all the major indices are trading in the red, with worst fall seen in PSU Banks stocks, at a 1.85 % fall and Pharma, declining at 1% rate.
RBI likely to cut key rates
11: 10 am
A worrying slowdown in India's economy makes a cut in the Reserve Bank of India's benchmark interest rate highly likely this week, but analysts say policymakers should also find ways to boost banks' liquidity to ensure they drop their lending rates too.
Beginning a three day review on Tuesday, the RBI's six-member monetary policy committee (MPC) can draw comfort from subdued inflation.
DHFL gets RBI's approval for sale of Avanse Fin to Warburg Pincus
11: 00 am
The co. has recieved Reserve Bank India's (RBI) prior approval for proposed change in control / ownership and management of Avanse and the DHFL's entire shareholding in Avanse Fin Services to Olive Vine Inevstmemnt, an affiliate of Warburg Pincus Group, the acquirer. RBI has granted its approval for change in control/ ownership of Avanse and that DHFL's disinvestment of co. stake in Avanse is expected to be completed shortly.
Expert quote on Rupee
10: 55 am
"We expect the Indian rupee to keep depreciating through the rest of the year, given a higher risk-off sentiment around trade tensions, limited portfolio inflows, slower domestic growth and stretched valuations," said Rini Sen, India economist at ANZ.
"We expect the rupee to recover in 2020, once the combined effect of easy liquidity and monetary policy supports a revival in overall growth."
IOC joint venture with HPCL and BPCL for LPG gas pipeline
10: 50 am
Indian Oil Corporation Limited (IndianOil), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) have signed an agreement for formation of a Joint Venture Company for implementation and subsequent operation of 2757 Km long LPG Pipeline from Kandla, Gujarat to Gorakhpur, UP. IndianOil, BPCL and HPCL would have 50%, 25% and 25% equity holding in the JV Company.
Stats run IOC, HPCL and BPCL to form JV for LPG pipeline, IOC says LPG pipeline from Kandala, Gujarat to Gorakhpur, UP. IOC to hold 50% in LPG pipeline JV company, HPCL, BPCL 25% each. #MOMarketUpdates- Motilal Oswal Group (@MotilalOswalLtd) June 6, 2019
Intimation of Receipt of Work Orders by PSP Projects
10: 45 am
The company has informed the exchnages that it has bagged new work orders worth Rs. 155.61 crore for institutional, industrial and residential projects from various clients, which interalia includes major orders received for Construction of Sardardham Building at Ahmedabad worth Rs. 36.08 crore and RCC work for proposed Phoenix Mall at Ahmedabad worth Rs. 91.39 crore and the remaining work orders received from their repeat clients viz Torrent Pharmaceuticals Limited , CEPT university,amongst others.
KPIT Tech unveils new visual brand identity
10: 30 am
KPIT Technologies, in a press release has informed the exchanges about unveiling its new visual brand identity today. Worlds leading design studio, Pentagram, its partners Jody Hudson-Powell and Luke Powell , consulted KPIT in developing this new visual identity.
Manpasand Beverages CMD's message
10: 20 am
Manpasand Beverages has informed the exchnages the message from the CMD, Dhirendra Singh, that the company is currently assessing recent developments & situation with public shareholders; willing to take all nessesary steps in the best interest of the firm and that he is also willing to step down from daily operations if required. Message added that he is currently in talks with Ernst & Young to advise and guide the co. on above matters.
Penny Cement IPO
10: 10 am
Penna Cement Industries Limited 's Initial public offer for face value of Rs 10 each at a cash price of per equity share aggregating up to Rs. 1550 Crores, that comprises fresh issue up to Rs.1300 Crores and an offer for sale by the promoter, P R Cement Holdiings Limited, aggregating up to Rs. 250 Crores. Edelweiss Financial Services, IIFL Holdings, JM Financial and YES Securities (India) are the book running lead managers to the issue. The company plans to utilise the IPO proceeds for repayment and pre-payment of certain loans and for general corporate purposes, according to its DRHP filing.
Hyderabad-based Penna Cement Industries Ltd (PCIL), a privately-held cement company, has received SEBI approval for its Rs 1,550-crore Initial Public Offering (IPO).
IPO Update - Penna Cement has got markets regulator SEBI's go ahead for its Rs 1,550-crore IPO. The Hyderabad-based, Penna Cement has four integrated manufacturing facilities and two grinding units spread across Andhra Pradesh, Telangana and Maharashtra. #MOMarketUpdates- Motilal Oswal Group (@MotilalOswalLtd) June 6, 2019
9: 50 am
Of 30 Sensex stocks, 20 were trading in the red. Bank Nifty trading 155 points lower, BSE bankex falls 208 points to 35,273.
9: 45 am
Rupee trading 16 paise lower at 69.42 compared to the last close of 69.26 to the dollar.
Gainers and Losers
Indian Oil (1.68%), Dr Reddy's (1.38%) and Asian Paints (1.16%) were the top Nifty gainers.Top Nifty losers were GAIL (6.49%), YES Bank (4.09%) and Tata Motors (2.96%).
9: 35 am
On Tuesday, Sensex fell 184 points to 40,083 level and Nifty closed 66 points lower to 12,021. Meanwhile, mid cap and small cap indices were trading 22 points and 12 points lower in early trade.
DHFL falls 11%
9: 30 am
Dewan Housing falls over 11% to 98 level on BSE after ratings agencies ICRA and Crisil downgraded Dewan Housing Finance Corp commercial paper to their lowest ratings after the lender missed certain payments on bonds due this week. ICRA cut its rating on the company's paper to D from A4, while Crisil downgraded to 'CRISIL D' from 'CRISIL A4+', implying that the company was in default or expected to be in default soon.
Crisil, ICRA give lowest rating to DHFL's commercial paper; shares plunge https://t.co/vHRLv9aQIY- Reuters India (@ReutersIndia) June 6, 2019
FII and DII
9: 25 am
On a net basis, foreign portfolio investors (FPIs) sold shares worth a net of Rs 416 crore on Tuesday, and domestic institutional investors (DIIs) were net sellers to the tune of Rs 355.42 crore, provisional data available with BSE showed.
Sensex, Nifty slip into the red. Sensex falls 22 points to 40,052 and Nifty down 21 points to 12,000. Oil and gas and banking stocks led the losses with their indices falling 131 points and 193 points, respectively. Market breadth was negative with 491 stocks trading higher compared to 508 falling on the BSE.
Sensex rallied over 50 points to 40,136 in early trade, Nifty climbed 18 points to 12,039.
Rupee opens weak at 69.40 against the dollar from its last close of 69.26, falls 14 paise.