Investors remained anxious as to see when and if the government will announce its decision on tax surcharge on FPIs and measures to stem the weakening economy
Sensex and Nifty suffered losses on August 13 due to widespread sell-off in equities as government’s silence on tax surcharge and measures for economy weighed on investor sentiment.
Major global markets remained under pressure due to worries over lingering US-China trade war, protracted fall of yuan, political uncertainty in Argentina and unrest in Hong Kong.
Back home, investors remained anxious as to see when and if the government will announce its decision on tax surcharge on FPIs and measures to stem the weakening economy.
“Yuan’s weakness is a serious concern for emerging market currencies, which has hit the equity market sentiment also. Besides, there is still an uncertainty what steps the government will take to check the outflow of foreign funds and boost the economy,” said Rusmik Oza, Head of Fundamental Research at Kotak Securities.
The 30-pack Sensex settled with a deep cut of 624 points, or 1.66 percent, at 36,958.16, with 27 stocks in the red.
The NSE benchmark Nifty50 closed the day at 10,925.85, down 184 points or 1.65 percent.
Midcaps suffered more as the BSE Midcap index closed 2.25 percent down, underperforming Sensex. The BSE Smallcap index ended the session with a loss of 1.42 percent.
Here are key highlights of August 13 session:
-The sell-off in equities dragged the cumulative market capitalisation of BSE-listed firms to Rs 1.39 lakh crore from Rs 1.41 lakh crore on August 9, making investors poorer by Rs 2.22 lakh crore in a single day.
-Posting their biggest single-day gain in a decade, shares of Reliance Industries settled 9.72 percent higher at Rs 1,275, a day after the company said it plans to be debt-free. Brokerages are bullish on the stock.
-Shares of Sun Pharma settled with a gain of 3.71 percent at Rs 437.55 as the company’s June quarter earnings beat analyst expectations, with profit growing more than 31 percent on growth in India and US businesses.
-YES Bank shares at 10.35 percent down at Rs 73.60. Bank’s board is scheduled to meet on August 14 to consider and approve the issue price for the qualified institutional placement (QIP) and the final discount.
-Motherson Sumi fell 9 percent on August 13 to close at Rs 97.25 after the company reported dismal numbers for the quarter ended June 2019. The company's Q1FY20 consolidated net profit was down 25.2 percent at Rs 331.5 crore versus Rs 443.1 crore in a year-ago period.
-Amid across-the-board sell-off, the BSE Energy index closed 5.98 percent higher, mainly because of gains in shares of index heavyweight RIL. Among the total 28 components in the index, 20 suffered losses.
-As many as 115 stocks, including Reliance Industries, Bombay Dyeing, Khadim India, Future Retail, Exide Industries, GIC Housing Finance and Coastal Corporation, showed bullish crossovers on the charts of momentum indicator MACD. This signals at the possibilities that these stocks may log gains in the coming sessions.
-Divi's Labs, Adani Ports, GTPL Hathway, LIC Housing Finance, Zodiac Clothing, Orient Cement, JSW Energy and Magadh Sugar were among the stocks that witnessed negative breakouts and traded below their 200-DMAs.
-On the options front, maximum Put OI is at 11,000 followed by 10,700 strike while maximum Call OI is at 11,000 followed by 11,500 strike. Call writing was seen at 11,000 followed by 11,200 strike while Put Unwinding is seen at all the immediate strikes with minor Put writing at 10,600 strike. Options data suggests a trading range in between 10,700 to 11,200.-Nifty fell sharply to close at 10,925.85 after the pullback rally seen last week. Technically, with the Nifty erasing a major part of the gains seen last week, the bears seem to have made a comeback. "Further downsides are likely once the immediate support of 10,904 is broken. Any pullback rally could find resistance at 11,042," said Deepak Jasani, Head Retail Research, HDFC securities.Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months at 289. Use code FREEDOM.