Markets Live: Sensex crashes 505 points as rupee woes persist; Nifty drops to 11,378

Closing bell

The S&P BSE Sensex crashed 505.15 points or 1.33 per cent to 37,585.51 and the Nifty50 plunged 137.45 points or 1.19 per cent to 11,377.75 due to heavy selling in consumer durables, FMCG, banking and healthcare stocks. However, realty, power and infrastructure stocks found investors' support.

Financials, led by HDFC Ltd and HDFC Bank, emerged as the biggest draggers of the session, pulling down the key indices from their key levels.

Weak global cues as investors took fright at news that Washington was set to announce a new round of tariffs on Chinese goods in the latest escalation of their trade conflict dampened the domestic sentiment.

Also, the weakening of rupee to 72.69 despite the government announcing a series of measures on Friday to arrest the domestic unit's fall fuelled the downtrend.

 

The Union Government had on Friday said it would take measures to cut down “non-necessary” imports, ease overseas borrowing norms for the manufacturing sector and relax rules around banks raising masala bonds, or rupee-denominated overseas bonds. However, analysts doubted if these steps would prevent the rupee's declines.

As per provisional data, foreign portfolio investors had bought shares worth Rs 1,090.56 crore, while domestic institutional investors made purchases to the tune of Rs 115.14 crore on Friday.

Global markets

 

European share markets followed Asian counterparts lower as investors took fright at news Washington was set to announce a new round of tariffs on Chinese goods in the latest escalation of their trade conflict. US President Donald Trump's expected announcement of new tariffs on $200 billion in Chinese goods drew an immediate threat of reprisals from Beijing.  Read more

European markets

 

European shares recovered rapidly from a weak start after reports US President Trump plans new 10 per cent tariffs on $200 billion of Chinese imports, with investors focusing on strong results. The pan-European STOXX 600 reversed early losses to rise 0.2 per cent. Read more

Sensex gainers, losers

Top 10 Nifty gainers, losers

 

BSE sectoral indices

 

NSE sectoral indices

 

The Sensex crashed 514.26 points to intraday low of 37,576.38 against the previous close of 38,090.64 and the Nifty plunged 141 points to 11,374.20 against 11,515.20.

 

Jaypee Infratech independent director resigns

 

Jaypee Infratech's independent director Sham Lal Mohan has resigned citing personal reasons. Last week, three independent directors Lalit Bhasin, Keshav Prasad Rau and Basant Kumar Goswami had resigned from the board. Read more

Pre-close trade

The S&P BSE index was trading down 442.49 points or 1.16 per cent at 37,648.15 and the Nifty50 down 116.45 points or 1.01 per cent at 11,398.75 on heavy selling in FMCG, auto, bank and healthcare stocks. However, realty, infrastructure, power and IT found investors' support.

 

 

Major Sensex losers were HDFC, Sun Pharma, Asian Paints, HDFC Bank and Reliance, while the top five gainers were PowerGrid, Wipro, TCS, Tata Steel and Adani Ports.

 

FIIs pull out Rs 9,400 crore

 

Foreign investors had pulled out Rs 9,400 crore ($1.3 billion) from the capital markets last fortnight, after putting in money during the previous two months, due to widening of current account deficit owing to a surge in crude oil prices and depreciating rupee. Read more

RInfra aims to become cash surplus

 

Reliance Infrastructure is looking to becoming debt free and cash surplus in 2019 calendar year after closing the Rs 18,800-crore deal with the Adani Group for Mumbai transmission business, says Lalit Jalan, CEO. Click here to read more

M-cap of top-10 Sensex companies

 

Eight out of the 10 most valued Indian companies together suffered an erosion of Rs 41,660 crore in their market valuation last week, with Mukesh Ambani-led Reliance Industries alone accounting for over Rs 15,000 crore. Read more

Hindalco to seek shareholders' nod

 

Hindalco Industries will seek shareholders’ approval for the issue of non-convertible debentures worth Rs 6,000 crore on a private placement basis at its forthcoming annual general meeting next week. Read more

Domestic shares were trading down by over one per cent on heavy selling in FMCG, bank, consumer durables and auto stocks amid weak global cues.

 

 

The Sensex was trading lower by 419.50 points or 1.1 per cent at 37,671.14 and the Nifty down 117.7 points or 1.02 per cent at 11,397.50.

Domestic sentiment was also hit as the rupee fell more than 1 per cent to 72.70 per dollar on Monday versus its previous close of 71.80. Having fallen nearly 12 per cent, it is Asia's worst performing currency against the dollar this year.

Major Sensex losers were HDFC, Sun Pharma, HDFC Bank, NTPC and Asian Paints, while the top five gainers were Bharti Airtel, Tata Steel, Wipro, Adani Ports, and PowerGrid.

 

Asian share markets were weak on reports that Washington was about to announce a new round of tariffs on Chinese imports, setting the stage for possible reprisals by Beijing.

Wipro shares hit 3-1/2 year high

 

Shares of Wipro Ltd gained as much as 1.76 p to 336 rupees, their highest since March 11, 2015. The stock has cut above a resistance at Rs 333.8, the 61.8 per cent Fibonacci projection level of the uptrend from November 9, 2016 low to January 16, 2018 high. Read more

 ‘You can’t always want what you get’

 

It was in 1969 that Mick Jagger of the Rolling Stones belted his classic song titled above. Last week, we discovered the obverse. You can’t always want what you get! There are unintended and unforeseen consequences to any action, sometimes unpleasant. More so when a decision is taken with a single focal point, instead of a holistic approach. Read more

Clarity sought on SEBI’s stand on ‘self-trade’

 

The stand taken by SEBI on ‘self-trade’ — a set of orders that are matched on the exchange platform without any change in ownership of shares — has caused anxiety among market participants. SEBI’s reply to the Finance Ministry on the issue and its stand in the Securities Appellate Tribunal seem to contradict each other. Click here to read more

Spot gold inches up to $1,195

 

Gold inched up as bargain-hunters bought the metal after prices dipped in the previous session. Spot gold was up 0.2 per cent at $1,195.27 an ounce as of 0354 GMT. US gold futures were down 0.1 per cent at $1,199.80. Read more

Sensex gainers, losers

Top 10 Nifty gainers, losers

 

Domestic shares fell over 1 per cent, after measures outlined by the government on Friday to stem the steep decline in the rupee failed to cheer markets, while declining Asian shares added to the gloom.

The rupee fell more than 1 per cent to 72.70 per dollar on Monday versus its previous close of 71.80. Having fallen nearly 12 per cent, it is Asia's worst performing currency against the dollar this year.

The Sensex was trading lower by 398.26 points or 1.05 per cent at 37,692.38 and the Nifty down 102.75 points or 0.89 per cent at 11,412.45.

The Union Government had late on Friday said it would take measures to cut down “non-necessary” imports, ease overseas borrowing norms for the manufacturing sector and relax rules around banks raising masala bonds, or rupee-denominated overseas bonds.

However, analysts doubted if these steps would prevent the rupee's declines.

“There were expectations that something substantial will be planned to hold the rupee, but the measures the government had in hand were limited and a little long term in nature. So they will take their own time to have an impact,” said Naveen Kulkarni, Head of Research at Reliance Securities.

“Rest of the week, markets will likely be on the weaker front,” Kulkarni added.

Financials were the biggest drag, accounting for more than half the losses on the indexes. Housing Development Finance Corp fell 2.4 per cent, while HDFC Bank Ltd dropped 1.6 per cent.

Call option on HUL

 

The long-term outlook for Hindustan Unilever (₹1,635.95) is positive, though in the short term, the stock may remain volatile with an upward bias. HUL finds an immediate support at ₹1,592 and a major one at ₹1,509. A close below the latter will alter the current bullish outlook on the stock. Click here to read more

Weekly trading guide

SBI (₹290.4)

Immediate support is at ₹288. As long as the stock remains above this support, the near-term outlook will be positive. While above ₹288, an up-move to ₹300 is possible. Inability to breach ₹300 can trigger a pull-back move to ₹290 or ₹288.

ITC (₹306.9)

Key resistances are ahead at ₹310 — the 21-day moving average and at ₹313 — a trendline hurdle. The next move will be determined by whether ITC breaks above these hurdles. Inability to breach ₹313 can pull the stock lower to ₹300 levels again.

Infosys (₹735.2)

The stock will gain fresh momentum only if it breaks below ₹755. This break can take Infosys higher to ₹770 or ₹800. On the other hand, if the stock declines below ₹730, a fall to ₹717 and ₹710 is possible in the near term.

RIL (₹1,252.8)

The price action indicates that the stock lacks strong selling interest below ₹1,250. A key trendline support is at ₹1,225. The outlook will turn to negative only if RIL declines below ₹1,225.  Such a break can drag the stock lower to ₹1,180 initially on the back of profit-booking.

Tata Steel (₹615.3)

The stock has reversed sharply higher from its low of ₹583.35, recovering most of the loss. An up-move to ₹635 and ₹640 is likely in the near term. A decisive weekly close above ₹640 will confirm the reversal of the downtrend that has been in place since January.

Click here to read more

Nifty 50 September Futures (11,405)

 

Nifty 50 futures contract began the week on a negative note. The contract opened with a wide 62-point gap-down at 11,485 and tumbled to a low of 11,400. The contract is hovering around the day’s low of 11,405 and is down 1.2 per cent for the day. Read more

'Time to book profits given the stretched valuations'

 

Indian equities have run well ahead of fundamentals and investors should book profits given the stretched valuations. Valuations of Indian equities have stretched further largely driven by “financialisation of savings”, improving corporate earnings outlook especially post the GST framework, and India’s relative resilience to a trade war with the US. Read more

Rupee, global cues to determine market movement

 

Stock markets would continue to be guided by rupee movement, US-China trade issues and oil prices in a holiday-shortened week ahead. Global developments will keep the market on edge. Read more

Brent crude dips to $78/barrel

 

Global oil prices eased in early Asian trade due to concerns that the United States is poised to impose additional tariffs on China, outweighing supply fears from upcoming sanctions on Iran. Brent crude oil futures dipped 16 cents, or 0.2 per cent to $77.93 a barrel. WTI futures fell 20 cents or 0.3 per cent, to $68.79 a barrel. Read more

The Sensex plunged 428.95 points or 1.13 per cent to 37,661.69 and the Nifty dropped 122.65 points or 1.07 per cent to 11,392.55 on heavy selling in banking, consumer durables, FMCG and capital goods stocks amid weak global cues.

 

 

Weakening of rupee to 72.69 against the dollar also dampened the domestic sentiment.

Top five Sensex losers were NTPC, HDFC, State Bank of India, ICICI Bank and Axis Bank, while Wipro was the only gainer among 30-share BSE constituents.

 

Asian share markets slipped amid reports Washington was about to announce a new round of tariffs on Chinese imports, setting the stage for possible reprisals by Beijing.

Forex market

 

The dollar held above a recent one-and-a-half month trough against a basket of major currencies, with investors cautiously awaiting news on the implementation of US tariffs on an additional $200 billion of Chinese imports.  The dollar index against a basket of major currencies held at 94.965, well above Friday's 94.359 which was the lowest since end-July. Read more

Asian markets

 

Asian share markets slipped amid reports Washington was about to announce a new round of tariffs on Chinese imports, setting the stage for possible reprisals by Beijing. MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.26 per cent, snapping three straight sessions of gains. Read more

Rupee again breaches 72-mark

 

The rupee depreciated 81 paise to 72.65 against the dollar in early trade, despite the government’s steps to stem a steep fall in the currency, amid reports that the US could announce a new round of tariffs on Chinese imports later in the day. Read more

The Sensex sank 374 points in early trade due to profit-booking by funds and retail investors in consumer durables, banking, oil & gas and PSU stocks, amid fresh weakness in the rupee and weak global cues.

 

 

The BSE 30-share barometer dropped 373.65 points to 37,716.99 driven by losses in index majors Axis Bank, SBI, Asian Paint, Tata Motors, HDFC and HDFC Bank.

 

The gauge had rallied 677.51 points in the previous two sessions on sustained buying by domestic institutional investors. The NSE Nifty index too dipped below the 11,500-mark by falling 111.5 pointsto 11,403.70.

Top five Sensex losers were HUL, HDFC, State Bank of India, YES Bank and Axis Bank, while the only two gainers were Wipro and Sun Pharma.

 

Asian markets were weak amid reports that the US could announce a new round of tariffs on Chinese imports later in the day. The rupee again crashed below the 72-mark by plunging 81 paise to 72.65 against the dollar, despite the government’s steps to stem a steep fall in the currency.

As per provisional data, foreign portfolio investors had bought shares worth Rs 1,090.56 crore, while domestic institutional investors made purchases to the tune of Rs 115.14 crore on Friday.

Commodity derivatives trading

 

With an aim to deepen the commodity derivatives market, SEBI is likely to consider a proposal to allow trading in this segment by foreign entities with exposure to the Indian physical commodity market. With regard to the commodity derivatives markets, foreign entities may be allowed to hedge their exposures with derivatives trading in all commodities traded on Indian exchanges, barring the sensitive commodities. Read more

Cadila Healthcare: Not many pain-points

 

Firms having a strong domestic presence — apart from a growing US business — with a focus on niche, high-margin, specialty complex generics, are likely to deliver better performance in the medium and long run. Cadila Healthcare is one such company that can deliver on multiple fronts. Click here to read more

Gold struggles to gather momentum

 

Global spot gold ($1,194.85 per ounce) is finding strong resistance in the $1,212-1,215 region. Support is at $1,185. A range-bound move between $1,185 and $1,215 can be seen for some time. A breakout on either side of $1,185 or $1,215 will then determine the next move. Read more

IRCON International IPO

 

Investors can subscribe to the IPO with a two to three-year perspective. The Centre is looking at divesting a 10 per cent stake in the firm. A large order book, high-value contract wins, expertise in project management and execution, and a healthy mix of domestic and international revenues are positives for the company. IRCON is a net debt-free company with robust financials. Read more

Opening bell

The 30-share BSE index Sensex plunged 283.45 points to 38,090.64 against Friday's close of 27,807.19 and the 50-share NSE index dropped 88 points to 11,427.20 against Friday's close of 11,515.20.

Asian share markets slipped amid reports Washington was about to announce a new round of tariffs on Chinese imports, setting the stage for possible reprisals by Beijing.

MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.26 per cent, snapping three straight sessions of gains.

Index Outlook

 

The benchmark indices initially tumbled last week but gained strength latter and witnessed a strong recovery, helped by macro data as well as recovery in the rupee. Continued US-China trade war could continue to cause volatility in the global markets. With trading truncated next week too, investors should stay cautious. Read more