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Stock Market Latest Updates: Benchmark indices erase losses, Sensex, Nifty close marginally lower; auto, bank stocks decline

Stock Market Latest Updates: Benchmark indices erase losses, Sensex, Nifty close marginally lower; auto, bank stocks decline

FP Staff May 15, 2020 16:00:08 IST
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Stock Market Latest Updates: Benchmark indices erase losses, Sensex, Nifty close marginally lower; auto, bank stocks decline

Highlights

09:45 (ist)

                                                                                         

Demand stimulus needed


Sanjay Kumar, CEO & MD, Elior India, said, "The extension on the interest subvention till 31 May, 2020, sanctioning loans with low interest rates to the marginal farmers, refinancing worth 29,500 crore to the rural state, district and regional cooperative banks and the moratorium provided by the RBI will further strengthen the farmers in standing firm during this economic typhoon.

"Having said that, the basic premise to address the demand issue lies in the conundrum of the agriculture economy. Farmers are expected to reduce their credit risk and as their income is hit, they are likely to reduce land acreage for vegetable crops. This will lead to consumers paying a higher price for the essential food. However, with uncertainty in job market, the middle income group is likely to make conservative spends higher leading to crash in prices materialising into volatility in prices.

"The first two sets of announcement on the stimulus package focused rightly on the capital formation amongst the industries ensuring the commodity supply for consumption in the economy. What is now important to hear from the government, what comes as the fifth pillar in the  Bharat – Demand. Without the demand stimulus, the scaling of consumption will not happen; translating into demand-supply disequilibrium.

We look forward towards the facilitation directed towards increment of demand that will be possible the reduction of tax on consumption and cutting down on GST rates,said Mr. Sanjay Kumar, CEO & MD, Elior India.”

08:43 (ist)

Markets could open flat

Deepak Jasani, Head Of Research, HDFC Securities, said "The markets could open flat as bounce in global markets offset local disappointment. Indian markets could open flat today following a sharp rebound in US markets on Wednesday and Asian markets that are mildly up this morning.

"The Dow staged the biggest turnaround in about two months on Thursday, as investors overlooked data that showed 2.98 million Americans lost jobs last week, bringing the total unemployed to about 36.5 million since COVID-19 pandemic began. A rebound in large financial stocks helped to turn stocks around in afternoon action, as investor skittishness abated with signs of recovering demand as some U.S. states reopen their economies.

"Crude-oil prices rose on news of production cuts and stronger demand forecasts, with West Texas Intermediate Crude for June delivery up $2.27, or 9%, to end at $27.56 a barrel. The price of an ounce of June gold rose $24.50, 1.4%, to settle at $1,740.90 an ounce.

"Asian stocks were mildly up on Friday amid investor optimism about the re-opening of the U.S. economy from coronavirus lockdowns and possibly more stimulus that could fuel a recovery. In April, China’s industrial output grew by 3.9 per cent, retail sales fell by 7.5 per cent and fixed asset investment fell by 10.3 per cent, suggesting an uneven recovery.

"In the second round of stimulus announcements made yesterday, the focus has been more on providing concessional credit and liquidity support rather than direct fiscal transfer (except for interest subvention and free food). The measures are welcome (although proliferation of schemes could have been avoided) and this could relieve the feared pressure on the fiscal situation but may not result in direct and immediate boost to demand. Hence the economic revival could take some time.  

"Indian benchmark indices wiped out all the previous session gains with Nifty ending below 9150 level on May 14 due to unenthusiastic response to the relief package announcements made on Wednesday and amid weak global cues. Nifty closed down 240.80 points or 2.57% at 9142.75. Capital Goods and Media stocks were up while IT, Metals, Financials, and Telecom shares were down.

"Technically, Nifty has fallen with a down-gap and closed near its intraday low. The trend continues to be down. On upmoves it could face resistance at 9236, while 9044 could offer support to the Nifty on down moves," said Jasani.

LIVE NEWS and UPDATES

May 15, 2020 - 16:01 (IST)

Sensex, Nifty close marginally lower 
 

Benchmark indices closed marginally lower after staging a sharp recovery from the intraday losses and the Nifty ended above 9,100-mark. 
 

Sensex fell 25.16 points or 0.08 percent to 31,097.73, while Nifty was down 5.90 points or 0.06 percent at 9,136.85 at close amid a volatile session. 

M&M, Axis Bank, IndusInd Bank, Hero MotoCorp, Sun Pharma, ICICI Bank, Bajaj Auto and Ultra Cement were the top losers in the Sensex pack.

Gainers included Bharti Airtel, Asian Paints, Tata Steel, Reliance, NTPC and HUL.

On sectoral front, auto, bank, IT, pharma remained under pressure, while metal, energy and infra witnessed buying.

May 15, 2020 - 15:38 (IST)

Moody's outlook for Indian power sector turns negative

Moody's Investors Service has changed its outlook for the Indian power sector to negative from stable on declining power demand, payment delays and an adverse impact from government measures that favour consumers over utility companies.

It said power demand will drop at least four to 5 percent in fiscal 2021 due to slowing activity and policy actions. Besides, companies are vulnerable to policy moves and payment delays from state-owned distributors.

"In addition to declining power demand  -- which will hit short-term power prices and the utilisation of coal-based power plants -- state-owned distribution companies that rely on subsidies could delay making payments to power companies as the government is likely to pivot subsidies towards social and healthcare spending amid efforts to contain the outbreak," said Abhishek Tyagi, Moody's Vice President and Senior Analyst.

May 15, 2020 - 15:33 (IST)

Hindustan Zinc board approves interim dividend of Rs 16.50/share for FY20

The board of Hindustan Zinc (HZL), a subsidiary of Vedanta, has approved an interim dividend of Rs 16.50 per equity share for FY20 amounting to Rs 6,972 crore.

Vedanta owns 64.9 percent stake in the company, while the centre retains a 29.54 percent stake.

HZL has intimated that its board of directors, through resolution passed by circulation on Tuesday, has approved interim dividend of Rs 16.50 per equity share - 825 percent on face value of Rs 2 per share for the financial year 2019-20 amounting to Rs 6,972 crore, Vedanta informed the BSE on Friday.

HZL is one of the largest integrated producers of zinc and lead and a leading producer of silver.

May 15, 2020 - 15:20 (IST)

Indices stages sharp recovery; Sensex above 31,000-mark, Nifty at 9,133

Indices erased most of the losses ahead of Finance Minister Nirmala Sitharaman’s press conference at 4 pm on Friday.

It is expected that the finance minister may announce relief package for agriculture and aviation sectors. 

Sensex was trading 48.51 points or 0.16 percent lower at 31,074.38 while the Nifty was down 9.95 points or 0.11 percent at 9,132.80 at around 3 pm.

M&M, Axis Bank, IndusInd Bank, Hero MotoCorp, Sun Pharma and ICICI Bank were the major losers in the Sensex pack.

Bharti Airtel, Asian Paints, Tata Steel and NTPC were the gainers.

May 15, 2020 - 15:08 (IST)

Airline stocks rise ahead of FM's media briefing

May 15, 2020 - 15:07 (IST)

Lesser-known firms win ONGC's 49 oil, gas fields

Lesser-known firms such as Duganta Oil and Gas and Orissa Stevedores Ltd have won 49 small and marginal oil and gas fields that state-owned ONGC had bid out on government direction.

ONGC had at the close of bidding in January received bids for 50 out of the 64 small and marginal oil and gas fields it offered in a bidding round for raising production by involving private companies.

Of these, the company has now awarded 49 of them.

"Oil and Natural Gas Corporation Ltd (ONGC) placed Notice of Award (NoA) to seven successful bidders in 13 contract areas comprising of 49 marginal oil and gas fields," the company said in a statement.

ONGC clubbed the 64 fields in Gujarat, Assam, Andhra Pradesh, and Tamil Nadu into 17 onshore contract areas by clubbing some of them. These have a cumulative 300 million tonnes of oil and oil equivalent natural gas reserves.

As many as 12 companies made 28 bids for 50 fields at the close of bidding on 17 January. Sources said 28 bids were received for 14 clusters, covering 50 fields, but none for three clusters that cover 14 fields.

May 15, 2020 - 15:05 (IST)

German economy shrinks 2.2% in Q1 as virus hits

The German economy shrank by 2.2 percent in the first quarter compared with the previous three-month period as shutdowns in the country and beyond started to bite, official data showed Friday.

The figures from the Federal Statistical Office offered a first glimpse of the damage caused by the coronavirus crisis to Europe's biggest economy, which the government is trying to limit with a raft of rescue programs.

The decline in the January-March period was the biggest since 2009.

March was the month in which the coronavirus pandemic hit Europe, with first Italy and then other countries imposing sweeping restrictions on public life and businesses.

Germany itself started shutting down in mid-March.

May 15, 2020 - 15:02 (IST)

Affordable renting through PPP gives impetus to realty

Mrinal Kumar, Partner, General Corporate, Shardul Amarchand Mangaldas & Co. said, "Government-funded housing in cities being converted to Affordable Rental Housing Complexes (ARHC) through public-private partnership (PPP) will give a much required impetus to the revival of the real estate sector and other related industries. The affordable rental scheme is a step towards addressing the issue of housing of urban poor and migrant workers and will provide them with access to quality accommodation and security to encourage these workers to not return to their native places in a crisis like COVID-19. Industries, manufacturing units and institutions will also be incentivised to develop AHRC on their unutilised land."

May 15, 2020 - 14:58 (IST)

One Nation, One Ration card much-needed

Puneet Chopra, Partner, MSC (MicroSave Consulting) said, “The announcement of One Nation One Ration Card is much needed. On the lines of a unique Aadhaar and digitization of various subsidies, it will allow a range of temporary migrants to avail  PDS benefits".

"Free food grains to migrants for two months will ensure food security for over 8 crore people at this time, when livelihoods have been taken away from them. It will also ensure the cultivators from whom government procures food grains receive some returns, as they have struggling to market their produce and generate some income for their dependents"

May 15, 2020 - 14:41 (IST)

Reliance Industries stock up

Stock Market Latest Updates: Benchmark indices erase losses, Sensex, Nifty close marginally lower; auto, bank stocks decline

New York: Asian stocks were set to rise on Friday amid investor optimism about the re-opening of the US economy from coronavirus lockdowns and possibly more stimulus that could fuel a recovery.

US President Donald Trump said he was open to negotiating another possible stimulus bill amid the novel coronavirus pandemic, but “was taking his time” to see if more federal action was needed.

Ahead of the Asian open, Hong Kong's Hang Seng index futures climbed 0.16 percent, Australian S&P/ASX 200 futures rose 0.85 percent, while Japan's Nikkei 225 futures were down 0.15 percent.

Stock Market Latest Updates Benchmark indices erase losses Sensex Nifty close marginally lower auto bank stocks decline

Representational image. Reuters.

'“We’re expecting to see a positive situation evolve here,” said Ryan Felsman, a senior economist at CommSec in Sydney, noting that Asian equities would likely follow the positive Wall Street lead, driven in part by gains in banking and energy.

The Dow Jones Industrial Average rose 1.62 percent, the S&P 500 gained 1.15 percent, and the Nasdaq Composite rose 0.91 percent.

Stock markets have rallied more than 30 percent since their March lows following unprecedented government stimulus measures and central bank intervention to counter the impact of economic lockdowns. Federal Reserve Chairman Jerome Powell quashed talk of US interest rates going negative to kick-start investment.

Optimism over potential stimulus spurred investors to look past a report from the US Labor Department, which showed just under 3 million new jobless claims last week, pushing the seven-week tally well over 36 million.

Investors also shrugged off bellicose remarks from President Trump regarding US-China trade and a whistleblower’s dire warnings that the United States could face “the darkest winter” if it does not improve its response to the pandemic.

Investors on Friday are awaiting monthly data from China that tracks industrial production, fixed asset investment and retail sales. The retail data will be an especially insightful indicator of China’s recovery as its economy reopens, Felsman said.

Residents in Wuhan, the Chinese city where the novel coronavirus emerged, braved pouring rain in queues of more than an hour to take part in a government-led exercise to test the city’s 11 million people for the novel coronavirus, a scale health experts describe as unprecedented.

The Japanese yen remained strong on the back of increased safe-haven demand, but is set to slip below the 107 yen per dollar mark, Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said in a note.

In commodity markets, oil prices settled higher on Thursday after the International Energy Agency (IEA) forecast lower global stockpiles in the second half of 2020, although worries remain that a second surge in coronavirus infections could occur in coming months.

Brent crude futures LCoc1 settled up $1.94, or 6.7 percent, to $31.13 a barrel.

US West Texas Intermediate crude futures settled up $2.27, or 9 percent, to $27.56 a barrel.

Emerging market stocks lost 0.92 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 1.32 percent lower.

Against a basket of its rivals, the dollar rose 0.20 percent, hitting a three-week high.

Benchmark 10-year US Treasury notes last fell 1/32 in price to yield 0.6218 percent.

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