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Last Updated : Oct 02, 2019 07:54 AM IST | Source: Moneycontrol.com

BSE, NSE shut today on account of Mahatma Gandhi Jayanti

The trading activity will begin on Thursday, October 3, which makes it a truncated week.

Moneycontrol News @moneycontrolcom

BSE Limited and the National Stock Exchange of India are closed for trading on Wednesday, October 2, 2019, on account of Mahatma Gandhi Jayanti.

Wholesale commodity markets, including metal and bullion, will also be closed. There will be no trading activity on forex and commodity futures markets as well.

Trading activity will resume on Thursday, October 3, which makes it a truncated week.

Close

The benchmark indices extended losses for the third consecutive session and closed sharply lower on October 1, dragged by selling in banks due to rising fears of their exposure to troubled real estate/housing finance companies especially after PMC Bank fraud.

Concerns over government spending and weak auto sales in September also dented sentiment.

The BSE Sensex fell more than 700 points intraday but recouped its losses in late trade to close 361.92 points or 0.94 percent down at 38,305.41 . The Nifty50 declined 114.60 points or 1 percent to 11,359.90, taking its three-day loss to a total of 1.8 percent.

Experts expect the volatility to continue ahead of RBI policy later this week and September quarter earnings season that will begin next week.

"We expect that weak macro data points as well as disappointing auto sales numbers may also weigh on the investor sentiments in the near term. We expect that the RBI monetary policy may provide further direction to the markets. We envisage a 25bps rate cut in the policy, however, the central bank's outlook on inflation and growth would be a key monitorable," Ajit Mishra Vice President, Research at Religare Broking told Moneycontrol.

Further, global developments such as the US-China trade war and the movement of crude oil's price amongst rising tensions between Saudi Arabia and Iran would keep the market participants on edge, he said.

The broader markets underperformed frontliners as the Nifty Midcap and Smallcap indices dropped 1.8 percent each amid weak breadth. About three shares declined for every share rising on the BSE.

All sectoral indices closed in red with Nifty Realty having been hit hard as it fell by more than 4 percent. Bank, FMCG, IT, Metal and Pharma slipped more than 1 percent.

Yes Bank was biggest loser as it fell 23 percent despite clarification from the management over its exposure to NBFCs and realty sector and its fund raising plan. IndusInd Bank, SBI, Bharti Airtel, ONGC and Tata Steel were other top losers, declining 2-6 percent.

However, HDFC Bank, M&M, Maruti Suzuki and HDFC bucked the trend, rising 1-2 percent.

On the technical front, the Nifty50 formed a big bearish candle on daily scale with long lower shadow as it recovered nearly 100 points from lower zones but failed to hold above 11,400 levels.

"Sustained selling pressure is seen at higher levels and resistance are gradually shifting lower. Now till it holds below 11,400-11,420 levels, weakness could be seen towards recent swing low of 11,250 then 11,200 levels while on the upside hurdle is seen at 11,500 then 11,550 levels," Chandan Taparia, Associate Vice President, Analyst-Derivatives at Motilal Oswal Financial Services said.

Foreign institutional investors (FIIs) remained net sellers to the tune of nearly Rs 1,300 crore, but domestic institutional investors (DIIs) net bought Rs 1,500 crore worth of shares on Tuesday, as per provisional data available on NSE.

The Indian rupee weakened to 71.08 against the US dollar on October 1, which is down 21 paise from previous close following correction in equity markets.

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First Published on Oct 2, 2019 07:54 am
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