Market Updates: Sensex settles 709 points lower at 33,538 on global sell-off

Nifty slides 214 points to 9,902

 

3:40 pm

Closing bell

Equity benchmark Sensex plunged 709 points on Thursday, led by losses in Reliance Industries, HDFC Bank and ICICI Bank, as a sell-off in global equities hit investor sentiment.

After touching a low of 33,480.42, the 30-share index settled 708.68 points, or 2.07 per cent, lower at 33,538.37.

Similarly, the broader NSE Nifty tanked 214.15 points, or 2.12 per cent, to close at 9,902.

SBI was the top laggard in the Sensex pack, dropping over 5 per cent, followed by Sun Pharma, Maruti, Bajaj Finance, Tata Steel, Axis Bank and ICICI Bank.

On the other hand, IndusInd Bank, Hero MotoCorp and PowerGrid were among the gainers.

According to Narendra Solanki, Head- Equity Research (Fundamental) at Anand Rathi, the Indian market settled lower tracking negative global cues after the US Fed signalled a likely delay in economic recovery and concerns about a second wave of coronavirus cases.

The US central bank kept its benchmark short-term rate at near zero, and said nearly all its policymakers foresee no rate hike through 2022.

The Fed also said it will keep buying bonds to maintain low borrowing rates and support the US economy mired in deep recession with high unemployment following the Covid-19 crisis.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul settled up to 3 per cent lower. Stock exchanges in Europe, too, opened with significant losses.

International oil benchmark Brent crude futures fell 2.85 per cent to $40.54 per barrel.

On the currency front, the rupee depreciated 20 paise to provisionally close at 75.79 against the US dollar.

 

3:15 pm

Benchmark indices down over 2 per cent each

The benchmark indices, BSE Sensex and NSE Nifty, extended their losses to over 2 per cent ahead of the close on Thursday.

The 30-share benchmark was down 762 points or 2.23 per cent at 33,484. The Nifty dropped 224 points or 2.22 per cent to 9,891.

The top gainers on the Sensex were IndusInd Bank, Hero MotoCorp, Power Grid, Nestle India and M&M. The laggards were SBI, Sun Pharma, Maruti, Bajaj Finance and Tata Steel.

 

 

 

3:05 pm

European shares slide on Fed outlook, worries of new virus cases

File Photo   -  Bloomberg

 

European shares moved further away from their three-month peak on Thursday after a downbeat economic outlook from the US Federal Reserve and on worries of a second wave of Covid-19 cases.

The pan-European STOXX 600 fell 2.5 per cent, its fourth straight day of decline, with travel and leisure stocks sliding 4.3 per cent on fears of a further hit to demand.

TUI, Carnival Corp and British Airways-owner IAG were the top decliners on the STOXX 600. Click here to read more.

 

2:45 pm

Rupee settles 20 paise lower at 75.79 against US dollar

 

The rupee depreciated 20 paise to provisionally close at 75.79 against the US dollar on Thursday as strengthening US dollar and weak domestic equities weighed on investor sentiment.

Forex traders said risk appetite remained weak as the US Federal Reserve projected weak growth for 2020. Moreover, foreign fund outflows also dented the market mood.

The rupee opened weak at 75.81 at the interbank forex market and recovered some lost ground to close at 75.79 against the US dollar, down 20 paise over its last close. Click here to read the rupee report in full.

 

2:20 pm

Benchmark indices drop lower

The benchmark indices, which opened Thursday's session in the red, have been declining since the open.

The Sensex plunged nearly 600 points or 1.73 per cent to 33,654, while the Nifty dropped 168 points or 1.67 per cent to 9,947.

The top gainers on the Sensex were IndusInd Bank, Hero MotoCorp, Power Grid, M&M and Nestle India. The laggards were SBI, Sun Pharma, Tech Mahindra, Axis Bank and ICICI Bank.

 

 

2:05 pm

Nifty call: Go short on rallies with fixed stop-loss at 10,055 levels

 

Taking cues from the weak Asian markets, the Sensex and Nifty began the session with a gap-down open and continued to trend downwards. The Nikkei 225 has slumped 2.8 per cent to 22,472 and the Hang Seng index has declined 1.9 per cent to 24,566 levels. The Sensex and the Nifty have fallen about 1.2 per cent each. The market breadth of the Nifty index is biased towards declines. Click here to read in full the Nifty call report.

 

1:40 pm

SBI to recruit CFO; offers annual package of ₹1 cr

The country’s largest lender State Bank of India (SBI) has invited applications from eligible candidates for the post of Chief Financial Officer (CFO) on contract basis at a salary package of ₹1 crore, three times more than its chairman’s. Click here to read in full the report on SBI to recruit CFO

1:20 pm

Petrol, diesel prices hiked by 60 paise/litre each

Petrol and diesel prices on Thursday were hiked by 60 paise per litre each - the fifth straight daily increase in rates since oil PSUs ended an 82-day hiatus in rate revision.

https://www.thehindubusinessline.com/economy/petrol-diesel-prices-hiked-by-60-paiselitre-each/article31800864.ece?homepage=true

 

1:05 pm

“The current market rally is only technical, not fundamental,” Shankar Sharma of First Global

Shankar Sharma, the Vice Chairman and Joint MD of First Global, has a wide following in India's stock market. Sharma gave an email interview to Business Line. Click here to read more.

 

12:50 pm

Covid-19: India records highest single-day spike of 9,996 cases, 357 fatalities

The death toll due to Covid-19 rose to 8,102 and the number of cases climbed to 2,86,579 in the country after it registered the highest single-day spike of 357 fatalities and 9,996 cases till Thursday 8 am, according to the Union Health Ministry data. Click here to read more on the Covid cases in the country.

 

12:30 pm

Sensex, Nifty drop over 1 per cent each

The benchmark indices extended their losses, dropping over 1 per cent by mid-session on Thursday.

Sensex was at 33,858, down 389 points or 1.14 per cent lower. Nifty skidded 1 per cent or 102 points to 10,013.

The top gainers on the Sensex were IndusInd Bank, Nestle India, Hero MotoCOrp, M&M and Bajaj Auto. The laggards were Sun Pharma, ICICI Bank, Tech Mahindra, Kotak Bank and Axis Bank.

Almost all the BSE sectoral indices were in the negative zone.

Banking stocks fell 1.71 per cent, finance 1.35 per cent and metals 1.38 per cent each.

 

 

 

12:15 pm

Dollar bounces as Fed outlook frightens investors

File Photo   -  Reuters

The dollar bounced against riskier currencies and the safe-haven yen hit a one-month high on Thursday as the US Federal Reserve's dour economic outlook spooked investors.

The moves recouped the greenback's initial losses after the Fed's policy stance, projecting rates near zero for years, was welcomed as a sign of its continued support for asset prices. Click here to read in full the global forex markets.

 

12;00

Oil prices drop on concerns about patchy demand recovery, record US stocks

 

Oil prices fell by about 4 per cent on Thursday on worries about slow demand growth as coronavirus cases rise, with US crude stockpiles hitting an all-time high and the US Federal Reserve saying recovery from the pandemic could take years.

Brent crude futures fell 3.4 per cent, or $1.42, to $40.31 a barrel by 0600 GMT, erasing Wednesday's gains. Earlier in the session, Brent was down as much as $1.53, or 3.7 per cent.

US West Texas Intermediate (WTI) crude dropped 4 per cent, or $1.60, to $38 a barrel, after being down earlier as much as $1.69, or 4.3 per cent. Click here to read more on the global oil markets report.

11:40 am

Asia stocks snap winning streak, bonds rally on downbeat Fed

MSCI's broadest index of Asia-Pacific shares outside Japan was up 1.08 per cent at its highest since August 2, while the Shanghai composite index surged 1.7 per cent. Japan's Nikkei added 2.4 per cent. File Photo   -  Bloomberg

 

Asian shares retreated on Thursday as a gloomy outlook from the US Federal Reserve challenged market optimism on the global economy, while bonds rallied on speculation that yet more stimulus would be needed to ensure recovery.

After a slow start, MSCI's broadest index of Asia-Pacific shares outside Japan slipped 1.4 per cent, likely putting an end to a 10-session winning streak. Japan's Nikkei slid 2.1 per cent in its largest daily loss in five weeks, while Chinese blue chips eased 1.0 per cent. Click here to read more on the global markets.

 

11:15 am

Daily Rupee call: Rupee could witness intra-day decline

 

The rupee (INR) opened Thursday’s session lower at 75.8 versus its previous close of 75.59 against the dollar (USD). The local currency has thus slipped below support at 75.6, opening the door for more weakening.

On the downside, immediate support can be spotted at 75.8, below which the support is at 76. But if the rupee strengthens and moves above 75.6, it might appreciate to 75.3. Above that level, resistance is at 75.15.

Yesterday, the rupee closed flat even as Foreign Portfolio Investors (FPI) were net sellers. The net outflow stood at nearly Rs 920 crore (equity and debt combined). Click here to read in full the Daily Rupee Call report.

10:55 am

Rupee slips 23 paise to 75.82 against US dollar in early trade

 

The rupee depreciated 23 paise to 75.82 against the US dollar in opening trade on Thursday as a strengthening US dollar and a weak opening of the domestic equity market weighed on investor sentiment.

Forex traders said risk appetite could remain weak as the US Federal Reserve is projecting weak growth for 2020. Moreover, foreign fund outflows also dented the market mood.

The rupee opened weak at 75.81 at the interbank forex market and fell further to 75.82 against the US dollar, down 23 paise over its last close. It had settled at 75.59 against the US dollar on Wednesday.

The US Fed has cut its benchmark short-term rate to near zero and said it would keep interest rates low through 2022. Click here to read more on the rupee movement.

 

 

10:35 am

Fed's gloomy outlook steadies dollar slide, for now

File Photo   -  Reuters

 

The dollar steadied against riskier currencies and the safe-haven yen hit a one-month high on Thursday, as the US Federal Reserve's dour economic outlook spooked investors.

The moves arrested the greenback's initial slide after the Fed's policy stance, projecting rates near zero for years, was even more accommodative than expected. Click here to read more on the global forex markets.

10:15 am

Oil prices drop on concerns about patchy demand recovery, record US stocks

 

Oil prices fell more than 2 per cent on Thursday on worries about slow demand growth with coronavirus cases rising, US crude stockpiles hitting an all-time high and the US Federal Reserve projecting recovery from the pandemic would take years.

US West Texas Intermediate (WTI) crude futures erased gains from Wednesday, falling as low as $38.42 a barrel. The benchmark contract was down 2.5 per cent, or 99 cents, at $38.61 at 0211 GMT. Brent crude futures fell 2.2 per cent, or 92 cents, to $40.81 a barrel, also giving up gains from Wednesday. Click here to read in full the global oil markets report. Click here to read more.

9:55 am

Sensex, Nifty range-bound

The benchmark indices maintained their weak trend in morning trade on Thursday.

Sensex was down 153 points or 0.45 per cent at 34,093. Nifty was down 42 points or 0.42 per cent at 10,073.

The top gainers on the Sensex were IndusInd Bank, Hero MotoCorp, ONGC, Axis Bank and Bharti Airtel, while the laggards were Sun Pharma, Titan, Tata Steel, TCS and Infosys.

According to a PTI report, the Sensex tumbled over 200 points in early trade dragged by losses in HDFC Bank, Reliance Industries, Infosys and Kotak Bank amid foreign fund outflows and weak global cues.

In the previous session, the BSE barometer settled 290.36 points, or 0.86 per cent, higher at 34,247.05, and the broader Nifty climbed 69.50 points, or 0.69 per cent, to 10,116.15.

On a net basis, foreign institutional investors sold equities worth Rs 919.26 crore in the capital market on Wednesday, provisional exchange data showed.

According to analysts, the market started on a negative note amid foreign fund outflows and weak cues from global markets after the US Federal Reserve policy outcome.

The US central bank on Wednesday cut its benchmark short-term rate to near zero, and said nearly all its policymakers foresee no rate hike through 2022.

It also said it will keep buying bonds to maintain low borrowing rates and support a US economy mired in a deep recession with high unemployment.

Stock exchanges on Wall Street ended on a mixed note in overnight trade.

Bourses in Hong Kong, Tokyo and Seoul were in the red, while those in Shanghai were trading with gains.

International oil benchmark Brent crude futures fell 2.66 per cent to $40.62 per barrel. (with inputs from PTI)

 

9:45 am

Manappuram Finance to raise up to Rs 250 crore via debentures

Manappuram Finance on Wednesday said that it plans to raise up to Rs 250 crore through non-convertible debentures.

In a regulatory filing, Manappuram Finance informed stock exchanges that the “financial resources and management committee of its board of directors has approved the issuance of the private placement of rated, secured, redeemable non-convertible debentures up to Rs 250 crore”.

Shares of the lender were trading at Rs 141.90 a piece on Bombay Stock Exchange (BSE) in morning trade, up 2.09 per cent from their previous close. - PTI

 

9:35 am

Asian stock rush pauses, bonds rally on sober Fed

MSCI's broadest index of Asia-Pacific shares outside Japan was up 1.08 per cent at its highest since August 2, while the Shanghai composite index surged 1.7 per cent. Japan's Nikkei added 2.4 per cent. File Photo   -  Bloomberg

 

Asian shares eased on Thursday, while bonds rallied after a downbeat economic outlook from the US Federal Reserve stoked speculation it would have to add to already historic levels of stimulus to safeguard recovery.

Still, stock losses were modest given the scale of their recent rise. MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.3 per cent, a natural pause after 10 straight sessions of gains. Japan's Nikkei slipped 1.1 per cent as the yen firmed, while Chinese blue chips were off 0.4 per cent. E-Mini futures for the S&P 500 fell 0.4 per cent. Click here to read in full the global markets report.

9:15 am

Opening bell

Benchmark indices, BSE Sensex and NSE Nifty, opened Thursday on a weak note. The Sensex was down 190 points or 0.56 per cent at 34,056, while the Nifty skidded 57 points or 0.57 per cent to 10,058.

 

9:10 am

Day Trading Guide for Thursday, June 11, 2020

₹991 • HDFC Bank

S1

S2

R1

R2

COMMENT

980

964

1005

1020

Fresh long positions are recommended with a tight stop-loss if the stock gains above ₹1,005 levels

 

₹715 • Infosys

S1

S2

R1

R2

COMMENT

708

700

722

730

Consider initiating fresh long positions with a fixed stop-loss only if the stock of Infosys advances above ₹722 levels

 

₹199 • ITC

S1

S2

R1

R2

COMMENT

195

192

202

205

Fresh long positions can be initiated with a stiff stop-loss only if the stock of ITC jumps above ₹202 levels

 

₹88 • ONGC

S1

S2

R1

R2

COMMENT

85

82

91

93

Make use of intra-day rallies to initiate fresh short positions while retaining a stiff stop-loss at ₹91 levels

 

₹1572 • Reliance Ind.

S1

S2

R1

R2

COMMENT

1555

1540

1590

1610

Initiate fresh long positions with a fixed stop-loss only if the stock of RIL rallies above ₹1,590 levels

 

₹187 • SBI

S1

S2

R1

R2

COMMENT

183

178

194

200

Fresh long positions can be initiated with a tight stop-loss if the stock of SBI rebounds up from ₹183 levels

 

₹2108 • TCS

S1

S2

R1

R2

COMMENT

2085

2060

2130

2150

Make use of intra-day dips to buy the stock of TCS while maintaining a stiff stop-loss at ₹2,085 levels

 

10118 • Nifty 50 Futures

S1

S2

R1

R2

COMMENT

10050

10000

10170

10230

As long as the contract trades above 10,050 the near-term stances stays positive. Buy on dips with a fixed stop-loss

 

S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2.

 

9:00 am

Today's Pick: Ujjivan Financial Services (₹211.1): Buy

BL21_Buy_sell_dices

 

The stock of Ujjivan Financial Services jumped 7.6 per cent accompanied by above average volume on Wednesday, breaking above a key resistance level of ₹200. This rally provides investors with a short-term view an opportunity to buy the stock at current levels. Click here to read in full Today's Pick on Ujjivan Financial Services

 

 

Published on June 11, 2020