Market Live: Sensex erases gains, Nifty breaks 9300; banks, Reliance drag
Maruti Suzuki share price hit fresh record high of Rs 6,700, up 2 percent after showing 19.5 percent growth in April auto sales while Tata Motors fell nearly a percent.
10:55 am Market Check: Equity benchmarks erased all early gains, with the Sensex falling below psychological 30,000-mark, weighed by banks and Reliance Industries.
The 30-share BSE Sensex was down 30.57 points at 29,887.83 and the 50-share NSE Nifty fell 5.40 points to 9,298.65.
Reliance Industries, HDFC Bank, Tata Motors, ICICI Bank and Axis Bank were down 0.5-1.5 percent while HDFC, ONGC, Maruti Suzuki and Hero Motocorp gained 1-2.5 percent.
10:45 am Buzzing stock: Maruti Suzuki's share price hit fresh record high of Rs 6,700, up 2.7 percent intraday Tuesday following stellar auto sales data in April.
The country's largest car maker sold 1.51 lakh units in month gone by, a growth of 19.5 percent over 1.26 lakh units sold in corresponding month of last year.
The growth was entirely driven by domestic sales that grew by 23.4 percent to 1.44 lakh units on year-on-year basis.
The 30-share BSE Sensex was down 30.57 points at 29,887.83 and the 50-share NSE Nifty fell 5.40 points to 9,298.65.
Reliance Industries, HDFC Bank, Tata Motors, ICICI Bank and Axis Bank were down 0.5-1.5 percent while HDFC, ONGC, Maruti Suzuki and Hero Motocorp gained 1-2.5 percent.
10:45 am Buzzing stock: Maruti Suzuki's share price hit fresh record high of Rs 6,700, up 2.7 percent intraday Tuesday following stellar auto sales data in April.
The country's largest car maker sold 1.51 lakh units in month gone by, a growth of 19.5 percent over 1.26 lakh units sold in corresponding month of last year.
The growth was entirely driven by domestic sales that grew by 23.4 percent to 1.44 lakh units on year-on-year basis.
10:30 am Market Outlook: The recent rise in share prices has made some analysts cautious, including Ambit Capital's Pramod Gubbi, who thinks equities are no longer in sync with fundamental parameters.
“Earnings recovery is on, but it is not commensurate with the rally as well as valuations,” Gubbi, Head of Equities at Ambit Capital, told CNBC-TV18.
He believes that it is likely only when there is a fundamental recovery in earnings or a significant correction in the valuations. Both have to be hand in hand and justify each other, he added.
10:16 am Buzzing: Shares of Thermax gained 5 percent intraday on export order win worth USD 157 million.
The company has won export contracts of approximately USD 157 million from a leading African conglomerate to supply 4 utility boilers, 8 heat recovery steam generators, and 2 flue gas steam generators for its refinery and petrochemical project coming up in Nigeria.
The contract includes design, engineering, procurement, manufacturing and testing, and supervision and commissioning of these equipment at the site.
Goldman Sachs remained neutral on the stock with a target of Rs 870.
10:00 am Market Check: Equity benchmarks extended gains in morning, with the Nifty reclaiming 9350 level, backed by HDFC Group, technology and auto stocks.
The 30-share BSE Sensex was up 147.74 points at 30,066.14 and the 50-share NSE Nifty gained 46.60 points at 9,350.65.
The broader markets outperformed benchmarks, with the BSE Midcap and Smallcap indices rising 0.7 percent each on strong market breadth. More than two shares advanced for every share falling on the exchange.
Index heavyweight HDFC was the leading contributor to Sensex' gains, up nearly 2 percent followed by Maruti (up 1.97 percent), HDFC Bank (up 0.5 percent), TCS (up 1.19 percent) and ITC (up 0.5 percent).
ONGC extended its Friday's rally, up 1.7 percent on top of nearly 4 percent upside seen in previous session. Hero Motocorp was up 1.5 percent despite 3.5 percent drop in April sales YoY while Bajaj Auto gained 1.5 percent ahead of sales data.
However, Tata Motors, Reliance Industries, Bharti Airtel and Sun Pharma were under pressure.
9:50 am Earnings Estimates: FMCG firm Marico is expected to report profit growth of 13.8 percent at Rs 155 crore for January-March quarter compared with Rs 136.2 crore in same quarter last fiscal.
Consolidated revenue during the quarter may grow 6 percent year-on-year to Rs 1,370 crore from Rs 1,292 crore, according to average of estimates of analysts polled by CNBC-TV18.
Operating profit on consolidated basis may see 8 percent growth at Rs 231 crore and margin may expand 30 basis points to 16.9 percent compared with year-ago period.
Analysts expect domestic volume growth at around 6-7 percent against 8.4 percent in corresponding quarter of last fiscal and negative 4 percent in previous quarter.
9:35 am FII View: Mixo Das of Nomura says Asian equities have been quite choppy since mid-March and the outlook remains very clouded.
All things considered, he continues to find it difficult to justify further upside.
Earnings and data have strengthened but the momentum appears to be fading and structural impediments remain, he feels.
Also, downside risks abound from geopolitical to policy to economic, and valuations, Das says.
9:15 am Market Check: The market started off the truncated week on a positive note after a long weekend, with the Sensex rising more than 100 points despite mixed Asian cues.
The 30-share BSE was trading at 30,029.76, up 111.36 points or 0.37 percent over previous close while the 50-share NSE Nifty was at 9,332.75, up 28.70 points or 0.31 percent.
Maruti Suzuki share price hit fresh record high of Rs 6,700, up 2 percent after showing 19.5 percent growth in April auto sales while Tata Motors fell nearly a percent.
HDFC, L&T, Asian Paints, ITC and ICICI Bank were other gainers while Reliance Industries and HDFC Bank were losers.
The Indian rupee opened marginally higher at 64.18 per dollar today against Friday's closing value of 64.24.
Bhaskar Panda of HDFC Bank says the USD-INR pair has been consolidating above the 64/dollar mark.
Today, he expects the pair to start around 64.25/dollar level and trade in an intraday range of 64.15-64.35/dollar range.
The dollar hit a one-month high against the yen today, lifted by treasury yields which surged after US Treasury Secretary Steven Mnuchin commented on the possibility of Ultra long-term bond issuance.
Asia markets were mixed as most major exchanges resumed after being shut for a public holiday on Monday.
Japan's Nikkei 225 climbed 0.7 percent while across the Korean Strait, the Kospi was up by 0.8 percent. In Hong Kong, the Hang Seng index rose 0.24 percent and Singapore's STI was up 0.95 percent. China's Shanghai Composite was down 0.25 percent.
“Earnings recovery is on, but it is not commensurate with the rally as well as valuations,” Gubbi, Head of Equities at Ambit Capital, told CNBC-TV18.
He believes that it is likely only when there is a fundamental recovery in earnings or a significant correction in the valuations. Both have to be hand in hand and justify each other, he added.
10:16 am Buzzing: Shares of Thermax gained 5 percent intraday on export order win worth USD 157 million.
The company has won export contracts of approximately USD 157 million from a leading African conglomerate to supply 4 utility boilers, 8 heat recovery steam generators, and 2 flue gas steam generators for its refinery and petrochemical project coming up in Nigeria.
The contract includes design, engineering, procurement, manufacturing and testing, and supervision and commissioning of these equipment at the site.
Goldman Sachs remained neutral on the stock with a target of Rs 870.
10:00 am Market Check: Equity benchmarks extended gains in morning, with the Nifty reclaiming 9350 level, backed by HDFC Group, technology and auto stocks.
The 30-share BSE Sensex was up 147.74 points at 30,066.14 and the 50-share NSE Nifty gained 46.60 points at 9,350.65.
The broader markets outperformed benchmarks, with the BSE Midcap and Smallcap indices rising 0.7 percent each on strong market breadth. More than two shares advanced for every share falling on the exchange.
Index heavyweight HDFC was the leading contributor to Sensex' gains, up nearly 2 percent followed by Maruti (up 1.97 percent), HDFC Bank (up 0.5 percent), TCS (up 1.19 percent) and ITC (up 0.5 percent).
ONGC extended its Friday's rally, up 1.7 percent on top of nearly 4 percent upside seen in previous session. Hero Motocorp was up 1.5 percent despite 3.5 percent drop in April sales YoY while Bajaj Auto gained 1.5 percent ahead of sales data.
However, Tata Motors, Reliance Industries, Bharti Airtel and Sun Pharma were under pressure.
9:50 am Earnings Estimates: FMCG firm Marico is expected to report profit growth of 13.8 percent at Rs 155 crore for January-March quarter compared with Rs 136.2 crore in same quarter last fiscal.
Consolidated revenue during the quarter may grow 6 percent year-on-year to Rs 1,370 crore from Rs 1,292 crore, according to average of estimates of analysts polled by CNBC-TV18.
Operating profit on consolidated basis may see 8 percent growth at Rs 231 crore and margin may expand 30 basis points to 16.9 percent compared with year-ago period.
Analysts expect domestic volume growth at around 6-7 percent against 8.4 percent in corresponding quarter of last fiscal and negative 4 percent in previous quarter.
9:35 am FII View: Mixo Das of Nomura says Asian equities have been quite choppy since mid-March and the outlook remains very clouded.
All things considered, he continues to find it difficult to justify further upside.
Earnings and data have strengthened but the momentum appears to be fading and structural impediments remain, he feels.
Also, downside risks abound from geopolitical to policy to economic, and valuations, Das says.
9:15 am Market Check: The market started off the truncated week on a positive note after a long weekend, with the Sensex rising more than 100 points despite mixed Asian cues.
The 30-share BSE was trading at 30,029.76, up 111.36 points or 0.37 percent over previous close while the 50-share NSE Nifty was at 9,332.75, up 28.70 points or 0.31 percent.
Maruti Suzuki share price hit fresh record high of Rs 6,700, up 2 percent after showing 19.5 percent growth in April auto sales while Tata Motors fell nearly a percent.
HDFC, L&T, Asian Paints, ITC and ICICI Bank were other gainers while Reliance Industries and HDFC Bank were losers.
The Indian rupee opened marginally higher at 64.18 per dollar today against Friday's closing value of 64.24.
Bhaskar Panda of HDFC Bank says the USD-INR pair has been consolidating above the 64/dollar mark.
Today, he expects the pair to start around 64.25/dollar level and trade in an intraday range of 64.15-64.35/dollar range.
The dollar hit a one-month high against the yen today, lifted by treasury yields which surged after US Treasury Secretary Steven Mnuchin commented on the possibility of Ultra long-term bond issuance.
Asia markets were mixed as most major exchanges resumed after being shut for a public holiday on Monday.
Japan's Nikkei 225 climbed 0.7 percent while across the Korean Strait, the Kospi was up by 0.8 percent. In Hong Kong, the Hang Seng index rose 0.24 percent and Singapore's STI was up 0.95 percent. China's Shanghai Composite was down 0.25 percent.
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