Volatile session ends almost flat
(11-Jul-2018, 16:30 Hours IST)  

The key indices settled almost flat after a volatile trading session. The barometer index, the S&P BSE Sensex, rose 26.31 points or 0.07% to settle at 36265.93. The Nifty 50 index rose 1.05 points or 0.01% to settle at 10,948.30. Global cues were weak as trade tensions escalated after US planned additional tariffs on Chinese goods.

Overseas, Asian and European stocks dropped after the Trump administration announced it plans to slap tariffs on a further $200 billion of Chinese imports. US stocks had climbed in the regular trading session yesterday, 10 July 2018, as investors focused on the start of earnings season.

Meanwhile, media reports suggested that President Donald Trump on Wednesday, 11 July 2018, claimed Germany is totally controlled by Russia. Speaking in Brussels, Belgium on the first leg of his European trip, the US president reportedly said a slew of inappropriate energy deals had given Moscow far too much influence over the continent's largest economy.

The Trump administration pushed ahead with plans to impose tariffs on an additional $200 billion in Chinese goods by releasing a list of targeted products. The 10% tariffs could take effect after public consultations end on August 30. The proposed list of goods includes consumer items such as clothing, television components and refrigerators as well as other technology products, though it omitted some high-profile items like mobile phones.

Earlier, the Trump administration on July 6 imposed 25% duties on $34 billion in Chinese imports. The first round of tariffs covered Chinese products ranging from farming plows to machine tools and communications satellites. China immediately retaliated with duties on the same value of US goods, including soybeans and cars and has promised further retaliation too.

Back home, intraday volatility was high. The key benchmark indices reversed initial losses triggered by negative Asian stocks. Indices extended gains in morning trade. Fresh selling at higher levels once again pulled the key benchmark indices in negative zone in mid-morning trade. Indices once again regained positive zone in early afternoon trade. Indices pared gains and were trading almost flat in afternoon trade. Stocks extended gains and hit fresh intraday high in mid-afternoon trade. Stocks once gain retreated in late trade.

The Sensex rose 26.31 points or 0.07% to settle at 36,265.93, its highest closing level since 29 January 2018. The index rose 122.68 points, or 0.34% at the day's high of 36,362.30. The index fell 69.92 points, or 0.19% at the day's low of 36,169.70.

The Nifty 50 index rose 1.05 points or 0.01% to settle at 10,948.30, its highest closing level since 1 February 2018. The index rose 29.40 points, or 0.27% at the day's high of 10,976.65. The index fell 24.25 points, or 0.22% at the day's low of 10,923.

Broader market declined. The S&P BSE Mid-Cap index fell 0.67%. The S&P BSE Small-Cap index fell 0.33%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1064 shares rose and 1557 shares fell. A total of 156 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Metal index (down 3.1%), the S&P BSE Basic Materials index (down 1.69%), the S&P BSE Auto index (down 0.99%), the S&P BSE Industrials index (down 0.83%), the S&P BSE Telecom index (down 0.66%), the S&P BSE Utilities index (down 0.64%), the S&P BSE Consumer Durables index (down 0.61%), the S&P BSE Capital Goods index (down 0.57%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.54%), the S&P BSE Bankex (down 0.48%), the S&P BSE Finance index (down 0.47%), the S&P BSE Oil & Gas index (down 0.46%), the S&P BSE Healthcare index (down 0.38%) and the S&P BSE Power index (down 0.38%), underperformed the Sensex. The S&P BSE Energy index (up 0.12%), the S&P BSE FMCG index (up 0.43%), the S&P BSE Realty index (up 0.55%), the S&P BSE Teck index (up 1.94%) and the S&P BSE IT index (up 2.38%), outperformed the Sensex.

Coal India (down 4.59%), Vedanta (down 3.52%), Tata Motors (down 2.74%) and Tata Steel (down 2.24%), were the major Sensex losers.

Bajaj Auto (up 2.11%), Hindustan Unilever (up 1.59%), Infosys (up 1.37%) and Reliance Industries (up 1.03%), were the major Sensex gainers.

IT major TCS gained 5.47% after consolidated net income rose 6.3% to Rs 7340 crore on 6.8% increase in revenue to Rs 34261 crore in Q1 June 2018 over Q4 March 2018. The result was announced after market hours yesterday, 10 July 2018.

Commenting on the Q1 performance, CEO and MD, Rajesh Gopinathan said the company is starting the new fiscal year on a strong note, with the growth engine firing on all cylinders. The firm's banking vertical recovered very nicely this quarter, while other industry verticals maintained their momentum. With a good set of wins during the quarter, a robust deal pipeline and accelerating digital demand, TCS is positioned well for the future.

Most banks shares declined. Among private sector banks, Kotak Mahindra Bank (up 0.71%), City Union Bank (up 0.46%) and Yes Bank (up 0.03%), edged higher. HDFC Bank (down 0.03%), RBL Bank (down 0.18%), IndusInd Bank (down 1%), Federal Bank (down 1.62%) and ICICI Bank (down 1.66%), edged lower.

Axis Bank rose 0.76%. Axis Bank said that its board has recommended the names of three candidates, in order of preference, for the approval of the RBI. The candidate as approved by the RBI, will succeed Shikha Sharma, whose term as the managing director & CEO of the bank, is due to expire on 31 December 2018. As mandated under the extant RBI norms, the bank will be submitting its application in respect of the recommendations relating to the said appointment, for the approval of the RBI. The announcement was made after market hours yesterday, 10 July 2018.

Among public sector banks, Bank of India (down 4.82%), Andhra Bank (down 4.36%), Union Bank of India (down 3.79%), Indian Bank (down 3.76%), Punjab National Bank (down 3.08%), Syndicate Bank (down 2.99%), Bank of Baroda (down 2.76%), Canara Bank (down 2.63%), Bank of Maharashtra (down 1.76%), Corporation Bank (down 1.75%), State Bank of India (down 1.75%), Punjab & Sind Bank (down 1.71%), United Bank of India (down 1.56%), Vijaya Bank (down 1.47%), Allahabad Bank (down 1.05%) and Dena Bank (down 1.01%), edged lower. Central Bank of India (up 0.66%) and IDBI Bank (up 7.14%), edged higher.

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