Bloodbath on D-Street: Sensex ends 280 points down after falling 1,128 points intraday

Closing bell

Dalal Street witnessed a bloodbath in today's trading session as the Sensex crashed by 1,127.58 points, or 3.03 per cent, to hit an intra-day low of 35,993.64 on massive sell-off in housing finance and realty stocks.

Similarly, the Nifty cracked below the 11,000 mark, falling 367.90 points, or 3.27 per cent, to touch a low of 10,866.45. However, the Sensex recovered nearly 900 points and the Nifty rebounded by over 240 points within a matter of minutes.

The S&P BSE index ended lower by 279.62 points or 0.75 per cent at 36,841.60 and the Nifty50 down 91.25 points or 0.81 per cent at 11,143.10.

Market experts attributed rising crude oil prices and weakening of rupee to 72.94 to the market blues. Financial crisis at IL&FS and a sharp plunge in YES Bank shares after the bank's MD & CEO, Rana Kapoor, was denied extension by RBI were cited as the key reasons.

As per provisional data, foreign portfolio investors remained net sellers and offloaded equities worth Rs 2,184.55 crore, while domestic institutional investors made purchases worth Rs 1,201.30 crore on Wednesday.

NSE indices

 

Sensex gainers, losers

Top 10 Nifty gainers, losers

 

Sensex graph

Nifty graph

 

Bullion prices

 

Gold prices hardened by Rs 50 to Rs 31,700 per 10 gram at the bullion market on Friday in line with a firm trend overseas amid increased buying by local jewellers. Read more

Inventia Healthcare IPO

 

Inventia Healthcare has filed draft papers with the Securities and Exchange Board of India to raise an estimated Rs 450 crore through an initial public offering. The IPO comprises fresh issue of equity shares worth up to Rs 125 crore, besides, an offer of sale up to 31,64,000 scrips by promoters and other shareholders. Read more

Domestic shares recouped most of their losses after key indexes plunged over 3 per cent in the afternoon trade on panic selling in housing finance and realty stocks.

The broader NSE index fell as much as 3.3 per cent to 10,866.45, its first time below 11,000 since late July. The benchmark BSE index dropped as much as 3.04 per cent, shedding nearly 1,500 points from the day's high of 35,993.64. Both the indexes posted their biggest intraday fall since February 6.

At 3.10 pm local time, the Sensex was trading lower by 303.15 points or 0.82 per cent at 36,818.07 and the Nifty down 101.10 points or 0.9 per cent at 11,133.25. Both the indexes were on track to end the week over 4 per cent lower.

India's fear gauge, the Nifty volatility index surged to 20.8 per cent during the sell-off. It was not clear what sparked the tumble.

Krish Subramanyam, co-head equity advisor at Altamount Capital, said rumours about one group “spilled over to other NBFCs (non-banking finance companies)”.

Dewan Housing Finance Corp Ltd (DHFL) was the worst hit among the pack, wiping off as much as $1.45 billion from its market value. The stock fell as much as 55 per cent to Rs 274.75 to its lowest since January 23, 2017.

Indiabulls Housing Finance Ltd fell up to 34 per cent to hit its lowest since February 1, 2017, in its worst intraday fall since its listing in 2013.

The Nifty realty index dropped as much as 7.4 per cent to its lowest since April 19, 2017 - its worst intraday performance since February 2. Indiabulls Real Estate Ltd plunged as much as 20 per cent to its lowest since April 17, 2017.

Earlier in the session, the NSE index had risen 1 per cent to 11,346.80, while the BSE index had gained nearly 1 per cent to 37,489.24.

YES Bank remained under pressure, falling 26.5 per cent, after the central bank reduced CEO Rana Kapoor's term, creating uncertainty about its outlook. _ Reuters

Sensex movers, shakers

Top 10 Nifty losers

 

Oil future prices may be locked

 

The Union Government is planning to ask state oil firms to lock in their crude futures purchase prices, anticipating a spike when US sanctions on Iran snap back again in November. The move would be another step to tackle a slide in the rupee, as oil prices are putting pressure on India, which imports some 80 per cent of its crude demand. Read more

Jet Airways hits 52-week low

 

Jet Airways’ shares plunged 8 per cent to Rs 224.70 -- its 52-week low -- on the BSE. On the NSE, the stock slumped 7.11 per cent to hit a one-year low of Rs 225.85 due to concerns over I-T officials conducting a survey of its premises. Read more

Massive selling in housing finance cos

 

Shares of housing finance firms crashed sharply on Friday, with Dewan Housing Finance tumbling up to 60 per cent on massive selling. Dewan Housing Finance Corporation shares plummeted 59.67 per cent to Rs 246.25 -- its 52-week low -- on the BSE. Read more

The Sensex recovered by nearly 900 points after plummeting over 1,100 points within a matter of minutes in the afternoon session due to heavy sell-off in finance stocks, despite firm global cues.

The 30-share BSE index plunged 1,127.58 points, or 3.03 per cent, to hit an intra-day low of 35,993.64. It, however recovered nearly 900 points within minutes of the fall.

At 2.20 pm, the Sensex was trading lower by 452.52 points or 1.22 per cent at 36,668.70 and the Nifty down 143.4 points or 1.28 per cent at 11,090.95.

The broader NSE Nifty cracked below the 11,000 mark, falling 367.90 points, or 3.27 per cent, to touch a low of 10,866.45.

Heavy selling was witnessed in realty, healthcare, banking, IT, auto, teck, power consumer durables, FMCG, capital goods, infrastructure, metal and PSU indices, which fell up to 3.65 per cent.

YES Bank was the biggest Sensex loser, cracking 34 per cent to hit a one-year low after the Reserve Bank Wednesday curtailed the term of its founding CEO, Rana Kapoor, and asked the private sector lender to look for his replacement by January 2019.

Other banking stocks such as PNB, Federal Bank, Bank of Baroda, Kotak Bank and SBI, dropped up to 7.44 per cent. Other major losers were Adani Ports, Tata Motors, Infosys, Sun Pharma, SBI, Maruti Suzuki and HUL, down up to 3.15 per cent.

Among housing finance stocks, DHFL led the pack by tanking over 50 per cent, followed by Indiabulls Housing Finance, Can Fin Homes, PNB Housing Finance and LIC Housing Finance cracking up to 17 per cent. _ PTI

BoI to raise Rs 1,010 cr

 

Bank of India is planning to sell its stake in three of its associate companies --- STCI Finance Ltd, Small Industries Development Bank of India and Equifax Credit Information Services -- as part of its strategy to monetise non-core assets. The public sector bank is seeking to raise at least Rs 1,010 crore through this stake sale. Read more

Relief for India Inc directors

 

In a relief for thousands of directors of companies who are yet to do e-KYC, the Corporate Affairs Ministry has allowed them another 15 days time to complete the process. Such directors can do so after paying a reduced fee of Rs 500. Read more

Domestic shares witnessed heavy selling pressure, as Sensex crashed over 1,100 points while the Nifty50 broke below the 10,900 level.  The sell-off was so intense that the BSE index crashed over 800 points within a matter of minutes. The recovery was also quick, the index recovered over 700 points.

At 1.35 pm local time, the Sensex was trading down 169.67 points or 0.46 per cent at 36,956.85 and the Nifty down 59.10 points or 0.53 per cent at 11,175.25. Financial stocks took a heavy beating. Shares of Dewan Housing Finance Corporation, Indiabulls Housing Finance and Can Fin Homes plunged up to 55 per cent.  India VIX, the fear gauge, spiked over 11 per cent to 15.58.   

Small-cap indices plunged 3.99% followed by mid-cap 100 2.87%, mid-cap 50 2.81% and Nifty 500 1.28%.

 

30-share Sensex constituents

Top 10 Nifty losers

Top 10 Nifty gainers

 

Nifty realty stocks

Indiabulls Real Estate slumped 18.43 per cent, followed by HDIL 9.9 per cent, Godrej Properties 6.86 per cent and Prestige 5.59 per cent.

Nifty PSU bank stocks

Indian Bank plunged 7.4% followed by PNB 7.19%, Syndicate Bank 6.93% and Union Bank 6.44%.

 

The Sensex plunged 1,127.58 points to intraday low of 35,993.64 on heavy selling in realty, healthcare, consumer durables and power stocks amid firm global cues. Similarly, the Nifty nosedived 365 points to 10,869.25.

 

 

Top five Sensex gainers were ITC, HDFC Bank, ONGC, Asian Paints and NTPC, while the major losers were YES Bank, Sun Pharma, State Bank of India, Bharti Airtel and Tata Steel.

 

Nifty 50 September Futures (11,340)

 

Short-term traders with high risk appetite can go short at current levels and on a bounce at 11,355. Stop-loss can be placed at 11,375 for the target of 11,270. Revise the stop-loss lower to 11,330 as soon as the contract moves down to 11,315. Read more

Gold edges up to 1-week high

 

Gold prices edged up to a one-week high as the dollar weakened on receding fears of a full-blown Sino-US trade war, keeping the yellow metal on track for its first weekly gain in four. Spot gold added 0.1 per cent to $1,208.0 by 0252 GMT, after touching its highest since September 13 at $1,210.01. Read more

Brent crude falls to $78.67

 

Oil prices dipped as US President Donald Trump urged OPEC to lower crude prices ahead of its meeting in Algeria this weekend. Brent crude for November delivery was down 3 cents at $78.67 a barrel by 0207 GMT. WTI crude for October delivery fell 16 cents to $70.16 a barrel. Read more

Forex market

 

The dollar struggled near two-month lows, while the yen also sagged on reduced safe haven demand amid a switch in investors' view that the China-US trade conflict would be less damaging to global growth than initially feared. The dollar index against a basket of six major currencies stood at 93.910 after touching 93.829 overnight, its lowest since July 9. Read more

Rupee climbs to 71.77

 

Continuing its uptrend, the rupee firmed by another 60 paise to over a two-week high of 71.77 against the US dollar on increased selling of the American currency by exporters and banks. Dollar’s weakness against some currencies overseas on easing trade war concerns and a strong domestic equity market also supported the uptrend. Read more

Bank Nifty

 

Among the call option chain, the in-the-money Bank Nifty Call 26,200 option was the actively traded contract on Wednesday. The option price closed at Rs 312.40, down by 33.75 per cent. Read more

The Sensex was trading higher by 309.44 points or 0.83 per cent at 37,430.66 and the Nifty up 95.25 points or 0.85 per cent at 11,329.60 on value-buying in blue-chips and a positive trend in the global markets. Strengthening of rupee against the dollar also supported the domestic sentiment.

Top five Sensex gainers were Axis Bank, ICICI Bank, Tata Steel, M&M and State Bank of India, while the major losers were YES Bank, Infosys, HUL, Sun Pharma and TCS.

Among BSE sectoral indices, metal index gained the most followed by oil & gas, PSU, infrastructure and auto. On the other hand, IT, TECk, FMCG and realty stocks succumbed to selling pressure.

 

 

Nikkei jumps to 8-month high

 

Japan's Nikkei advanced to fresh eight-month highs led by an upbeat Wall Street performance. The Nikkei share average gained 0.8 per cent to 23,864.04 in midmorning trade, the highest level since January 24. Read more

Asian markets

 

Asian stocks extended gains as Wall Street's S&P 500 set a new all-time high. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 per cent in early trade, extending the recovery from its 14-month low hit on September 12 to 3.6 per cent. Read more

FPIs cut stake in Oracle Financial

 

Shares of Oracle Financial Services Software were trading up 0.94 per cent at Rs 4,141.90. FPIs Sussex (Mauritius) and Wessex (Mauritius) have sold 11.89 lakh shares and 25.26 lakh shares in the open market between September 17 and 19. Read more

YES Bank tanks 32%

 

Shares of private-sector lender YES Bank Ltd fell as much as 31.7 per cent to Rs 218.10, their steepest percentage plunge since January 2008, as the Reserve Bank of India has asked CEO and MD Rana Kapoor asked to leave. Read more

Dinesh Engineers' IPO

 

Dinesh Engineers has fixed a price band of₹183-185 per share for its forthcoming initial stake sale, with the company expecting to raise about ₹185 crore at the upper end of the price band. The company’s initial public offering will open on September 28 and close on October 3. Read more

SBI raises $650 mn via maiden green bond issue

 

SBI has raised $650 million at a coupon rate of T + 165 bps. The bond is benchmarked against five-year US treasury. The bonds will be listed on Singapore SGX and the India INX, Gift City. Click here to read more

‘Expect elevated volatility over the next twelve months’

 

After carving out a place in the Indian mutual fund industry over the last two decades, Franklin Templeton Investments has stepped into the nascent hedge fund space by launching Franklin India Long Short Equity AIF earlier this month. Naganath Sundaresan, President and CIO of Franklin Templeton Alternative Investments, explains the hows and whys of this fund. Click here to read more

The Sensex surged 320.95 points or 0.86 per cent to 37,440.13 and the Nifty climbed 97.05 points or 0.86 per cent to 11,331.40 on value-buying in select blue-chip stocks amid a firm global trend on easing trade war concerns. Sustained buying by domestic institutional investors and strengthening of rupee against the dollar also supported the recovery.

Except IT and TECk, all other BSE sectoral indices were trading in the green. Among them, metal index gained the most followed by oil & gas, PSU and infrastructure.

 

Top five Sensex gainers were Axis Bank, Tata Steel, ICICI Bank, Asian Paints and M&M, while the major losers YES Bank, Infosys, HUL, and TCS and Bharti Airtel.

As per provisional data, domestic institutional investors made purchases worth Rs 1,201.30 crore, while foreign portfolio investors sold shares worth Rs 2,184.55 crore on Wednesday.

 

Small savings rates hiked

 

Small saving schemes such as Public Provident Fund, National Savings Certificates and Post Office Deposit Scheme will fetch more in the three months period starting October 1. The Government has raised interest rate on these schemes between 30 and 40 basis points (100 bps is 1 per cent). Click here to read more

BSE-led power bourse set to disrupt market

 

With long-term power purchase agreements drying up, the new power exchange being set up by Bombay Stock Exchange, PTC India and ICICI Bank is looking to disrupt the power-buying landscape: going forward, selling on the spot market could be the only way for stressed power generators. Click here to read more

Opening bell

The 30-share BSE index Sensex surged 196.87 points to 37,318.09 against the previous close of 37,121.22 and the 50-share NSE index jumped 64.6 points to 11,298.95 against 11,234.35.

Day Trading Guide

₹1961 • HDFC Bank

 

₹720 • Infosys

 

₹299 • ITC

 

₹176 • ONGC

 

₹1210 • Reliance Ind.

 

₹271 • SBI

 

₹2076 • TCS

 

11272 • Nifty 50 Futures

 

S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2.

Today's stock pick

 

Investors with a short-term perspective can consider selling the stock of KPIT Technologies at current levels. Although the stock is in a medium-term uptrend, there is a trend reversal in the short term. Click here to read more