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Analysts said Indian markets are headed for a potentially volatile month in August, with the government due to appoint a replacement for outgoing Reserve Bank of India Governor Raghuram Rajan.
3:25 p.m: A consolidation was required in the markets after sharp run-up and it is healthy for markets, says Pradip Hotchandani of Prudent Broking Services. He expects 8,450 to act a floor to the Nifty.
3:20 p.m.: Market expert Meghana V Malkan says Nifty has first level of support at 8,500 level
3:15 p.m.: Markets at day’s low as selling pressure accelerates: Sensex down 300 points, Nifty below 8,550
3:12 p.m.: Markets see renewed selling pressure: Sensex down 250 points, Nifty near 8,550
3:10 p.m.: Amish Munshi, director at WINSOL Investment Advisers, says that select paint companies are a good buy on dips despite concerns over valuations. Economic recovery will support the volume growth, he says.
3:00 p.m.: Titan Q1 net profit down 16% to Rs 127 crore, hit by an exceptional loss of Rs 97 crore. Shares down over 2 per cent.
02.25 p.m. Markets continue to trade with deep cuts, even as parliament debates the GST Bill. The Sensex is down 205 points or 0.74 per cent, while the Nifty is trading firmly below the key 8,600 levels.
In parliament, former Finance Minister P Chidambaram said the Congress party had begun the process to make GST a reality. He pointed that that it has taken 11 years for GST to reach the current stage. Mr Chidambaram thanked the government for accepting the Congress party’s demand of scrapping the 1 per cent additional tax for manufacturing states. He added that there are still pieces of “clumsy drafting: in the GST Bill.
02.00 p.m.: Finance Minister Arun Jaitley tabled the GST Bill in Rajya Sabha. The GST aims to create one, uniform economic market, enabling the seamless transfer of goods and services across India, Mr Jaitley said. The GST will check tax evasion and enlarge government’s revenues, he added.
Petrol, diesel, liquor, electricity and real estate are out of GST ambit, while all other goods and services are in, the finance minister said.
12:15 p.m.: GST seems to be factored in by markets, the correction in markets is a case of buy on expectations and sell on news, says Anil Manghnani of Modern Shares & Stock Brokers. He says that markets now need fresh news – beyond monsoon and GST – to go up further from here.
11:40 a.m.: Markets near day’s low – Sensex down 275 points, Nifty below 8,550.
11:05 a.m.: Results impact – EIH swings to loss in Q1, stock slumps. Shares of EIH, which operates Oberoi and Trident chain of luxury hotels, fell as much as 6 per cent on Wednesday after the company reported a loss for the April-June quarter. The Kolkata-based hotel operator reported a loss of Rs 12 crore against a profit of Rs 21 crore in the same quarter of the previous fiscal. (Read)
10.40 a.m. The Sensex is trading 180 points lower at 27,800, while the Nifty is down 45 points. FMCG stocks underperformed the broader markets, with ITC down 2.4 per cent. HCL Tech shares pared gains and are trading 2.6 per cent higher.
In the broader markets, casino operator Delta Corp rallied sharply on Q1 earnings. Domestic carriers, including Jet Airways and SpiceJet, recovered after Tuesday’s selloff. InterGlobe Aviation shares were also trading higher.
Market expert Sanjeev Bhasin advised investors to book profits. He expects a 1,000-point cut in the Nifty over the next month. (Read)
09.45 a.m. The selloff has intensified, with the BSE Sensex now trading 200 points lower. ITC slumped nearly 3 per cent and is the top Nifty50 loser.
09.30 a.m. Markets opened flat, but selling pressure quickly intensified on the Dalal Street. The Sensex traded 120 points or 0.4 per cent lower at 27,860, while the Nifty slipped below the key 8,600 mark, after falling over 30 points in early trade.
Drugmaker Aurobindo Pharma, the top Nifty50 loser, fell 2 per cent. The stock is on way for its third straight day of fall. Power Grid, BPCL, HDFC, ITC, TCS and Zee Entertainment were some other big losers in morning trade.
Gains were led by IT major HCL Tech, which posted stellar numbers in its June quarter. HCL Tech shares rallied as much as 7 per cent, bringing some cheer to the Street, weighed down by weak performance in Infosys. (Read)
Investors will be tracking the GST debate in Rajya Sabha today. The passage of the landmark deal will benefit the economy in the long run, analysts say.
09.00 a.m. Rupee opened higher at 66.70 per dollar today against Tuesday’s close of 66.73. (Read)
08.45 a.m. HCL Tech, India’s fourth largest IT services company, has come out with stellar quarterly earnings. It posted a net profit of Rs 2,047 crore on sales of Rs 11,336 crore, beating Street estimates. In dollar terms, HCL Tech’s Q1 revenue jumped 6.5 per cent sequentially to $1,691 million, ahead of other frontline IT companies.
08.40 a.m. Indian stock markets are likely to open lower on Wednesday, tracking weakness across Asian equities. The Nifty futures trading on the Singapore Exchange (SGX) traded 27.50 points or 0.32 per cent lower at 8,632.50 as of 08.37 a.m., indicating a negative start for Sensex and Nifty.
Investors would be eyeing the key GST Bill that will be debated in Rajya Sabha today. The GST, which is likely to be implemented from April 1, 2016, is likely to add 2 percentage points to India’s GDP, analysts say.
However, markets are likely to see some correction if GST is passed, as the event is already priced in, according to analysts.
“Markets are looking frothy. There might be a 50-100 point pop-up followed by profit taking,” said Sanjeev Bhasin, executive VP (market & corporate affairs) at domestic brokerage IIFL.
“The second half of this month could see a sharp selloff as foreign investors are likely to book profit,” he added.
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Meanwhile, corporate earnings will continue to be in focus. IT major HCL Tech beat earnings estimates today and the stock is likely to rally in opening deals, traders said.
MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.4 per cent, backing away from its recent one-year peak. Japan’s Nikkei lost 1.4 per cent as the rising yen pressured exporter stocks while financials slid 2.7 per cent.
The sharpest moves were in sovereign bond markets where a sudden spike in yields stirred speculation that a multi-year bull run in prices might finally be nearing its end.
Overnight, the Dow Jones Industrial Average fell 0.49 per cent, while the S&P 500 lost 0.64 per cent and the Nasdaq 0.9 per cent. The recent spate of weaker US data has further pushed back expectations for when the Federal Reserve might hike its rates — the market is not fully priced for a move until 2018 — and taken a heavy toll on the dollar.
(With inputs from Reuters)