Markets: Sensex ends 382 points lower at 37,068, financial sector shares slide

Closing bell

The benchmark indices, the BSE Sensex and the NSE Nifty, ended Thursday's session in the red.

The Sensex was down 382 points or 1.02 per cent lower at 37,068, while the Nifty finished at 10,948, down 97 points or 0.89 per cent weaker.

The top gainers on the Sensex were Sun Pharma, Vedanta, NTPC, ONGC and Infosys, while the laggards were SBI, YES Bank, HDFC, Axis Bank and Kotak Bank.

Metal and healthcare sector shares were the notable gainers on the BSE index. On the other hand, the 30-share benchmark was dragged down by banking and finance sector shares that lost between 1.60-2 per cent during the session.

Equity indices down 1%

T he Sensex and Nifty were down around 1 per cent ahead of the close on Thursday. The Sensex was quoting at 37,058, down 393 points or 1.05 per cent lower, while the Nifty was at 10,944, down 101 points or 0.92 per cent lowre.

The top gainers in the Sensex pack were Sun Pharma, Vedanta, NTPC, ONGC and Infosys, while the laggards were SBI, YES Bank, HDFC, M&M and Axis Bank. 

The banking and finance sector shares dragged the 30-share benchmark down, losing around 2 per cent during the session.

HDFC AMC records lifetime high; buy in dips

HDFC AMC made a new lifetime high as it zoomed past its previous high of Rs 2,370 and closed at Rs 2,392 on Tuesday. The stock continued to rally on Wednesday and has recorded a new high of Rs 2,478.8. With this upmove, the stock has broken out of the Rs 2,050 and Rs 2,330 range, implying an upcoming bullish trend.

After declining to Rs 1,305 at the beginning of the year, the stock reversed its trend and rallied strongly until July. Subsequently, after losing momentum and trading in a sideways trend for a month, the stock has once again turned bullish. The breakout of the upper band of the consolidation range has opened the door for further upside.

On Monday, the stock closed above its 20-day moving average, bouncing-off from a trendline support in the daily time frame. Also, the Relative Strength Index (RSI) stays comfortably above 50, indicating a bullish bias. Hence, one can buy the stock on dips and hold until it breaks below Rs 2,200. Short-term potential targets are Rs 2,570 and Rs 2,610.

Supports: 2,330 and 2,220

Resistances: 2,570 and 2,610

YES Bank shares tank on CG Power

Shares of Yes Bank dipped 6.5 per cent on NSE on Thursday afternoon after CG Power announced removal of its Chairman Gautam Thapar.

Read more:CG Power board sacks Chairman Gautam Thapar with immediate effect

A financial fraud worth thousands of crores has been detected at the Gautam Thapar-promoted CG Power and Industrial Solutions.

Also read:CG Power reports massive fraud

The company had earlier informed stock exchanges that an investigation by an independent law firm had found that some employees had carried out unauthorised transactions, which led to a potential understatement of not only the liabilities of CG Power but even advances to related and unrelated parties of the company and the group.

The CG Power promoters have pledged 100 per cent of their holding in the company. YES Bank holds a nearly 13 per cent stake in the company, acquired through the revocation of a pledge.

Shares of Yes Bank were down 10 per cent intraday on August 28 after Moody's downgraded lender's credit rating with a negative outlook , citing lower-than-expected capital raising. At 1.05 pm, the stocks of Yes Bank were trading 6.89 per cent lower at ₹55.40.

Upbeat trade comments help European shares

European shares rose slightly on Wednesday after five straight says of losses. File Photo

European shares rose after a weak open on Thursday, boosted by a rally in Italian shares, with positive comments from China on its trade talks with the US helping sentiment.

China's Commerce Ministry said both sides “should create conditions” for progress in negotiations and that China was against escalating the trade war and was willing to resolve the issue calmly. Click here to read in full the European markets report .

Yen firms as risk appetite fades; pound fragile

File Photo

The Japanese yen edged higher on Thursday, heading for its biggest monthly rise since May as risk appetite remained on the back foot with investors sceptical on the prospect of a trade-war breakthrough any time soon. Click here to read in full the global forex market report .

Stimulus package for auto sector ‘too little, too late’: Fitch Solutions

Finance Minister Nirmala Sitharaman’s stimulus package for the automobile sector is “too little, too late” to prevent a contraction in vehicle sales, and a cut in GST rates together with a vehicle scrappage scheme will be needed to prevent the decline, Fitch Solutions Macro Research said on Thursday.

On August 23, Sitharaman had unveiled a slew of measures to boost investor sentiment and prop up the banking and auto sectors.

The package unveiled the first of three planned stimulus packages, includes a reduction of taxes, improvement of liquidity in the banking sector (formal and shadow), increased government spending on auto and infrastructure, and accelerated refunds of goods and services tax (GST). Click here to read in full Fitch Solutions' take on auto sector stimulus measures .

Nifty Call: Sell on rallies with stop loss at 11,000

28/05/2019 MUMBAI: The new breand identity for Nifty Indices launch at the National Stock Exchange in Mumbai on May 28, 2019. Photo By. Paul Noronha

The Nifty continues to trade weak by losing 0.8 per cent and breaking below the psychological level of 11,000 in the current session. The index attempted to recover after a gap down opening.

However, the rally could not sustain, and it started to plunge. If it continues to trade below 11,000 the possibility of further sell off is more. The Sensex, which has also fallen by 0.8 per cent today, seems to be weak in line with the Nifty. Click here to read in full the Nifty call report .

Cairn Oil and Gas to spend $1 billion to boost production from Rajasthan fields

Cairn Oil and Gas, which is part of the Vedanta Group, has drawn up plans to spend over $ 1.1 billion in coming 18 months to improve the crude oil production from the Mangla, Bhagyam and Aishwarya fields in Barmer.

The announcement comes at the heels of Cairn Oil and Gas completing a decade of operations at the Mangla Processing Terminal in Barmer on Thursday. “With implementation of Alkaline Surfactant Polymer (ASP) enhanced oil recovery, we aim to increase the recovery factor from 36 per cent to over 50 per cent. This means that we will be able to extract more than half the crude oil present in the fields,” said Ajay Kumar Dixit, Chief Executive Officer at Cairn Oil and Gas. Click here to read the report on Cairn Oil and Gas to spend $1 bn to boost production from Rajasthan fields .

CG Power board sacks Chairman Gautam Thapar with immediate effect

Faced with allegations of fraud,  CG Powe r has removed its Chairman Gautam Thapar with immediate effect. 

"In cognizance of the current situation being faced by the Company and the recent developments, including disclosures dated August 19, 2019 made by the Company, the Board of Directors through a circular resolution dated August 29, 2019, passed by majority consent, have resolved to remove  Gautam Thapar as the Chairman of the Board with immediate effect," the company said in a regulatory filing. Click here to read in full the report on CG Power boards sacks Gautam Thapar .

Benchmark indices drop lower

The benchmark indices extended their morning losses by mid-session on Thursday. The Sensex and Nifty were down nearly 1 per cent each, with losses in the financial sector shares weighing on the indices.

The 30-share benchmark was quoting at 37,086, down 365 points or 0.98 per cent lower, while the Nifty was at 10,940, down 105 points or 0.96 per cent lower.

The top gainers in the Sensex pack were Sun Pharma, Vedanta, ONGC, Infosys and Bajaj-Auto. The laggards were led by YES Bank, which dropped over 7 per cent, followed by Tata Motors, ICICI Bank, SBI, M&M and HDFC.

The majority of shares in the 30-share benchmark were in the red. The banking, finance shares lost 1.70-1.90 per cent during the session. They were followed by basic materials and industrials shares that lost between 1-1.2 per cent during the session. Auto, energy, power and capital goods sector shares also lost nearly 1 per cent each.

Oil prices drop on concern over US economy

Brent crude was up 64 cents, or about 1.1 per cent, at $59.28 a barrel at 0255 GMT.

Oil prices fell on Thursday for the first time in three days after San Francisco Federal Reserve President Mary Daly sounded a note of concern about the strength of the US economy.

Brent crude was down 31 cents, or 0.5 per cent, at $60.18 a barrel by 0638 GMT, while US crude was down 18 cents, or 0.3 per cent, at $55.60 a barrel. Oil prices rose around 1.5 per cent in the previous session. Click here to read in full the global oil markets report .

Indiabulls Housing Finance shares drop 8% on Nifty replacement

Shares of Indiabulls Housing Finance on Thursday dropped 8 per cent as Nestle India will replace the company in the benchmark Nifty 50 index from September 27.

The scrip tanked 7.97 per cent to Rs 420.80 on the NSE. Shares of Nestle India, however, rose 2.97 per cent to Rs 12,890.

Nestle India will replace Indiabulls Housing Finance in the benchmark Nifty 50 index from September 27, the National Stock Exchange (NSE) said on Wednesday.

“The replacement will also be applicable to Nifty 50 Equal Weight Index,” the bourse said in a release. - PTI

Equities struggle on recession, Brexit fears

MSCI Asia-Pacific index up 1 per cent. File Photo

Global bond yields flirted with record lows while stocks inched down on Thursday, as global recession worries from intensifying US-China frictions and the spectre of a no-deal Brexit drove investors to safer harbours.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.15 per cent, Singapore shares hit eight-month lows, while Japan's Nikkei shed 0.07 per cent.

On Wall Street, the S&P 500 gained 0.65 per cent on Wednesday, due in part to gains in the energy sector following a rebound in oil prices. But US stock futures lost 0.2 per cent in Asia. Click here to read in full the Asian markets report .

USFDA nod bodes well for Unichem Labs

Unichem Laboratories has received ANDA approval from the USFDA for Solifenacin Succinate Tablets, 5-mg and 10-mg to market (a generic version of Vesicare tablets of Astellas Pharma US, Inc). The tablets are indicated for the treatment of overactive bladder with symptoms of urinary incontinence, urgency, and urinary frequency. Unichem will commercialise the product from its Goa plant. Shareholders of the company will closely monitor the execution.

Shell makes Series-B funding in PRESPL

Global energy major Shell, along with SBI Ventures Neev Fund has jointly made a Series-B funding of Rs 55 crore in Mumbai based bio-energy company- PRESPL.

This is the first investment of the Anglo-Dutch behemoth in Indian a bio-energy firm, and has been directly cleared by the Shell management in the Netherlands. Shell clocked $ 388.4 billion in revenues for 2018. Click here to read in full the report on Shell's Series-B funding in PRESPL .

Govt sops boost sugar stocks

Stocks of sugar companies soared in an otherwise bearish market, with the Cabinet clearing fresh export concessions for sugar mills.

On Wednesday, the Cabinet approved incentives of Rs 6,268 crore ($876.74 million) to encourage cash-strapped mills to export 6 million tonnes of sugar in the sugar marketing year starting from October 1.

Shares of Bannari Amman Sugar rose two per cent to Rs 1,150, Dhampur Sugar Mills was up 0.15 per cent at Rs 151, Shashi Sugar rose 5 per cent at Rs 8, Dharani Sugar was up 17 per cent at Rs 8 and Bajaj Hindustan Sugar was up 4 per cent at Rs 6.

India is expected to produce 285 lakh tonnes of sugar in this sugar marketing year. With an inventory of 145 lakh tonnes, the total sugar supply is expected to be the highest ever at about 430 lakh tonnes, exerting huge pressure on prices. _ Our Bureau

Gold, silver open firm as rupee remains weak

Quick funds: With NBFCs turning cautions to lending, many customers are option for gold loans, say players.

Gold and silver prices opened with marginal gains in the futures market on Thursday as currency pressure prevailed.

On Thursday, the rupee weakened further to inch towards the Rs 72 levels against the dollar. The Indian rupee opened lower at Rs 71.90 and depreciated further to Rs 71.95 in the early trades.

This comes despite Wednesday's Cabinet announcements triggering positive sentiment for the sugar industry and farmers for increased incomes in the coming days and better job prospects through the 100 per cent contract manufacturing decision.  Click here to read in full the domestic gold market report .

Company News: Kalpataru Power Transmission

Kalpataru Power Transmission informed the exchanges on Wednesday that it received a notice from the World Bank alleging process violations in bids submitted by its transmission business on two projects in Africa more than 7 years ago. The company disagrees with the Bank’s position and intends to contest the proceedings vigorously, it added. Shares of Kalpataru Power slumped 6.95 per cent at ₹441.05 on the BSE on Wednesday.

Gold prices tick up on recession fears, trade uncertainty

Gold prices eked out gains on Thursday against the backdrop of recession fears, with traders tracking signs of progress on the US-China trade talks and global central banks for direction on interest rates.

Spot gold rose 0.2 per cent to $1,542.06 per ounce, as of 0331 GMT. On Wednesday, the bullion ended lower but remained around its over six-year peak of $1,554.56 hit on Monday. US gold futures were up 0.1 per cent at $1,550.80 an ounce. Click here to read in full the global gold report .

Rupee falls 17 paise against US dollar in early trade

Identification of currency notes is key to successful completion of cash-based transactions by visually impaired persons

The rupee depreciated by 17 paise to 71.95 against the US dollar in early trade on Thursday, tracking a weak domestic equity market and persistent foreign fund outflows. Pessimism over US-China trade talks also put pressure on the domestic unit, forex dealers said.

However, a weak dollar against other major currencies overseas and softening crude prices restricted the rupee’s fall, they added. Click here to read in full the rupee report .

Sensex, Nifty trade on a weak note

The benchmark indices, the BSE Sensex and the NSE Nifty, were trading around 0.5 per cent lower in early session on Friday. The Sensex was at 37,291, down 160 points or 0.43 per cent lower, while the Nifty was at 11,003, down 42 points or 0.39 per cent weaker on its overnight close.

The top gainers on the Sensex were Sun Pharma, Vedanta, Tata Motors, Maruti and IndusInd Bank, while the laggards were YES Bank, ICICI Bank, HCL Tech, HDFC and Axis Bank.

The healthcare, metals, capital goods and auto sector shares rose between 0.3-0.55 per cent to prop up the BSE index, while the finance, capital goods, IT and technology sector shares weighed on the benchmark index, losing between 0.40-0.65 per cent during the session.

According to an agency report, the Sensex, which dropped over 250 points in early trade, was dragged by heavy selling in banking stocks ahead of the expiry of August derivatives amid weak cues from other Asian markets.

In the previous session, the BSE barometer settled 189.43 points, or 0.50 per cent, lower at 37,451.84. Similarly, the broader NSE Nifty fell 59.25 points, or 0.53 per cent, to 11,046.10.

During the day, investors can expect greater volatility in the market on the back of weekly and monthly expiration of the August futures and options (F&O) contracts, said Shrikant Chouhan, Head Technical Research, at Kotak Securities.

Foreign portfolio investors sold shares worth a net of Rs 935.27 crore on Wednesday, while domestic institutional investors purchased shares worth Rs 359.32 crore, provisional data showed.

The rupee, meanwhile, depreciated 18 paise against its previous close to trade at 71.95 in early session.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Korea and Japan were trading on a negative note in their respective late morning sessions.

Exchanges on Wall Street ended in the green on Wednesday.

Global oil benchmark Brent crude was trading 0.57per cent lower at 59.59 per barrel. (with inputs from PTI)

Oil prices pegged back by mounting concern over US economy

Oil prices fell on Thursday for the first time in three days after San Francisco Federal Reserve President Mary Daly sounded a note of concern about the strength of United States (US) economy. Click here to read in full the crude oil market report .

Yen on backfoot as returning confidence dulls safe-haven allure

The dollar held gains against the safe-haven yen on Thursday as ebbing recession worries soothed markets after earlier volatility although the pound nursed its losses as investors became increasingly worried about a hard Brexit. Click here to read in full the global forex markets report .

Why the stock of RBL Bank has fallen 40 per cent over the past month

RBL Bank has been the stock market darling ever since it hit the primary market in 2016. But the stock has come under severe pressure recently, losing about 40 per cent over the past month, since it announced its June quarter results. While the bank delivered strong performance, the management indicating possible deterioration in its asset quality in the next 2-3 quarters, had rattled investors. Click here to read in full the report on why the RBL stock has fallen 40 per cent over the past month .

Asian shares struggle on darkening global outlook

MSCI Asia-Pacific index up 1 per cent. File Photo

Global bond yields flirted with record low levels while stocks struggled to recover on Thursday as economic turbulence from intensifying United States (US)-China frictions and the spectre of a no-deal Brexit drove investors to safer harbours. Click here to read in full the global markets report .

Opening bell

The Sensex and the Nifty opened Thursday's session in the red. The Sensex was at 37,283, down 168 points or 0.45 per cent lower, while the Nifty was at 10,988, down 57 points or 0.52 per cent weaker.

Today's Pick:  Tata Global Beverages (₹280): Buy

The stock of Tata Global Beverages jumped 5 per cent breaking above a key resistance at ₹270 on Wednesday. This rally has strengthened the short-term uptrend and also provides traders with a short-term horizon an opportunity to buy the stock at current levels.

The stock has been in an intermediate-term uptrend since early February 2019 low at ₹177. During the uptrend, the stock had decisively breached a key resistance at ₹220 in May and continued to trend upwards. Short-term trend is also up for the stock. Click here to read in full Today's Pick on Tata Global Beverages .

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