Local stocks ended with modest losses, snapping three-day gains, as negative global cues triggered profit booking. Global shares declined as worries over US-China trade war flared up, curbing risk appetite. The Nifty settled slightly above 10,900 level. Stocks from auto banking and realty sectors declined.
The barometer index, the S&P BSE Sensex, fell 193.65 points or 0.48% to 39,756.81. The index hit an intraday high of 39,982.10 and an intraday low of 39,623.53.
The Nifty 50 index fell 59.4 points or 0.50% to 11,906.2. The index hit high of 11,962.45 and low of 11,866.35 in intraday trade.
The market breadth was negative. On BSE, 1029 shares rose and 1488 shares fell while 162 shares were unchanged.
Broader market underperformed the Sensex. The BSE Mid-Cap index fell 0.79%. The BSE Small-Cap index fell 0.48%.
Among the sectoral indices on the BSE, the S&P BSE Telecom index (down 1.55%), the S&P BSE Auto index (down 1.12%) and the S&P BSE Bankex index (down 1.01%) underperformed the S&P BSE Sensex. The S&P BSE Metal index (up 0.48%) outperformed the S&P BSE Sensex.
ONGC (up 0.83%), Hindustan Unilever (up 0.23%), TCS (up 0.22%) and ITC (up 0.09%) edged higher from the Sensex pack.
Power Grid Corporation of India (down 1.09%) and Larsen & Toubro (down 1.03%) edged lower from the Sensex pack.
Reliance Industries (RIL) rose 0.19%. RIL and BP announced the sanction of the MJ project (also known as D55) in Block KG D6, offshore the east coast of India. MJ is the third of three new projects in the Block KG D6 integrated development plan and its approval follows sanctions for the development of `R-Series` deep-water gas field in June 2017 and for the Satellites cluster in April 2018. The announcement was made after market hours yesterday, 11 June 2019.
NTPC was down 0.63%. The company said that investment approval has been accorded for 100 MW Ramagundam Floating Solar PV Project, Phase-I in District Peddapelli, Telangana.
Private banks stocks witnessed selling pressure. Kotak Mahindra Bank (down 1.65%), RBL Bank (down 1.49%), IndusInd Bank (down 1.23%), ICICI Bank (down 0.82%), HDFC Bank (down 0.81%) and Axis Bank (down 0.32%), declined.
Yes Bank lost 3.34%. Credit rating agency Moody`s Investors Service has placed Yes Bank`s foreign currency issuer rating of Ba1 under review for downgrade. Moody`s has also placed the bank`s long-term foreign and local currency bank deposit ratings of Ba1, foreign currency senior unsecured MTN program rating of (P)Ba1, and Baseline Credit Assessment (BCA) and adjusted BCA of ba2 under review for downgrade. The announcement was made after market hours yesterday, 11 June 2019.
The review for downgrade takes into account Moody`s expectation that the ongoing liquidity pressures on Indian finance companies will negatively impact the credit profile of Yes Bank, given the bank`s sizeable exposure to weaker companies in the sector. At the end of March 2019, Yes Bank`s exposure to Indian housing finance companies (HFC) and non-bank finance companies (NBFC) represented 6.4% of its total exposure. In addition, Yes Bank had a 7% direct exposure to the commercial and residential real estate sector as of the same date, which is also under pressure, because liquidity conditions have worsened for the real estate sector, just like with the HFCs and NBFCs.
Auto shares declined. Escorts (down 2.26%), Ashok Leyland (down 2.14%), Hero MotoCorp (down 1.55%), Bajaj Auto (down 1.38%), Tata Motors (down 0.97%), TVS Motor Company (down 0.84%) and Mahindra & Mahindra (down 0.81%), edged lower. Eicher Motors (up 0.15%) rose.
Maruti Suzuki India fell 1.79% after foreign brokerage reportedly maintained hold rating on the car major, but slashed price target to Rs 6,325 from Rs 6,450 earlier.
Most metal stocks rose. Tata Steel (up 2.60%), Jindal Steel & Power (up 2.22%), Steel Authority of India (up 1.51%), Vedanta (up 0.5%), Hindustan Zinc (up 0.04%) and Hindalco Industries (up 0.2%) edged higher. Hindustan Copper (down 0.83%), National Aluminium Company (down 0.5%), NMDC (down 0.7%) edged lower.
Pharma stocks slipped. Cadila Healthcare (down 2.07%), Piramal Enterprises (down 1.88%), Divi`s Laboratories (down 1.5%), Aurobindo Pharmaceuticals (down 1.38%), Glenmark Pharmaceuticals (down 0.75%), Dr. Reddy`s Laboratories (down 0.5%), Sun Pharmaceuticals (up 0.47%) and Lupin (down 0.32%), declined. Cipla (up 0.05%) gained.
Telecom stocks fell across the board. Tata Teleservices (Maharashtra) (down 4.86%), Vodafone Idea (down 2.36%), MTNL (down 2.28%) and Bharti Airtel (down 0.91%) declined.
Realty stocks ended on a weaker note. Indiabulls Real Estate (down 5.64%), DLF (down 3.58%) Prestige Estates Projects (down 2.17%), Oberoi Realty (down 0.91%), Phoenix Mills (down 0.75%) and Mahindra Lifepace Developers (down 0.28%), edged lower. Sobha hit 52-week high and rose 1.6%.
Reliance Capital (down 6.82%) and Reliance Home Finance (down 4.23%) declined after Price Waterhouse & Co Chartered Accountants LLP resigned as one of the statutory auditors. Pathak H.D. & Associates took charge as as the sole statutory auditor until conclusion of the AGM for the year ended 31 March 2021.
Eros International Media hit a lower circuit of 10% at Rs 33.25, extending recent slump. Moody`s Investors Service downgraded the corporate family ratings to B2 from B1. It also changed the outlook to negative from stable.
Overseas, European stocks were trading lower Wednesday amid ongoing US-China trade tussle. Asian stocks ended lower.
US stocks declined on Tuesday, snapping a six-day winning streak. President Donald Trump reportedly said he is personally holding up a trade deal with China and that he will not complete the agreement unless Beijing returns to terms negotiated earlier in the year.
US Federal Reserve policymakers will meet on June 18-19 against the backdrop of rising trade tensions, slowing US growth and a sharp step-down in hiring last month.
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