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Closing bell
The Sensex tanked nearly 537 points to end at over two-month low of 36,305.02 and the Nifty crashed below the 11,000-mark, extending their slide for the fifth straight session on heavy selling in banking and auto stocks.
Reports of liquidity concerns following the default in repayment of loans by diversified IL&FS group spooked investors. Losses in global markets on reports that China had called off planned trade talks with the US in the wake of a new round of duties weighed on the market sentiment.
The 30-share Sensex hit a low of 36,216.95 before settling at 36,305.02, down by 536.58 points or 1.46 per cent -- the biggest single-session fall since February 6 when it had lost 561.22 points.
This is the weakest closing since July 11 when it settled at 36,265.93. The index had lost 1,249.04 points in the previous four sessions.
The broader NSE Nifty cracked below the 11,000 level by dropping 168.20 points, or 1.51 per cent to 10,974.90, due to foreign fund outflows amid prospects of a 25 basis point hike in the interest rate by the US Federal Reserve this week.
Mahindra and Mahindra fell the most by 6.46 per cent, while Maruti and Bajaj Auto declined by 3 per cent and 1.7 per cent, respectively.
Financial stocks led by HDFC took a hit. HDFC dropped 6.22 per cent, IndusInd Bank by 4.94 per cent, ICICI Bank by 2.8 per cent, Kotak Bank by 2.6 per cent, HDFC Bank by 2.16 per cent, and SBI by 2.04 per cent.
YES Bank fell by another 0.35 per cent, taking its total losses to more than 29 per cent after the RBI curtailed the term of its founding CEO Rana Kapoor.
Bucking the trend, IT stocks TCS and Infosys rose 4.5 per cent and 1.5 per cent. Coal India rose 2.1 per cent, while Reliance gained 1.27 per cent. _ PTI
'Not defaulted on any financial obligation'
Dewan Housing Finance on Monday again asserted that it has not defaulted on any financial obligation and there has been no instance of delay in repayment of any liability. The company has also received re-affirmation of credit ratings from CARE and ICRA, indicating a very strong degree of safety regarding timely payment of financial obligations. Read more
Rupee weakens to 72.73
The rupee fell sharply by 53 paise to 72.73 against the dollar due to strengthening of greenback against other currencies overseas. Losses in domestic equities also put pressure on the rupee. Read more
Global markets
European stock markets traded in negative territory as fears of an escalating trade row between the United States and China spread from Asian markets, while oil rallied as US sanctions restricted Iranian crude exports. The benchmark index for euro zone blue chips retreated 0.4 per cent. Read more
Pre-close trade
The Sensex was trading lower by 418.93 points or 1.14 per cent at 36,422.67 and the Nifty down 144.6 points or 1.3 per cent at 10,998.50. Barring IT and TECk, all other BSE sectoral indices were in the red.
Top five Sensex losers were M&M, HDFC, IndusInd Bank, Adani Ports and Bharti Airtel, while the major gainers were TCS, Coal India, Infosys, Reliance and NTPC.
Weakening of rupee to 72.73 and rising crude oil prices, which went past $79 per barrel, dampened the trading sentiment.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.9 per cent after China accused the United States of engaging in bullying over trade, added $60 billion of US products to its import tariff list and reportedly cancelled mid-level talks.
European stock markets traded in negative territory as fears of an escalating trade row between the United States and China spread from Asian markets, while oil rallied as US sanctions restricted Iranian crude exports.
Sensex movers, shakers
Nifty gainers, losers
Bullion prices
Gold rallied by Rs 100 to Rs 31,550 per 10 gram at the bullion market on fresh buying by local jewellers, ignoring a weak trend overseas. Silver eased by Rs 50 to Rs 38,100 per kg. Read more
European markets
The US-China trade war bit again today, denting European stock markets after tariffs from the world's biggest economies came into force and China cancelled planned talks, triggering new fears of a protracted, costly trade dispute. Europe's STOXX 600 fell 0.1 per cent with Germany's trade-sensitive DAX down 0.3 per cent. Read more
Learning from Lehman
It has been 10 years since the financial crisis — with global major Lehman Brothers filing for bankruptcy, triggering a world-wide market collapse of epic proportions — unfolded. As an investor, it would be impossible to predict the coming of a crisis. But you can certainly stay prepared and take steps to insulate your portfolio from severe erosion, and tide over many crises till you reach your goals.
Benchmark indices plunged over 1.5 per cent in the afternoon trade on heavy selling in realty, auto, FMCG and healthcare stocks amid weak global cues. Weakening of rupee to 72.73 and rising crude oil prices, which went past $79 per barrel mark, dampened the trading sentiment.
The Sensex was trading lower by 558.36 points or 1.52 per cent at 36,283.24 and the Nifty down 183 points or 1.66 per cent at 10,957.80.
Top five Sensex gainers were TCS, Infosys, Coal India, YES Bank and Reliance, while the major losers were M&M, Adani Ports, Bharti Airtel, HDFC and IndusInd Bank.
The US-China trade war bit again today, denting European stock markets after tariffs from the world's biggest economies came into force and China cancelled planned talks, triggering new fears of a protracted, costly trade dispute.
Europe's STOXX 600 fell 0.1 per cent with Germany's trade-sensitive DAX down 0.3 per cent. Autos and mining sectors, among the most dependent on smooth global trade, fell the furthest, down 0.8 to 0.9 per cent.
Nifty 50 September futures (11,027)
The Nifty 50 futures contract continues to trade under pressure. Though the contract opened with a slight gap-up, it failed to sustain higher. The contract has reversed sharply lower after making an intraday high of 11,185. The contract is hovering around the day's low of 11,010. Read more
NSE sectoral indices
Top 10 Nifty gainers, losers
Domestic shares extended losses for a fifth session, dragged by financials and automobiles, while investors took a cautious stance ahead of a US Federal Reserve meet on Tuesday.
The Sensex was trading lower by 538.65 points or 1.46 per cent at 36,302.95 and the Nifty down 167.95 points or 1.51 per cent at 10,975.15 as the risk appetite was muted ahead of a two-day Fed meet that ends on Wednesday.
“There are liquidity concerns ... financial stocks led the rally and now they are dragging the markets and it has a domino effect on sectors such as real estate and autos,” said AK Prabhakar, head of research at IDBI Capital.
Home loans made easy for self-employed
HFCs are perceiving the self-employed as a serious business strategy and a growth prospect for 3 reasons — one, the self-employed are the new protagonists of the India growth story; two, there are financial institutions in the market that are not averse to giving home loans to the self-employed; and three, the purchasing power of a new breed of 21st century goal-oriented businessmen and women. Click here to read more
How to deal with debt-fund downgrades
How should investors react to sudden NAV losses caused by defaults or downgrades of bonds in the debt funds they own? This question has cropped up again after 40-odd debt mutual funds suffered overnight blips in their net asset values after rating agencies sharply slashed the credit ratings of IL&FS and its group entities a week ago. Click here to read more
Planning to retire early
The early-retirement movement — F.I.R.E. (Financial Independence, Retire Early) — seems to be catching on among young professionals. Work is not only about earning money to sustain your lifestyle requirements; your time is spent meaningfully when you are employed. Read more
Domestic shares extended losses for a fifth session, dragged by financials and automobiles, while investors took a cautious stance ahead of a US Federal Reserve meet on Tuesday.
The benchmark indexes had plunged more than 3 per cent on Friday as housing finance stocks witnessed heavy selling on worries over weak balance sheets.
The Sensex was trading lower by 434.92 points or 1.18 per cent at 36,406.68 and the Nifty down 143.60 points or 1.29 per cent at 10,999.50 as risk appetite was muted ahead of a two-day Fed meet that ends on Wednesday.
“There are liquidity concerns ... financial stocks led the rally and now they are dragging the markets and it has a domino effect on sectors such as real estate and autos,” said AK Prabhakar, head of research at IDBI Capital.
Indiabulls Housing Finance fell 12.4 per cent, while banking stocks such as ICICI Bank Ltd and State Bank of India Ltd lost between 2.4 and 2.5 per cent.
The Nifty auto index was down 3.1 per cent, with Mahindra and Mahindra Ltd falling 5.2 per cent while Housing Development and Infrastructure Ltd, down 9 per cent, led the Nifty Realty Index's 5 per cent decline.
Shares of Dewan Housing Finance Corp, which nearly halved in value on Friday after a credit rating agency downgraded IL&FS's non-convertible debentures, jumped 25 per cent after the company clarified that it had no exposure to IL&FS Group.
“There is a lack of trust in the markets. Take the IL&FS case - when a AAA rated company is suddenly downgraded, how can people trust rating agencies,” said Prabhakar.
12.15 pm
Brent crude jumps to $79.71
Oil prices rose as US markets tightened just weeks ahead of Washington's plan to impose new sanctions against Iran, with US bank JP Morgan warning of price spikes abvoe $90 per barrel in coming months. Brent crude futures were at $79.71 per barrel at 0138 GMT, up by 91 cents, or 1.2 per cent. Read more
Forex market
Yen steadies after early safe-haven move peters out. File Photo
The safe-haven Japanese yen blipped briefly higher as investors reacted to news China had cancelled trade talks with the United States, just as the latest round of two-way tariffs kicked in. The dollar soon recovered to 112.58 yen, having been as low as 112.28 at one stage. Read more
Domestic shares were trading down by nearly one per cent on heavy selling in realty, auto, consumer durables and banking stocks amid weak global cues. Fresh weakness in the rupee, coupled with rising global crude oil prices, which again went past the $79 per barrel mark, dampened the trading sentiment.
The Sensex was down 316.11 points or 0.86 per cent at 36,525.49 and the Nifty down 92.6 points or 0.83 per cent at 11,050.50.
Finance Minister Arun Jaitley's assurance that there will not be any liquidity crunch for non-banking financial companies, mutual funds and small and medium enterprises failed to boost the domestic sentiment.
Top five Sensex gainers were TCS, Infosys, Coal India, ONGC and NTPC, while the major losers were M&M, HDFC, Maruti, IndusInd Bank and Adani Ports.
As per provisional data, foreign portfolio investors bought shares worth Rs 760.70 crore, while domestic institutional investors made purchases to the tune of Rs 497.03 crore on Friday.
IndusInd Bank hits over 6-month low
Shares of IndusInd Bank today hit more than 6-month low, and chart suggests further downside. The stock plunged as much as 3.96 per cent to Rs 1,692.60, lowest since March 9. Read more
Dewan Housing surges 25%
Dewan Housing Finance Corp's shares surged as much as 25 per cent to Rs 438.2, their record daily per cent gain. At about 11.30 am, the Dewan Housing stock was off its morning highs and quoting at Rs 392.95, up Rs 39.90 or 11.35 per cent on the BSE. Read more
Measures to boost FII inflows will not reverse Re slide
Moody’s believes that the Centre’s five-point programme to increase dollar inflow will not reverse the slide in the rupee. At best, these can slow rupee depreciation. The agency also fears that fiscal deficit might be wider than the target. Read more
Domestic shares were trading down by 0.6 per cent on heavy selling in realty, auto, consumer durables and banking stocks amid weak global cues. Fresh weakness in the rupee, coupled with rising global crude oil prices, which again went past the $79 per barrel mark, dampened the trading sentiment.
The Sensex was down 193.18 points or 0.52 per cent at 36,648.42 and the Nifty down 67 points or 0.6 per cent at 11,076.10.
Top five Sensex gainers were Coal India, Vedanta, ONGC, Infosys and TCS, while the major losers were HDFC, Maruti, M&M, IndusInd Bank and Kotak Bank.
As per provisional data, foreign portfolio investors bought shares worth Rs 760.70 crore, while domestic institutional investors made purchases to the tune of Rs 497.03 crore on Friday.
ONGC hits 4-month high
Shares of Oil and Natural Gas Corp gained as much as 2.6 per cent to Rs 184.80, their highest since May 23. The stock broke above a resistance at Rs 182.30. Read more
Jaitley assures enough liquidity for NBFCs
Finance Minister Arun Jaitley has assured that there will not be any liquidity crunch for non-banking financial companies, mutual funds and small and medium enterprises. These statements had some impact on the stock market in the initial trade when both the indices opened higher, but soon turned negative. Read more
RBI, SEBI ‘closely monitoring’ developments in financial markets
The Reserve Bank of India and SEBI said they are “closely monitoring” the recent developments in the financial markets and are “ready” to take appropriate actions if necessary. The observation comes in the wake of a host of developments in the financial markets, including at IL&FS Group, volatile equity markets, rising bond yields and a depreciating rupee. Read more
Usha Martin rallies 15%
Usha Martin Ltd surged as much as 15 per cent to Rs 36, the stock's highest in a fortnight, as the company has agreed to sell steel business to Tata Steel Ltd. More than 5 million shares traded vs 30-day average volume of around 2.7 million. Read more
Spot gold falls to $1,196.17
Gold edged lower as the dollar held firm on news that China has cancelled trade talks with the United States. Spot gold inched down 0.2 per cent to $1,196.17 by 0323 GMT, after falling as much as 1.3 per cent on Friday. Read more
Rupee plunges to 72.49
The rupee fell sharply by 29 paise to 72.49 against the dollar due to strengthening of greenback against other currencies overseas. Losses in domestic equities also put pressure on the rupee. Read more
The Sensex fell over 140 points on heavy selling in realty, auto, consumer durables and bank stocks amid weak global cues. Also, weakening of rupee to72.49 also hit the domestic sentiment.
The S&P BSE index was down 140.09 points or 0.38 per cent at 36,701.51 and the Nifty down 55.4 points or 0.5 per cent at 11,087.70.
Top five Sensex gainers were ONGC, Vedanta, Infosys, Coal India and YES Bank, while the major losers were Bharti Airtel, M&M, Maruti, Kotak Bank and HDFC.
The rupee fell sharply by 29 paise to 72.49 against the dollar due to strengthening of greenback against other currencies overseas
Oil prices rose as US markets tightened just weeks ahead of Washington's plan to impose new sanctions against Iran, with US bank J.P. Morgan warning of price spikes abvoe $90 per barrel in coming months.
9.35 am
Asian markets
Asian shares eased in holiday-thinned trading and the safe haven yen gained as China cancelled upcoming tariff talks with the United States, while oil prices jumped after top producers, including Russia, ruled out boosting crude output. US stock futures were a touch weaker, while MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.3 per cent. Read more
Invesco India Contra
With valuations of many stocks perched at higher-than-historical levels, the market gyrations in recent times is beating down pricey stocks, especially in the mid- and small-cap space. Value-oriented funds which look for such beaten-down stocks or those that are trading at lower valuations relative to the sector but have good long-term prospects, make for a good bet at this juncture. Invesco India Contra fits that bill. Click here to read more
9.15 am
Opening bell
The 30-share BSE index Sensex opened lower by 17.84 points at 36,823.76 against the previous close of 36,841.60 and the 50-share NSE index Nifty down 8.5 points at 11,135 against 11,143.10.
9.05 am
What does BoP indicate
The country’s balance of payments has always been a cause of worry for policy-makers, as higher imports and sluggish growth in exports have resulted in sustained current account deficit for more than a decade, starting FY2005. But thanks to capital inflows in the form of foreign portfolio and foreign direct investment flows, the overall BoP has managed to remain in surplus. Click here to read more
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