Markets continued to reel under pressure of the economic slowdown on Thursday with the benchmark S&P BSE Sensex and Nifty50 slipping nearly 700 and 190 points, repsectively from day's high to hit low of 36,391 and 10,718, respectively. Nifty Bank shed 800 points intra-day to close at the lowest level since February 2019.
Former finance secretary Subhash Chandra Garg, said at an event that the GDP growth could slump to 5.5 per cent in the June quarter of FY20 and better way to address the concern was through interest rate cuts. At the same event, chief economic advisor Krishnamurthy Subramanian, said that the government "could not intervene everytime a sector goes through a sunset".
The Sensex closed 587 points, or 1.59 per cent, lower at 36,473 with only 4 of the 30 components at the index trading in the green. YES Bank ended the day as the biggest loser, while Tech Mahindra emerged as the top gainer. The broader Nifty50, too, slipped 177 points, or 1.62 per cent lower, to close at 10,741-mark.
Sectorally, all the sectors ended in the red except Nifty IT index, which gained on the back of a weaker rupee. The domestic currency slumped 40 paise intra-day to Rs 71.96/ US dollar, its lowest level of 2019. Nifty Realty index closed nearly 7 per cent lower, followed by Nifty Metal index (down 3.6 per cent), and Nifty PSU bank index (down 3.5 per cent). The Nifty IT index closed 0.23 per cent higher.
In the broader market, the S&P BSE mid-cap closed 179 points, or 1.35 per cent, lower at 13,081 while the S&P BSE small-cap shed 271 points, or 2.19 per cent, to settle at 12,119 level.
Global share markets flatlined on Thursday, as uncertainty over the outlook for US interest rate cuts following the release of minutes from the Federal Reserve's last policy meeting kept investors on edge.
Minutes of the Fed's July meeting showed deep splits among policymakers over whether to cut interest rates last month, though there was some unity in wanting to signal it was not on a preset path to looser policy.
The MSCI world equity index, which tracks shares in 47 countries, was down 0.1 per cent. In Europe, the Euro STOXX 600 fell 0.1 per cent in choppy trade, following a 0.5 per cent drop in MSCI's broadest index of Asia-Pacific shares outside Japan.
The Chinese yuan's slump to an 11-year low also sapped their appetite for risk, with dealers saying state-owned banks were seen selling dollars to support the yuan.
(With inputs from Reuters)
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The S&P BSE Sensex tanked 587 points or 1.59 per cent to settle at 36,473 while NSE's Nifty50 index settled at 10,741 levels, down 177 points or 1.62 per cent.
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2:58 PM IST
2:56 PM IST -- Rupee trades at lowest level in 2019
Top gainers and losers on S&P BSE Sensex at this hour
Nifty below 10,800
Rupee Check | Inching towards Rs 72/$; near day's low
IPO Alert | IRCTC files DRHP with SEBI for IPO
-- Indian Railway Catering and Tourism Corporation (IRCTC), the railways’ tourism and catering arm, on Thursday filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its proposed Initial Public Offering (IPO).
-- Market sources state that the IPO would be worth around Rs 500-600 crore.
-- Up to 50 per cent of the offer will be available for allocation to qualified institutional buyers (QIBs). Further, up to 15 per cent of the offer shall be available for allocation on a proportionate basis to non-institutional bidders and 35 per cent of the offer will be available for the allocation to retail individual bidders
NEWS ALERT | Expect another two or three rate cuts between 40 and 65 bps: Morgan Stanley
NEWS ALERT | Certain recommendations of DTC could be implemented within this year: CNBC TV18
Alert: DTC is Direct Tax Code
NEWS ALERT | Govt not keen on loosening purse strings: sources to CNBC TV18
-- Govt has to be mindful of borrowing cost before considering relief measures
-- Q1FY20 GDP growth expected to be arond 5.5%
-- Rise in bond yield has negated RBI's rate cut
Hindustan Unilever hits record high in weak market, up 12% in one month
In the past one-month, HUL has outpaced the market by surging 12 per cent against a three per cent decline in the benchmark index, after it reported in-line April-June quarter (Q1FY20) earnings. The outperformance of the stock has helped regain the Rs 4-trillion market valuation mark. READ MORE
Tata Steel-Thyssenkrupp JV update
Thyssenkrupp files a complaint with the General Court of the European Union (EGC) against the European Commission's decision to prohibit the formation of a European flat steel joint venture with Tata Steel
EU Commission prohibited formation of joint venture between Tata Steel & Thyssenkrupp
MARKET CHECK | HUL hits record high
NEWS ALERT | EPFO board approves withholding any further investments in private cos' bonds: CNBC-TV18
- EPFO board approves early redemption option in DHFL bonds
Airtel Africa data and mobile money penetration to double in next 5 years
Airtel is Africa's second-largest telecom operator, with 100 million mobile subscribers as of June 2019, and has a leading position in most of its markets. Goldman Sachs forecasts a 9 per cent revenue compound annual growth rate (CAGR) over FY19 to FY24, driven by 18 per cent data CAGR and 30 per cent CAGR in the Airtel Money business. READ MORE
Reliance Infra slips 8%
103 stocks trade at over five-year low; Nomura lowers Nifty target
A slew of negative news flow over the past few weeks amid an economic slowdown has dented the market sentiment with heavyweights such as Tata Motors, Oil and Natural Gas Corporation (ONGC), Coal India and Steel Authority of India (SAIL) trading at over five-year low levels. There are 103 stocks in all, including the ones above, from the S&P BSE Allcap index that have slipped to their lowest level in five years. READ MORE
NEWS ALERT | US FDA issues 2 ‘minor’ observations to Granules Pharma’s Virginia unit.
-- Granules says, it was a pre-approval inspection for seven products filed from Virginia unit
NEWS ALERT | In my mind, there is no recession in the world: Power Secretary on CNBC TV18
-- Q1 GDP growth maybe around 5.5-5.6%: Power Secy
NEWS ALERT | While there are some sectors not doing well, some others are, says CEA: CNBC TV18
-- Some of the pessimism we're seeing now is not true
-- Have to be careful on the issue of a fiscal stimulus
-- Can't expect govt to intervene every time some sectors go through sunset
-- There is a disruption in auto sector from cab aggregators and EVs
-- What is happening in auto sector is not symptomic of economy
Hathway zooms 97%, Den Networks 50% in 7 days on Jio Fiber rollout plan
Shares of Hathway Cable & Datacom (Hathway) were trading higher for the fourth straight day, up 18 per cent at Rs 38.60, also its 52-week high, on the BSE in intra-day deal on Thursday in an otherwise weak market on the back of heavy volumes. The stock has zoomed nearly 100 per cent in the last seven trading days since the announcement of Reliance's plan of rolling out fiber broadband service. Since, August 9, the stock has rallied 97 per cent from the level of Rs 19.60, as compared to 1 per cent decline in the S&P BSE Sensex. READ MORE
Tata Power up over 4%
Nifty Realty index is trading 6% lower
NEWS ALERT | Phased reduction in interest rate on small savings instruments from, NITI Aayog tells govt: CNBC TV18
-- New SPV based on SUUTO to raise bonds and invest in preferred equity in NBFCs
-- No mergers of PSU banks at this stage
NEWS ALERT | Lupin's Japanese arm enters into agreement for sale of Japanese injectables biz
Ministry of Mines stays cancellation of NMDC lease for Donimalai mine
NMDC had approached the rivisionary authority of the ministry with a revision application and had sought for an urgent hearing of the matter. During the hearing on Wednesday, the state government sought a week's time to prepare its response, alleging that it was yet to receive a copy of the rivision application. However, NMDC said it had submitted the application in both Commerce & Industries and Mining & Geology departments. READ MORE
DLF tumbles 20% as SC issues notice on non-disclosure of key information
DLF shares tumbled 20 per cent to Rs 137.75 apiece, also its fresh 52-week low, in early morning trade on the BSE on Thursday after the Supreme Court (SC) issued the company a notice based on a plea that alleged the company of hiding information on pending cases regarding Haryana land-bank from its shareholders. READ MORE
NCC hits fresh 52-week low; declines over 4%
Arvind Limited slips over 5%
HDIL plunges 20%
Number of NBFCs drops to lowest in 10 yrs in India as crackdown accelerates
India is stamping out shadow financiers at the fastest pace in recent years, in the latest blow to a beleaguered sector battling a prolonged funding crunch due to rising wariness toward it in the nation’s credit markets.
The central bank canceled registrations of 1,851 non-bank finance companies in the year ended March 31, more than 8 times those in the previous year, according to data received from the Reserve Bank of India in response to a Right to Information request. The number of lenders dropped to about 9,700, the lowest in at least a decade, as a result. Firms may be failing to secure the minimum funds needed to operate due to the cash crunch. READ MORE
SpiceJet trades 3% lower
Market check | Sensex tumbles 160 pts
Tata Motors declines
CG Power slips 9%
LIC Housing Finance slips nearly 8% post block deal
Shares of LIC Housing Finance tumbled as much as 7.56 per cent to Rs 428.35 apiece on the NSE in the opening deals on Thursday after reports suggested 3.9 crore shares, representing 7.7 per cent of equity, were traded in a block deal at Rs 431 per share.
At 09:32 am, the stock was trading around 7 per cent lower at Rs 431.35 apiece on the NSE. In comparison, the benchmark Nifty50 index was trading at 10,872 levels, down 47 points or 0.43 per cent. READ MORE
Monte Carlo Fashions trades higher on the BSE
Hathway Cable & Datacom zooms 16%
NEWS ALERT | One enquiry received from intermediary on Cafe Coffee Day but no progress made on matter: ITC
-- ITC says it evaluates all enquires
Alert: Reports said ITC may clain stake in CCD; Coffee Day, however, says reports w.r.t ITC bidding for stake in co are incorrect
Punjab National Bank dips over 1%
NEWS ALERT | L&T Hydro bags order in the range of Rs 2,500-Rs 5,000 cr from Saudi Aramco
Lakshmi Vilas Bank tumbles as Indiabulls stocks fall
Vedanta cracks over 2%
Indiabulls Ventures dips 6%
DLF cracks over 13%
Nifty below 10,900
Market check | Sensex extends slide
Auto stocks continue to trade lower
NIfty FMCG index: The only index to trade in the green in morning deals
Oberoi Realty slips over 3%
Britannia Industries reverses losses; trades 4% higher
DHFL sheds 4%
Metal stocks crack; index down over 1%
-- SAIL, Coal India, National Aluminium Co, Tata Steel, Hindustan Copper hit 52-week low
SBI trades flat with negative bias
Coffee Day Enterprises continues to gain 5% for third-straight day
Reliance Naval & Engg down 5%
Maruti Suzuki trades lower
Exide Industries slips nearly 2%
Indiabulls Housing Finance dips over 5%
LIC Housing slips over 7%
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 | Biocon's Malaysia insulin glargine manufacturing facility receives EU GMP certification
Liquidity management tool: RBI may have to balance old norms with the new
The Reserve Bank of India’s (RBI's) internal committee on liquidity management framework may have to choose between traditional and radically new ideas while upgrading the way the present framework works, say experts. The present framework says that liquidity should be determined based on a single rate approach, which is currently the policy repo rate. READ MORE
Top gainers and losers on S&P BSE Sensex during Pre-open
Market at Pre-open
Market at Pre-open
Rupee opens flat at 71.56 against the US dollar
Changing optics of telecom war: RJio, Airtel compete for broadband biz
The next big battle between the country’s two telecom giants, Reliance Jio and Bharti Airtel, is set to be fought on the home broadband front, with both players preparing to grab customers with the triple-play of video, data and voice. After over a year of testing the waters, Reliance Industries’ Chairman Mukesh Ambani announced last week that the group’s telecom arm, Reliance Jio, would commercially roll out fibre-to-the-home services (FTTH) from September 5 across 1,600 towns. READ MORE
Sebi relaxes buyback norms for firms with housing finance, NBFC units
A proposal in this regard was approved by Sebi's board at its meeting here. The repurchase of shares by listed companies is governed by the Buyback Regulations of the Securities and Exchange Board of India (Sebi) as well as the Companies Act.
Among the main conditions that the companies need to follow, the buyback offer cannot exceed 25 per cent of the aggregate paid-up capital and free reserves of the company, but shareholders' approval is required through a special resolution in case the size exceeds 10 per cent. READ MORE
Onion prices rise by up to 76% on reduced supply from flood-hit states
Onion prices jumped by up to 76 per cent in the last one month due to reduction in arrivals in the agricultural mandis across the country, following floods in major supplying states such as Maharashtra, Karnataka and Madhya Pradesh.
Data compiled by Nashik-based National Horticultural Research & Development Foundation (NHRDF) showed the highest jump of 76 per cent in bulb prices in Mumbai. The crop is currently trading at Rs 22 a kg compared to Rs 12.50 one month ago. READ MORE
Samco Securities gets Sebi nod for MF biz, eyes acquisitions in sector
Samco Securities has recently got the in-principle nod from the Securities and Exchange Board of India (Sebi) to start its own mutual fund (MF) business.
"The MF business is part of our strategy to expand our offerings. While it is still early days, but we would like to be equity-focused and most likely build a business around actively-managed schemes. We may also look at acquisition opportunities in the MF space," said Jimeet Modi, founder and chief executive officer of Samco Securities. READ MORE
Market Ahead, August 22: All you need to know before the Opening Bell
Investors are expected to react to market regulator Sebi's board decision to ease requirements for foreign portfolio investors (FPIs).
The regulator said FPIs would no longer be required to meet the ‘broad-basing’ criteria, under which at least 20 investors were required to establish a fund. It also said, it would rationalise the framework for issuance of participatory notes (P-notes), an instrument once very popular with overseas investors. LISTEN TO PRE-MARKET PODCAST HERE
Here's a look at the top stocks that are likely to trade actively in today's trading session -
DHFL: The troubled Dewan Housing and Finance Corporation (DHFL) has proposed a conversion of lenders’ debt into equity for the acquisition of a 51 per cent stake in the company at a price of Rs 54 a share. Some of the banks in the consortium, however, are not comfortable about taking a majority stake in the company.
NBFCs, HFCs: Capital markets regulator Sebi on Wednesday announced easing of its norms for buyback of shares by listed companies, especially those having subsidiaries in housing finance and NBFC sectors. CLICK TO READ FULL ARTICLE
DHFL looks for a buyer, in talks with investors to sell majority stake
As part of its resolution plan to emerge from its loan defaults, the troubled Dewan Housing and Finance Corporation (DHFL) has proposed a conversion of lenders’ debt into equity for the acquisition of a 51 per cent stake in the company at a price of Rs 54 a share. Some of the banks in the consortium, however, are not comfortable about taking a majority stake in the company. READ MORE
Need to examine issues on 35% minimum public shareholding plan: Sebi chief
Responding to a query about the proposal for increasing the minimum public shareholding level, Sebi Chairman Ajay Tyagi said that liquidity needs to increase in terms of better price discovery, more trading and dispersed shareholding, among others.
"There are certain issues that need to be further examined. We will need to look at global regulations whether it is mandated beyond 25 per cent anywhere. What is the right level to be mandated... What will be the short term and long term implications for the companies and for the market," he told reporters after Sebi board meeting. READ MORE
India's widening debt market cracks threaten to swallow realty tycoons
Ratings of some companies in the conglomerates run by billionaires Piramal and Mistry have been cut as the business environment worsened and funding costs rose. Rating companies also raised doubts about the debt repayment capabilities of a developer controlled by the nation’s richest property tycoon, and president of Bharatiya Janata Party’s Mumbai unit, Mangal Prabhat Lodha. READ MORE
Analysts eye festive season for consumption revival; top stocks to buy
The four key reasons that are ailing the consumption sector in India, analysts say, are weak overall macroeconomic scenario including lower government spending, liquidity crisis that is hurting wholesalers, lower procurement despite minimum support price (MSP) hikes, and limited payout of the PM-Kisan scheme.
That said, analysts believe the ongoing phase of moderation in growth is temporary and expect the demand to revive in the coming quarters, from the beginning of the festive season in September. READ MORE
High-leverage entities losing favour amid worries of corporate defaults
Investors are leaving highly-leveraged companies amid worries of corporate defaults. Among BSE 500 firms, shares of those with debt-to-equity ratio of above one have fallen an average of 15 per cent this year. In comparison, the average share price fall for companies with debt-to-equity ratio of less than one is 10 per cent. READ MORE
Minutes of MPC meeting: Fixing weak economic growth remains top priority
All three internal members in the monetary policy committee (MPC), including Governor of the Reserve Bank of India (RBI) Shaktikanta Das, voted unanimously for a cut of 35 basis points, to support economic growth.
Minutes of the meeting released on the central bank website showed Das viewed a 50 basis points cut indicating a “knee-jerk reaction” and being excessive, while 25 basis points to be inadequate. READ MORE
Sebi eases FPI norms, approves changes in rules prohibiting insider trading
The Securities and Exchange Board of India (Sebi) on Wednesday eased the process for on-boarding overseas investors. The market regulator also introduced an ‘informant mechanism’ to gather better evidence and crack down on insider-trading cases. The Sebi board clarified on the debt-to-equity ratio companies need to maintain to be eligible for buybacks. READ MORE
Ajay Tyagi, Chairman, SEBI
Private equity-backed stocks do better in a volatile market
Shares of diagnostics chain Metropolis Healthcare listed on the stock exchanges at Rs 959.55, nearly 9 per cent higher than its issue price of Rs 880 per share. The share was trading at Rs 1,042 on Wednesday, up 18 per cent from its issue price.
Another PE-backed stock and B2B marketplace Indiamart was also up 18 per cent. The stock market may have been choppy this year, but PE-backed IPOs have done better. READ MORE
Stock picks by Tradebulls Securities: Sell Tata Steel, Buy Axis Bank
Stock: Rs TATA STEEL
Reco: Rs SELL
CMP: Rs 343
The stock breached and closed below its recent 52-week lows, indicating the commencement of a fresh downside in the stock. Daily RSI was unable to sustain above its signal line breached below the same post consolidating for 5 sessions supporting the overall structure for further downside in the stock. The stock is expected to drift lower till 321 price confluence zone. Hence, the stock can be sold with stop above previous sessions high of Rs 358. READ MORE
Nifty Outlook and top trading ideas by CapitalVia Global Research Limited
Finance minister Nirmala Sitharaman and Prime Minister Narendra Modi met last weekend to discuss about economic concerns pertaining to job loss, slowdown in auto sector and its possible implications on other sectors as well. The government may come up with releasing one-time stimulus package for real estate sector along with taxation-related measures for automobile sector. READ MORE