KEY HIGHLIGHTS
Closing Bell: Sensex, Nifty Resume Fall To End At Seven-Month Low
Indian equity benchmarks resumed declines after a one-day blip and ended near a seven-month low.
The S&P BSE Sensex ended 1.29 percent lower at 36,093 and the NSE Nifty 50 closed 1.25 percent lower at 10,704.80. The broader markets represented by the NSE Nifty 500 Index ended 1.25 percent lower. The 31-share index has wiped out all the gains clocked so far this year.
The investors, who had taken positions during the earlier selloff, are now unwinding them, leading to the current declines, according to Emkay Investment Managers’ Sachin Shah.
“The structure of the Indian markets continue to remain weak,” The Fund Manager told BloombergQuint in an interaction.
“As the large caps are now declining, it is becoming difficult for investors to be constructive on mid and small caps, which witnessed some gains during last week,” Shah told BloombergQuint in an interaction.
“Investors need to have courage and knowledge to enter the market at this juncture,” he added.
Yes Bank was in focus after the stock slumped 16 percent. The stock was the worst performer on Sensex and Nifty.
The market breadth was tilted in favour of sellers. About 1,341 stocks declined and 431 shares advanced on National Stock Exchange.
All the 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty Media Index’s 4.4 percent fall.
Indiabulls Group Stocks Decline; Indiabulls Housing Finance Falls Nearly 10%
Shares of Indiabulls Group companies declined in today’s trade.
Indiabulls Housing Finance fell as much as 9.6 percent to Rs 379.15. Shares of Indiabulls Ventures and Indiabulls Real Estate fell as much as 6.8 percent.
F&O Check: Nifty 10,700 Put Option Slumps 77%
Nifty’s 10,700 put option contract was among the most active Nifty option contracts on National Stock Exchange.
Premium on the weekly contract, which is set to expire today, fell 77 percent to Rs 1.40. Over 16 lakh shares were added to the open interest which stood at over 32.66 lakh shares.
Bond Market Update: 10-Year Yield Trades Little Changed
The yield on the 10-year note traded little changed at 6.61 percent. It had declined five basis points intraday.
Money Market Update: Rupee Reverses Gain
The Indian rupee revered gains and traded little changed at 71.26 against the U.S. dollar. The home currency had appreciated 0.23 percent intraday against the greenback.
Market Check: Sensex, Nifty Set To End Near Seven-Month Low
Indian equity benchmarks resumed declines after a one-day breather and are set to end near seven-month low.
The S&P BSE Sensex fell 1.4 percent to 36,056 and the NSE Nifty 50 fell 1.38 percent to 10,693.95. The broader markets represented by the NSE Nifty 500 Index fell 1.6 percent. The 31-share index has wiped out all the gains clocked in 2019.
The market breadth was tilted in favour of sellers. About 1,409 stocks declined and 355 shares advanced on National Stock Exchange.
Fab Four Stocks Of The Day
IIFL Wealth Management
- Shares started trading at Rs 1,210 per share.
- Stock rose as much as 5 percent thereafter.
Thomas Cook
- Stock rose as much as 2 percent to Rs 149.50.
- Observes 21 percent growth in demand during Durga Puja from Eastern markets.
ITDC
- Stock rose as much as 8.9 percent.
- Shares snapped two-day losing streak.
Bharti Airtel
- Stock rose as much as 2.1 percent to Rs 342.55.
- Company to cut its debt by Rs 50,000 crore by March 2020, ET reported.
- In June, the company had debt of 1.16 lakh crore.
Stocks Moving On Heavy Volumes
Hindustan Aeronautics
- Stock rose as much as 6.3 percent to Rs 776.
- Trading volume was more than 20 times its 20-day average.
Tube Investments
- Stock fell as much as 2.1 percent to Rs 336.10.
- Trading volume was more than five times its 20-day average.
Shoppers Stop
- Stock rose as much as 3.5 percent to Rs 409.90.
- Trading volume was more than six times its 20-day average.
Welspun India
- Stock fell as much as 2.3 percent to Rs 50.70.
- Trading volume was more than five times its 20-day average.
Dalmia Bharat
- Stock fell as much as 6.2 percent to Rs 750.10.
- Trading volume was more than four times its 20-day average.
Large Trade Alert: Bharti Airtel
About 50 lakh shares of Bharti Airtel changed hands in a single large trade, Bloomberg data showed. Buyers and sellers were not known immediately.
Market Commentary: Market Structure Continues To Remain Weak, Emkay Investment Managers Says
The structure of the Indian markets continue to remain weak, Emkay Investment Managers’ Fund Manager Sachin Shah said, as the Indian equity benchmarks resumed selloff after a one-day breather.
“As the large caps are now declining, it is becoming difficult for investors to be constructive on mid and small caps, which witnessed some gains during last week,” Shah told BloombergQuint in an interaction.
“Investors need to have courage and knowledge to enter the market at this juncture,” he added.
Market Check: Sensex Wipes Out 2019 Gains; Nifty Below 10,700
Indian equity benchmarks continued to trade at day’s low.
The S&P BSE Sensex erased all the gains clocked during this year and the NSE Nifty 50 fell 1.34 percent to below 10,700. The broader markets represented by the NSE Nifty 500 Index fell 1.35 percent.
The market breadth was tilted in favour of sellers. About 1,387 stocks declined and 352 shares advanced on National Stock Exchange.
Housing Finance Companies Decline; PNB Housing Finance At Record Low
Shares of the Housing finance companies declined in today’s trade.
Shares of Indiabulls Housing Finance fell as much as 8.4 percent while shares of Reliance Home Finance fell as much as 4.5 percent. Shares of HDFC, Can Fin Homes and DHFL fell as much as 1 percent each.
Besides, shares of PNB Housing Finance fell as much as 3.4 percent to hit an all-time low at Rs 594.
Yes Bank Extends Fall; Shares Drop Over 12%
Shares of Yes Bank extended opening declines and fell as much as 12.2 percent the most since Aug. 22, to Rs 56.30.
About 21.3 lakh shares of Yes Bank changed hands in two large trades at around 12:15 p.m., Bloomberg data showed. Buyers and sellers were not known immediately.
Care Ratings cut Morgan Credits’ bonds to BBB- with outlook ‘Stable’, according to its statement. Morgan Credits’ primary source of income is dividends from Yes Bank, the statement added.
The company, along with associate firms and individuals held 10.62 percent stake in Yes Bank as of March 31, Care Ratings said.
Media Shares Decline; Dish TV Falls Nearly 9%, Zee Down 8%
The NSE Nifty Media Index fell over 4 percent, led by the slump in Dish TV India and Zee Entertainment Enterprises.
While Dish TV shares of Dish TV fell as much as 9.8 percent, the most since Aug. 05, Zee Entertainment Enterprises 8.7 percent intraday, the most in over four months.
Mutual funds and non-banking finance companies are said to have agreed to provide additional time to the Essel Group promoters to meet repayment schedule, according to a senior mutual fund industry person aware of the development.
The official confirmed to BloombergQuint on condition of anonymity that enough time would be provided to realise adequate value from sale of assets.
The promoter owed the lenders close to Rs 11,000 crore. It received Rs 4,224 crore from sale of Zee shares to Invesco Oppenheimer. It further sold 205 MW of solar assets for an enterprise value of Rs 1,300 crore. The group is now required to pay close to Rs 5,500 crore by September. Essel Group is in the process of selling 480 MW of solar assets, six road projects and finance arm.
Market Check: Sensex Drops Over 400 Points; Nifty Near 10,700
Indian equity benchmarks were trading at day’s low.
The S&P BSE Sensex fell 1.2 percent to 36,118 as of 1 p.m. and the NSE Nifty 50 rose 1.21 percent to 10,709.40. The broader markets represented by the NSE Nifty 500 Index fell 1.22 percent.
The 31-share index is nearly 100 points away from wiping out 2019 gains.
Global Markets Update: U.S. Futures Decline
U.S. stock futures dipped and European contracts were little changed as investors assessed the outlook for growth following the Federal Reserve’s interest-rate cut.
- Futures on the S&P 500 Index slid 0.3 percent.
- Japan’s Topix index rose 0.6 percent after gaining as much as 1.2 percent earlier.
- Hong Kong’s Hang Seng fell 1.1 percent.
- The Shanghai Composite climbed 0.2 percent.
- South Korea’s Kospi added 0.4 percent.
- Euro Stoxx 50 futures fell 0.1 percent.
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Source: Bloomberg
Large Trade Alert: Yes Bank
About 21.3 lakh shares of Yes Bank changed hands in two large trades, Bloomberg data showed. Buyers and sellers were not known immediately.
Market Check: Sensex, Nifty Trade Lower
Indian equity benchmarks continued to trade lower.
The S&P BSE Sensex fell 0.76 percent to 36,284 as of noon and the NSE Nifty 50 fell 0.75 percent t 10,758.75. The broader markets represented by the NSE Nifty 500 Index fell 0.72 percent.
Madhav Infra Swings After Winning Orders
Shares of Madhav Infra Projects fluctuated between gains and losses to trade 1.7 percent higher at Rs 183.
The company received letter of acceptance for orders worth Rs 161.3 crore from Maharashtra Government for improvement of road and was awarded a contract worth Rs 96.4 crore from Energy Efficiency Services for building and maintaining 35-megawatt solar power generating system.
The Relative Strength Index was above 70, indicating that the stock may be overbought.
Reliance Capital Falls 6%; Reliance Nippon Gains Nearly 3%
Shares of Reliance Capital fell as much as 5.7 percent to Rs 33.10, while shares of Reliance Nippon Life Asset Management Company rose as much as 2.5 percent to Rs 239.35.
Reliance Capital, yesterday, clarified in a stock exchange notification that no pledged shares of Reliance Nippon Life Asset Management have been invoked by any lender.
“Further, borrowings covered under the pledged RNAM shares are matched by the cash amounting to about Rs 1,600 crore lying in escrow under tripartite agreements signed between the parties,” the statement added.
Oil Marketers Decline As Crude Gains
Shares of the oil marketing companies declined as Asia’s crude benchmark—Brent crude rose 0.2 percent to $63.74 a barrel.
Sectoral Indices Check: Nifty Media Index Worst NSE Sectoral Performer
All the 11 sectoral gauges compiled by National Stock Exchange traded lower, led by the Sen nifty Media Index’s 2.57 percent fall.
Market Check: Sensex, Nifty At Day’s Low
Indian equity benchmarks were at day’s low.
The S&P BSE Sensex fell as much as 0.98 percent to 36,205.35 and the NSE Nifty 50 fell as much as 1 percent to 10,732.70. The broader markets represented by the NSE Nifty 500 Index fell as much as 0.98 percent.
Lupin Falls Drug Regulator Issues Warnings Letter
Shares of Lupin fell as much as 3.3 percent, the most in nearly a month, to Rs 733.75.
The U.S. FDA issued a warnings letter to the company’s Mandideep factory unit, according to its statement on the exchanges.
“Lupin is committed to addressing the concerns raised by the U.S. FDA and will work with the drug regulator to resolve these issues at the earliest. The company does not believe that the warning letter will have an impact on disruption of supplies or the existing revenue from operations of this facility,” the statement added.
IDBI Bank Approves Preferential Issue Of Capital To Government, LIC
IDBI Bank’s board, today, approved preferential issue of Capital to Government of India and Life Insurance Corporation of India aggregating up to Rs 4,557 crore and Rs 4743 crore respectively, according to its stock exchange filing.
The deal is subjected to regulatory and shareholders approvals, the statement added.
F&O Check: Nifty 10,800 Call Option Slumps 83%
Nifty’s 10,800 call option contract was among the most active Nifty option contracts on National Stock Exchange.
Premium on the weekly contract, which is set to expire today, fell 83 percent to Rs 11.45. Over 27.97 lakh shares were added to the open interest which stood at over 37.14 lakh shares.
IIFL Wealth Lists On Bourses; Shares Gain 5%
IIFL Wealth Management Ltd., which was hived off from the Fairfax-backed IIFL Group, was listed separately on the exchanges and started trading at Rs 1,210 per share. The stock rose as much as 5 percent thereafter.
The opening price was much higher than what brokerages had estimated. Broking firm Kotak Securities pegged the wealth manager’s fair value at Rs 1050 per share valuing the business at 2.7 times its Sept 2021 book value while Antique estimated it between Rs 800 and Rs 1,000 piece.
Market Check: Sensex Fall Over 200 Points; Nifty Below 10,800
Indian equity benchmarks declines, led by the fall in ICICI Bank Ltd. and Infosys Ltd.
The S&P BSE Sensex fell 0.62 percent to 36,337 as of 10 a.m. and the NSE Nifty 50 fell 0.65 percent to 10,768. The broader markets represented by the NSE Nifty 500 Index fell 0.64 percent.
HAL Jumps The Most In Over A Month
Shares of Hindustan Aeronautics rose as much as 6.3 percent, the most since Aug. 14, to Rs 776. The stock extended gains for the second consecutive trading session.
Trading volume was almost 60 times its 20-day average, Bloomberg data showed. The Relative Strength Index was above 70, indicating that the stock may be overbought.
Of the shares traded, 40 percent were at the ask price and 33 percent were at the bid, according to Bloomberg data. The scrip traded at 13 times its estimated earnings per share for the coming year.
Yes Bank Worst Performer On Sensex, Nifty
Shares of Yes Bank extended declines for the fourth consecutive trading session. The stock fell as much as 5.5 percent to Rs 60.60.
Care Ratings cut Morgan Credits’ bonds to BBB- with outlook ‘Stable’, according to its statement. Morgan Credits’ primary source of income is dividends from Yes Bank, the statement added.
The company, along with associate firms and individuals held 10.62 percent stake in Yes Bank as of March 31, Care Ratings said.
The stock was the worst performer on Sensex and Nifty.
Vodafone Idea Surges 17%
Shares of Vodafone Idea rose as much as 16.7 percent, the most in over a month, to Rs 5.66.
Trading volume was more than two times its 20-day average, according to Bloomberg data. Of the shares traded, 33 percent were at the ask price and 33 percent were at the bid.
The stock declined 10 percent in the past five days and fell 17 percent in the past 30 days.
Reliance Communications Gains After Founders’ Stake Drops
Shares of Reliance Communications rose as much as 5.6 percent to Rs 0.95.
The Founders Group, which includes Anil Ambani, family members and some group firms’ stake in the company fell to 10.5 percent from 22 percent earlier as lenders invoked pledged shares on Sept. 16, according to its stock exchange notification.
The stock declined 94 percent in the past 12 months compared to 2 percent decline in the Sensex, according to Bloomberg data.
Opening Bell: Sensex, Nifty Open Lower
Indian equity benchmarks opened lower, led by the declines in ICICI Bank Ltd. and Infosys Ltd.
The S&P BSE Sensex fell as much as 0.33 percent to 36,444.94 and the NSE Nifty 50 fell as much as 0.33 percent to 10,804.90. The broader markets represented by the NSE Nifty 500 Index fell as much as 0.25 percent.
The market breadth was tilted in favour of sellers. About 759 stocks declined and 657 shares advanced on National Stock Exchange.
Nine out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Media Index’s 1 percent fall. On the flipside, the NSE Nifty Pharma index was the top sectoral gainer, up 0.11 percent.
Your Complete F&O Trade Setup
September Futures
- Nifty Sept. futures closed at 10,855, premium of 14.8 points versus 15.9 points.
- Nifty futures open interest down 3.3 percent, sheds 5.9 lakh shares in open interest.
- Bank Nifty Sept. futures closed at 27,193, premium of 20.4 points versus 8.4 points.
- Bank Nifty futures open interest down 2.9 percent, sheds 44,000 shares in open interest.
Options
- Nifty PCR at 1.02 versus 0.98 (across all series).
Nifty Weekly Expiry: Sept. 19
- Max open interest on call side at 11,000 (29.5 lakh shares).
- Max open interest on put side at 10,800 (18.8 lakh shares).
- open interest addition seen at 10,700P (+4.4 lakh shares), 10,900C (+3.8 lakh shares).
Nifty Monthly Expiry: Sept. 26
- Max open interest on call side at 11,000 (34.8 lakh shares).
- Max open interest on put side at 10,800 (37.3 lakh shares).
BQ Heads-Up: How ADRs Fares Last Night
Bond Market Update: 10-Year Yield Falls Four Basis Points
The yield on the 10-year note fell as much as four basis points to 6.58 percent.
Money Market Update: Rupee Opens Lower
The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.2 percent to 71.37 against the greenback.
Pre-Market Check: Sensex, Nifty Set To Open Higher
Indian equity benchmarks are set to open higher.
The S&P BSE Sensex rose 0.7 percent to 36,788.60 during the pre-market and the NSE Nifty 50 rose 0.13 percent to 10,853.
Global Cues: U.S. Stocks Ends Flat; Crude Cools Further
- The S&P 500 Index ended little changed, wiping out a drop that at one point reached the biggest in four weeks, as Fed Chair Jerome Powell promised at a press conference to be vigilant against any signs of economic slowdown.
- Federal Reserve policy makers lowered their main interest rate for a second time this year and Chairman Jerome Powell said that “moderate” policy moves should be sufficient to sustain the U.S. expansion.
- Crude declined as investors shifted attention to a speedy return of Saudi Arabia’s crude production amid signals that global inventories are plentiful.
- Gold posted a third straight gain. The precious yellow metal surged to a six-year high earlier this month as a persistent trade war between the U.S. and China slowed global growth.
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Insider Trading: Anant Raj, Godrej Industries, Tata Power, HEG
- Godrej Industries promoter group Anamudi Real Estates acquired 44,000 shares from Sept. 11-12.
- Tata Power promoter Tata Sons acquired 3.4 crore shares from Sept. 12-16.
- HEG promoter RSWM sold 3.7 lakh shares from Sept. 16-17.
- Anant Raj promoter Amar Sarin acquired 1.15 lakh shares on Sept. 13.
Trading Tweaks: Automobile Corporation of Goa, DCM, HDFC Bank
- HDFC Bank ex-date for face value split from Rs 2 to Re 1 per share.
- Automobile Corporation of Goa ex-date for share buyback.
- DCM, Kridhan Infra, Man Industries, IL&FS Investment Managers to move into short term ASM Framework.
- Prabhat Dairy, Prakash Industries, Puravankara, Bliss GVS Pharma to move out of short term ASM Framework.
- Madhav Infra Projects price band revised to 20 percent.
Stocks To Watch: Allahabad Bank, Future Retail, NCC, Oriental Bank of Commerce
- Reliance Capital and Reliance Nippon: No pledged shares of Reliance Nippon have been invoked by any lender. The borrowings covered under the pledged Reliance Nippon Life Asset Management shares are matched by cash amounting to approximately Rs 1,600 crore lying in escrow under tripartite agreements signed between the parties.
- Allahabad Bank to link retail and ministry of micro, small and medium enterprises loans with repo rate and three-month Mumbai Interbank Offer Rate as benchmark rates. Savings Bank deposit of Rs 40 lakh and above, Long Tenure Fixed Deposit, Bulk Deposit and Flexi-Fix Deposit to be linked with Repo Rate. Changes to be made effective from Oct. 1.
- Oriental Bank of Commerce: ICRA has revised its rating on bonds from stable to rating watch with positive implications in view of the proposed amalgamation of Oriental Bank of Commerce and United Bank of India into Punjab National Bank.
- Jindal Stainless allotted 80 lakh shares to promoter group entity at Rs 35.65 aggregating to total of Rs 28.6 crore. Promoter holding in the company will increase to 67.8 percent versus 67.3 percent.
- Himachal Futuristic Communications clarified that no pledge has been created on any additional share. The existing pledge of 3 crore shares has been now extended in favour of ICICI Bank along existing pledgees to secure the enhanced and sanctioned working capital facilities to extent of Rs 1,130 crore and in favour of project specific lenders of the company, Union Bank of India and Yes Bank to secure project specific facilities to extent of Rs 370 crore.
- Central Bank of India to consider raising Tier II Capital on Sept. 21.
- Future Retail: Pledged additional 0.4 percent stake with Edelweiss Finvest and ECL Finance.
- NCC: Aditya Birla Sun Life MF acquired additional 2.16 percent stake in the company on Sept. 13.
- Madhav Infra Projects received letter of acceptance for orders worth Rs 161.3 crore from Maharashtra Government for improvement of road and was awarded a contract worth Rs 96.4 crore from Energy Efficiency Services for building and maintaining 35 MW of solar power generating system.
- South Indian Bank revised its MCLR across various tenors with effect from Sept. 20. One-month MCLR at 8.6 percent and one-year MCLR at 9.25 percent.
- J Kumar Infraprojects: Porinju Veliyath led Equity Intelligence increased the stake from 4.89 percent to 5.02 percent.
New Listing
- IIFL Wealth Management to be listed on the bourses.
Nifty Futures Suggests Tepid Start; Asian Stocks Advance
Good Morning!
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.07 percent to 10,8847 as of 7:30 a.m.
Stocks in Asia climbed amid optimism that central bankers are moving to support the global economy.
Japan’s Topix rose more than 1 percent after the yen hit the weakest level since early August. The yen recouped some of the recent losses Tuesday. Hong Kong shares opened lower, while Chinese stocks were little changed.
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