Sensex, Nifty Erase Losses; Auto, IT Stocks Lead

BSE Sensex and NSE’s Nifty 50 declined for a second straight day on Thursday amid mixed trends in Asian markets. Indian markets are likely to stay volatile as investors turned their focus to corporate earnings beginning next week. US stock futures fell on Thursday after a rare revenue warning from Apple Inc added to worries about slowing global growth. Chinese shares climbed. Japanese markets were closed for holidays but Nikkei futures dropped 1.8%. Oil prices fell by more than one percent on Thursday amid volatile currency and stock markets.

Dena Bank shares slump 20%, Vijaya Bank down 7%, BoB shares gain 3%
Dena Bank shares fell as much as 19.8% to Rs 14.35 per share. Vijaya Bank shares dropped 7.5% to Rs 47.20. Bank of Baroda gained 3.39% to Rs 123.40. All three banks announces swap ratios for their planned merger. Shareholders of Vijaya Bank will get 402 equity shares of BoB for every 1,000 shares held. In case of Dena Bank, its shareholders will get 110 shares for every 1,000 shares of BoB.

Jet Airways shares fall 5% on payment default
Jet Airways shares fell as much as 4.9% to Rs 250.75 per share. Jet Airways on Tuesday delayed the payment to a consortium of Indian banks, led by State Bank of India Ltd.

The payment of interest and principal instalment was delayed “due to temporary cash flow mismatch” and the company is in talks with the consortium. The deadline for the payment was Dec. 31, 2018, Jet said in a statement. On Wednesday. the stock closed 6.16% lower at Rs 263.75 per share.

Yen surge, algos set off ‘Flash-Crash’
The yen jumped almost 8 percent against the Australian dollar to its strongest since 2009, and surged 10 percent versus the Turkish lira. The Japanese currency rose at least 1 percent versus all its Group-of-10 peers, bursting through the 72 yen levels against the Aussie that has held through a trade war, a stock rout, Italy’s budget worries and Federal Reserve rate hikes.

Rupee weakens for 2nd day against dollar
The Indian rupee on Thursday weakened for a second session against the US dollar, tracking losses in its Asian peers amid mounting concern about the global outlook after Apple Inc. cut its revenue forecast. At 9.13am, the rupee was trading at 70.37 a dollar, down 0.22% from previous close of 70.17. It opened at 70.17.

The 10-year gilt yield was trading at 7.393% from its previous close of 7.355%. So far this year, the rupee has declined 0.86%, while foreign investors have bought $67.7 million in equities and sold $80.60 million in the debt markets.

Oil prices down 1%; Gold, metals gain
Oil prices
fell amid volatile currency and stock markets, and as analysts warned of an economic slowdown for 2019 just as crude supply is rising globally. US WTI crude oil futures were at $45.93 per barrel, down 61 cents, or 1.3%, from their last settlement. International Brent crude futures were down 36 cents, or 0.7%, at $54.55 per barrel.

Gold prices inched up on Thursday as a dip in Asian equities and worries about a sharp global economic slowdown propelled demand for safer investments. Spot gold gained about 0.2% to $1,286.62 per ounce, having earlier touched its highest since June 15 at $1,290.09. US gold futures were up 0.4% at $1,288.80 per ounce.

Metals: London copper and aluminium edged higher, recouping some of the previous session’s deep losses although concerns over economic growth in top consumer China kept a lid on prices. Three-month LME copper rose 0.5% to $5,871 a tonne, having slid more than 2% in the last session. The most-traded copper contract in Shanghai fell 1.3% to $6,881.90 a tonne.