MARKETS: Investors lose Rs 3 trn as Sensex tanks 788 pts on US-Iran crisis

Topics MARKET WRAP | Markets

Indian equities were hit by the boiling tensions in the Middle East on Monday, as the world's third biggest oil consumer stared at potential supply disruptions, and the consequent rise in the import bill due to surging crude oil prices. 

The benchmark S&P BSE Sensex breached below the 41,000-mark to end the day at 40,676.63 level, down 788 points or 1.9 per cent. In the intra-day trade, the Sensex slipped 850.65 points, its biggest single-day fall in the last 4 months -- to hit a low of 40,613.96. With the 2 per cent decline, investors lost nearly Rs 3-trillion in terms of market cap today.

At the index level, only two constituents -- Titan and Power Grid -- among the pack of 30 managed to settle the day in the green, while Bajaj Finance, SBI, IndusInd Bank, and Maruti Suzki emerged as the top losers today. 

On the NSE, the Nifty50 closed at 11,993-mark, down 234 points or 1.91 per cent. The index logged its biggest one-day loss in the last six months, and hit an intra-day low of 11,974.20. 

Fears of supply disruption to oil gained ground after US President Donald Trump threatened sanctions on Iraq, the second largest producer among the OPEC, after the latter's parliament voted in favour of expelling US and foreign troops. Besides, Iran voted to "abandon" the 2015 nuclear deal. 

At 3:30 pm, Brent Crude Futures, which hit a high of $70.45 per barrel in the early trade, were quoting at $69.82 per barrel-mark, up 1.78 per cent.

Among key sectoral indices, all the indices lost ground today with Nifty PSU Bank index being the top laggard. The index declined over 4 per cent at close as rising crude oil prices lifted bond yields, coupled with reports that the government may not propose capital infusion under the upcoming Union Budget for 2020-21. Additionally, Nifty Bank index tanked 898.7 points in the intra-day trade, its biggest single-day fall since April 2016. Five financials - HDFC Bank, SBI, HDFC, Bajaj Fin and ICICI Bank have collectively lost Rs 59,607 crore market-cap

That apart, Nifty Auto, Financial Services, Metal, Realty and Private Bank indices slipped over 2 per cent by close.

In the broader market, the S&P BSE mid-cap index tumbled 2.33 per cent to close at 14,761.66, while the S&P BSE small-cap index lost 1.96 per cent to end at 13,715.18.

GLOBAL CUES

European shares extended losses on Monday as tensions following the killing of a top Iranian general by the United States kept buying restricted to safe havens.

The pan-European STOXX 600 equity index was down 0.7 per cent and was set for its worst day in a week. German stocks were the worst performers in the region, dropping about 1 per cent.

MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.7 per cent. Japan's Nikkei slid almost 2 per cent in a sour return from holiday, while E-Mini futures for the S&P 500 ESc1 fell 0.3 per cent in very choppy trade.

In the commodity market, gold prices soared by Rs 857 to Rs 40,969 per 10 gram in futures trade as speculators moved towards safe haven, amid rising tensions in the Middle East. 


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Market Closing Comment :: S Ranganathan, Head of Research at LKP Securities

US-Iran-Middle East tensions spooked Indian Markets badly throughout the day as Financials & Metals led the fall which was pretty broad-based. Risk-Off was evident as Gold jumped to a 7 year high. Rising Oil prices also took a toll on our markets

MARKET ALERT :: Five financials - HDFC Bk, SBI, HDFC, Bajaj Fin and ICICI Bk have collectively lost Rs 59,607 crore market-cap

>> Reliance Industries lost Rs 24,000 crore today.

MARKET ALERT :: Investors lose Rs 3-trillion in terms of market cap as Sensex fell nearly 2%

>> Financials lead the fall on Monday

>> Bajaj Finance slip 4.6% on the BSE

>> SBI, IndusInd Bank, HDFC, Axis Bank, and ICICI Bank slip between 2.5 per cent and 4.4 per cent

NIfty Bank logs biggest single-day fall since April 2016


Sectoral trends at NSE at close

>> Among key sectoral indices, all the indices lost ground today with Nifty PSU Bank index being the top laggard


Sensex heatmap at close

 >> In the intra-day trade, the Sensex slipped 850.65 points, its biggest single-day fall in the last 4 months -- to hit a low of 40,613.96.


Closing Bell

>> The benchmark S&P BSE Sensex breached below the 41,000-mark to end the day at 40,676.63 level, down 788 points or 1.9 per cent. 

>> On the NSE, the Nifty50 closed at 11,993-mark, down 234 points or 1.91 per cent.

Five banking trends for the new year

No prizes for guessing the dominant trend in Indian banking in 2020: The pile of bad loans will rise. The Reserve Bank of India’s (RBI’s) latest Financial Stability Report (FSR), a biannual health check of the banking system, says banks’ gross non-performing assets (NPAs) may rise from 9.3 per cent of total loans in September 2019 to 9.9 per cent by September 2020. READ MORE

Reliance Industries falls over 2%


Oil check

Oil prices rose a further 2 per cent on Monday, pushing Brent above $70 a barrel, as rhetoric from the United States, Iran and Iraq fanned tensions in the Middle East after the killing of a top Iranian general.

Brent crude futures soared to a high of $70.74 a barrel and was at $70.03 at 0747 GMT, up $1.43, or 2.1 per cent, from Friday’s settlement. U.S. West Texas Intermediate crude was at $64.15 a barrel, up $1.10, or 1.7 per cent, after touching $64.72 earlier, the highest since April.

NSE approaches Sebi for IPO, hopes to launch public issue by September

The National Stock Exchange (NSE) on Monday said it has approached markets regulator Sebi for its initial public offering and hopes to launch the public issue by September this year subject to approvals. "We have approached Sebi to seek its approval for the IPO and after that we will start the process of appointing merchant bankers, who will help the exchange in filing draft prospects for the IPO," NSE MD and CEO Vikram Limaye SAID. READ MORE

Care Ratings slips 16% in two days as investors pocket profits

Shares of Care Ratings were down 12 per cent to Rs 585 on the BSE on Monday, falling 16 per cent in past two trading days on profit-booking. The rating agency's stock was the top loser among the S&P BSE 500 index constituents. In eight trading days -- between December 23, 2019 and January 2, 2020 -- the stock rallied 46 per cent on the back of fund buying. The benchmark S&P BSE Sensex was down 0.13 per cent during the same period till Thursday. READ MORE

Global Markets check

European shares extended losses on Monday as tensions following the killing of a top Iranian general by the United States kept buying restricted to safe havens, while energy stocks benefited from higher oil prices.
 
The pan-European STOXX 600 equity index was down 0.7 per cent and was set for its worst day in a week. German stocks were the worst performers in the region, dropping about 1 per cent.

MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.7 per cent. Japan's Nikkei slid almost 2 per cent in a sour return from holiday, while E-Mini futures for the S&P 500 ESc1 fell 0.3 per cent in very choppy trade.

MARKET UPDATE : Sensex tanks over 800 pts


MARKET UPDATE:: Nifty breaches 12k level


Rupee check


Heatmap: S&P BSE Sensex


NCLT route ruled out for Suzlon Energy, lenders to set up escrow account

Throwing a lifeline to India’s leading wind turbine maker and debt-ridden Suzlon Energy, lenders to the company have finalised a resolution plan. They hope to conclude the process by the month end, which is also the deadline for the resolution. Sources said barring one bank, all lenders are ready to convert more than 50 per cent of the total debt into new debt. READ MORE

CARE Ratings tumbles 10%


Gold surges to Rs 40,969 per 10 gram in futures trade amid US-Iran tensions

Gold prices on Monday soared by Rs 857 to Rs 40,969 per 10 gram in futures trade as speculators moved towards safe haven, amid rising tensions in the Middle East. On the Multi Commodity Exchange, gold contracts for February traded higher by Rs 857, or 2.14 per cent, at Rs 40,969 per 10 gram with a business turnover of 5,559 lots. READ MORE

Auto stocks tumble; index down over 2%


Sensex extends losses, down 700 points


Bajaj Finance slumps 4%


India VIX up 18%


Q3 preview: IT firms likely to post muted numbers; some mid-caps may shine

Information technology (IT) companies' financial performance may have been muted in the October-December quarter (Q3) of the 2019-20 financial year, thanks to a seasonal weakness due to furloughs and fewer work days, besides continued challenges in the banking, financial services and insurance (BFSI) and retail verticals. READ MORE

STOCK UPDATE:: Reliance Industrial Infra surges 19% on back of heavy volumes

-- Nearly 60 per cent of the company's total equity changed hands on the NSE and BSE till 12:24 pm

-- The stock has rallied 49 per cent in 3 days

IEX nears record high post December power mkt update, soars 24% in 3 days

Shares of Indian Energy Exchange (IEX) rallied 9 per cent to hit a fresh 52-week high of Rs 174 on the BSE on Monday as power demand zoomed in December 2019. The stock of the electric utilities company has soared 24 per cent in the past three trading days in an otherwise weak market. It was trading near its all-time high of Rs 178, touched on November 9, 2018. READ MORE

NEWS ALERT | 0.3% equity of Bajaj Fin traded in a block deal on the BSE at Rs 4,005/sh: CNBC TV18


NEWS ALERT | Contemplating listing proposed notes of $500 m on Singapore stock exchange: Future Retail

>> The Company's officials will be participating in the roadshow presentation from January 7, 2020 to January 13, 2020 covering Singapore, Hong Kong, Los Angeles, New York and London.


Policymakers must stop treating cars like sin goods: Maruti's R C Bhargava

R C Bhargava has spent almost 40 years in the Indian auto industry. Even for him, the year 2019 has been the worst for the sector. He says the government’s attitude of increasing the ownership cost of cars is the main reason why sales have been going down. READ FULL INTERVIEW HERE



MARKET UPDATE:: Sensex falls 600 pts

>> Biggest 1-day fall in last 4 months

Oil surges again after Trump threatens Iraq sanctions, Iran retaliation

Oil prices shot more than 2 per cent higher on Monday, with Brent rising above $70 a barrel, after US President Donald Trump issued a threat to impose sanctions on Iraq amid escalating tensions with Iran in the Middle East. Brent crude futures soared to a high of $70.27 a barrel, up $1.67, or 2.4 per cent, from Friday's settlement. US West Texas Intermediate crude was at $64.39 a barrel, up $1.34, or 2.1 per cent, after touching $64.44 earlier, the highest since April. READ MORE

Nifty sectoral indices at this hour


Force Motors surges 11% in a weak market as December sales jump 62% YoY

The stock was trading at its highest level since September 24, 2019 in an otherwise weak market. The S&P BSE Sensex was down 1.2 per cent at 40,985 points at 10:24 am. The trading volumes on the counter jumped three-fold with a combined 412,648 equity shares changing hands on the NSE and BSE till the time of writing of this report. READ MORE

SBI, PNB, BoB slip up to 4% as US-Iran tension push bond yields higher

Banking counters, including Punjab National Bank, Bank of Baroda, State Bank of India, and Canara Bank slipped over 4 per cent on the National Stock Exchange (NSE) in the early deals on Monday as heightened tensions between the United States and Iran pushed bond yields higher in India. US President Donald Trump on Sunday vowed "major retaliation" if Iran tried to avenge the death of its key military commander Qasem Soleimani, who was killed by the US military on Friday. In response, Tehran decided to "abandon the limits, imposed on it, under the 2015 nuclear deal".  READ MORE

NEWS ALERT | India Markit Services PMI in December at 53.3 vs 52.67 (MoM)

-- December IHS Markit composite PMI at 53.7 vs 52.7 (MoM)

-- New business growth at 38-month high

Oil-linked stocks trade weak as oil prices continue to surge; HPCL down 5%

At 09:40 am, Brent crude futures were trading 2.70 per cent higher at 70.45 USD/bbl while WTI Crude Oil (Nymex) were trading at 64.54 USD/bbl, up over 2 per cent. The gains extended Friday’s more-than-3 per cent surge after a US air strike in Iraq killed top Iranian commander Qassem Soleimani on Friday. READ MORE

US-Iran conflict scare puts markets on edge, oil prices likely to go up

Market participants are bracing themselves for heightened volatility as escalating tensions between the US and Iran are threatening to disrupt macroeconomic conditions, with oil prices likely to go up amid possibilities of a full-blown conflict between two of the biggest oil-producing nations. “Given India’s sensitivity to global crude oil prices, any sustained spike led by geopolitical risks may naturally lead to depreciation pressure on the rupee and increase in bond yields, with other things being equal,” said Kaushik Das, India chief economist, Deutsche Bank said. READ MORE

MARKET UPDATE:: Sensex remains subdued


Titan Company gains 3% after December quarter jewelry sales meets estimates

Shares of Titan Company climbed 3 per cent to Rs 1,170 on the BSE on Monday in early morning deals after the company’s jewelry sales for the December quarter (Q3FY20) came in line with guidance, while others segment disappointed. In comparison, the S&P BSE Sensex was down 1 per cent. In the past eight trading days, the stock had underperformed the market by falling 6 per cent, as compared to a marginal 0.5 per cent decline in the benchmark index till Friday. READ MORE

Mahindra & Mahindra dips 2%


PNB Housing Finance down over 4%


State Bank of India slips 3%


MARKET UPDATE:: Sensex extends loss, down 500 pts now


Nifty Metal index slips over 2% in early trade


Market check | Sensex slips below 41,000

>> Hits intra-day low of 40,996.21

>> Sleps 468 points or 1.13%


Nifty IT index gains on weaker rupee

>> Rupee hit lowest level since Nov 14 in the early trade today


Market check | Sensex extends decline


Market check | Nifty50 slips below 12,100


Bharat Petroleum continues to trade lower


Indian Overseas Bank gains 7% on capital infusion

>> The bank has received capital infusion of Rs 4,360 crore from the government.


Sobha trades in the green post announcing Q3 performance

>> During the quarter, the company has achieved new sales volume of 1,066,022 square feet valued at Rs. 7.26 billion, with a total average realisation of Rs. 6,811 per square feet (SOBHA's share of sales value is at Rs 6.08 billion)

>>  The total sales volume is up by 17% in Q3-20 as compared to Q3-19, and by 9% during 9M-20 compared to 9M-19


Adani Ports holding gains in a weak market

>> Adani Ports and Special Economic Zone (APSEZ), one of the country’s largest private port operators, on Friday announced acquisition of 75 per cent stake in Andhra Pradesh-based Krishnapatnam Port Company for an enterprise value of Rs 13,572 crore.


Karur Vysya Bank declines 4% as MD & CEO resigns

>> P R Seshadri, managing director and CEO of Karur Vysya Bank, resigned from the position citing personal reasons, the Bank informed the exchanges on Saturday.


Asian Paints slip over 1.5% on rising crude prices


Sectoral trends at NSE during Opening trade


Top gainers and losers on S&P BSE Sensex during Opening trade


Market at Open


Market at Open


NEWS ALERT | India gold prices hit record high of Rs 41,000/10 gm: CNBC TV18

NEWS ALERT | Bajaj Finance Q3 update

>> During the quarter, the company acquired 2.5 million new customers

>> New loans booked during Q3 FY20 was 7.7 mn as compared to 6.8 mn in Q3 FY19. 

>> Assets under management (AUM) stood at approximately Rs 145,200 crore as of Dec 31, 20 l 9 as compared to Rs 107,507 crore as of Dec 31, 2018. 

Rupee opening

Rupee opens lower at 72.01/$ vs Friday's close of 71.80 against the US dollar

-- Opens at lowest level since November 14

Top gainers and losers on S&P BSE Sensex during Pre-open


Market at Pre-open


Market at Pre-open


NEWS ALERT | Fin Min releases circular w.r.t expenditure cap for Q4FY20

>> Expenditure cap for Q4 revised downwards from 33% to 25% of Budget Estimate

>> Cap for March revised to10% from 15%

>> Expenditure via reallocation of savings needs Parliamentary approval

>> Additional spend agreed under revised estimates will be done after Parliamantary nod

(As reported by CNBC TV18)

Stocks to watch: Oil-linked cos,Titan, Biocon, Karur Vysya Bk, Adani Ports

Here's a look at the top stocks that may trade actively in today's trading session -
 
Titan: The company witnessed better-than-expected retail sales in its jewellery division at the beginning of the third quarter ended December while its watches division posted flat growth.
 
Future Retail implements long-term business agreements with Amazon India. READ MORE
 

Commodity picks: January 6, 2020

Jeera
 
Jeera is trading at Rs 16,217 per quintal in Unjha. Prices are expected to trade lower at Rs 15,800 per quintal over the next couple of weeks given ample stocks across the value chain and a sharp increase in sowing for the upcoming season. READ MORE

Top trading ideas by CapitalVia Global Research: Buy Adani Ports, Voltas

Market traded lower on Friday on crude oil surge; Nifty managed to hold 12,200
 
Market traded with negative sentiment throughout the day on Friday after a US air strike killed a key Iranian and Iraqi military personnel, leading to a surge in crude oil prices by $3. The Nifty closed at 12,226.70, shedding 55.50 points, on a weak Rupee. Tech and pharma stocks traded with positive sentiments throughout the day whereas, media and PSU bank sector witnessed some pressure. Nifty bank closed at 32,069.30, shedding 374.55 points from the previous day’s closing. READ MORE

Nifty outlook & top trading ideas by Prabhudas Lilladher: Buy DMart, HSCL

BUY DMART | CMP: Rs 1,843.55 | TARGET: Rs 2,050 | STOP LOSS: Rs 1,760
 
The stock has given a decent rally in recent time and after a short consolidation has bottomed out near 1800 levels and indicating a positive trend reversal implying strength for further upward move and with the RSI also showing a positive bias with potential to rise in the coming days. We suggest to buy and accumulate this stock for an upside target of 2050 keeping the stop loss of 1760. READ MORE

Bulk deals on BSE as on Friday

Bulk deals on NSE as on Friday

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


Rupee Check

Source: Bloomberg



Oil check

Oil prices shot more than 2 per cent higher on Monday, with Brent rising above $70 a barrel, after US President Donald Trump issued a threat to impose sanctions on Iraq amid escalating tensions with Iran in the Middle East.

Brent crude futures soared to a high of $70.27 a barrel, up $1.67, or 2.4 per cent, from Friday’s settlement. US West Texas Intermediate crude was at $64.39 a barrel, up $1.34, or 2.1 per cent, after touching $64.44 earlier, the highest since April.

SGX Nifty

At 8:32 AM, the Singaporean Excange for Nifty Futures were at 12,200 level, down 48 points.

Asian Markets check

(Source: Reuters)
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