MARKET WRAP: Sensex declines 268 pts, mid, small-caps take deeper cuts

Absence of any stimulus package to revive the weak consumer demand and lift the economy, coupled with fresh trade war concerns between the US and China hurt investors' sentiment on Wednesday. Financial and metal stocks dragged the benchmark S&P BSE Sensex and broader Nifty50, 305 and 110 points lower in the intra-day trade.

The Sensex settled 268 points or 0.72 per cent lower at 37,060 level pulled down by consumer durables and banking stocks. Tata Motors, YES Bank, Tata Steel, and ONGC were the top laggards on the 30-share index while Hero Moto Corp, Maruti Suzuki, Infosys, and Tech Mahindra were the top gainers. The Nifty50, slipped to two-week low, to close at 10,919 mark, down 98 points or 0.89 per cent.

Sectorally, all the counters closed in the red. The Nifty PSB index slipped the most, settling nearly 3 per cent lower, followed by loses in the Nifty metal index (down 2.8 per cent) and Nifty realty index (down 2 per cent).   

In the broader market, the S&P BSE mid-cap ended at 177 points, or 1.32 per cent, lower at 13,259 level. The S&P BSE small-cap, on the other hand, shed 180 points, or 1.43 per cent, to end at 12,390 level.

BUZZING STOCKS

Shares of CG Power and Industrial Solutions were locked in 20 per cent lower circuit for the second consecutive day at Rs 11.80 on the BSE on Wednesday after the detection of financial fraud in the company. READ MORE

Shares of Britannia Industries plunged nearly 4 per cent to hit a 52-week low of Rs 2,302 apiece on the BSE in intra-day trade on Wednesday, as worries over demand slump worsened. Parle Products, India's largest biscuit maker, said on Tuesday that it may be forced to layoff up to 10,000 people if the ongoing consumption slowdown persists. The stock closed 0.46 per cent lower at Rs 2,384 apiece. READ MORE

 
GLOBAL CUES

European stocks opened higher on Wednesday as hopes for more monetary and fiscal stimulus helped assuage worries about global recession, political turmoil in Italy and endless trade wars.

In Asia, Japan's Nikkei closed 0.28 per cent lower, South Korea's Kospi added 0.22 per cent, and China's Shanghi ended 0.01 per cent higher. 

(With inputs from Reuters)

3:40 PM IST

3:39 PM IST

3:35 PM IST The S&P BSE Sensex shed 268 points or 0.72 per cent to settle at 37,060.37 while NSE's NIFTY50 index ended at 10,919, down 98 points or 0.89 per cent. 

3:24 PM IST

3:15 PM IST The agency has also booked the media outlet's former CEO Vikramaditya Chandra under charges of criminal conspiracy, cheating and corruption, they said. It is alleged that the company floated 32 subsidiaries in several tax haven countries to bring foreign funds to India through sham transactions, they said. READ MORE

2:52 PM IST -- Will continue on the path of fiscal prudence: Goyal

2:48 PM IST -- Net profit up 36.4% at Rs 61 cr vs Rs 44.5 cr (YoY) -- Revenue up 21.5% at Rs 637.3 cr (YoY) -- Ebitda down 22.8% at Rs 64.8 cr (YoY) -- EBITDA Margin at 10.2% vs 16% (YoY)

2:40 PM IST -- Seen a lot of 'muck' and irregularities coming out to the fore in the last 5 years -- Working on bringing back the mojo in the economy

2:32 PM IST

2:20 PM IST COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%) ALLAHABAD BANK 32.35 32.05 -2.50 -7.17 ANDHRA BANK 18.30 18.15 -0.65 -3.43 ASAHI INDIA GLAS 182.30 178.20 -2.95 -1.59 B H E L 48.35 47.45 -1.60 -3.20 BANK OF INDIA 64.75 64.30 -1.85 -2.78 » More on 52 Week Low

2:12 PM IST

LIVE UPDATES

Sectoral losers and gainers on the NSE


Top losers and gainers on the S&P BSE Sensex


CLOSING BELL

The S&P BSE Sensex shed 268 points or 0.72 per cent to settle at 37,060.37 while NSE's NIFTY50 index ended at 10,919, down 98 points or 0.89 per cent. 

MARKET CHECK | Tata Steel loses over 4%


NDTV's Prannoy Roy, wife, former CEO booked for alleged FDI norms violation

The agency has also booked the media outlet's former CEO Vikramaditya Chandra under charges of criminal conspiracy, cheating and corruption, they said. It is alleged that the company floated 32 subsidiaries in several tax haven countries to bring foreign funds to India through sham transactions, they said. READ MORE


Fiscal stimulus a good idea but govt will be criticised for leaving fiscal prudence behind, says Piyush Goyal: CNBC TV18

-- Will continue on the path of fiscal prudence: Goyal

NEWS ALERT | P&G Hygiene's June quarter results

-- Net profit up 36.4% at Rs 61 cr vs Rs 44.5 cr (YoY)

-- Revenue up 21.5% at Rs 637.3 cr (YoY)

-- Ebitda down 22.8% at Rs 64.8 cr (YoY)

-- EBITDA Margin at 10.2% vs 16% (YoY)

NEWS ALERT | Govt looking to fast-track new FTA agreement: Piyush Goyal

-- Seen a lot of 'muck' and irregularities coming out to the fore in the last 5 years

-- Working on bringing back the mojo in the economy

Contributions to S&P BSE Sensex's fall today


Stocks that hit 52-week low on the BSE

COMPANY PRICE(rs) 52 WK LOW CHG(rs) CHG(%)
ALLAHABAD BANK 32.35 32.05 -2.50 -7.17
ANDHRA BANK 18.30 18.15 -0.65 -3.43
ASAHI INDIA GLAS 182.30 178.20 -2.95 -1.59
B H E L 48.35 47.45 -1.60 -3.20
BANK OF INDIA 64.75 64.30 -1.85 -2.78
» More on 52 Week Low

Grasim Industries down over 4%


Tata Motors extends loss, down over 9% now


Indiabulls Housing Finance slips over 4%


MARKET CHECK | S&P BSE Midcap index slips 1%


PVR, TVToday, DEN Networks: Media stocks that can do well in the near-term

PVR is trading above the 200-weekly moving average (WMA) since 2012. It corrected in 2018, but has seen buying around its 200-WMA. Although the stock is trading above the 200-WMA placed at Rs 1,238 levels, one can look for opportunities considering this as a support level.  CLICK TO READ FULL REPORT


Parle may cut up to 10,000 jobs, slash production as slowdown bites

A sharp drop in Parle's biscuit sales means the company may have to slash production, which may result in layoffs of 8,000-10,000 people, Mayank Shah, category head at Parle, said in a telephone interview from Mumbai. READ MORE

MARKET CHECK | Realty stocks slip in trade


Nestlé India likely to be included in Nifty: ICICI Securities

  • Nestlé India is likely to be included in the Nifty from the October series. The announcement for the same from the NSE is expected to be made sometime in the coming sessions;
  • In a new announcement from NSE, stocks which are permitted to trade in NSE platform but are not listed in NSE will also be considered for inclusion in the indices;
  • Considering the above parameter, along with the other considerations, Nestlé India is most likely to replace Indiabulls Housing Finance from the Nifty 50 stocks. Nestlé is likely to have a weightage of near 1.0% in Nifty after inclusion.

Jet Airways case | Costs of Dutch Administrator should be borne by CoC: NCLAT observes

-- CoC stands for committee of creditors

MARKET CHECK | Coal India trades near day's low


NEWS ALERT | Kajaria Ceramics' board to consider merging Kajaria tiles with Co, on August 26: CNBC TV18


Nifty PSU Bank index is trading 2% lower


Nestle India, Trent, GSK Consumer hit fresh highs in weak market

Shares of Nestle India, GlaxoSmithKline (GSK) Consumer Healthcare, and Trent hit their respective new highs on the BSE in intra-day trade on Wednesday in an otherwise weak market. In comparison, the S&P BSE Sensex was down 0.46 per cent at 37,157 points at 12:08 pm. Nestle India gained 4 per cent to Rs 12,397, and surpassed its previous high of Rs 12,266, recorded on August 9. READ MORE

BHEL slumps over 3%, trades at day's low


Reliance Securities on Consumer sector

The companies in the consumer sector reported mid-single digit volume growth in 1QFY20. Demand environment remained subdued for the second consecutive quarter, while the management commentaries continued to remain cautious for the near-term. Most consumer companies reported strong operating performance. We believe the ongoing phase of moderation in growth (not slowdown as widely feared) is temporary, as we expect the demand to revive in the coming quarters with the beginning of festive season.

Our top pick: HUL.

Rupee can depreciate another 4% against the USD by 2019-end

The rupee appears to be moving down quite sharply since 31 July, which was when the US Federal Reserve announced a rate cut even though our forex reserves have been increasing ($430 billion for the week ended August 9, as against $411.9 billion at the start of the financial year). READ MORE

Market check


Market check


Top losers on the BSE at this hour

TATAMOTORS 117.60 -6.20 -5.01
TATAMTRDVR 54.10 -3.35 -5.83
 
RNAM 237.10 -15.35 -6.08
 
HDIL 8.78 -2.19 -19.96
 
CGPOWER 11.80 -2.95 -20.00
 

Top gainers on the BSE at this hour

NAVINFLUOR 704.40 +59.85 +9.29
RAJESHEXPO 753.00 +25.50 +3.51
 
SUVEN 251.30 +6.50 +2.66
 
SUNCLAYLTD 1,852.95 +64.50 +3.61
 
JAMNAAUTO 33.70 +0.95 +2.90
 

MARKET CHECK | Tata Motors skids 5%


CG Power locked in lower circuit for second straight day on financial fraud

Shares of CG Power and Industrial Solutions were locked in 20 per cent lower circuit for the second consecutive day at Rs 11.80 on the BSE on Wednesday after the detection of financial fraud in the company. At 10:32 am, there were pending sell orders for 19 million shares, representing 3 per cent of CG Power's total equity, on the NSE and BSE. Around 395,000 shares have changed hands on both the exchanges till now, data shows. READ MORE

Edelweiss Securities on Home Decor industry

We believe the much-anticipated shift from unorganised to organised players can play out if the demand/macroeconomy picks up. Although the much-anticipated shift has fallen behind schedule, we maintain the positive outlook for the home decor industry in light of the ongoing structural changes. We expect home decor companies’ volumes to bounce back from H2FY20 led by stricter implementation of the E-Way Bill, recovery in rural demand (assuming a good monsoon) and the government’s focus on affordable housing.
 
Top picks
Somany Ceramics and Century Plyboards

Britannia Industries falls nearly 4% as worries over demand slump deepen

Shares of Britannia Industries plunged nearly 4 per cent to hit a 52-week low of Rs 2,302 apiece on the BSE in intra-day trade on Wednesday, as worries over demand slump worsened. Parle Products, India's largest biscuit maker, said on Tuesday that it may be forced to layoff up to 10,000 people if the ongoing consumption slowdown persists. READ MORE

Reliance Industries' $4-bn investment threatened by global natural gas glut

A global glut in natural gas is threatening to undermine a $4 billion investment by Reliance Industries Ltd aimed at boosting profits at the world’s largest oil refining complex.
 
The project made all the sense in the world when energy magnate Mukesh Ambani’s conglomerate announced it in 2012: convert petroleum coke, or petcoke, one of the cheapest and dirtiest refinery by-products, into gas needed to power the massive Jamnagar complex on India’s west coast. Then it hit about three years of delays, and global gas markets crashed amid a growing supplies of liquefied cargoes from the US, Australia and Russia. READ MORE

United Breweries slips 3%


Capacite Infra tanks 28% in 2 days, hits new low on reports of IT dept raid

Shares of Capacite Infraprojects continued to remain under pressure for the second straight day and tumbled 13 per cent to Rs 161 in Wednesday's early morning trade on the BSE on report that the Income Tax (IT) department has conducted searches at the realty firm's offices.
 
The stock was quoting at its lowest level since its listing on September 25, 2017. It has tanked 28 per cent in the past two trading days from Monday's level of Rs 224 per share. READ MORE

Market check


Pick of the week :: Kotak Securities

ITC Ltd
 
Price: Rs 253 
 
Target: Rs 315 
 
Potential Upside: 24.5%

ITC’s 1QFY20 net profit of Rs. 31.8 bn (13% YoY) was in line with estimate due to higher than estimated other income (up 54% YoY to Rs. 6.2 bn). Overall operating performance was weak. 
 
We believe 7-9% EBITDA growth could be a new normal for the time being. FMCG sales growth moderated to 8% (like-for-like) from 11-12% run-rate; topline growth is a tad muted in the context of a plethora of new launches and the ongoing augmentation of distribution of several relatively new categories.

Tata Motors sheds 3%


Mangalore Refinery & Petrochems hits 52-week low

-- Stock continues to be under pressure after it said on Monday that it has shut down the phase-3 process units of the refinery as a precautionary measure following a minor landslide in the area


IL&FS board seeks NCLT nod to sell wind assets to Orix Corp for Rs 4,800 cr

The IL&FS Board on Tuesday sought the approval of the National Company Law Tribunal (NCLT) to sell seven wind assets to Japan's Orix Corporation for Rs 4,800 crore, which will help reduce its debt burden of Rs 94,000 crore. Orix Corporation of Japan is already an equity partner in the group and owns 49 per cent stake in each of these seven operating wind power plants. READ MORE
 

Market check


Indiabulls Housing Fin dips 2%


Nifty Metal index slips 1.5%


CG Power again hits 20% lower circuit


Max Financial Services trades flat with negative bias


Alembic Pharma up 2%


CG Power locked in 20% lower circuit band for second consecutive day


SpiceJet up over 1%


Capacite Infra tanks 28% in 2-days on IT raid report; hits record low


Deepak Nitrite gains 1.4%


YES Bank hits record low


HDIL tanks 15% in the morning deals


BPCL trades flat


Market check


Market check


Sun Pharma slips over 2%


Hindalco Industries trades in the red


Oberoi Realty slips over 6%


Infosys up 1%


Eicher Motors gains 1.5%


Dr Reddy labs slips 1.7%


Britannia Industries slips 3.7%


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


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


Market at Pre-open


Rupee opening

Rupee opens higher at 71.45/$ vs Tuesday's close of 71.70 against the US dollar

Market at Pre-open


YES Bank stocks remain under pressure as CG power fraud stumps investors

After raising fresh equity worth Rs 1,930 crore through a qualified institutional placement or QIP last week, a move that was expected to ease some of the investor concerns, the stock of YES Bank remains under pressure. READ MORE

Flagging consumption and import surge hurt India's aluminium producers

Sales of aluminium companies fell by 10.8 per cent in the period as imports grabbed a bigger share of the consumption pie.
 
“The share of imports to domestic aluminium consumption has risen to 60 per cent at the end of June. Overall imports witnessed spike of eight per cent while scrap imports rose eight per cent in the June quarter. The unabated rise in imports is worrisome for the primary aluminium producers,” said an industry source. READ MORE

NSE tweaks criteria to select 'permitted to trade' stocks for Nifty

Until recently, only companies listed on the exchange were considered for index inclusion. Under the revised framework, NSE will also consider stocks that are not listed on its platform but are permitted to trade. Stock exchanges allow trading in stocks listed on rival exchanges under the so-called ‘permitted to trade’ category. READ MORE

Bharti Airtel may not buy 5G spectrum and 'expensive' 700 MHz airwaves

In the upcoming spectrum auctions, Bharti Airtel may not buy the coveted 5G spectrum and the “expensive” 700 MHz premium airwaves. It plans to bid for airwaves in the 800, 900, and 1800 MHz bands for which its licences have either expired or are about to expire. “Airtel’s spectrum licences in the 800, 900 and 1800 MHz bands have either expired or are expiring. The company would require more airwaves in those bands. It has informed the Union government (the Department of Telecommunications) about the same,” said a person in the know. READ MORE

Gold touches fresh all-time high of Rs 38,770 on jewellers' buying

Gold prices on Tuesday touched a record high of Rs 38,770 per 10 gram in the national capital after gaining Rs 200 on persistent buying from jewellers even as the precious metal lost steam overseas, according to the All India Sarafa Association.
 
Silver, however, plunged Rs 1,100 to Rs 43,900 per kg on reduced offtake by industrial units and coin makers. READ MORE

Economists estimate GDP growth of 5.5-5.6% in Q1 FY20 amid slowdown

Amid slowdown in various sectors, experts believe the Indian economy has grown by 5.5-6 per cent in the first quarter (Q1) of the current financial year (2019-20 or FY20). The lower range of these projections means the economy has slowed further. In the fourth quarter (Q4) of 2018-19 (FY19), it had grown 5.8 per cent. The higher range points to a slight recovery. READ MORE

Sebi plans tighter checks on credit rating agencies, reward for informants

With an aim to further safeguard investors' interests and to take defaulters to task, capital market regulator Sebi is planning to unveil a slew of reforms, including for greater checks on credit rating agencies and for rewarding informants in insider trading cases with up to Rs 1 crore reward.
 
The regulator is also planning to ease its norms for 'Muni Bonds' to allow smart cities and other entities undertaking tasks similar to municipalities to raise funds through this route and get their securities listed on the stock exchanges. READ MORE

As signs of US recession grow, should global investors be worried?

Last week the yield curve inverted in the US for a while, with 10-year government bonds offering a lower yield than two-year bonds. Inversion of the yield curve is widely regarded as a lead indicator of recession. On August 14, when this happened, the Dow Jones Industrial Average (DJIA) tanked 800.49 points. READ MORE

Stocks of top 10 auto components shed 21% in 6 months on demand slowdown

Auto component companies have been one of the worst-affected segments of the slowdown in the auto industry. Stocks of the top 10 auto components have shed about 21 per cent over the last six months as compared to the 13 per cent loss for the peer index BSE Auto index. The Sensex over the same period was up 4 per cent. READ MORE

Stocks to watch: Dr Reddy's, GAIL, Procter & Gamble, Deepak Nitrite, HDIL

Here's a look at the top stocks that may remain in focus in today's trading session -
 
GAIL: State-owned gas utility GAIL India will invest over Rs 45,000 crore over the next five years to expand the National Gas Grid and city gas distribution network, its chairman Ashutosh Karnatak said on August 20.
 
Dr Reddy's: USFDA has issued eight observations to Dr Reddy's Laboratories after the inspection of its Duvvada facility in Andhra Pradesh, the pharma major said on Tuesday. READ MORE

Investors play safe, shift to large liquid schemes after IL&FS crisis

The crisis sparked by Infrastructure Leasing & Financial Services’ (IL&FS) debt default last year has spurred investors to flock to safety and repose their faith in established names. As a consequence, assets of large liquid funds have surged over the past year. HDFC MF’s Liquid Fund has grown 110 per cent to Rs 86,445 crore over the last one year.  READ MORE

Bulk deals on the NSE as on Tuesday

Date Symbol Security Name Client Name Buy / Sell Quantity Traded Trade Price /
Wght. Avg. 
Price
20-Aug-2019 DHFL Dewan Housing Fin Corp DPL COMTRADE PRIVATE LIMITED BUY 17,51,724 46.23
20-Aug-2019 DHFL Dewan Housing Fin Corp DPL COMTRADE PRIVATE LIMITED SELL 17,51,724 46.24
20-Aug-2019 DHFL Dewan Housing Fin Corp TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED BUY 28,18,022 46.29
20-Aug-2019 DHFL Dewan Housing Fin Corp TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED SELL 28,18,022 46.30
20-Aug-2019 HIGHGROUND High Ground Entp Ltd UNITY FIN-CAP P. LTD BUY 17,45,991 1.70
20-Aug-2019 HIGHGROUND High Ground Entp Ltd YADVENDRA SHARMA SELL 10,00,000 1.70
20-Aug-2019 HINDOILEXP Hind. Oil Exploration FIDELITY FUNDS INDIA FOCUS FUND BUY 6,68,101 102.50
20-Aug-2019 MGL Mahanagar Gas Ltd. BG ASIA PACIFIC HOLDINGS PTE LIMITED SELL 98,77,780 780.00
20-Aug-2019 MGL Mahanagar Gas Ltd. GOLDMAN SACHS INDIA LIMITED BUY 6,73,330 780.00
20-Aug-2019 MGL Mahanagar Gas Ltd. HDFC MUTUAL FUND BUY 5,78,000 780.00
Click here for the full list

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


Rupee check

Source: Bloomberg


Oil check

At 8:15 am, Brent Crude Futures were at $60.20 per barrel.

SGX Nifty

At 8:13 AM, the SGX Nifty was down 20.50 points at 11,008, indicating a negative start for domestic indices.

Asian Markets check


US Market check


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