Closing Bell: Nifty ends below 11,350, Sensex slips 633 pts dragged by metal, pharma, banks

Taking Stock: Geopolitical worries weigh down D-St; Sensex tanks 633 points, Nifty nearly 200

For the week ended September 4, the Nifty fell 2.7 percent while the Sensex was down by 2.8 percent.... Read More

Uncertainties await the market for next week, be it global economic data points or geo-political uncertainties related to Indo-China border tensions. Indian markets have been in sync with its global counterparts and will have an impact. Markets seem to have lost its momentum in the near-term and could be heading into a round of consolidation. Investors advised to be alert and cautious.

Nifty index opened negative in line with weak Global cues and during the day it drifted towards key support of 11300-11333 zones. However, in the mid of the day it recovered by around 100 points but failed to hold above 11450 zones and closed the session near to its opening levels as intraday bounce were sold into.

It negated the formation of higher lows of last three trading sessions and formed a Bearish Engulfing pattern on weekly scale which has a Bearish implication if follow up selling happens. Now index is facing multiple hurdles at 11450-11550 zones and till it remains below the same weakness could be seen towards 11200 then 11111 levels.

While Geopolitical Issues dominated trading today on the back of an already weak global cues in opening trade we did witness bargain hunting amidst the mayhem in select segments. Consumer Durables and Rural based stocks were bought into on the back of a well distributed bountiful monsoon and improved crop sowing this season.

The rupee is likely to appreciate further, versus the US dollar, towards 72.80 and 72.40 levels, after the RBI’s indication that rupee appreciation could reduce imported inflation in India.

The Indian rupee has appreciated nearly 3% in the last week, over foreign capital, which is flowing in, by way of both institutional and direct investments (FII’s and FPI’s). An appreciation in domestic currency reduces the net import costs.

We managed to stick above the 11300 level which is a saving grace for the bulls until markets reopen on Monday. If we breach this level on a closing basis, we could enter into a short term bear phase. On the upside, we need to get past 11600 for the markets to continue its upward momentum.

Benchmark indices ended weak on September 4 with Nifty below 11350 amid seling seen in the metal, pharma and banking names.

At close, the Sensex was down 633.76 points or 1.63% at 38357.18, and the Nifty was down 193.60 points or 1.68% at 11333.90. About 1002 shares have advanced, 1674 shares declined, and 177 shares are unchanged.

Axis Bank, Tata Steel, JSW Steel, Adani Ports and SBI were among major losers on the Nifty, while gainers were Maruti Suzuki and Zee Entertainment.

All the sectoral indices ended lower with metal index down 3 percent followed by the pharma, bank, infra and energy. BSE Midcap and Smallcap indices ended 1-1.7 percent lower.

The bank has approved the allotment of 1,51,17,477 equity shares of face value of Rs 10 each, at a price of Rs 524 per equity share on preferential basis, for aggregate consideration of Rs 792, 15,57,948.

Maheshwari Logistics has recommended issue of bonus equity share in the ratio of 1:1 of the face value of Rs 10 each.

The rupee is likely to appreciate further, versus the US dollar, towards 72.80 and 72.40 levels, after the RBI’s indication that rupee appreciation could reduce imported inflation in India.

The Indian rupee has appreciated nearly 3% in the last week, over foreign capital, which is flowing in, by way of both institutional and direct investments (FII’s and FPI’s). An appreciation in domestic currency reduces the net import costs.

The BSE-30 Index declined 2% in the current week. The market remained cautious on weaker-than-expected GDP prints and weak GST collections even while PMI and auto sales showed some improvement. Bharti Airtel, IndusInd Bank and Titan Company were the among top gainers, while Bajaj Auto, NTPC and Power Grid were among the major losers in the BSE-30 Index.

On the economy front, real GDP growth of (-)23.9% for 1QFY20 revealed the extent of economic damage from Covid-19. FPIs bought equities worth USD 184 mn over the past five trading sessions while DIIs sold USD 287 mn worth of equities in the same period.

Indo-China border tensions, rising cases of infections, global market correction and valuations are the key risks to the Sensex, in our view. We see risk reward ratio getting unfavourable at these levels. Advice caution at the current juncture.

Fund raising committee of the board of directors of Rushil Decor approved right issue of 49,77,111 equity shares of face value of Rs 10 each, for an aggregate amount not exceeding Rs 2,489 lakh.

The ratio fixed at 1 equity share for every 3 existing shares held by the eligible shareholders as on the record date.

The right issue price fixed at Rs 50 per equity share (Including premium of Rs 40 per equity share over face Value of Rs 10 per equity share.

The issue will open on September 21, 2020 and will close on October 05, 2020.

Mazgaon Dock Shipbuilders is looking to launch its IPO by October end. Government is likely to sell 10-15% in Mazgaon Dock Shipbuilders via IPO, CNBC-TV18 Sources.