Closing Bell: Nifty ends Sept series near 10,800, Sensex plunges over 1,100 pts; IT worst hit

Taking Stock: Carnage on D-St! Sensex plunges more 1,114 points; Nifty holds 10,800

A selloff in global markets and rising coronavirus infections stoking fears of lockdown that can delay the economic recovery led to risk-off sentiment.... Read More

The F&O expiry day turned out to be a nightmare for bulls as the benchmark shed nearly 3% and settled closer to the day’s low. Feeble global cues led a gap-down start and then it gradually inched lower the day progressed. The selling pressure was widespread wherein IT, Banking and Auto were the top losers. In line with the move, the broader indices too slipped sharply lower and lost 2% each.

The looming uncertainty over the stimulus package in the US combined with the issue of rising COVID cases worldwide has raised concerns over the economic recovery. And, it may deteriorate further if the virus situation results in partial lockdown.

Amid all, the Nifty is down by nearly 6% this week so far and tested the crucial level of 10,800 too however there’s no sign of respite from the banking index. In such a situation, it would be prudent for traders to wait for clarity before jumping into a trade while investors should keep their shopping list handy and continue to accumulate fundamental sound stocks on dips.

Indian benchmark indices had a gap down opening and kept losing ground as the day wore on, to finally end the day around 2.8% down. Markets tracked weak global cues as the uncertainty witnessed in the last few days gave way to negativity, with broader markets also underperforming. The uncertainty regarding an economic recovery, the unabated rise in virus infections, and today being derivatives expiry day, all contributed to the negativity. With volatility expected to be high, traders are advised to remain cautious.

Weak Global Cues coupled with worrying data points from the US led to a gap down start today even as the re-emergence of the virus rattled the Euro Zone. Indices here saw deep cuts led by TCS & Infosys as both along with RIL were the ones which led the recovery in the last five months. The broader markets were pounded today much beyond the 3% cut witnessed in the Indices.

Rupee ended lower around 73.90 Thursday on majorly overseas outflows from local stocks also a strong dollar keeps the rupee weak amid concerns of resurgence in coronavirus cases, which may lead to re-imposition of strict containment measures in various nations, dashing hopes of gradual economic recovery. Rupee once starts to trade below 74.00 can weaken towards 74.40 odd zones.

The selling continued on the six consecutive day on the Dalal Street on the back of weak global cues.

At close, the Sensex was down 1,114.82 points or 2.96% at 36553.60, and the Nifty was down 326.40 points or 2.93% at 10805.50. About 598 shares have advanced, 2009 shares declined, and 155 shares are unchanged.

M&M, TCS, Bajaj Finance, Tata Motors and IndusInd Bank were among top losers on the Nifty, while HUL was the only gainer.

All the sectoral indices ended in the red with IT and Metal indices shed 4 percent each followed by the Auto, PSU Bank, Infra and Realty indices.

In today's session, the market capital erosion stood at Rs 3.87 lakh crore.

The support level of 10900-10950 has been disrespected during today's trading session. We have also pierced of 10882 which was made on 3rd August 2020. This opens a new target of 10750. Any bounce can be utilised to short the Nifty for this target.

Datamatics Global Services has been awarded a contract for the delivery of tools for the Static and Fatigue Testing of the control surfaces of the Boeing-Saab T-7A Red Hawk Program.

J Kumar Infraprojects has received Letter of Acceptance from MMRDA for Rs 49,83,15,7581 and from DMRC for Rs 41,17,47,405.

UTI Asset Management Company on September 24 fixed at Rs 552-554 per share the price band for its initial public offering (IPO) that is set to open on September 29. The IPO will close on October 1.

The bidding for the anchor book will open and close on September 28.

The public issue will consist of an entire offer for sale of 3,89,87,081 equity shares by State Bank of India (SBI), Life Insurance Corporation of India (LIC), Punjab National Bank, Bank of Baroda and T Rowe Price International.

Tata Elxsi announced the opening of a Global Engineering Center (GEC) with Schaeffler Technologies AG & Co. KG, a world leader in providing mechatronics solutions for the Transportation industry.

Tata Elxsi has been selected as the Global engineering services partner by Schaeffler, and the GEC is part of a strategic multi-year engineering services engagement.

The GEC center in Pune will focus on Mechatronics, Digital & embedded technologies with the highest level of talent in line with Schaeffler’s vision for driving “Mobility for Tomorrow”.

Reliance Jio added 45 lakh subscribers against addition of 36.6 lakh in May. Airtel loses 11.3 lakh subscribers versus loss of 47.4 lakh subscribers in May. Vodafone-Idea loses 48.2 lakh subscribers versus loss of 47.3 lakh subscribers in May, reported CNBC-TV18.

Gold extended losses and fell to its lowest level since mid-August in yesterday's session as the dollar advanced, with investors awaiting further response from major central banks as economic uncertainty looms. Meanwhile, US Fed officials and Governor J. Powell shared the same view that monetary policy will need to remain accommodative for quite some time in order to support the economy.

Investors now await US weekly jobless claims data, if it is recorded higher than expectations it could support precious metal prices on lower levels. SPDR holdings, fell 0.87 percent to 1,267.14 tonnes on Wednesday. Broader trend on COMEX could be in the range of USD 1,825- 1,890 and on domestic front prices could hover in the range of Rs 49,000-49,880.