Markets Live: Sensex sheds 110 points; Tata Motors drops 3.15%, Wipro 2.9%

Closing bell

The Sensex and Nifty ended lower in a highly volatile session due to profit-booking by investors ahead of US Federal Reserve’s policy outcome. Fed policymakers are expected to raise interest rates for the third time this year. Investors were also cautious in view of the expiry of September F&O contract on Thursday.

At the outset, the Sensex touched a high of 36,938.74. However, it soon turned choppy and hit a low of 36,357.93. It finally closed lower by 109.79 points, or 0.30 per cent, at 36,542.27.

The 30-share BSE index swung nearly 581 points on alternate bouts of buying and selling. The gauge had soared 347.04 points on Tuesday on value-buying in banking and FMCG stocks after recent heavy losses.

The NSE Nifty closed lower by 13.65 points, or 0.12 per cent, at 11,053.80. Intraday, it shuttled between 11,145.55 and 10,993.05.

Top five Sensex gainers were Vedanta, YES Bank, Reliance, Tata Steel and L&T, while the major losers were Tata Motors, Wipro, ITC, State Bank of India and Maruti.

BSE sectoral indices

IT, FMCG, TECK and auto succumbed to heavy selling while metal, realty, capital goods and oil & gas found investors' support.

As per provisional data, FIIs sold shares worth Rs 1,231.70 crore on Tuesday, while domestic institutional investors bought shares to the tune of Rs 2,284.26 crore. _ PTI

Kharif foodgains output

Kharif foodgrains output in 2018-19 would be at a record 141.59 million tonnes , marginally higher than the targeted 141.2 mt, according to the first advance estimates of production of major kharif crops released by the Agriculture Ministry. Production in the previous year was 140.73 mt. Read more

Was the NBFC meltdown waiting to happen?

Stocks of non-banking finance compani have been in a free fall, rattling investors over the past few days. What began as a singular event, with one of the big names – IL&FS failing to repay its commercial paper dues – has blown into a possible liquidity crisis for the entire NBFC universe. Is the sharp fall in NBFC stocks justified? Click here to read more

More pain ahead of NBFCs

Frothy valuations, difficulty in raising funds from the bond market after the IL&FS episode, and existing growth and asset quality challenges suggest that there is more pain ahead for NBFCs. Many stocks may continue to feel the heat, which can worsen, if liquidity concerns of the sector are not addressed. Click here to read more

Cabinet okays net telecom policy

The Cabinet on Wednesday approved the new telecom policy, named as National Digital Communications Policy 2018, which aims to attract $100 billion investment and create 4 million jobs in the sector by 2022. Read more

Rs 4,500 cr package for sugar industry

The Government has approved a Rs 4,500 crore package for the sugar industry that includes over two-fold jump in production assistance to cane growers and transport subsidy to mills for exports up to 5 million tonnes in the marketing year 2018-19. Read more

The Sensex was trading lower by 155.74 points or 0.42 per cent at 36,496.32 and the Nifty down 27.3 points or 0.25 per cent at 11,040.15 on heavy selling in FMCG, IT, TECk and auto stocks. However, metal, realty, capital goods and oil & gas remained investors' favourite.

Top five Sensex gainers were Vedanta, YES Bank, Tata Steel, ICICI Bank and Axis Bank, while the major losers were Tata Motors, ITC, Wipro, State Bank of India and TCS.

Domestic sentiment was hit as investors were cautious ahead of the conclusion of US Federal Reserve's two-day meeting, where policymakers are expected to raise interest rates for the third time this year. Traders were also wary ahead of expiry of September month derivatives contracts on Thursday.

As per provisional data, domestic institutional investors bought shares to the tune of Rs 2,284.26 crore, while FIIs sold shares worth Rs 1,231.70 crore on Tuesday.

Gold holds steady

Spot gold was little-changed at $1,200.43 per ounce, as of 0712 GMT, having moved in a narrow $4 range during the session and testing key resistance at $1,200. US gold futures were flat at $1,204.70 an ounce. Read more

MCX gold

Gold futures fell 0.10 per cent to Rs 30,787 per 10 gram on Wednesday as participants trimmed their bets owing to a weak global trend. Read more

Weekly trading guide

SBI (₹270)

SBI plummeted 7 per cent last week breaking below the key support levels of ₹275 and ₹270. The stock made an intra-week low of ₹253.6 and recovered some of the loss before closing the week at ₹270. Near-term resistances are at ₹275 and ₹278.

ITC (₹303.7)

ITC managed to stay afloat amid a strong sell-off in the broader markets last week. The stock made a smart recovery after falling about 3 per cent intra-week and closed just 1 per cent lower for the week. This reflects the inherent strength in the stock. It will come under pressure only if it declines below ₹295. The next targets are ₹290 and ₹285.

Infosys (₹706.3)

Infosys tumbled 4 per cent last week. The sharp fall over the past week has taken the stock decisively below the 21-day moving average support that has been limiting the downside over the last five months. As long as the stock remains below ₹721, there is a strong likelihood of it breaking below the crucial support level of ₹690 in the coming days.

RIL (₹1,216.8)

RIL fell, breaking below the key support level of ₹1,225 and closed about 3 per cent lower for the week. A complex head-and-shoulder reversal pattern is visible on the chart. This is a bearish pattern indicating a reversal of the current uptrend .The neckline resistance of this pattern is poised around ₹1,237.

Tata Steel (₹615.3)

Tata Steel seems to have remained insulated from the broader market sell-off. Though the stock tumbled about 6 per cent intraday on Friday, it managed to recover all the loss and close the week 1.5 per cent higher. Key resistance is at ₹640. A strong break above it can take the stock higher to ₹680 and ₹700 thereafter.

Click here to read more

Short strangle in L&T Finance

The outlook for the stock of L&T Finance Holdings (₹140) has turned neutral. Only a close above ₹165 will change the outlook to positive.Given the current volatility in the market, the stock could move wildly. Ruling at a crucial level, the stock finds a strong support at ₹135. Click here to read more

Are farm loan waivers unhealthy?

Vicious cycle: For 50% of rural India, debt payable equals annualincome, making it theoretically impossible for farmers to repay debt

Former RBI Governor Raghuram Rajan recently cautioned that the next crisis in India’s banking sector could come from loans given to unorganised businesses, including Kisan Credit Card. Why are farmers indebted? Why does the government declare loan waivers, is it just political motivation? Let’s demystify this. Click here to read more

Nifty 50 September Futures (11,019)

Traders can make use of intra-day rally to go short with a fixed stop-loss at 11,050 levels. A decisive fall below the key support level of 11,000 can drag the contract down to 10,950 and 10,900 levels in the short term. Significant resistances are placed at 11,050 and 11,100 levels.  Read more

Domestic shares were trading lower as investors largely stayed on the sidelines ahead of US Federal Reserve policy outcome later today.

The Sensex was down 255.01 points or 0.7 per cent at 36,397.05 and the Nifty down 63.35 points or 0.57 per cent at 11,004.10. Both the NSE and BSE indexes have shed nearly 4 per cent each in the last six sessions.

Losses in consumer goods stocks such as ITC Ltd and Hindustan Unilever Ltd were offset by gains in finance and healthcare stocks. ITC fell 2.6 per cent, while Lupin gained 2 per cent.

Top 10 Nifty gainers, losers

Analysts said the current situation in non-banking financial companies makes it difficult to predict short-term market direction, adding that bounces may be short-lived.

“People are uncertain. What happened with IL&FS could open a can of worms. Gains will be temporary as the markets are still in a downtrend,” said Sudhakar Pattabiraman, Head of Research Operations, William O'Neil India.

Infrastructure Leasing & Financial Services (IL&FS) revealed a series of delays and defaults on debt obligations and inter-corporate deposits in recent days, triggering a sell-off in stocks of non-banking finance companies.

“There are also global factors such as crude prices, the dollar and the trade war,” Pattabiraman added.

Asian shares inched higher as Sino-US trade war worries receded, while US bond yields stood near a seven-year peak ahead of a widely expected rate hike by the Federal Reserve.

Crude oil, up 0.04 percent at $81.9, has gained 22.4 per cent this year so far as of its last close, while the rupee has weakened more than 13 per cent against the dollar in the same period, adding to the list of worries for investors in a country that is heavily dependent on imports to meet its energy needs. _ Reuters

Big merger plan weighs on Bank of Baroda

The Centre’s proposal to amalgamate Bank of Baroda, Vijaya Bank and Dena Bank has not gone down well with investors in BoB. The stock has lost 17 per cent since the announcement. For BoB, a complex merger such as this with a weaker and under-capitalised PSB would put the former’s recovery efforts on the back-burner.  Read more

Petronet LNG: Opportunity beckons

Did you know? Petronet LNG is more than two decades old; it wasincorporated in April 1998 and began commercial operations inApril 2004

Investors with a long-term perspective can buy the stock of Petronet LNG, the country’s largest gas importer and regasifier. The company has been consistently delivering on volumes and profits, including in the recent June 2018 quarter.

Embassy REIT may ‘return’ 14%

Embassy Office Parks is likely to generate an average annual return of 14 per cent over a five-seven-year period in a market where office space rentals have been growing with demand. It is looking to raise around ₹5,000 crore through its 32.6-million square feet portfolio. Read more

Minda Industries surges over 8%

Minda Industries Ltd rose 8.40 per cent to 372 rupees, their biggest daily percentage gain since July 11. The company has approved setting up of a manufacturing plant for 2-wheeler alloy wheels in Maharashtra. Read more

Titan shares jump 3%

Shares of Titan Company Ltd rose as much as 2.9 per cent to Rs 820 as Morgan Stanley has raised the price target to Rs 1,250 from Rs 1,120. It has retained the ‘overweight’ rating. Read more

YES Bank jumps 3%

Rana Kapoor, Managing Director and CEO, YES Bank

Shares of YES Bank Ltd jumped as much as 2.9 per cent to Rs 226 as the lender plans to get RBI’s approval for extending CEO Rana Kapoor’s term until April 30, 2019. Read more

Forex market

The dollar index, which measures the greenback against six major currencies, has slipped around 3 per cent since mid-August.

The dollar kept to tight ranges as investors focused their attention on the Federal Reserve's policy review later in the day as global markets fret over an escalating trade row between the United States and China. The index was basically flat at 94.134 on Wednesday, sitting near a 2-1/2 month low of 93.814 touched on Friday. Read more

Brent crude falls to $82

Brent crude futures were down 4 cents at $81.83 a barrel by 0342 GMT, after gaining nearly 1 per cent the previous session. Brent rose on Tuesday to its highest since November 2014 at $82.55 per barrel. Read more

The Sensex was trading down by 156.52 points or 0.43 per cent at 36,495.54 and the Nifty down 34.2 points or 0.31 per cent at 11,033.25 on heavy selling in FMCG, auto, IT and TECk stocks.

Domestic sentiment was hit as investors remained cautious ahead of the US Federal Reserve policy outcome later today and expiry of September month F&O expiry on Thursday. Fed is widely expected to raise interest rates.

Top five Sensex gainers were YES Bank, IndusInd Bank, Tata Steel, HDFC Bank and Bharti Airtel, while the major losers were Tata Motors, ITC, HUL, Maruti and Wipro.

Asian markets

MSCI's broadest index of Asia-Pacific shares outside Japan was almost flat in early trade. File Photo

Asian shares pulled ahead, as Chinese markets extended their recovery to hit eight-week highs on receding fears about the trade war as well as hopes China's weighting in the global benchmark will be increased. Spreadbetters expected European stocks to open flat to firmer, with Britain's FTSE starting little changed, Germany's DAX adding 0.2 per cent and France's CAC up 0.05 per cent. Read more

Aavas Financiers' IPO

The initial public offer of housing finance company Aavas Financiers was subscribed 0.03 times on the second day of bidding today. The IPO to raise ₹ 1,734 crore received bids for 4,36,320 shares against the total issue size of 1,47,85,027 shares, data available with the NSE showed.

MFs gearing up to face debt fund redemption

The mutual fund industry is shoring up liquidity to meet the rising redemption expected in debt-oriented schemes even as the crisis kicked off by the IL&FS default is still unwinding in the market. The mutual fund industry manages ₹13.73 lakh crore of fixed income assets. Read more

Anand Rathi Wealth Services IPO

ipo

Anand Rathi Wealth Services has filed draft papers with SEBI to raise ₹425 crore through an initial public offering. The company proposed to issue fresh shares (face value ₹5) for up to ₹125 crore, while a promoter firm — Anand Rathi Financial Services — will offload shares of up to ₹300 crore through an offer-for-sale. Read more

Village Financial IPO

Kuldip Maity, MD & CEO, VFSL

Village Financial Services is looking to hit the capital markets with an initial public offering by September 2019. The company has already initiated the process for an IPO and has received board approval recently. Read more

Rupee rises to 72.56

The rupee recovered by 8 paise to 72.61 against the dollar in early trade on mild selling of the US currency by exporters amid easing crude oil prices. Read more

ADB maintains India's growth forecast at 7.3%

India’s economy continues on a robust growth path, says the Asian Development Bank, while maintaining the growth forecast for the current fiscal at 7.3 per cent. However, depreciation of the rupee and volatile external financial markets pose challenges, it says. Read more

The benchmark Sensex turned choppy after surging over 200 points in early trade, ahead of US Federal Reserve’s policy outcome due later in the day amid mixed global cues. Investors were cautious ahead of the expiry of September derivative contracts on Thursday.

At 10.05 am, the Sensex was trading up 55.81 points or 0.15 per cent at 36,707.87 and the Nifty up 22.2 points or 0.2 per cent at 11,089.65. The gauge had gained 347.04 points in the previous session.

Top five Sensex gainers were YES Bank, M&M, Tata Steel, HDFC Bank and IndusInd Bank, while the major losers were ITC, Wipro, HUL, ONGC and Tata Motors.

YES Bank emerged as the top gainer after the board had on Tuesday sought at least a three-month extension for MD and CEO, Rana Kapoor, from RBI beyond January 31, 2019.

Brokers said investor sentiment turned choppy on FII selling ahead of the September month derivatives expiry Thursday. Investors also awaited policy cues from the US Federal Reserve, which is widely expected to raise interest rates.

On a net basis, domestic institutional investors (DIIs) bought shares to the tune of Rs 2,284.26 crore, while FIIs sold shares worth Rs 1,231.70 crore on Tuesday.

Kritika Wires' IPO

Kritika Wires will launch a Rs 15.39 crore IPO today on the NSE Emerge platform. The issue will close on October 1. The company expects to raise Rs 15.4 crore from the IPO and the proceeds will be utilised for meeting the working capital requirements, general corporate and issue expenses.

Igarashi Motors to turn ex-bonus

Igarashi Motors India has fixed September 28 as the record date for determining the eligibility of members to receive bonus shares. The company is rewarding its shareholders with 25 bonus shares for every 202 shares held by them. The shares will turn ex-bonus on Thursday.Today is the cut-off date for investors who wish to receive the bonus shares. The stock of Igarashi Motors on Tuesday closed at ₹711.85 on the BSE.

TD Power board meeting today

TD Power Systems board of directors will meet today to consider a proposal for buyback of equity shares. Shareholders would be keen to know the size and price of the buyback issue, besides its promoters’ interest. Of late, most promoters are participating in buybacks. The mode of buyback - whether through open market purchase or by tender process (on proportionate basis), are also crucial factors that investors would be watching, besides the record date. _ Our Bureau

Redington to turn ex-date for buyback

Shares of Redington (India) will turn ex-date for the proposed buyback on Thursday. The company plans to buy back 1.11 crore equity shares (or 2.78 per cent of the total paid-up equity capital) at ₹125 a share for an aggregate amount of ₹139 crore. Investors wishing to participate in the buyback need to own the company’s shares by Wednesday, as it has fixed September 28 as the record date. _ Our Bureau

Opening bell

The 30 share BSE Index Sensex opened 133 points up at 36785.46 against the previous close of 36652.06 and the 50-share NSE index Nifty opened up by 30.7 points at 11098.15 against the previous close of 11,067.45

Day Trading Guide

Given below are supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading:

₹1951 • HDFC Bank

₹726 • Infosys

₹301 • ITC

₹182 • ONGC

₹1230 • Reliance Ind.

₹270 • SBI

₹2183 • TCS

11086 • Nifty 50 Futures

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

Today's Pick

The monthly sales of Apache RR 310, unveiled in December 2017, have touched 1,000 units.

We recommend a buy in the stock of TVS Motor Company at the current levels of ₹595.6. Stop loss can be placed at ₹582. Read more