Tag: Stocks

Market opens weak due to global cues; ONGC to declare quarterly results

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

How did the stock market open?

The market opened weak due to global cues as the political turmoil in Italy persists. The BSE Sensex opened at 34,747 points while the NSE Nifty opened at 10,569 points.  Tata Motors, Hero MotorCorp, Vedanta, ICICI Bank and Axis Bank are the current top index losers.

What was expected?

The market is likely to trade in the red for the second day due to weak global cues and weak rupee.

The SGX Nifty is trading at levels around 10,540 as against the Nifty May Future’s Tuesday close of 10,615, indicating a weak opening for the Indian market.

The Asian shares extended a global sell-off in early trading Wednesday as Italy’s political crisis provoked a heavy retreat on Wall Street, sent the euro to a 10-month low and pushed up borrowing costs for the government in Rome.

On Wall Street on Tuesday, the Dow Jones Industrial Average fell 1.58 percent to 24,361.45, the S&P 500 lost 1.16 percent to 2,689.86 and the Nasdaq Composite dropped 0.5 percent to 7,396.59.

Investors fear that repeat elections in the euro zone’s third-largest economy – which could come as soon as July – may become a de-facto referendum on Italian membership of the currency bloc and the country’s role in the European Union.

The rupee once again turned shaky and lost ground against the US currency on Tuesday, falling by a steep 43 paise to end at 67.86 due to heavy month-end dollar demand from importers.

Forex market sentiment turned bearish after tracking losses in most Asian and emerging market currencies, also impacted by political developments in Italy.

On the earnings front, ONGC, SAIL, Berger Paints, Alkem Laboratories, Apollo Hospitals, Infibeam, Info Edge, Reliance Communications, Punj Lloyd, Bharat Dynamics, Suzlon,   KNR constructions, Canara Bank, among others will declare their quarterly results.

The market on Tuesday closed in the red amid volatility as the expiry nears. The BSE Sensex slipped 216 points to close at 34,949 and the NSE Nifty closed 55 points lower at 10,633.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Wall Street on track for biggest one-day drop in a month on Italian elections

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Volatility returned to Wall Street with a vengeance on Tuesday, with downbeat guidance on trading from JP Morgan and worries over Italy putting the S&P and Dow Jones Industrial Average on track for the biggest one-day drop in a month.

Political crisis in Italy triggered a rush to safe-haven assets as the prospects of a repeat election in euro zone’s third largest economy raised doubts about the country’s future in the economic bloc.

Some major bank stocks sank as much as 5 percent after JP Morgan corporate and investment bank chief Daniel Pinto suggested second-quarter markets revenue would be flat on the year, driving 1.7 percent and 1.2 percent falls in the Dow and the S&P, respectively.

If the losses sustain to the closing bell, those would be the biggest daily falls since April 24 and the first of more than 1 percent drop in May.

“Notwithstanding what the banks themselves are saying, I’m actually a bit skeptical about loan volume growth in a high rate environment,” said Peter Cecchini, Managing Director and Chief Market Strategist at Cantor Fitzgerald in New York.

“And you see the yield curve flattening, the two 2-10 spread to closest to the flattest to the year, and that’s bad for the profitability of the banks.”

The Dow dived below its 50-day moving average, a key technical level that represents short-term momentum, for the first time since May 9, while the S&P 500, which opened below its 100-day moving average, was only a few points away from breaching that level.

Yield on the benchmark U.S. 10-year Treasury notes yield fell to their lowest level since mid-April to 2.84 percent.

“There’s been a bit of a pullback in yields and obviously with the contraction on the curve, there could be implications from a financial standpoint in terms of the banks’ businesses that are tied to interest rates,” said Ryan Larson, head of U.S. equity trading at RBC Global Asset Management in Chicago.

At 12:46 p.m. EDT the Dow Jones Industrial Average was down 386.69 points, or 1.56 percent, at 24,366.40, the S&P 500 was down 31.95 points, or 1.17 percent, at 2,689.38 and the Nasdaq Composite was down 46.15 points, or 0.62 percent, at 7,387.70.

The only gainers were the interest rate sensitive utilities, real estate companies.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

BHEL rises nearly 8% in trade post Q4 results

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Bharat Heavy Electricals’s stock gained nearly 8% on Tuesday after the company announced its fourth quarter results.

The net profit stood at Rs 457.2 crore, lower than the CNBC-TV18 poll of Rs 600 crore, pulling the stock up to reach its day’s high.

The company’s profit was mostly driven by strong operational income.

The company, though missing the Street’s estimates,  posted a profit which was more than double of what it was last fiscal in the corresponding quarter.

The fourth-quarter revenue of the firm stood at Rs 10,144 crore as against the Rs 10,785 crore estimated by CNBC-TV18.

The EBIDTA was Rs 1231.5 crore as against the estimate of Rs 972 crore and the EBITDA margin stood at 12.1%.

The tax expenses for the fourth quarter surged to Rs 682 crore. The other expenses, however, fell further to Rs 1,906 crore, by 30%,  compared to the same period last year.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Market trades in the green, slightly above flatline; Vedanta loses

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The market turned positive after opening flat on Tuesday.  Standing slightly above the flatline, the BSE Sensex was trading at 35,217 points and the NSE Nifty trading at 10,707 points.

Asian cues, weak rupee, falling crude oil prices and rising fuel prices are keeping the market in check.

Vedanta continued to lose 2% in trade after the Tamil Nadu government permanently closed the company’s Sterlite plant. SBI, Bharti Infratel, ICICI Bank and UPL were among the other top index losers.

Idea Cellular, GAIL, Lupin, Sun Pharma and Larsen and Tourbo were the top index gainers.

The BSE Sensex opened at 35,106 points, while the NSE Nifty opened at 10,667 points.

The rupee opened weaker, cracking its three-day gain, at 67.41 against the US dollar.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow