MARKETS LIVE: Sensex up 600 pts, Nifty above 10400; TCS down 3.5% post Q2

After NBFCs, bond market woes likely to weigh on rating agencies’ revenues

 

The pressure seen in the domestic bond market is unlikely to be confined to non-banking financial companies (NBFCs). Even rating agencies are likely to feel the heat of recent events due to subdued corporate bond issuance. Already, during the first half of 2018-19, amid elevated yields, corporate bond issuance (including private placement of debt) is down 30 per cent year-on-year. Read More
Airline stocks extend gain; IndiGo, Jet Airways, SpiceJet up 10% in 3 days

 

Shares of all three listed airline companies were trading higher for the third straight session on the BSE after the government on Wednesday cut excise duty on jet fuel to 11% to give relief to the aviation industry and fall in the Brent crude oil prices by 5.6% in past two days. Read More
Sensex back to April levels: Here are the winners & losers in past 6 months

 

The Sensex on Thursday closed at its lowest level since April 11. Essentially, the index, that tracks the share price performance of India’s 30 bluechip companies, is little changed this fiscal year. However, the 30 components have seen wild fluctuations in their stock prices during this period. Read More
 
Why equity investors should brace for more volatility and negative returns

 

Equity investors should brace for greater volatility and negative returns as bond yields inch-up in the US, the world’s largest bond and equity market. Long-term data points to a negative correlation between yield on the 10-year US government bond and the price-to-earnings (P/E) multiple of the S&P500 index — the US’ most traded equity index. Read More Nifty Auto index up over 3% led by gains in M&M

Buzzing Stock
 

Shares of YES Bank have rallied 6% to Rs 255 on the BSE in early morning trade after the private sector lender appointed US-based headhunter Korn Ferry to assist the bank’s committee in its selection of the new managing director & chief executive officer (MD & CEO).

 

The bank had announced that it would find a successor to MD & CEO Rana Kapoor whose term was cut short by the Reserve Bank of India (RBI). READ MORE

The benchmark indices are trading higher with the Nifty50 reclaiming 10,400 levels as
rose against US Dollar amid steady Asian peers. 

The rupee was also trading firm, up 29 paise at 73.83 per dollar from its previous close. 


 

Amid stock specific action, shares of Tata Consultancy Services (TCS) were down 3.5% to Rs 1,911 on the BSE in early morning trade in an otherwise firm market after the company reported a lower than expected revenue growth of 3.7% in constant currency (CC) terms in September quarter on the sequential basis. The Street was estimating revenue growth of 4% in CC terms for the quarter. Among other results, Hindustan Unilever, Kotak Mahindra Bank are likely to announce their Q2 earnings during the day.

YES Bank, on the other hand, rallied 6% to Rs 255 on the BSE in early morning trade after the private sector lender appointed US-based headhunter Korn Ferry to assist the bank’s committee in its selection of the new managing director & chief executive officer (MD & CEO).

On macro front, India’s industrial production (IIP) data for August and retail inflation (CPI) prints for September will be released today. Industrial production grew 6.6 per cent in July. Retail inflation eased to a 10-month low of 3.69 per cent in August. The numbers may come slightly higher owing to falling
and rising
prices. 

  

Global Markets

After plunging to 19-month low on Thursday Asian shares appears tentative on Friday, holding steady after a nine-day losing streak, but sentiment frailed after Wall Street shares crumbled and expectations of market volatility shot up to an eight-month high. Worries about the economic impact of a Sino-US trade war, a spike in US bond yields this week and caution ahead of earnings seasons are all cited as potential reasons behind the selloff, the biggest market rout since February.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.2 per cent after the opening of South Korea and Australian markets, a day after it fell 3.6 per cent to hit 1-and-a-1/2 year low. Japan’s Nikkei fell 0.6 per cent.

The US S&P 500 lost 2.06 per cent on Thursday to a three-month low, following on from a 3.29 per cent drop on Wednesday.

(with Reuters inputs)