Sensex, Nifty tumble; paints, tyre shares outperform

The market has not been showing any sign of recovery yet. The Sensex dropped 196.20 points or 0.74 percent to 26441.08 and the Nifty tumbled 59.05 points or 0.74 percent to 7901.50. About 1038 shares have advanced, 1668 shares declined, and 120 shares are unchanged on the Bombay Stock Exchange. Nischal Maheshwari, Head Of Research, Edelweiss Securities expect a volatile ride for the Indian market since it is no more dependent on domestic fundamentals which have getting better by the day, but now there is cause of concern on the global fundamentals especially with IMF’s warning of global growth. However, every fall in the domestic market should be used as an opportunity to accumulate stocks where the earnings visibility is very strong, says Maheshwari. Although lower crude prices bodes well for India, it shows the demand world over has reduced, he adds. Commercial vehicle maker Tata Motors and aluminium major Hindalco extended losses in afternoon trade, down 5 percent and 4.31 percent, respectively. Tata Steel, ITC, M&M, Sesa Sterlite, Cairn India and NMDC tanked 3-4 percent. HDFC, HDFC Bank, L&T, Axis Bank, ONGC, HUL, Bharti Airtel and Maruti Suzuki were down 1-2.7 percent. However, Infosys maintained its northwared journey, up 6.34 percent post higher than expected earnings. Net profit of the company in Q2FY15 grew by 7.3 percent to Rs 3,096 crore and dollar revenue rose by 3.1 percent to USD 2,201 million on sequential basis. HCL Technologies, Sun Pharma, BHEL, Hero Motocorp, BHEL and Reliance Industries were other gainers, up 1-2.5 percent. Tyre stocks like JK Tyre and Apollo Tyres gained 1-2 percent as well as paint shares like Shalimar Paints and Asian Paints rallied 8 percent and 2 percent, respectively on fall in crude oil prices. Brent crude fell 1.4 percent to USD 88.88 a barrel. Paint and tyre companies are collateral beneficiaries of the decline in crude prices as a large part of their raw materials consists of oil coordinates.

PNB cuts term deposit rates for up to 1 year to 8.5%

State-owned Punjab National Bank  (PNB) has slashed interest rates for bulk deposits over one month but raised it for deposits under one month. For deposits from one month to under 3 months, the new rate is 7.25 percent, down from 7.5 percent, while for bulk deposits from 91 days to under one year the new deposit rate is 8.5 percent from 8.75 percent earlier. However PNB has not touched its retail or non-bulk deposits despite the fact that a few weeks back the country's largest public lender SBI  cut its retail deposit rates for one year and above to 8.75 percent; in this category, PNB and other banks still offer 9 percent. In an interview to CNBC-TV18, KR Kamath, CMD, PNB, said the liquidity available in the system is enough to meet credit demand, however the rate cut in retail deposits will depend on the credit rate pick-up. The bank did not touch interest rates for deposits up to Rs 1 crore, which constitutes around 20-25 percent of deposit base. Kamath said the rate cut may impact net interest margin by 10 bps. PNB stock price On October 10, 2014, at 14:10 hrs Punjab National Bank was quoting at Rs 899.55, down Rs 4.1, or 0.45 percent. The 52-week high of the share was Rs 1068.00 and the 52-week low was Rs 459.80. The company's trailing 12-month (TTM) EPS was at Rs 95.90 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 9.38. The latest book value of the company is Rs 991.39 per share. At current value, the price-to-book value of the company is 0.91.

Sensex falls 200 pts on weak global cues, Nifty breaks 7900

Equity benchmarks started of Friday's trade on a negative note following weak global cues post concerns over Europe growth. The Sensex fell 233.19 points or 0.88 percent to 26404.09 and the Nifty lost 71.70 points or 0.90 percent to 7888.85. About 213 shares have advanced, 571 shares declined, and 23 shares are unchanged.   Hindalco, Tata Steel, BHEL, Sesa Sterlite, DLF and Tata Motors declined 2-3 percent while Infosys, BPCL and Dr Reddy's Labs were gainers. The Indian rupee slipped marginally in early trade, down 10 paise to 61.15 a dollar compared to previous day's closing value. Pramit Brahmbhatt, Veracity said today investors are likely to trade cautiously ahead of vital macro data. He expects the rupee to trade rangebound to slightly weak taking cues from strong dollar. He sees rupee ranged between 60.60-61.40/USD. On the global front, Asian markets were down following Wall Street's selloff as investors worried over slowing growth in Europe. German exports dropped 5.8 percent in August, the largest decline since the financial crisis, saw the Dow tumble more than 300 points overnight, while the S&P 500 and Nasdaq slid more than 2 percent each. Remarks from European Central Bank (ECB) President Mario Draghi also weighed. Speaking at the Brookings Institute, he reiterated that quantitative US stocks sank, erasing all and more of the previous day's rally, as investors bypassed US corporate earnings and economic reports to focus on global concerns, including Europe's softening economy. European shares closed down after volatile trade reacting to weak economic data. Germany posted its biggest fall in foreign trade for five and a half years. German exports dropped 5.8 percent in August, the largest decline since the financial crisis. In commodities, crude prices hammered by relentless anxiety about oversupply and waning global demand. Brent crude dropped below USD 90 a barrel for the first time since 2012 and US crude hit a 22-month low. From precious metals space, gold retained gains and is headed for its best week in nearly four months as a slump in equities attracted safe-haven bids for the metal. 

Indian rupee opens lower at 61.15 per dollar

The Indian rupee opened lower by 10 paise on Friday at 61.15 per dollar versus 61.05 Thursday. Pramit Brahmbhatt of Veracity said, "Today investors are likely to trade cautiously ahead of vital macro data. Rupee is expected to trade rangebound to slightly weak taking cues from strong dollar. See rupee ranged between 60.60-61.40/dollar." Euro on the back foot having come under renewed pressure overnight after weak German data raised fears of a recession in Europe's largest economy. Dollar index is around the 85 mark.