MARKET: Sensex tanks 634 pts on broad-based sell-off; Nifty Bank slips 2%

(Photo: Kamlesh Pednekar)
The Indian markets ended over 1.5 per cent lower on Friday amid across-the-board sell-off. The volatility index, India VIX, rose over 7 per cent to 21.95 levels.

The S&P BSE Sensex tanked 634 points, or 1.63 per cent, to settle at 38,357 levels. Of 30 constituents, 29 declined and just one advanced. Axis Bank (down 4 per cent) ended as the biggest loser on the index. On the other hand, Maruti ended as the only gainer (up nearly 2 cent). 

Reliance Industries (RIL), HDFC, ICICI Bank, and Infosys were the major contributors to the Sensex's loss. 

NSE's Nifty ended at 11,334, down 194 points or 1.68 per cent.  

On a weekly basis, Sensex declined 2.8 per cent while NSE slipped 2.69 per cent. 

All the Nifty sectoral indices were painted red, led by Nifty Metal, which slipped 3 per cent to 2,451 levels. Nifty Bank dipped over 2 per cent to 23,011.50 levels, with all the 12 constituents declining. 

In the broader market, the S&P BSE MidCap index fell 1.74 per cent to 14,817 levels while the S&P BSE SmallCap index fell over 1 per cent to 14,603 points. 

Buzzing stocks

Shares of Vodafone Idea (VIL) hit a 15-month high of Rs 13.45 during the session on the BSE ahead of the company's board meeting later in the day to consider fund raising plan. The stock, however, ended at Rs 12.01 on the BSE, down over 4 per cent. READ MORE

Granules India hit an all-time high of Rs 350 during the session, up 8 per cent. The stock settled at Rs 346, up nearly 6.5 per cent. 

Shares of CreditAccess Grameen rallied 9 per cent to hit a high of Rs 749 on the BSE in the intra-day session after the company announced that its board has approved Rs 1,000 crore fund raising plans. The stock ended at Rs 703.40, up over 2 per cent. READ MORE
 

Global markets

China stocks closed lower on Friday after a sharp overnight selloff in Wall Street, with the benchmark Shanghai index posting a weekly loss after a five-week winning streak.

The blue-chip CSI300 index fell 1 per cent to 4,770.22, while the Shanghai Composite Index ended 0.9 per cent lower at 3,355.37.

In commodities, oil held around $44 a barrel and was heading for its biggest weekly decline since June, as weak demand figures added to concerns of a slow recovery from the Covid-19 pandemic.

(With inputs from Reuters)

4:17 PM IST A selloff in US technology stocks had a cascading effect on global markets and Indian benchmark indices reacted to this and closed with losses of around 1.5 per cent. European markets were trading positive in early trades, following merger talks and expectation of more stimulus measures. The US jobs data, due later in the day, will set the tone for global market trends. Financials contributed most to the losses. Benchmark indices closed lower by around 2.9 per cent on a weekly basis, as the liquidity-fuelled run lost out to political and global uncertainties.   WEEK AHEAD   Uncertainties await the market for next week, be it global economic data points or geopolitical uncertainties related to Indo-China border tensions. Indian markets have been in sync with their global counterparts and will have an impact. Markets seem to have lost their momentum in the near-term and could be heading into a round of consolidation. Investors advised being alert and cautious.

3:43 PM IST

3:42 PM IST

3:36 PM IST The S&P BSE Sensex tumbled 634 points, or over 1.6 per cent to 38,357 levels while NSE's Nifty ended at 11,334, down 194 points, or 1.68 per cent. 

3:29 PM IST

3:19 PM IST

3:07 PM IST

3:03 PM IST

2:50 PM IST

2:42 PM IST Shares of Granules India hit an all-time high of Rs 350 in an otherwise weak market, ralling 8 per cent on the BSE on Friday. Thus far in the current week, the stock of the pharmaceutical company has surged 13 per cent as compared to 2 per cent decline in the S&P BSE Sensex. It surpassed its previous high of Rs 336 touched on August 10, 2020. READ MORE 

2:28 PM IST While farming was the only industry to post positive growth in the June quarter’s gross domestic product data, the rapid spread of the coronavirus in rural areas and declining prices are set to weigh on the outlook. READ MORE

2:16 PM IST

LIVE UPDATES

MARKET COMMENT:: Vinod Nair, Head of Research at Geojit Financial Services

A selloff in US technology stocks had a cascading effect on global markets and Indian benchmark indices reacted to this and closed with losses of around 1.5 per cent. European markets were trading positive in early trades, following merger talks and expectation of more stimulus measures. The US jobs data, due later in the day, will set the tone for global market trends. Financials contributed most to the losses. Benchmark indices closed lower by around 2.9 per cent on a weekly basis, as the liquidity-fuelled run lost out to political and global uncertainties.
 
WEEK AHEAD
 
Uncertainties await the market for next week, be it global economic data points or geopolitical uncertainties related to Indo-China border tensions. Indian markets have been in sync with their global counterparts and will have an impact. Markets seem to have lost their momentum in the near-term and could be heading into a round of consolidation. Investors advised being alert and cautious.

SECTOR WATCH:: Nifty Metal index cracks over 3%


MARKET AT CLOSE: Out of 30 constituents of S&P BSE Sensex, 29 end in the red


CLOSING BELL

The S&P BSE Sensex tumbled 634 points, or over 1.6 per cent to 38,357 levels while NSE's Nifty ended at 11,334, down 194 points, or 1.68 per cent. 

MARKET CHECK:: Barring Maruti, all the stocks in the S&P BSE Sensex trade in the red


Top gainers on the BSE at this hour


MARKET CHECK


Vodafone Idea pares gains ahead of board meet to consider fund raising


MARKET UPDATE:: Sensex plunges to day's low


Granules India rallies 8% in a weak market, hits fresh all-time high

Shares of Granules India hit an all-time high of Rs 350 in an otherwise weak market, ralling 8 per cent on the BSE on Friday. Thus far in the current week, the stock of the pharmaceutical company has surged 13 per cent as compared to 2 per cent decline in the S&P BSE Sensex. It surpassed its previous high of Rs 336 touched on August 10, 2020. READ MORE 

India pins hopes on farms to boost a troubled economy. It may not be enough

While farming was the only industry to post positive growth in the June quarter’s gross domestic product data, the rapid spread of the coronavirus in rural areas and declining prices are set to weigh on the outlook. READ MORE

BUZZING STOCK:: Granules India surges 7%


Rupee Closing

Rupee ends higher at 73.14 per US dollar vs Thursday's close of 73.47/$

March Quarter Result :: Future Retails posts consolidated net loss of Rs 478 cr vs profit of Rs 199.31 cr YoY

>> Revenue at Rs 4,492.36 cr

>> Other income at Rs 40.25 cr


Localised lockdown impacting ITC's recovery pace, outlook uncertain: Sanjiv Puri

Despite progressive normalisation in segments other than hotels and education and stationery products business, ITC Chairman, Sanjiv Puri, said on Friday at the company’s annual general meeting, that the near-term outlook was uncertain and localized lockdowns were impacting the recovery momentum. READ MORE   


Hindustan Foods, DFM Foods hit 52-wk highs, rally over 100% from March lows

Hindustan Foods was locked in 5 per cent upper circuit for the third straight day at Rs 858 - also its all-time high -- on the BSE. DFM Foods hit a 52-week high of Rs 360 after rallying 7 per cent in intra-day trade. The stock has surged 24 per cent in the past four trading days. In comparison, the S&P BSE Sensex was down 0.85 per cent at 38,657 points, at 01:01 pm. READ MORE


BROKERAGE VIEW:: Edelweiss Securities on Page Industries

On balance, we expect Page to clock revenue growth in line with the industry (breaking away from past) despite the initial athleisure kicker and build in 10% CAGR over FY20– 28 (FY09-19: 27%). We value the company using a three-stage DCF, which yields TP of Rs 19,195. We maintain HOLD. Valuations have primarily been a function of its growth. At CMP, the stock is trading at 50x FY22E EPS (Target FY22E PE: 50x). 

NEWS ALERT :: Ahluwalia Contracts bags order worth Rs 99 cr


European indices trade largely higher in early deals


Market at this hour


Business Update :: Equitas Small Finance says moratorium at 35% in Aug vs 43% in July

>> Collection Efficiency for the month of August 2020 for Micro Finance at 77%, Small Business Loans at 105% and Vehicle Finance at 72% 


A gloom-and-doom scenario: Why Bond market loves India's tax mess

The market is pleased because it’s getting concessions from panicky authorities. The Reserve Bank of India has told banks that if they buy another 3 trillion rupees ($41 billion) of government bonds, they can park them in a bin that doesn’t have to be marked to market. Why is a lollipop of loss protection needed? Won’t banks anyway want the safest possible securities after a 23.9% plunge in India’s June-quarter gross domestic product, the steepest of any major economy? READ MORE

This software company's stock has more than doubled in the past month

The stock of the information technology (IT) consulting & software firm was trading at its 52-week high level. In the past month, it has rallied 105 per cent, as compared to 2 per cent rise in the S&P BSE Sensex. While, in three months, the stock has zoomed 277 per cent against 13 per cent gain in the benchmark index. READ MORE

NEWS ALERT :: RBI issues revised Priority Sector Lending guidelines


AstraZeneca Pharma India hits fresh record high, up 15% in 8 trading days

AstraZeneca Plc, the company's parent firm, is expected to release initial data on whether a vaccine can stop people from getting the virus on September 15. The drugmaker has pledged as many as 30 million doses to the UK by the end of the month. READ MORE

Fitch places Future Retail on rating watch positive on sale to Reliance

Fitch Ratings has placed Future Retail Ltd's (FRL's) issuer default rating of C and the rating on its 500 million dollars 5.6 per cent senior secured notes due in 2025 of C with a recovery rating of RR4 on rating watch positive. This follows the announcement on August 29 that FRL has agreed to sell its business to Reliance Retail and Fashion Lifestyle Ltd (RRFLL), a wholly-owned subsidiary of Reliance Retail Ventures Ltd (RRVL) that is itself a subsidiary of Reliance Industries Ltd. READ MORE

Stocks that hit 52-week high on BSE today in an otherwise weak market

COMPANY PRICE(rs) 52 WK HIGH CHG(%)
ADANI GAS 195.10 200.90 2.74
AMBER ENTERP. 1865.00 1920.90 2.95
ASTRAZENECA PHAR 3870.40 3900.00 4.36
TIMKEN INDIA 1194.00 1223.95 2.16
VODAFONE IDEA 12.34 13.45 -1.75
» More on 52 Week High

MARKET UPDATE:: Sensex remains subdued


BROKERAGE VIEW:: Emkay Global on Page Industries

RATING: HOLD | TARGET PRICE: Rs 17,800
  • Page Industries’ Q1 operating performance was weaker than expected. Revenue declined 66% to Rs2.8bn vs. estimate of Rs4.3bn. Secondary sales were higher by 18-20% in Q1, and management indicated a recovery to pre-Covid-19 levels in August.
  • Gross margins were down 700bps and were driven by lower absorption of factory overheads and provision for aged stock. Management has initiated many cost-reduction initiatives (other overheads were down 66%) and expects to get back to 20-22% EBITDA margins.
  • The company’s recovery has been faster than other apparel players but much slower than its smaller innerwear competitors (10-20% decline). Management attributed this to its higher salience in top towns which were more affected by the pandemic in Q1.
  • Factoring in the weak Q1 print, we reduce FY21E EPS by ~13% but largely maintain FY22/23 estimates. Valuations at 47x FY22E EPS are not attractive. We maintain Hold, with a revised TP of Rs17,800 (Rs17,500 earlier), rolling forward to 40x Dec-22E EPS.

NEWS ALERT :: Govt appoints S Krishnan as MD & CEO of Punjab & Sind Bank


Adani Gas hits new high after ICRA upgrades Co's rating with stable outlook

Shares of Adani Gas hit an all-time high of Rs 201 on the BSE in intra-day trade on Friday after the company said rating agency ICRA has upgraded its long-term rating and re-affirmed the short-term rating with a stable outlook. The stock of Adani Group bounced back 9 per cent from its early morning low of Rs 183 on the BSE. In the past one month, it outperformed the market by surging 23 per cent against a 2 per cent rise in the S&P BSE Sensex. READ MORE

IndiGo may shelve approved QIP plan if air travel picks up

India’s largest airline IndiGo may not go ahead with its fundraising initiative if revenue from sales increases.The board of directors of the company had last month approved a plan to raise upto Rs 4,000 crore through a qualified institutions placement (QIP). QIP is a capital-raising tool through which listed companies can sell shares, fully and partly convertible debentures, or any securities, other than warrants that are convertible into equity shares, to qualified institutional buyers. READ MORE

BNP Paribas lists 8 large domestic stocks with potential to beat Sensex

BNP analysts say these are companies with business models that could reach about a billion people. “We think such a reach enables them to withstand difficult business cycles and come out stronger as competition around them struggles. The companies within our coverage in the Bharath list offer a potential upside of 16.7 per cent despite the recent rally,” said Amit Shah, head of India equity research, BNP Paribas. READ MORE

NEWS ALERT :: Pricol Board approves to raise Rs 100 cr via rights issue

(Via BSE filing)


Global markets ignoring current, potential negatives: HDFC Securities CEO

Global markets are looking at post-Covid growth and ignoring all current and potential negatives, says Dhiraj Relli, MD and CEO of HDFC Securities. He tells Ashley Coutinho in an interview that a weak dollar could help improve India’s trade and current account situation and FPI flows READ INTERVIEW HERE

Top losers on BSE at this hour

COMPANY PRICE(rs) CHG(%)
ADANI GREEN 544.65 -5.00
FUTURE CONSUMER 10.85 -4.99
FUTURE RETAIL 112.45 -4.99
SUZLON ENERGY 3.29 -4.64
CHOLAMAN.INV.&FN 235.25 -3.70
» More on Top Losers

BSE, CDSL: What charts indicate for stock exchange, depository stocks

BSE Limited (BSE): As this counter conquers the resistance Rs 525 on the closing basis with a firm volume, the upside sentiment has turned highly optimistic. The overall trend suggests a move towards Rs 600 levels on an immediate scale. READ MORE 


CreditAccess Grameen up 9% on fund raising plans; CLSA initiates coverage

Shares of CreditAccess Grameen rallied 9 per cent to Rs 749 on the BSE on Friday in an otherwise weak market after the company announced that its board has approved Rs 1,000 crore fund raising plans. At 10:11 am, the stock was trading 6 per cent higher at Rs 731, as compared to 1.2 per cent decline in the S&P BSE Sensex. The counter has seen huge trading volumes with a combined 182,000 equity shares changing hands on the NSE and BSE. READ MORE

Gold Outlook :: Hareesh V, Head of Commodity Research at Geojit Financial Services

A steady US dollar and optimism that the deadly pandemic may be under control soon continue to hit the safe haven appeal of gold. However, hopes of more fiscal stimulus measures and elevating U.S-China trade tensions would offer firm support to prices. At the same time, traders may be extra cautious today ahead of the key U.S payroll and unemployment data.
 
Technical Outlook (London spot): Support of $1900 an ounce needs to be cleared for continuation of selling pressure. Else, may see a choppy trading session for the day

Economic contraction in India an opportunity for long-term investors: Wood

In adversity lies opportunity. The scale of economic collapse in India, according to Christopher Wood, global head (equity strategy) at Jefferies, should be seen as a dramatic opportunity for long-term equity investors. READ MORE

Nifty Bank off lows, still down 400 pts


Rupee Opening

Rupee opens higher at 73.37 per US dollar vs Thursday's close of 73.47/$

Vodafone Idea hits 15-month high ahead of board meeting for fund raising

According to a Bloomberg report, Vodafone Idea is planning to raise about $1.5 billion as it seeks to "turn around its fortunes in the country’s fiercely competitive wireless market".
 
"Vodafone Idea Ltd. is discussing a funding plan that could include a share sale... It is working with advisers including New York-based investment bank PJT Partners Inc. as it seeks potential strategic partners to buy stakes," the report said. READ MORE

MARKET UPDATE:: 28 of the 30 Sensex constituents trade in red at this hour


MARKET CHECK :: Sensex off lows


KEC International gains 2% after Co secures new orders worth Rs 1,401 crore

“The company’s transmission & distribution (T&D) business including SAE Towers has secured orders of Rs 1,143 crore for various T&D projects from Oman Electricity Transmission Company (OETC), Power Grid Corporation of India (PGCIL) and other customers,” the company said in a press release. READ MORE

MARKET UPDATE:: India VIX surges 8%


Buying interest being seen in autos; Maruti Suzuki up 1%


Hero MotoCorp trading at day's high


Most active stocks by volume

COMPANY PRICE(rs) CHG(%)
VODAFONE IDEA 12.09 -3.74
SUZLON ENERGY 3.29 -4.64
DISH TV INDIA 12.05 4.97
FUTURE CONSUMER 10.95 -4.12
B H E L 38.90 -2.75
» More on Most Active Volume

Trident down over 1%

>> The company informed that normalcy in operaons has been restored in the manufacturing operaons at Budni, Madhya Pradesh.


Vodafone Idea recovers 15% from day's low


Britannia Industries gains 1% in a weak market


BUZZING STOCK:: Bharti Infratel recovers 7% from day's low


5Paisa Capital eases 2%

>> The company plans to raise capital up to Rs 900 crore.


Biocon, Torrent Pharma only pharma counters in the green


Infosys down 1.5%

>> Infosys on Thursday announced it has acquired US-based product design firm Kaleidoscope Innovation for $42 million (Rs 309 crore) to expand its engineering service offerings in medical devices, consumer and industrial markets across America.


KEC International up nearly 1.5%

>> The company has won new orders worth Rs 1,401 crore

Tata Motors slips over 1%

>> During August 2020, the Tata group flagship sold 18,580 units against 7,316 a year ago, a year-on-year jump of 154 per cent. Its previous high was in March 2018, when it sold 20,266 units. During the month, it has also seen its market share jump 500 bps to 8 per cent YoY.


Vodafone Idea down 4% ahead of Board meeting


Reliance Industries off lows


State Bank of India tanks 3%


Sectoral trends :: Banks, Auots take hit


Nifty sees gap-down opening


Sensex Heatmap at Open


Opening Bell :: Sensex tanks 600 pts


Commodity Heatmap


Nifty at pre-open


Top gainers and losers on S&P BSE Sensex at pre-open


MARKET CHECK :: Sensex takes 600 pt-knock in pre-open


Stocks to watch today

RIL: Private equity firm Silver Lake Partners is in talks to invest $1 billion in the retail arm of India’s Reliance Industries Ltd, the Financial Times reported on Thursday, citing people with direct knowledge of the matter.
 
Voadfone Idea: The company's board is scheduled to meet today to consider raising of funds. READ MORE

Silver Lake in talks to take $1 billion stake in Reliance Retail: Report

Private equity firm Silver Lake Partners is in talks to invest $1 billion in the retail arm of India’s Reliance Industries, the Financial Times reported on Thursday, citing people with direct knowledge of the matter.
 
The investment, which would value Reliance Retail at about $57 billion, comes as the company is aiming to sell about 10% in new shares, the report added. READ MORE

Trading strategies for crude oil and zinc

Crude oil had broken its range of 3,130-3,230 where it was stuck in since August 10. Russia’s decision to talk with OPEC+ regarding production cuts as demand has increased have given the markets jitters. Any violation below 3,100 will open floodgates till 2,800. Any positive development regarding shut down of refineries due to hurricane have been factored by the market. READ MORE

Nifty outlook & stock calls by Anand Rathi

BUY NIFTY | TARGET: 11,650 | STOP LOSS: 11,450
 
The Nifty index found the support of a rising trend line and rebounded from the same. The momentum indicators and oscillators on the weekly scale are very well in 'buy' mode. Hence, one should remain on the long side of the Nifty index and utilise every dip as a buying opportunity till the time it doesn’t break its major trend line which is placed at 11,450 levels. READ MORE

Here's a Bull Spread Strategy on UPL

Buy UPL 530 CALL at Rs 18.55 & simultaneously sell 550 Call at Rs 11.55
 
Lot Size 1300
 
Cost of the strategy Rs 7 (Rs 9100 per strategy)
 
Maximum profit Rs 16900 If UPL closes at or above 550 till September expiry
 
Breakeven Point Rs 537 READ MORE

NEWS ALERT :: NSE waives Margin Penalty till September 15


Bulk deals on BSE as on Thursday

Bulk deals on NSE as on Thursday


FII/FPI & DII trading activity on NSE, BSE and MSEI


Rupee check

Source: Bloomberg


Oil prices slip 1%


SGX Nifty hints at a red start

>> At 8:30 am, the index was at 11,408 level, down 137 points or 1.18 per cent

Asia likely to follow US tech-rout

Source: Reuters


Tech tumble reverses Wall Street gains

Source: Reuters


Good morning!

Welcome to the Business Standard live blog.

Catch all the live market updates here.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel