Markets Live: Sensex crashes 509 points; Nifty plummets to 11,287

Closing bell

The Sensex crashed 509.04 points or 1.34 per cent to end at over 1-month low of 37,413.13 and the Nifty plunged 150.60 points or 1.32 per cent to 11,287.50 as fears of escalation in US-China trade war kept investors on edge.

Top five Sensex gainers were Coal India, NTPC, Infosys, M&M and Asian Paints, while the major losers were Tata Steel, PowerGrid, Hero MotoCorp, Tata Motors and ITC.

All BSE sectoral indices ended in the red.

 

 

The rupee slumped to a fresh record low of 72.73 on heavy capital outflows, rising crude oil prices, and strengthening of dollar against other currencies overseas.

As per provisional data, foreign portfolio investors sold shares worth Rs 841.68 crore, while domestic institutional investors offloaded equities worth Rs 289.66 crore on Monday.

Global markets

 

MSCI's index of global equities was flat on the day, though Asian bourses were in the red for the ninth straight day as markets awaited action from US President Donald Trump after the expiry of a deadline for public comment on additional tariffs on Chinese goods. Read more

HCL Tech buyback

HCL Technologies' Rs 4,000 crore buyback offer will commence on September 18. The date for opening of the buyback has been set for September 18 and will close on October 3. Read more

European markets

 

The STOXX 600 wavered around parity and by 0825 GMT was down 0.05 per cent, as gains among oil majors on stronger crude prices helped offset a weaker basic materials sector. However, the pan-European index however is still up nearly 1 per cent from the five-month lows hit last week. Read more

The Sensex crashed 518.07 points or 1.37 per cent to 37,404.10 and the Nifty plunged 157.45 points or 1.38 per cent to 11,280.65 as the spectre of a further escalation in the Sino-US trade war haunted global investors.

All BSE sectoral indices were in the red.

 

Major Sensex losers were Tata Steel, PowerGrid, Hero MotoCorp, Tata Motors and ITC, while the major gainers were Coal India, M&M, NTPC, Infosys and Asian Paints.

 

MSCI's index of global equities was flat on the day, though Asian bourses were in the red for the ninth straight day as markets awaited action from US President Donald Trump after the expiry of a deadline for public comment on additional tariffs on Chinese goods.

Emerging market currencies remained under pressure with a broad index down near 16-month lows and the Indian rupee hitting a new low of 72.73 against the dollar.

 

Sensex gainers, losers

Top 10 Nifty gainers, losers

 

Pre-close trade

The Sensex nosedived 439.96 points or 1.16 per cent to 37,482.21 and the Nifty plunged 130.15 points or 1.14 per cent to 11,307.95 as the world stocks were trading just off three-week lows due to the ongoing trade dispute between Washington and Beijing.

 

 

 

SEBI has warned that manipulators will not be allowed to take advantage of the volatility in the stock market. A combination of global and domestic factors have affected investor sentiment, with the benchmark indices registering around 500 points decline in the last two days. Read more

MFs garner Rs 7,658 cr via SIPs

 

Retail investors are increasingly opting for systematic investment plans in mutual funds as the industry had garnered over Rs 7,600 crore through this route in August, a surge of 47 per cent from the year-ago period. Read more

Domestic shares plunged nearly one per cent in the mid-session as fears of an escalation in US-China trade dispute kept investors on edge. The Sensex was trading down 312.15 points or 0.82 per cent at 37,610.02 and the Nifty down 105.9 points or 0.93 per cent at 11,332.20.

US President Donald Trump had said last week he was ready to slap tariffs on virtually all Chinese imports into the United States, threatening duties on another $267 billion of goods on top of $200 billion in imports primed for levies in coming days. On the other hand, China has cautioned it will respond if the United States takes any new steps on trade.

Top five Sensex losers were ITC, PowerGrid, Hero MotoCorp, Bharti Airtel and Tata Steel, while the major gainers were M&M, Asian Paints, Infosys, State Bank of India and NTPC.

All BSE sectoral indices were trading in the red.

 

 

ICICI Securities jumps to 1-week high

 

Shares of ICICI Securities Ltd gained as much as 3.1 per cent to Rs 337.45, their highest in over a week. Citi Research has initiated coverage with 'buy' rating and a price target of Rs 425. Read more

 

Has India Inc.’s debt burden eased?

 

The last two to three years has been action-packed for India Inc. and banks, to say the least. While large corporates in key sectors have been busy shedding their unwieldy debt, banks have been untiringly spring-cleaning their stressed and bad loan accounts. The upshot: A leaner balance sheet for both India Inc. and banks. Click here to read more

Rupee a tad up at 72.44

 

The rupee was trading a tad up at 72.44 due to mild dollar selling by banks and exporters. Besides, dollar’s weakness against some currencies overseas, including the euro, also supported the rupee. Read more

Domestic shares were trading lower as fears of an escalation in the US-China tariff dispute continued to haunt investors in broader Asian markets.

At 1.35 pm local time, the broader NSE index was down 24.95 points or 0.22 per cent at 11,413.15, while the benchmark BSE index was down 71.49 points or 0.19 per cent at 37,850.68.

 

The rupee was trading strong at 72.40 per dollar after declining to a fresh low of 72.6750 in the previous session, but the outlook remains bleak. After opening strong at 72.32, the domestic unit hovered in a range of 72.51 and 72.25 in the afternoon trade.

DBS Bank said it expected sustained pressure on the rupee with factors such as higher oil prices, widening current account deficit and the US Federal Reserve's rate hike cycle likely pushing it towards 75 per dollar levels.

“The market will continue to remain under pressure for some time, likely until the end of the week, as it is already over-stretched,” said R K Gupta, managing director at Taurus Asset Management.

“There is fear that rising crude prices, weakening of the rupee will cause inflation to go up and in that case, RBI (Reserve Bank of India) is bound to raise interest rates by 25 bps (basis points) in the October meeting.”

Some investors may choose to book profit before the second-quarter advance tax payment deadline, and markets may also see correction due to impending state elections in four states in November, Gupta said.

Consumer stocks lost the most with the Nifty FMCG index declining as much 2.1 per cent to its lowest in nearly seven weeks.

 

ITC Ltd , the country's biggest cigarette maker, was the top loser, shedding 3.2 per cent in its biggest intraday fall since May 4. Hindustan Unilever Ltd dropped 1.3 per cent.

Meanwhile, Infosys Ltd rose 1.4 per cent after brokerage UBS raised its target price on the stock, saying it expected revenue acceleration in FY19.

Nifty 50 September futures (11,465)

 

The Nifty 50 futures contract continues to trade on a negative note. However, the price action suggests that the contract lacks strong selling pressure below 11,500. The index futures made a low of 11,443 and is trying to bounce back. Read more

BPCL to skip Iran oil purchase

 

Bharat Petroleum Corp will skip the purchase of Iranian oil in October due to turnaround at its plants. The refiner will, however, lift 1 million barrels of Iranian oil this month. Click here to read more

SC to hear ArcelorMittal's plea tomorrow

 

The Supreme Court has agreed to hear tomorrow ArcelorMittal's plea seeking extension of time for payment of Rs 7,000 crore as ordered by NCLAT last week for its bid to become eligible for Essar Steel. Read more

The 30-share BSE index Sensex was trading at 37,865.76, down 56.41 points against the previous close of 37,922.17 and the 50-share NSE index Nifty down 15 points at 11,423.10. ITC stock was down over 2 per cent at Rs 299.40.

 

 

Proposal for power exchange

BSE along with PTC India and ICICI Bank have filed a petition with the power market regulator CERC for grant of license to set up a new power exchange. The power stocks are trading at 2071.16 points up 0.01 per cent. Read more

Spot gold down at $1,194.30

 

Gold inched lower as the dollar firmed on worries over a potential new trade action from the United States against China and expectations of a US interest rate increase this month by the Federal Reserve. Spot gold was down 0.1 per cent at $1,194.30 at 0106 GMT. US gold futures were mostly steady at $1,199.60 an ounce. Read more

Crude oil

 

Oil prices rose amid looming US sanctions against Iran's petroleum industry, despite efforts by Washington to get other major suppliers to make up for the expected disruption. WTI crude futures were at $67.70 per barrel at 0637 GMT, up 65 cents, or 0.2 perc ent from their last settlement. Brent crude futures climbed 38 cents, or 0.5 per cent, to $77.75 a barrel. Read more

Forex market

 

The yen slipped on news a Japanese chipmaker was buying a US peer for $6.7 billion, while sterling held onto overnight gains after the European Union's top negotiator raised hopes a Brexit deal can be struck in the coming weeks. Most other major currencies stayed in tight ranges. Read more

Pre-noon trade

The Sensex was trading down 121.53 points or 0.32 per cent at 37,800.64 and the Nifty down 29.75 points or 0.26 per cent at 11,408.35.

Among BSE sectoral indices, consumer durables and FMCG succumbed to heavy selling pressure, while PSU, banking, IT and healthcare found investors' support.

 

 

Top five Sensex gainers were M&M, State Bank of India, Infosys, IndusInd Bank and Axis Bank, while the major losers were ITC, Hero MotoCorp, Bharti Airtel, HUL and HDFC.

 

Asian shares were down as the spectre of a further escalation in the Sino-US trade war haunted investors. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.05 per cent, but did hold above lows last visited in July last year.

Bank Nifty

 

Among the call option chain, the In-The-Money Bank Nifty Call 27,200 option was the most actively traded contract on Monday. The option price was down 57.20 per cent and closed at Rs 160. Open interest in the contract jumped by 398.45 per cent which confirms that traders have added fresh positions in the contract. Read more

MCX gold, silver

 

Gold prices fell Rs 151 to Rs 30,564 per 10 grams at the futures trade as traders cut down their bets at current levels owing to a weak global trend. Silver prices fell Rs 192 to Rs 38,097 per kg at the futures trade. Read more

Unlisted cos must issue shares only in demat form

 

The Government has made it mandatory for unlisted companies to issue and transfer their shares in dematerialised form from October 2. "This step has been taken as a measure for further enhancing transparency, investor protection and governance in the corporate sector." Read more

Rupee trading strong at 72.37

 

The rupee was trading strong at 72.37 due to increased dollar selling by banks and exporters. Besides, dollar’s weakness against some currencies overseas, including the euro, also supported the rupee. Read more

Domestic shares were trading marginally lower as lingering concerns over US-China trade dispute dampened investor sentiment. The Sensex was down 42.18 points or 0.11 per cent at 37,879.99 and the Nifty down 6.85 points or 0.06 per cent at 11,431.25.

Barring FMCG and consumer durables, all other sectoral indices were trading in the green.

 

 

 

PFC, Reliance Capital results

Power Finance Corporation and Reliance Capital will declare their unaudited financial results for the quarter ended June 2018 today. The board of Pratibha Industries will consider the audited, standalone, and consolidated financial results for the quarter and financial year ended March 31, 2018. Read more

 

 

NMDC has increased the prices of lump ore and iron ore fines with effect from September 7. Accordingly, lump ore prices have been increased to ₹3,550 per tonne from ₹3,350 and iron ore fines to ₹3,110 from ₹2,960. The company shares were trading up 0.5 per cent at Rs 120.85 on the BSE. Read more

What to watch

 

Indian Hume Pipe Company has signed a memorandum of understanding with Kalpataru Gardens Pvt Ltd, the Developer, (a wholly-owned subsidiary of Kalpataru) for development of the company’s land at Vadgaon, Pune.  Read more

 

 

BASF  has decided to phase out the agency business following the new rules framed by the Organisation for Economic Cooperation and Development. The company shares were trading up 0.32 per cent at Rs 1,936.80. Read more

 

 

 

Power Mech Projects has bagged orders worth ₹247 crore for works in Gujarat, Haryana and Maharashtra. The company shares were trading down 0.27 per cent at Rs 975.05 on the BSE. Read more

Sensex gainers, losers

Top 10 Nifty gainers, losers

 

Domestic shares were trading flat as investors remained cautious owing to US-China trade war concerns. The Sensex was up 15.6 points or 0.04 per cent at 37,937.77 and the Nifty up 5.05 points or 0.04 per cent at 11,443.15.

Asian shares were struggling to avoid a ninth straight session of losses on Tuesday as the spectre of a Sino-US trade war haunted investors, while the pound perched near a five-week top on hints a Brexit deal might be nearer.

MSCI's broadest index of Asia-Pacific shares outside Japan wavered either side of flat having hit its lowest since July last year on Monday. Japan's Nikkei fared better on the back of a softer yen and climbed 0.6 per cent.

Broker's call

Narnolia

Magma Fincorp (Buy)

CMP: ₹140.15

Target: ₹165

Click here to read more

Govt mulls rejig of CPSE ETF constituent list

 

The Centre is toying with the idea of replacing three public sector entities forming part of the CPSE exchange-traded fund with new ones. The Finance Ministry may replace GAIL, Engineers India and Container Corporation in the CPSE list as the Centre’s holding in these companies has fallen below 55 per cent. Read more

 

 

Dinesh Engineers intends to raise about ₹250 crore through an initial public offering. The company had filed a DRHP on March 28, and had subsequently received approvals for the IPO. It will issue fresh equity to raise funds through the initial stake-sale. Read more

Asian markets

 

Asian shares were struggling to avoid a ninth straight session of losses as the spectre of a Sino-US trade war haunted investors, while the pound perched near a five-week top on hints a Brexit deal might be nearer. Japan's Nikkei fared better on the back of a softer yen and rallied 1 per cent. Read more

Benchmark indices slipped into the negative zone after opening marginally higher due to heavy selling in FMCG and consumer durables stocks amid weak global cues.

The 30-share BSE index Sensex was down 34.94 points or 0.09 per cent at 37,887.23 and the 50-share NSE index Nifty down 18.9 points or 0.17 per cent at 11,419.20.

Top five Sensex gainers were Axis Bank, Sun Pharma, M&M, Infosys and Adani Ports, while the major losers were ITC, HUL, Hero MotoCorp, Kotak Bank and Tata Steel.

Opening bell

The 30-share BSE index Sensex opened higher by 88.1 points at 38,010.27 against Monday's close of 37,922.17 and the 50-share NSE index Nifty up 30.95 at 11,469.05 against 11,438.05.

Today's Pick

Birla Corporation (₹724.4)

We recommend a sell in the stock of Birla Corporation at the current levels of ₹724.4. Stop-loss can be placed at ₹745 for the target of ₹685. Read more

 

 

Day Trading Guide

₹2042 • HDFC Bank

 

₹732 • Infosys

 

₹306 • ITC

 

₹168 • ONGC

 

₹1257 • Reliance Ind.

 

₹285 • SBI

 

₹2081 • TCS

 

11492 • Nifty 50 Futures

 

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