Sensex Today: Sensex ends 74 points lower, Nifty at 11,017; DHFL falls nearly 8% post defaults on repayment

Last Closing

Yesterday, Sensex closed 52 points higher at 37,402, Nifty gained 6 points to 11,053.  Consumer durables, capital goods and banking stocks led the gains on BSE. Market breadth was positive  with 1260 stocks rising compared to 940 falling on BSE.  

 

Sensex Today: Sensex closes 52 points higher, Nifty at 11,053; Coffee Day Enterprises ends in green after 16 sessions

Global Market Update

In global perspective, Asian stocks rose as trade talks, stimulus mulled. At the Singapore Exchange, SGX Nifty traded flat with negative bias at 11,050.50 down 6 points.

On Wall Street, US Futures (Dow Jones) up 27 pts or 0.10% at 26145.US stocks rallied on Monday, lifted by encouraging comments from Trump and other officials on trade talks, along with a move by China over the weekend to lower borrowing costs for companies.

European stocks closed higher as policy stimulus hopes grow.

Cofee Day shares rises 5% again

Shares of Coffee Day Enterprises (CDEL), owner of cafe chain Cafe Coffee Day (CCD), rallied as much as 5% more oday after yesterday's 5% hike, after media report suggested that the promoters were likely to resume talks with Coca-Cola for a stake sale in Cafe Coffee Day chain to pare its debt.

"The promoters of the Coffee Day Group plan to restart talks with Coca-Cola for selling a chunk of their stake in the Cafe Coffee Day (CCD) chain in a bid to cut the group's debt further," according to The Economic Times report.

"The company is confident that the ongoing divestments will significantly reduce the debt position of Coffee Day Group. The financial position and asset base of the Coffee Day Group will be comfortable to service the debt obligations of the entire group in full," CDEL said in a filing to the BSE.

The company in the exchange filing presented a breakup of debts held by its subsidiaries which came to a total of Rs 4,970 crore. This includes Rs 4,796 crore in secured loans and Rs 174 crore in unsecured loans.

Coffee Day Enterprises shares hit 5% upper circuit on talks of stake sale, reduced debt

CARE Ratings downgrades Tata Motors' outlook

CARE Ratings on Monday downgraded Tata Motors' long-term credit rating amid weak financial performance reported by its British subsidiary Jaguar Land Rover Automotive PLC (JLR).

CARE Ratings in a press release said it has downgraded the rating on the long-term bank facilities of Tata Motors (TML) to 'AA-/Negative' from 'AA/Stable', but reaffirmed rating on short term bank facility and commercial paper at 'A1+'.

"The revision in the rating of TML factors in the subdued operating performance reported by its key subsidiary Jaguar Land Rover Automotive PLC (JLR) for FY19 and Q1FY20," the rating agency said.

The stock initially started at the day's low of Rs 119.95 but later rose post the opening bell to day's high until yet of Rs 121.90

CARE Ratings downgrades Tata Motors with negative outlook on JLR worries

Brent Crude fell below $60/bbl

Oil futures were also down in a tentative sign that worries about an attack at a Saudi oil field over the weekend have eased, but some traders were nervously monitoring an Iranian tanker at the centre of a clash between Tehran and Washington.

In the oil market, U.S. West Texas Intermediate futures fell 0.27% to $56.06 a barrel in a sign of receding concern about tension in the Middle East, but some traders warn this lull could be temporary.

Rupee opens lower

Indian Rupee, USDINR surged to a 6-month high of 71.43 per dollar. Today the local currency opened at 71.51/ American currency. Yesterday, the domestic curreny closed at 71.43 against the US dollar.

 

Gold steadies

Gold, which is traditionally bought as a safe-haven during times of uncertainty, held steady at $1,495.69 per ounce after tumbling 1.2% on Monday, its biggest daily decline in about a  month. (Rueters)

DHFL declines 5% on payment default

Dewan Housing Finance shares fall 5 percent in pre-open session after the NBFC defaults on 15.71 billion rupees bond repayments on Monday. Later by the opening bell the shares were down 5.71% to hit intraday lower circuit at Rs 46.25  against the yesterday closing of Rs 49.05. The stock has fallen 6.93% to touch an intraday low of Rs 45.65 

Market Update

Sensex Today: Benchmark indices Sensex and Nifty, after opening marginally higher traded lower on Tuesday despite rising Asian markets on hopeseconomic revival.

Currenty Sensex trades 155 points lower at 37,246.87 and Nifty50 is back to 10k mark at 10,997.15, declining by 56 points

FII/DII

Foreign portfolio investors sold shares worth a net of Rs 305.74 crore on Monday, while domestic institutional investors purchased shares worth Rs 386.23 crore, provisional data showed.

Gainers/ Losers

Top gainers in the Sensex pack included TCS, Infosys, Hero MotoCorp, TechM, HCL Tech and PowerGrid, rising up to 2 per cent.

While, Yes Bank, Bajaj Finance, IndusInd Bank, Axis Bank and Sun Pharma rose up to 4.50 per cent. (PTI)

Govt Bond

The 10-year government bond yield was at 6.61 per cent in morning trade.

Mahanagar Gas share price rises

Mahanagar Gas Ltd (MGL) share price zoomed in early trade today after BG Asia Pacific Holding, the promoter of Mumbai-based Mahanagar Gas, exited from the gas distribution company by selling 10% stake for Rs 724 crore through a block deal today.

The block deal was done at a price of Rs 780 per share on NSE. Mahanagar Gas share price rose up to 11.56% or 91 points to Rs 878.35 compared to the previous close of Rs 787.35 in early trade.

Mahanagar Gas share opened with a gain of 5.92% at Rs 834 level on BSE.

Sterling & Wilson Solar debuts at discount today

Sterling & Wilson Solar a solar engineering solutions provider had a weak debut on the secondary market on its listing day, i.e. Tuesday. Due to the tepid response in IPO market and overall weak ongoing market conditions, the script of Sterling & Wilson Solar, debuted at a discount of over 10% against issue price on stock exchanges platforms today.

On the BSE, the share price of Sterling & Wilson Solar opened Tuesday's trade at Rs 700 against issue price of Rs 780, registering a decline of more than 10%. By 9:55 am, the stock started gaining more momentum and rose to the day's high of Rs 755.50, at a rise of 7.9 % over the debut price(Rs 700). The stock has also made a day's low at Rs 691 on BSE, 11% down the listing price of Rs 780. by 11: 30 am the stock has made a Market Capitalisation (Mcap) of Rs 11,699.87 cr, as per BSE data.

The initial public offer of the solar unit worth Rs 3,125 crore was open for subscription during 6-8 August with a price band of Rs 775 to Rs 780 per equity share of Re 1 face value. An entire offer by sale issue by the promoters Shapoorji Pallonji (Rs 2,083.33 crore) and Khurshed Yazdi Daruvala (Rs 1,041.67 crore) was subscribed 92% during August 6-8, 2019. 

Sterling and Wilson Solar lists at Rs 700 per share, 10.25% discount over issue price

Market Update

Sensex Today: Currenty Sensex trades 88 points lower at 37,315 and Nifty50 is at 11,010, declining by 40 points.

Traders said this week the focus will be on the Reserve Bank of India (RBI), Federal Open Market Committee (FOMC) and European Central Bank (ECB) minutes, the annual Jackson Hole Symposium of central bankers and Fed chair Powell's speech, among others.

As pe market experts, investors are awaiting government intervention to revive the slowing economy. There are expectations that the government would come out with sector-specific stimulus sometime soon. (PTI)

Govt panel recommends corporate tax relief, surcharge scrap

An Indian government panel has recommended cutting the corporate tax rate to 25% from 30% for all companies and scrapping surcharges on tax payments, an official said on Tuesday, part of a major overhaul of the six-decades old tax act.

India has one of the highest corporate tax rates in the world even after Finance Minister Nirmala Sitharaman this year cut the rate to 25% from 30% for companies with annual sales of up to 4 billion rupees ($56 million)

Govt panel recommends corporate tax relief for firms, changes in personal tax slabs

Sensex, Nifty recover from losses

Sensex Today: Equity market on Tuesday's afternoon session bounced back to green after Reuters reported that goverment panel has recommended cutting the corporate tax rate to 25% from 30% for all companies and scrapping surcharges on tax payments, as per govt official. Sensex trades 11 at 37,411 and Nifty traded up at 11,040.

Goldiam International rises over 3% on Rs 100 cr order win

Shares of Goldiam International rose 3.87% to the day's high of Rs 100 after the jwellery company announced that it bagged export orders worth Rs 100 cr from International clients for manufacturing of diamond studded designed gold jewellery. The approved order will be delivered within the coming 3 months, as per the company's BSE filing.

 

Market trades marginally lower

Sensex Today: Currently Sensex trades trades 19 points lower at 37,382 and Nifty trades 23 points lower at 11,030.Sectorally, major declines were registered in PSU Bank, Commodity and Metal indices.

DHFL falls nearly 8% as company reports fresh default

Dewan Housing Finance Corporation Ltd. (DHFL) shares fell over 7% intraday on Tuesday's trading session, after the housing lender submitted regulatory filing with regards to default in financial repayment obligations for interest payment on non-convertible debentures (NCO) and commercial papers (CPs).

The script of DHFL opened at a loss of 6.93% to Rs 45.65 against the last closing price of Rs 49.05 on BSE and later fell 7.85% to the day's low of Rs 45.20, merely 4.35 points away from the 52-week low of Rs 40.85 and 1.05 points away from the day's lower circuit set at Rs 44.15.

The stock has traded lower than 5, 20, 50, 100 and 200-day moving average and has registered a fall over 90% in a year's period. Overall 9.18 lakh shares and 195.5 lakh shares currently exchange hands on BSE and NSE, respectively.

The debt-burdened housing lender said it defaulted on its financial repayment obligations overall amounting to Rs 1,570 cr, with regard to the issuance of bonds and commercial papers on August 19, 2019.