MARKET WRAP: Sensex slips 141 pts, Nifty ends at 11,126; pharma stks bleed

Topics Markets | MARKET WRAP

Monday turned out to another disappointing day for the domestic equity market as concerns over weak economic growth weighed on investor sentiment. The Reserve Bank of India (RBI) on Friday sharply cut the GDP growth forecast for FY20 to 6.1 per cent from 6.9 per cent, earlier. 

Besides, selling in counters such as pharma, metals, auto, PSU banks, and IT dragged the market lower. Additionally, uncertainty over US-China trade war on the global front, too, added to the investors' woes. 

Extending its losing streak into the sixth consecutive session, the S&P BSE Sensex lost 141 points or 0.38 per cent to end at 37,532 levels with YES Bank (up over 8 per cent) being the top gainer and Tata Steel (down 2.50 per cent) the biggest loser. ITC, TCS, L&T, HDFC duos, and Infosys contributed the most to the index's fall while Axis Bank, ICICI Bank and YES Bank gave the much-needed support. 

In the broader market, the S&P BSE MidCap index ended at 13,680.62, down 33 points or 0.24 per cent and the S&P BSE SmallCap index lost 96 points or 0.75 per cent to close at 12,713.02. 

On the NSE, the broader Nifty50 index settled at 11,126.40, down 48 points or 0.43 per cent. 

Volatility index India VIX rose over 1.50 per cent to end at 17.85 levels.  

On the sectoral front, pharma stocks bled the most, followed by metal, realty, and PSU bank stocks. The Nifty Pharma index closed at 7,148.95 levels, down 247.95 points or 3.35 per cent.

Market will remain closed on Tuesday on account of Dussehra.  


YES Bank gained over 8 per cent to end at Rs 45.60 apiece on the BSE after a news report said the lender was in talks with Microsoft Corp and two other technology companies to sell up to 15 per cent stake. 

Shares of Zee Entertainment Enterprises (ZEE) hit an over six-year low of Rs 204, plunging 14 per cent in early morning deals on the BSE on Monday, after the company announced that its promoter Essel Media Ventures have pledged 10.71 per cent equity with VTB capital. However, the stock recovered from the day's low to end at Rs 251.50 apiece, up over 6 per cent. 

Shares of Aurobindo Pharmaceuticals, Bharat Heavy Electricals Limited (BHEL), Ambuja Cements, Grasim Industries, Zee Entertainment Enterprises, Glenmark Pharmaceuticals, Lupin and LIC Housing Finance were among the 34 stocks from the BSE500 index that hit their respective 52-week lows on the BSE during the session. 


Global stocks were little changed on Monday as broadly positive US jobs data quelled some fears about an economic slowdown, but nervousness over US-China trade talks persisted and more weak European economic data trickled in. European shares dipped as a fall in German industrial orders data underscored concerns about a looming recession in Europe’s largest economy. 

Asian stocks rallied in the slipstream of gains on Wall Street, with MSCI’s broadest index of Asia-Pacific Shares outside Japan rising 0.1 per cent. Japan's Nikkei stock index opened higher but reversed course and fell 0.2 per cent. US stock futures were 0.5 per cent lower.


Here's how sectoral indices on the NSE performed today

MARKET AT CLOSE | Top losers and gainers on the S&P BSE Sensex


The S&P BSE Sensex shed 141 points or 0.38 per cent to end at 37,531.98 levels while the NSE's Nifty50 index ended at 11,126.40, down 48 points or 0.43 per cent. 


Market check

Market check | Sensex slips in the red

Sector watch | Nifty Financial Services index trades higher

NEWS ALERT | Road Min to meet construction equipment makers to push non-diesel variants: sources to CNBC TV18

-- Meeting in the backdrop that EPAC is pushing for cleaner cars

-- To hold meeting with OEMs to push for cleaner fuel based vehicles

Alert: OEMs have been pushing for diesel based vehicles due to high power

NEWS ALERT | Former PMC Bank MD Joy Thomas likely to have confessed to involvement in scam: sources to CNBC TV18

-- Confesses to making fictitious accounts to mask loans given to HDIL

-- Loans worth Rs 96 cr taken by HDIL from PMC Bank to service loans of Bank of India

-- Joy Thomas takes sole responsibility of wrongdoings

NEWS ALERT | PM Modi will chair panel to finalise India's stand on RCEP today: sources to CNBC TV18

-- Home Minister, Finance Minister, External Affairs Minister & Commerce Minister to attend

Alert: RCEP is  Regional Comprehensive Economic Partnership

Lakshmi Vilas Bank, IndusInd Bank & 32 other BSE500 stocks hit 52-wk low

Besides, IndusInd Bank, Bank of Baroda, Edelweiss Financial Services, Indiabulls Real Estate, Indiabulls Housing Finance, L&T Financial Holdings and Lakshmi Vilas Bank were other notable stocks from the index that slipped in the range of 1 to 13 per cent, to hit fresh 52-week lows today. READ MORE

Buzzing | Aurobindo Pharma slides 17%

Investors struggle to cut losses as shadow banking crisis deepens

Mutual funds are in a particularly tough spot, given their large holdings of non-bank financing company bonds. That, in turn, threatens everyone from individual investors to conglomerates with money in the funds, underscoring broader risks to policy makers already grappling with an economic slowdown. READ MORE

NEWS ALERT | JSW Energy enters into exclusive discussions with GMR Energy for acquisition of its subsidiary: CNBC TV18

-- JSW Energy to acquire GMR Kamalanga Energy in Odisha.

Alert: GMR Kamalanga has a 1050 MW thermal power plant in Odisha

Info Edge surges 13% in 2 days on Zomato's fund-raising plan report

Shares of Info Edge (India) were up 6 per cent at Rs 2,398 on the BSE on Monday, surging 13 per cent in the past two trading days after a media report suggested that Zomato was planning to raise $600 million (approx. Rs 4,200 crore). Info Edge holds a 26.38 per cent stake in Zomato Media Private Limited (Zomato).
"Online food delivery and restaurant discovery platform Zomato is finalising a fresh $600 million round of fundraising likely to be led by existing Chinese investor, Ant Financial," The Economic Times reported on Friday, October 4, quoting two people in the know. READ MORE

With Sensex down over 3% since Sep 23, banking crisis may prevent bull run

Stock bulls betting on a second rally from India’s landmark corporate tax cut are having their faith tested by a shadow banking crisis.
The Sensex index has fallen more than 3 per cent since reaching a two-month high on Sept. 23. That has erased almost half of the surge sparked by the Sept. 20 announcement of a landmark corporate tax cut, as debt concerns emerge at lenders including Indiabulls Housing Finance Ltd. and a co-operative bank. READ MORE

PSUs get booted out of top 10 market-cap club; analysts eye divestment

India’s largest bank by assets, State Bank of India (SBI) and the sole stock to hang on to this elite list was evicted last week, with its market-cap out falling below that of Bajaj Finance. Reliance Industries, Tata Consultancy Services (TCS), HDFC Bank, Hindustan Unilever, HDFC, Infosys, ITC, Kotak Mahindra Bank and ICICI Bank are now among the top 10 companies with the highest market-cap. READ MORE  


YES Bank extends gains

Investors expect more policy measures: Citi India's Abhinav Khanna

Global investors have been keenly watching the policy measures being unveiled in India over the past few weeks. Abhinav Khanna, head of equity at Citi India, tells Puneet Wadhwa that he expects emerging markets (EMs), and India in particular, to see higher allocation by foreign investors over the next 12 months. READ FULL INTERVIEW HERE
Abhinav Khanna, head of equity at Citi India

Index Contributors at this hour

Most banking stocks gain; Nifty Bank rallies nearly 400 pts

Monetary policy: Here's how low interest rates can go after 5 cuts in a row

The Monetary Policy Committee can possibly cut rates by another 40-65 basis points, which will take the benchmark repurchase rate below the 4.75 per cent level seen during the global financial crisis, according to economists, including Anand Rathi Financial Services Ltd.s’ Sujan Hajra. So entrenched is India’s growth slowdown that it may require the rate to be cut to as low as 4.5 per cent for any meaningful impact. READ MORE
RBI Governor Shaktikanta Das

MARKET WATCH | Top losers on the BSE at present

Geojit Financial Services on Axis Bank

The bank’s resilient growth trajectory along with the focus on asset quality metrics, strengthening of balance sheet and healthy margins will be the key going forward. Hence, we retain our HOLD rating on the stock with an upward revised target price of Rs 717 based on 2.1x FY21E BVPS (book value of equity per share).

Not just 5G spectrum, even 700 MHz band auction may find few takers

Forget 5G spectrum. Even the premium 700 megahertz (MHz) band may find few takers in the upcoming spectrum auctions since the network equipment and handset compatibility with the premium band are not in place, not to mention the highly leveraged companies shying away from further investments. READ MORE HERE

BUZZING STOCK | Aurobondo Pharma plunges over 7%

FPIs pull out Rs 3,000 crore from equities in 3 trading sessions of October

Foreign portfolio investors have offloaded equities worth around Rs 3,000 crore in just three trading sessions of October amid fears of global recession and trade war.
This follows a net investment of around Rs 7,850 crore by foreign portfolio investors (FPI) into equities in September.
Market experts, however, believe that FPI inflows are expected to pick up after the rate cut by the Reserve Bank of India (RBI) and several decisions taken by the capital markets regulator Securities and Exchange Board of India (Sebi). READ MORE

MARKET CHECK | Top gainers on the BSE at present

Momentum Picks by ICICI Securities

NEWS ALERT | YES Bank hiring aggressively for key positions: sources to CNBC TV18

-- Heavy bonus payouts being given to retain employees

Glenmark Pharma slips 7% after US FDA issues warning letter for Baddi unit

Shares of Glenmark Pharmaceuticals slipped 7 per cent on the BSE to hit an over seven-year low of Rs 294 in the mornig deals on Monday after the drug firm said it has received a warning letter from the US health regulator for its Baddi facility in Himachal Pradesh. The stock was trading at its lowest level since March 15, 2012 on the BSE. READ MORE

Container Corp slips in trade

ZEEL hits over 6-yr low after Essel Media pledges 11% equity with VTB Cap

Shares of Zee Entertainment Enterprises (ZEE) hit an over six-year low of Rs 204, plunging 14 per cent in early morning deals on the BSE on Monday, after the company announced that its promoter Essel Media Ventures have pledged 10.71 per cent equity with VTB capital. The encumbrance was created pursuant to a loan agreement executed on September 4, 2017. READ MORE

Sectoral trends at NSE at this hour

IPOs emerge as cash cow for investors in 2019, 70% trade above issue price

The primary market has emerged as the cash cow for investors in 2019, amid high volatility in the secondary market, as 70 per cent of the new entrants are trading well above their issue prices, giving returns of up to 95 per cent to shareholders.
Several factors including trade conflict between the US and China, slowdown in the economy, poor investor sentiment and pullout of funds by foreign investors have kept the market volatile, experts said. READ MORE

NEWS ALERT | Don't have exposure to Indiabulls Group: Edelweiss Fin to CNBC TV18

Alert: Stock is down 20% in onw month

Market check

Zee Entertainment dips 10%

Rupee slips 8 paise vs US dollar in early trade amid drop in oil prices

The rupee on Monday opened eight paise lower at 70.96 against the US dollar amid drop in crude oil prices and rise in Asian equities. The domestic unit on Friday closed almost flat at 70.88 against after the Reserve Bank of India (RBI) in a widely expected move cut key interest rates by 0.25 percentage point. READ MORE

Most industrial stocks slump; S&P BSE Industrials index down 1.50%

Ashok Leyland skids around 4%

BUZZING STOCKS | BPCL trades nearly 4% lower

SECTOR WATCH | Top gainers and losers on the NSE

MARKET WATCH | Top gainers and losers on the S&P BSE Sensex


At 09:20 am, the S&P BSE Sensex was trading 19 points or 0.05 per cent lower at 37,653.97 levels while NSE's Nifty50 index was quoting 27 points or 0.24 per cent lower at 11,147.95 levels.

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

Market at Pre-open

Market at Pre-open

Rupee Opening Alert

Rupee opens weaker at 70.96 vs Friday's close of Rs 70.89

I-Pru Life and ICICI Lombard: Story of two contrasting subsidiaries

No two siblings are the same and for investors, too, no two subsidiaries are the same. The case in point is ICICI Prudential Life (I-Pru Life) and ICICI Lombard.
Both are insurance companies, count themselves among the largest in private insurers, and more importantly, have saved the day for their parent — ICICI Bank —when it required capital.  READ MORE

Top stock picks by Prabhudas Lilladher: Buy HCL Tech, Apollo Hospitals

Nifty finally broke the significant 200DMA level of 11250 to weaken the sentiment and bias and is now heading for 11000 level which would be the crucial support zone as of now. However, the support for the week is seen at 37070/10980 levels whereas the resistance would be seen at 38300/11380 levels. Bank Nifty would have the range of 27130-28350 levels. BankNifty has underperformed the Nifty index and would have 26600 as the next major support zone. READ MORE

Nifty view & trading ideas by CapitalVia: Buy Aavas Financier, V Guard Ind

We can see a big momentum in following stocks:
Buy Aavas Financiers above Rs 1,695
Target: Rs 1,895
Stop loss: Rs 1,590
The stock is showing a breakout in daily chart and a resistance breakout from the levels of 1695 will bring momentum to the stock and the stock is trading above its 200 dayEMA. Considering the technical evidence discussed above, we recommend buying the stock above 1695 for the target of Rs 1,895, keeping a stop loss at Rs 1,590 on closing basis. READ MORE

11,100 last hope for bulls, says Sameet Chavan of Angel Broking

Last ray of hope at 11,100
Trading for the last week began with a downside gap and it probably set the mood for the entire week. The mounting concerns over NBFCs started spooking traders’ sentiments which was fuelled by massive sell off in US markets during the midweek. On Tuesday, October 1st, as well as Friday, October 4th, despite early morning lead, our markets succumbed to the selling pressure and eventually went on to slide below the 11,200 mark. On a weekly basis, index shed nearly 3 per cent which was the biggest weekly fall in the last couple of months. READ MORE

Seven of top 10 companies lose over Rs 1 trillion in m-cap last week

Seven of the 10 most valued domestic companies suffered a combined erosion of Rs 1 trillion in their market valuation last week with HDFC Bank taking the biggest hit by losing over Rs 30,000 crore.
Besides HDFC Bank, the other losers included Reliance Industries (RIL), Hindustan Unilever (HUL), HDFC, Kotak Mahindra Bank, ICICI Bank and Bajaj Finance.
On the other hand, Tata Consultancy Services (TCS), Infosys and ITC are among the top 10 firms that saw rise in their market valuation for the week ended Friday. READ MORE

Stocks to watch: YES Bank, BPCL, BEML, Dr Reddy's, Ashok Leyland

Here's a look at the top stocks that may remain in focus today -
BPCL: Ahead of a proposed move to fully privatise the company, the government has repealed the legislation that had nationalised the company, doing away with the need to seek Parliament nod before selling it off to private and foreign firms. That apart, global brokerage firm CLSA has maintained 'sell' rating on the stock with the target price of Rs 300.
YES Bank: YES Bank is looking at raising $1-1.2 billion by December through a fully underwritten rights issue. According to an investment banker, the bank has received an interest from both global private equity players and Indian family offices. READ MORE

NEWS ALERT | US FDA issues Form 483 to Aurobindo’s Unit 7

-- Failure to thoroughly review any unexplained discrepancy

-- No written procedure for processes and production

-- Lab records don't include complete data of all tests

-- Utensils, equipments not clean

(As reported by CNBC TV18)

The effect of tax cuts has dissipated

The Reserve Bank of India (RBI) acted as expected by implementing its sixth successive rate cut and pulling the repurchase rate (or repo) down to 5.15 per cent. However, the market response was negative. The cut was discounted before it happened. Many investors feel that it doesn’t address the issue of soft demand. The central bank also cut its forecast for 2019-20 which was, again, expected. READ MORE

Bulk deals on NSE as on Friday

Bulk deals on BSE as on Friday

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

Rupee Check

Source: Bloomberg

Oil Check

At 8:24 am, Brent Crude Futures were at $58.06 per barrel mark

SGX Nifty

At 8:20 am, the Singaporean Exchange for Nifty Futures were trading 9 points higher at 11,215 level.

Asian Market Check

Source: Reuters

US Market Check

Source: Reuters

Good morning!

Welcome to the Business Standard live blog.

Catch all the live market updates here.

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