Sensex ends down 470 points at 36,093, YES Bank drops 15%

India’s stock futures and currency slid. File Photo   -  BusinessLine

Nifty closes at 10,704, down 135 points

 

3:30 pm

Closing bell

The benchmark indices, the BSE Sensex and the NSE Nifty, ended down but off their earlier lows by the close on Thursday.

The Sensex closed at 36,093, down 470 points or 1.29 per cent lower. The Nifty finished at 10,704, representing a loss of 135 points or 1.25 per cent lower than its overnight close.

Tata Motors, HDFC Bank, Bharti Airtel and Asian Paints were the only stocks in the Sensex pack to close in the green. YES Bank dropped 15.52 per cent during the day, while Tata Steel dropped 3.66 per cent. IndusInd Bank (down 3.59 per cent), ICICI Bank (down 3.29 per cent) and Maruti (down 2.55 per cent) were among the other notable losers on the 30-share benchmark.

Among the BSE sectoral indices, energy sector shares lost 2 per cent, while oil and gas sector shares lost 1.94 per cent. Banking sector shares were down 1.69 per cent, while realty and metal shares dropped 1.62 per cent.

3:15 pm

Not all agri-loans are for agriculture, many are diverted

File photo   -  THE HINDU

 

The Centre has been raising the agriculture lending target year after year. But there are still several weak links to the sizeable flow of credit to agriculture. Diversion of agriculture loans for non-agriculture purposes is one such key issue that needs immediate attention. According to the RBI's recent report of the internal working group on agriculture credit, in some of the states, said that agri-credit is far higher than their agri-GDP, indicating the possibility of diversion of credit for non-agricultural purposes. Click here to read in full the report on diversion of agri loans.

2:50 pm

Sensex, Nifty plunge lower

The benchmark indices, the BSE Sensex and NSE Nifty, extended their losses in late session on Thursday.

Ahead of the close, the Sensex was at 36,022, down 541 points or 1.48 per cent lower, while the Nifty was at 10,678, representing a loss of 162 points or 1.50 per cent.

On the 30-share barometer, Tata Motors, Bharti Airtel and Asian Paints were the only stocks in the green. The laggards were led by YES Bank, which dived 15 per cent. Tata Stel, IndusInd Bank, ICICI Bank and Vedanta were among the other notable losers, dropping between 3-4.5 per cent.

All the BSE sectoral indices with the exception of telecom were in negative territory ahead of the close. The metals index lost over 2 per cent during the day, followed by oil and gas and energy (down 1.86 per cent), basic materials (down 1.85 per cent), banking (down 1.79 per cent) and realty (down 1.59 per cent).

2:40 pm

Bank rally leads European stocks higher

The pan-European STOXX 600 index gained 0.2 per cent, with lender-heavy Milan and Madrid outperforming. File Photo   -  Bloomberg

 

A rally in bank stocks for the first time in four sessions lifted European shares on Thursday, after the US Federal Reserve cut interest rates but set a higher bar for further reductions.

European banks rose 1.4 per cent, the most among the major sectors, also benefiting from investors rotating into under-performing stocks. Banks are the only major sector in the red so far this year.

Central banks around the world have been loosening monetary policy to stem a slowdown in economic growth. Last week, the European Central Bank cut interest rates deeper into negative territory and asked governments to do more to prop up the euro zone economy. Click here to read in full the European markets report.

2:25 pm

Oil prices settle after turbulent week as Saudi Arabia reassures on output

US crude stocks rose last week. File Photo   -  Reuters

 

Oil prices edged higher in Asian trade on Thursday after days of turbulence, with markets soothed by Saudi Arabia's pledge to restore full production by end-September at facilities knocked out in drone and missile attacks last weekend.

Brent crude futures rose 24 cents to $63.84 a barrel by 0634 GMT, while US West Texas Intermediate (WTI) crude was up 21 cents to $58.32 a barrel.

The steadying of nerves came after Saudi Arabia set out the timeline to resume full operations, and also said it had managed to restore supplies to customers at levels prior to the attacks by drawing from its oil inventories. Click here to read in full the global oil markets report.

2:15 pm

Yen rallies after BoJ keeps policy steady

The greenback gained against major currencies except for the Japanese yen, which posted its sharpest daily rise in almost a month on some safe-haven buying. File photo

 

The Japanese yen rallied on Thursday after the Bank of Japan kept interest rates on hold, while the dollar struggled to move higher despite the Federal Reserve offering mixed signals about the path for further easing.

Elsewhere, the Norwegian crown is in focus as the central bank meets - the forecast is for the Norges bank to hike rates - while in Britain the Bank of England gives its policy decision later amid prolonged uncertainty about the Brexit outcome. Click here to read in full the report on yen rallies after BoJ keeps policy steady.

1:55 pm

YES Bank: Bears take charge again

 

After recovering from a low of ₹55 at the beginning of the month and rallying to ₹72 levels, YES Bank has come under pressure once again. Over the past week, it reached a low of ₹61.7, before closing at ₹64.1 on Wednesday.

In today’s session, the stock has come under the bear grip again, as it tumbled to an intra-day low of ₹57.35. After starting the session at ₹64.5, it has lost 10.5 per cent so far today. It is currently hovering around a key level of ₹57.

If the stock price breaks below this level, it can further slump towards ₹55 levels, below which the support is at the psychological level of ₹50.

Supports: ₹55 and ₹50

Resistances: ₹60 and ₹64

1:30 pm

Millennials not speed bumps but drivers of auto sales: Industry experts

 

Not only do millennials account for a significant part of automobile companies’ sales, but their contribution to sales have also increased over the past five years, according to industry experts and auto companies. Click here to read in full how millennials are drivers of auto sales.

12:55 pm

Asian shares decline on guarded Fed

The yen rose around 0.3 per cent to 108.14 per dollar. File Photo   -  Bloomberg

 

Asian shares extended declines on Thursday after the US Federal Reserve signalled a higher bar to further easings, while the Bank of Japan also held off from offering more stimulus as some had hoped.

The Fed cut rates for the second time this year as global growth risks intensified, forcing policy-makers around the world to step up efforts to stimulate their economies. Earlier in the day, the BoJ kept policy steady as expected, though there were some expectations the Japanese central bank would ramp up its already massive stimulus.

Asian equities were already on the back foot after Fed Chairman Jerome Powell took a more guarded approach to any further reductions in borrowing costs. Click here to read in full the Asian markets report.

12:40 pm

Nifty call: Sell on rallies with stop loss above 10,800

 

Nifty 50 September futures (10,770)

The Nifty index opened on a weak note on Thursday. It has moved below an important level of 10,800, and is currently trading lower by 0.8 per cent. Likewise, the Sensex is also trading lower by 0.8 per cent. The Asian markets offered mixed signals, with the Nikkei gaining 0.5 per cent, but the Hang Seng dropping by 1.1 per cent. Click here to read in full the Nifty call report.

12:20 pm

Sensex, Nifty down sharply

The benchmark indices, the BSE Sensex and the NSE Nifty, dropped nearly 1 per cent by mid-session on Thursday.

The Sensex fell 350 points or 0.96 per cent to 36,224, while the Nifty skidded 106 points or 0.98 per cent to 10,734.

In the Sensex pack, Bharti Airtel was the top gainer, rising 1.56 per cent, followed by Tata Motors (up 1.35 per cent), Asian Paints (0.89 per cent), Maruti (0.14 per cent) and HDFC (0.10 per cent).

The laggards were YES Bank, which fell over 8 per cent, followed by Tata Steel down 3.49 per cent, ICICI Bank (2.32 per cent), Vedanta (2.28 per cent) and HCL Tech (down 2.21 per cent).

 

11:45 am

Fed's cautious cut supports dollar

The greenback gained against major currencies except for the Japanese yen, which posted its sharpest daily rise in almost a month on some safe-haven buying. File photo

 

The dollar found broad support on Thursday after the US Federal Reserve cut interest rates, as expected, but offered mixed signals about future easing, while weak employment figures hit the Australian currency.

The greenback gained against major currencies except for the Japanese yen, which posted its sharpest daily rise in almost a month on some safe-haven buying. The Bank of Japan also met expectations by holding off on deeper monetary easing. Click here to read in full the global forex markets report.

11:25 am

Oil prices settle after turbulent week

US crude stocks rose last week. File Photo   -  Reuters

 

Oil prices edged higher in early Asian trade on Thursday after days of turbulence, with markets soothed by Saudi Arabia's pledge to restore full production by end-September at facilities knocked out in drone and missile attacks last weekend.

Brent crude futures rose 8 cents to $63.68 a barrel by 0139 GMT, while US West Texas Intermediate (WTI) crude was up 12 cents to $58.23 a barrel. Click here to read in full the oil markets report.

 

11:10 am

Asian shares turn lower on guarded Fed

The yen rose around 0.3 per cent to 108.14 per dollar. File Photo   -  Bloomberg

 

Asian shares turned lower on Thursday after the US Federal Reserve cut interest rates as expected but signalled a higher bar to further policy easings.

Treasury yields rose broadly and the curve flattened as Fed Chairman, Jerome Powell, took a cautious approach to any further reductions in borrowing costs, while division among central bankers has increased uncertainty over how much further rates might fall.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.36 per cent. Hong Kong shares shed 0.96 per cent, but Japan's Nikkei rose 1.01 per cent. Click here to read in full the Asian markets report.

10:50 am

Rupee opens 24 paise down at 71.36 against $

At the interbank foreign exchange the rupee opened at 71.47.   -  Reuters

 

The rupee opened 24 paise down at 71.36 against the American currency on Thursday after the US Federal Reserve cut its benchmark interest rate.

At the interbank foreign exchange market, the domestic currency witnessed heavy volatility in early trade. The rupee opened at 71.36 per US dollar, then touched a high of 71.15 and a low of 71.37.

On Wednesday, rupee had settled for the day at 71.24 against the US dollar.  Click here to read in full the rupee report.

10:35 am

Few midway solutions to meet the GST rate cut demand of autos

Auto sales bring in Rs 50,000-60,000 crore to the total GST kitty. Hence, across-the-board rate cuts for different segments of the industry, from 28 per cent to 18 per cent, may be too costly for the exchequer.

 

Ahead of the GST Council meeting on September 20, GST rate cuts for automobiles have virtually been ruled out. Lacklustre GST as well as the lower compensation cess collections this year do not give much fiscal room for rate cuts or alterations in the compensation cess, leaving the call to be entirely political. Click here to read in full the report on few midway solutions to meet GST rate cut demand of autos.

10:20 am

Direct tax collection picks up

Direct tax collection numbers for the half year to September have brought some cheer for the government, which is battling revenue shortfalls.

The numbers for April-September (2019-20) have edged past those from the same period last year, but they are still well short of the target. Click here to read in full the report on pick-up in direct tax collection.

10:05 am

Stocks to Watch: Som Datt Fin, Morepen Labs, RITES

Open offer: The mandatory open offer to the shareholders of Som Datt Finance Corp to acquire up to 26.02 lakh shares, or 26 per cent of the total voting equity share capital on fully diluted basis, by Kuldip Singh Rathee and Vijay Rathee at ₹14.70 a share, will open on Thursday and close on October 3.

The open offer is necessary after the acquirers had entered into a share purchase agreement with the promoters to buy 69.24 lakh shares (69.19 per cent) in the company.

Fund-raising proposal: The board of directors of Morepen Laboratories will meet on Thursday to consider and approve a fund-raising proposal through one or more modes.

The company may consider further public offer, rights issue, preferential issue of equity shares/ warrants/ fully or partly-convertible instruments to the public, investors, including institutions, promoters, promoter groups and/or their entities. Shareholders will be keen to know the quantum, mode and investors.

Fresh orders likely: RITES has signed a contract for supply of two additional fully air-conditioned diesel multiple unit train sets for $22.4 million (₹160 crore) with the Ministry of Transport and Civil Aviation, Government of Sri Lanka.

RITES has just completed supply of six DMU coaches to Sri Lanka with special features and amenities, under a previous contract, it said. The supply under the new contract will be done in FY 2020-21, it further added. The PSU stock may react positively.

9:50 am

Sensex, Nifty drop lower

The benchmark indices dropped more than 0.5 per cent each in early session on Thursday. The Sensex lost 202 points or 0.55 per cent to trade at 36,361, while the Nifty was down 57 points or 0.53 per cent at 10,782.

According to an agency report, the BSE Sensex was dragged by losses in YES Bank, TCS and Infosys, amid unabated foreign fund outflow and mixed global cues.

In the previous session, the BSE barometer ended 82.79 points, or 0.23 per cent higher at 36,563.88. Similarly, the broader NSE Nifty gained 23.05 points, or 0.21 per cent, to finish at 10,840.65.

Top losers in the Sensex pack included YES Bank, ICICI Bank, IndusInd Bank, Tata Steel, Tech Mahindra, NTPC, SBI, HCL Tech, TCS, L&T, Infosys and Axis Bank, shedding up to 4.21 per cent.

On the other hand, Tata Motors, Maruti, Asian Paints, HDFC Bank, HUL and Bharti Airtel rose up to 1.40 per cent.

According to traders, global investor sentiment turned cautious after the US Federal Reserve cut its benchmark interest rate by 25 basis points, but dimmed hopes for further rate cuts as it took a cautious approach to further reductions in borrowing costs.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading on a mixed note in their respective late morning sessions.

On Wall Street too, bourses ended on a tepid note after Fed policy outcome on Wednesday.

Sustained foreign fund outflow too weighed on market sentiment here, traders said.

On Wednesday, foreign portfolio investor sold shares worth a net of Rs 959.09 crore, while domestic institutional investors bought equities worth Rs 780.45 crore, provisional data showed.

The rupee, meanwhile, was trading flat against its previous close at 71.20 in early session.

Global oil benchmark Brent crude rose 0.11 per cent to 63.67 per barrel (intra-day). (with inputs from PTI)

9:30 am

Bank mergers: How the rushed stake sale in insurance subsidiaries may fetch low value

 

Most PSU banks have non-core investments that can be monetised to raise funds from time to time. Investments in insurance businesses, asset management companies and housing finance companies, etc, make for good value unlocking opportunities for many capital-crunched PSU banks. But the big bank mergers announced by the Centre recently can lead to a hasty sell-off of such investments, fetching unattractive price and value for PSU banks. Click here to read in full the report on how hasty stake sale of insurance arms may fetch low value for PSU banks.

9:15 am

Opening bell

The benchmark indices, the BSE Sensex and the NSE Nifty, opened in the red on Thursday. The Sensex was quoted at 36,479, down 84 points or 0.23 per cent lower, while the Nifty was at 10,821, down 19 points or 0.18 per cent lower.

9:10 am

Day Trading Guide for Thursday, September 19, 2019

Given below are supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading:

₹2186 • HDFC Bank

S1

S2

R1

R2

COMMENT

2170

2163

2200

2215

As long as the stock trades below the key level of ₹2,200, the near term view is bearish. Sell on rallies

 

₹829 • Infosys

S1

S2

R1

R2

COMMENT

824

817

837

842

Fresh long positions can be initiated with a stiff stop-loss if the stock of Infosys reverses higher from ₹824 levels

 

₹239 • ITC

S1

S2

R1

R2

COMMENT

236

233

242

245

Consider initiating fresh long positions with a fixed stop-loss only if the stock of ITC moves above ₹242 levels

 

₹127 • ONGC

S1

S2

R1

R2

COMMENT

124

121

130

133

Make use of intra-day rallies to initiate fresh short positions while maintaining a tight stop-loss at ₹130 levels

 

₹1205 • Reliance Ind.

S1

S2

R1

R2

COMMENT

1190

1175

1220

1235

Initiate fresh long positions with a stiff stop-loss only if the stock RIL climbs above ₹1,220 levels

 

₹280 • SBI

S1

S2

R1

R2

COMMENT

274

268

285

292

Fresh long positions are recommended with a fixed stop-loss only if the stock advances above ₹285 levels

 

₹2138 • TCS

S1

S2

R1

R2

COMMENT

2120

2100

2160

2180

Initiate fresh long positions with a stiff stop-loss if the stock manages to rally beyond ₹2,160 levels

 

10855 • Nifty 50 Futures

S1

S2

R1

R2

COMMENT

10800

10750

10900

10950

Fresh long positions can be initiated with a tight stop-loss only if the contract rallies above 10,900 levels

 

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

9:00 am

Today's Pick: Tinplate Company of India (₹123.5): Buy

The stock of Tinplate Company of India gained 5 per cent accompanied by above average volume on Wednesday, managing to close above the key resistance level of ₹120. Investors with a short-term perspective can buy the stock at current levels. After a medium-term downtrend, the stock recorded a 52-week low at ₹87.4 in late August this year and reversed direction. Since then, the stock has been a nascent uptrend.

While trending up, it had breached the 21- and 50-day moving averages in early September. The stock trades well above these moving averages. There has been an increase in daily volume over the past two weeks. After testing the key resistance at ₹120 for a few trading sessions, the stock appears to have managed to close above it on a strong note recently. Click here to read in full Today's Pick on Tinplate Company.

Published on September 19, 2019