Market at Close
A sell-off in global markets had its impact on the local market, as the Sensex closed over 700 points lower, while the Nifty ended just around 10,250-mark.
Weakness was visible among banking names, particularly in PSU banks along with metals, automobiles, pharmaceuticals, and IT names. A recovery in rupee from record lows failed to make any impact.
At the close of market hours, the Sensex closed down 759.74 points or 2.19% at 34001.15, while the Nifty ended lower by 225.40 points or 2.15% at 10234.70. The market breadth is negative as 824 shares advanced, against a decline of 1,736 shares, while 866 shares were unchanged.
Yes Bank, ONGC, HPCL and IOC were the top gainers, while State Bank of India, Tata Steel, Indiabulls Housing Finance and Bajaj Finserv lost the most.
OMCs trade higher
: Fuel retailers Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation shares were among biggest gainers on the Nifty50 after sharp decline in crude oil prices on Thursday.
HPCL rallied 19 percent on top of 5.6 percent upside in previous session, BPCL gained 7.4 percent (3 percent in previous session and IOC was up 8 percent (1.55 percent).
Oil prices traded around $86 a barrel few days back on supply concerns ahead of US' sanctions on Iranian oil effective from November, which fell to around $81 a barrel now.
Hourly Losers
| Find out shares which have lost the most during the last hour.
Market Check
: Benchmark indices are trading under pressure in the final hour of trade with Nifty trading below 10,250 level.
The Sensex is down 767.88 points at 33993.01, while Nifty is down 228.80 points at 10231.30. About 730 shares have advanced, 1728 shares declined, and 962 shares are unchanged.
All the sectoral indices are trading in red.Nifty PSU bank index down 5 percent, followed by pharma, metal and IT index down 3 percent, while auto is trading lower with 2.5 percent cut.
Volume Shockers:
GMR signs MoU with APGDC
: Shares of GMR Infrastructure shed 4 percent Thursday. The company's subsidiary has signed MoU with APGDC for supply of piped natural gas.
Kakinada SEZ, a subsidiary of GMR Infrastructure, signed a MoU (Memorandum of Understanding) with the Andhra Pradesh Gas Development Corporation (APGDC) to get access to piped domestic natural gas for its upcoming 10,500-acre zone.
ASIAN PAINTS FALLS |
Shares of Asian Paints slipped 2.6 percent intraday Thursday. Foreign research house BofAML has maintained buy with a potential upside of 35 percent.
The research house keep a target of Rs 1,650 per share.
According to firm, Pan-India check indicates swelling optimism about future growth and it expect a healthy H2FY19 led by solid festive season.
Read the full report here.
Oil marketing companies are rising in trade today on the back of a fall in global crude prices. Take a look at the intraday chart of HPCL, BPCLand IOC.
MARKET OUTLOOK
“Institutional Investors will be watching closely on quarterly financial results and taking calls on the future direction. It is expected, since equity market has corrected at good percentage, selective sectors would recover soon. We are anticipating the rural theme will continue do well. Anticipating the currency depreciation, we expect export oriented sectors like pharmaceuticals, information technology, agro chemicals, would do well going forward. Selective auto OEMs & auto ancillaries, FMCG would do well,” Saravana Kumar, Chief Investment Officer at LIC Mutual Fund said in a statement.
Market Update
There has been a smart recovery in the market from its low points, with the Sensex trading over 450 points lower. The Nifty is back above 10,300-mark.
State Bank of India, Tata Steel, and Indiabulls Housing were the top losers, while Yes Bank, ONGC and HPCL have gained the most.
The Sensex is down 476.24 points or 1.37% at 34284.65, while the Nifty is lower by 141.30 points or 1.35% at 10318.80. The market breadth is negative as 765 shares advanced, against a decline of 1,535 shares, while 1109 shares were unchanged.
RUPEE OUTLOOK
“The rupee continues to make a new record low as the global and domestic equities experienced steep sell-off. Continued FII outflows from debt and equity market is keeping sentiments bearish. Though the crude oil prices have eased overnight, it is a temporary. As US sanctions on Iran begin from November, crude oil prices might continue to rise in the international market. This may pressurize the rupee in coming sessions. Focus would now shift to India’s macroeconomic data which will give further direction to the rupee,” Rushabh Maru, Research Analyst at Anand Rathi Shares and Stock Brokers said in a statement.
View on market fall:
Dinesh Rohira, Founder and CEO at 5nance.com said, The Nifty index opened with huge gap-down on Thursday morning as it fell about 300 points weighed down by global selloff across the equity market worldwide. The Nifty index currently holds a strong support at 10100 levels which has been not breached so far despite a massive selloff in market.""
"This deep selloff offers a perfect opportunity especially for value investors to beckon on discount price with view of keeping it on long-term basis. The current fall in market is relatively lower than what happen in 2008 financial crisis, and doesn’t give a material reason to fear. As past data indicate, in 2008 the Nifty fell by about 51.84% on CY basis, but rebounded by 71.46% in next CY 2009. Similarly, in CY 2011 the Nifty witnessed a fall of 24.90% but in a successive CY 2012 it bounced back by 27.35%."
"The medium correction in equity market is healthy for a bull-market rally and investors should capitalized on this discount opportunity with systematic strategy", he added.
JSW Steel output grows 6%
: Company's crude steel output grew 6 percent to 4.18 million tonne (MT) during the quarter ended September 30, 2018. The Sajjan Jindal-led company had produced 3.94 MT crude steel in July-August 2017, it said in a statement, reports PTI.
During the said quarter, there was a rise of 2 percent in production of flat rolled products at 2.96 MT as against 2.89 MT in the year-ago quarter, it said.
Buzzing
:Colgate Palmolive (India) share price gained 2.7 percent intraday Thursday after global brokerage firm CLSA upgraded the stock to Buy from Sell, citing attractive valuations.
The research house also raised target price on the stock to Rs 1,265 from Rs 1,120, implying potential upside of 20 percent.
Colgate has increased its growth focus and the promotion activity of the company is at best, it feels.
It believes the worst for the company seems to be over now as wholesale market is stabilising and competition peaked.Currently Colgate's valuations are at a discount to its most peers. CLSA expects current valuations to sustain as outlook improves.
Aurobindo Pharma gets USFDA approval
: The company has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Azithromycin Oral Suspension 100 mg /5 mL and 200 mg/5 mL. Azithromycin oral suspension, a generic version of Pfizer Inc’s Zithromax oral suspension.
The product will be launched in November 2018.
View on market fall
: Dheeraj Singh, Head of Investments- Taurus Asset Management Co said, “Indian stock markets have fallen sharply on Thursday. This is a continuation of the sharp fall we have witnessed in the stock prices over the last couple of weeks (except for one or two days of exception).
"While most of the earlier fall could be attributed largely to domestic factors - be it the IL&FS effect and fears of contagion thereon, or the ever increasing fuel prices due to the combined effect of weakening rupee and rising global crude prices etc. – the reason for today’s fall is clearly global with the US markets falling sharply after President Trump’s acerbic comments against the Federal Reserve and the consequent sharp fall witnessed in all the major Asian markets today,"he added.
Additionally, two reports published on the eve of the annual IMF-World Bank meeting in Bali, Indonesia have also contributed to marketjitters. An IMF report which predicts that the world economy will grow at a slower pace than what was expected earlier (3.7% vs the earlierpredicted 3.9%) – led by the upcoming sanctions on Iran – and a World Bank report highlighting the risks of the extremely high debt levels(public and private) in the major economies of the world.
Incidentally, the global debt report published by the World Bank shows India in a significantly favourable light as compared to both advancedas well as emergent economies. Combined Public and Private Debt for India stood at 125% of annual GDP, while the corresponding figure for acountry like China was twice as much at 250% of annual GDP," he further said.
IOC approves capex plan:
Board of Directors of company has approved capex plan of Rs 7,315 crore for CGD projects in 7 geographical areas(Rs 5,463 crore), setting up of 33.5ktpa ethanol plant (Rs 520 crore) at Panipat refinery and laying of Paradip- Somnathpur- Hafdia ProductPipeline (Rs 1,322 crore).
Just IN
| NTPC wins 160 MW solar project in Uttar Pradesh. The solar projects shall be set up by NTPC and shall add to the installed capacity of NTPC.
ALERT |
According to a report by news agency Reuters, Indian Oil has approved Rs 5,463 crore capital investment in city gas distribution projects.
Oil prices see a big fall:
Reuters is reporting that oil extended its losses from the previous session as global stock markets suffered a rout, with crude prices also taking a hit from a weekly industry report showing U.S. crude inventories had risen more than expected.
Supply worries also eased as Hurricane Michael likely spared oil assets from significant damage as it smashed into Florida, even as it caused injuries and widespread destruction.
GRAPHITE STOCKS CONTINUE TO RALLY
Amid weak trades, graphite stocks such as HEG and Graphite India have extended their gains from Wednesday. Bank of America Merrill Lynch had initiated coverage on the stock with a buy call. It saw a potential upside of around 100 percent.
MARKET OUTLOOK |
In near term, the downtrend is expected to continue with persisting volatility but over a medium-term Sumit Bilgaiyan, Founder of Equity99 expects the Sensex to maintain above 33,500, he said in an interview to Moneycontrol's Sunil Shankar Matkar. Read the full interview here.
BUZZ ALERT |
Bandhan Bank’s shares are down around 8 percent even as the lender posted a good profit for the September quarter. It reported healthy 47.4 percent growth in profit for the July-September quarter compared to a year-ago. Profit at the private lender increased to Rs 488 crore during the quarter, from Rs 331 crore in the corresponding period last year.
Market Update
Equity benchmarks have arrested the fall, but have continued to trade lower. The
Sensex is down 843.09 points or 2.43% at 33917.80, while the Nifty is down 264.20 points or 2.53% at 10195.90. The market breadth is negative as 462 shares advanced, against a decline of 1,618 shares, while 1,322 shares were unchanged.Check out stocks that are witnessing a huge surge in volumes traded today as compared to their 5-day average traded volume.
This includes Eurotex Industries and Exports which was trading with volumes of 131 shares, compared to its five day average of 1,071 shares, a decrease of -87.77 percent.
JSW Holdings was trading with volumes of 34 shares, compared to its five day average of 348 shares, a decrease of -90.24 percent. Winsome Yarns was trading with volumes of 38 shares, compared to its five day average of 137,290 shares, a decrease of -99.97 percent.
Gulf Oil Lubricants India was trading with volumes of 12 shares, compared to its five day average of 254 shares, a decrease of -95.28 percent. Navneet Education was trading with volumes of 6,139 shares, compared to its five day average of 14,169 shares, a decrease of -56.67 percent.
Read the full report here.
AIRLINE STOCKS TURN AROUND |
Aviation stocks fly through a turbulent start as the stocks have reversed losses and trading higher. Cut in aviation turbine fuel as well as cooling off of crude prices is pushing these stocks higher.
TOP FACTORS THAT ARE WEIGHING ON THE MARKET
Equity benchmarks have seen a sell-off on Thursday morning. Here are some factors that have played on the market.
Sell-off in US markets: worst fall in 8 months
Overnight, US markets saw their worst decline in 8 months with rising Treasury yields and trade-related worries weakening risk appetite for equity investors.
Trump calls stock sell-off a correction:
US President Donald Trump said Wednesday’s stock market sell-off was a correction that was long awaited, and that the Federal Reserve, which has been raising interest rates, has gone “crazy”, said a Reuters report. “I think the Fed has gone crazy,” Trump said.
IMF raises doubt on global financial stability:
Risks to the global financial system have risen over the past six months and could increase sharply if pressures in emerging markets escalate or global trade relations deteriorate further, the International Monetary Fund said on Wednesday.
To read the full report, click here.
ALERT |
Volatility index, India VIX, has hit 20-mark.
Zee Entertainment gains 2%
Shares of Zee Entertainment rose over 2 percent as investors cheered the September quarter results. Its consolidated profit fell 38.2 percent year-on-year to Rs 386.1 crore despite strong revenue and operational growth.
Profit in corresponding period last fiscal stood at Rs 625.1 crore, which was boosted by sale of sports business.
Consolidated revenue during the quarter grew by 24.9 percent to Rs 1,976 crore compared to Rs 1,582 crore in same period last fiscal, driven by advertising and subscription segments.
BOND MARKET UPDATE |
The 10-year government bond yield had opened at 7.99% against previous close of 8.03%
ALERT |
Around 175 stocks have hit fresh 52-week lows at this point on the BSE. Some of the names include Bank of Baroda, Bharti Airtel, Bombay Dyeing, Central Bank of India, Deepak Fertilisers, Finolex Industries, HAL, HUDCO, Indostar and Nilkamal, among others.
TCS down 3
% Shares of Tata Consultancy Services are down around 3 percent ahead of its announcement of September quarter results later in the day. Interestingly, this is despite the rupee plunging to fresh record low.
Market Update
At 09:36 hrs, the Sensex is down 948.00 points or 2.73% at 33812.89, while the Nifty is lower by 297.70 points or 2.85% at 10162.40. The market breadth is negative as 231 shares advanced, against a decline of 1,369 shares, while 1,800 shares were unchanged.
Rupee Update
The Indian rupee has fallen to a fresh record low against the US dollar. Here is a look at the intraday figures. The year-to-date fall is recorded at 16.49 percent. Image: Bloomberg.com
Here is a look at how the other sectors are performing on the Nifty.
ENERGY STOCKS GAIN
| Investors are looking to play in the energy space, with the likes of Hindustan Petroleum, ONGC, GAIL, and Indian Oil gaining on the Nifty. Here is a look at their gains chart.
There is a selloff among all frontline indices. Here is a look at the Sensex's heatmap.
ALERT | Shares of ONGC are the only ones to be in the green, rising 3 percent.
Market opens
It is a gap down opening on D-Street on Thurdsay as global sell-off weighed on Indian indices. The Nifty gave up 10,200 in the opening minutes.
The Sensex has tanked over 900 points, while the Nifty is down over 300 points.
The Sensex is down 927.62 points or 2.67% at 33833.27, while the Nifty is lower 300.20 points or 2.87% at 10159.90. The market breadth is negative as 56 shares advanced, against a decline of 338 shares, while 3,006 shares were unchanged.
Among sectors, there’s selloff across sectors, with maximum pain visible in metals, automobiles, banks, and pharmaceuticals, among others. The midcap index is down 4 percent.
Top losers on the Sensex and Nifty include Yes Bank, Vedanta, Indiabulls Housing and Bajaj Finance.
Rupee Update
The Indian rupee touched a fresh record low of 74.46 per dollar on Thursday.It opened lower by 10 paise at 74.30 per dollar versus previous close 74.20.
Market at pre-opening:
Pre-opening trade is indicating a weak start on the Dalal Street with Nifty trading below 10,200 level.
At 09:06 hrs IST, the Sensex is down 665.45 points or 1.91% at 34095.44, and the Nifty down 266.10 points or 2.54% at 10194.
SGX Nifty
SGX Nifty down 277.50 points or 2.65 percent. Nifty futures were trading around 10,202.50 -level on the Singaporean Exchange.
