Sensex tanks 362 points; YES Bank crashes 22 per cent

Nifty slides 115 points to 11,359

4:45 pm

Closing bell

The BSE benchmark Sensex plunged nearly 362 points on Tuesday due to an across-the-board sell-off as financial sector woes, auto sales slump and weak macro data spooked investors. The NSE gauge, Nifty, too tanked 115 points to slip below the 11,400-level.

The 30-share Sensex, which opened on a firm footing, crashed over 737 points in late afternoon trade, before finally finishing at 38,305.41, down 361.92 points or 0.94 per cent. The gauge touched a high of 38,923.78 and a low of 37,929.89 intra-day.

The broader Nifty, too, underwent bouts of volatility before closing lower by 114.55 points, or 1 per cent, at 11,359.90.

YES Bank shares plummeted over 22 per cent, their fifth consecutive session of fall, as promoter Rana Kapoor and his group entities sold another 2.16 per cent stake worth Rs 510 crore.

Other major laggards were IndusInd Bank, SBI, Bharti Airtel, ONGC, Tata Steel and Reliance Industries -- falling as much as 6.30 per cent.

Among the Sensex constituents, HDFC twins, Mahindra and Mahindra, Maruti Suzuki, Kotak Bank, HUL and Asian Paints ended in the green.

The broader BSE small-cap, mid-cap and large-cap indices underperformed the benchmark, losing up to 1.61 per cent.

Sectorally, telecom dropped 4.53 per cent, followed by realty 3.88 per cent, tech 2.20 per cent and IT 1.68 per cent. Of the 19 sectoral gauges compiled by the BSE, 17 closed in the red.

Analysts said caution prevails among investors amid a deepening crisis at Punjab and Maharashtra Co-operative Bank (PMC) and fraud allegations against companies like Indiabulls Housing Finance Ltd (IHFL).

The Mumbai Police on Monday filed a case against the former bank management and promoters of HDIL in the PMC Bank case and said a special investigation team will be probing the case.

Continuing their fall, IHFL shares dropped another 7.05 per cent to close at Rs 237.50 apiece. On the currency front, the rupee dropped 22 paise to 71.09 against the US dollar (intra-day).

The global crude benchmark, Brent Futures, rose 0.51 per cent to $59.55 a barrel.

The country’s manufacturing sector activity in September remained unchanged amid subdued demand conditions both domestically as well as externally, a monthly survey said on Tuesday.

The IHS Markit India Manufacturing PMI was at 51.4 in September, unchanged from August and thereby posting its joint-lowest reading since May 2018.

Official data released after market hours on Monday showed that the output of eight core infrastructure industries fell 0.5 per cent in August.

In further worries for the auto sector and the economy as a whole, automobile sales have witnesses a sharp decline again in September.

Sales of Maruti Suzuki, Toyota Kirloskar, Bajaj Auto, Ashok Leyland and Mahindra and Mahindra have shown a significant decline during the month.

Globally, Asian stocks closed mostly higher on Tuesday. Markets in China and Hong Kong were closed for holidays.

Investors are hoping that the US and China can find some common ground and reach a deal on trade and other issues during their high-level meet next week in Washington. - PTI

2:45 pm

Renault India launches refreshed Kwid at starting price of Rs 2.83 lakh

Renault India on Tuesday launched a refreshed version of its mini car, Kwid, priced between Rs 2.83 lakh and Rs 4.84 lakh (ex-showroom, Delhi).

The new version offers value and best-in-class cost of ownership, the company said.

The SUV-inspired front face has a new signature lighting and SUV-styled low mounted headlamps, besides LED daytime running lights and tail lamps with LED light guides. Click here to read in full report on launch of new version of Kwid.

2:35 pm

Yes Bank shares crack 20% in afternoon trade

Shares of Yes Bank went into a tailspin in afternoon trade on Tuesday despite a positive opening, tumbling nearly 20 per cent.

The scrip came under mas sive selling pressure in afternoon trade, giving up its early gains and plunged 19.90 per cent to Rs 33.20 -- its multi-year low -- on the BSE. Click here to read in full the YES Bank share price report.

2:10 pm

Sensex, Nifty sharply lower

The benchmark indices, the Sensex and Nifty, plunged 1.5 per cent in the afternoon session on Tuesday.

The Sensex shed 600 points or 1.55 per cent to quote at 38,066. The Nifty also fell 1.52 per cent or 174 points to 11,299.

On the Sensex, Asian Paints, HDFC Bank, HDFC and Hindustan Unilever were the only stocks. The laggards were led by the YES Bank stock that dropped 26,18 per cent. Other banking stocks, IndusInd Bank and SBI lost 8.59 per cent and 7.11 per cent respectively. Vedanta was down 5.55 per cent, and Tata Steel 4 per cent.

The realty sector stocks dropped more than 6 per cent on the BSE, followed by telecom stocks that fell 4.47 per cent. Banking sector shares dropped nearly 3 per cent and finance sector shares were down 2.17 per cent.

1:45 pm

Nippon Life to drop Reliance from AMC’s name as part of rejig

After becoming the largest shareholder of Reliance Mutual Fund, Nippon Life Insurance of Japan plans to drop the word Reliance from Reliance Nippon Asset Management Company and rebrand the mutual fund business with more prominence being given to Nippon India.

Nippon Life recently completed the largest foreign direct investment of ₹7,800 crore in the financial service business in India and became the largest shareholder of Reliance Mutual Fund. It now owns 75 per cent stake of Reliance Nippon Asset Management Company. Click here to read more on Nippon Life to drop Reliance from AMC's name.

 

1:15 pm

Asian shares firm up

Global share prices ticked up on Tuesday. File Photo   -  Reuters

 

Asian share prices ticked up on Tuesday as some investors clung to hopes the fourth quarter will bring progress in resolving the US-China trade war that's cast a shadow over the global economy.

European shares are expected to rise, with pan-European Euro Stoxx 50 futures trading up 0.39 per cent to hit its highest levels since June last year.

US stock futures rose 0.35 per cent in Asia, a day after the S&P 500 gained 0.50 per cent. Click here to read in full the Asian markets report.

1:05 pm

NSE suspends BMA Wealth Creators, leaves traders in the lurch

The National Stock Exchange has suspended BMA Wealth Creators, which has a presence across states, with immediate effect for non-compliance with the regulatory provisions of the exchange.

The Kolkata-based broking house has a licence to trade in the capital market, futures & options, currency derivatives and MFSS segments.

"It is unfortunate that BMA Wealth Creators’ trading membership licence has been suddenly suspended by SEBI/ NSE today, because of which the company is closing its operations," a message from a trader from the broking house said. Click here to read more on BMA Wealth Creators suspended by NSE.

 

12:55 pm

Market gives thumbs down to Huhtamaki acquisition

Shares of Huhtamaki tumbled five per cent in early trade on Tuesday after the company said it plans to acquire assets and operations of Mohan Mutha Polytech Private Ltd for ₹80 crore.

In a post market disclosure on Monday, the company said it has executed a business transfer agreement to acquire the entire flexible packaging business of Mohan Mutha Polytech on a slump sale basis. Click here to read in full the share price report of Huhtamaki.

12:35 pm

Manufacturing PMI in September unchanged from August: Survey

 

The manufacturing sector activity in September remained unchanged amid subdued demand conditions both domestically as well as externally, a monthly survey said on Tuesday. Click here to read in full the report on September manufacturing PMI unchanged from August number.

 

12:15 pm

Nifty call: Buy on dips with stop-loss at 11,480

 

After declining during early session, the Nifty made a quick recovery and is currently trading in positive territory. Yesterday, the index broke below the lower limit of the broader range, but it bounced back, thereby, making the break down a false one. The Sensex has followed a similar trend.  Click here to read in full the Nifty call report in full.

11:55 am

Customers can get cheaper home, auto loans from October 1

 

Customers can expect cheaper loans from October 1 with banks rolling out externally benchmarked interest rates.

Under a directive by the Reserve Bank of India, all banks are to roll out external benchmark-linked loans to float rate loans to retail, personal, micro, small and medium enterprises (MSME) borrowers from today. This is expected to help make transmission of RBI rate cuts better for borrowers. Click here to read the report on home, auto loans to get cheaper from October 1.

 

11:35 am

Sensex, Nifty reverse losses

The BSE Sensex and the NSE Nifty reversed their early losses in mid-morning trade on Tuesday.

The Sensex was trading at 38,783, up 116 points or 0.30 per cent, while the Nifty was at 11,505, up 30 points or 0.27 per cent firmer on its previous close.

The top gainers in the Sensex pack were HDFC, M&M, Hindustan Unilever, HDFC Bank and Maruti, while the laggards were IndusInd Bank, Bharti Airtel, TCS, HCL Tech and Tata Steel.

Oil and gas, energy, and consumer durables shares gained during the session. On the other hand, telecom, realty, IT and technology sector shares weighed on the 30-share benchmark. 

 

11:25 am

Dollar gains before manufacturing data, euro crumbles on German inflation

 

The US dollar traded near its highest in almost two weeks versus the yen before the release of data that is forecast to show the US manufacturing sector returned to growth, which would ease concern about the impact of the ongoing Sino-US trade war. Click here to read in full the global forex markets report.

11:10 am

Oil prices rebound on lower output from US, Russia, OPEC

 

Oil prices rebounded in early Asian trade on Tuesday after production at the world's largest oil producers fell in the third quarter, although demand concerns continued to keep a keep a lid on prices. Click here to read more on the global oil markets report.

10:45 am

Rupee rises 12 paise to 70.75 against dollar in early trade

 

The Indian rupee appreciated by 12 paise to 70.75 against the US dollar in early trade on Tuesday as easing crude prices strengthened investor sentiments. Click here to read in full the rupee report.

 

10:25 am

Small savings’ interest rate to remain unchanged for Oct-Dec quarter

 

The Government has decided not to change the interest rate on small saving schemes, such as National Saving Schemes (NSC), Public Provident Fund (PPF) and Kisan Vikas Patra (KVP), during three months period starting October 1 as it was during quarter ending September 30. Click here to read in full the copy on small savings' interest rate.

 

10:15 am

Sensex, Nifty slip into red

The benchmark indices, the BSE Sensex and the NSE Nifty, slipped into the red in early trade on Tuesday.

The Sensex dropped 128 points or 0.33 per cent to quote at 38,538, while the Nifty slipped to 11,438, down 35 points or 0.31 per cent lower on the previous close.

The top gainers in the Sensex pack were M&M, Hindustan Unilever, Power Grid, HDFC Bank and Asian Paints, while the laggards were IndusInd Bank, Bharti Airtel, YES Bank, HCL Tech, Tata Steel and TCS.

 

10:00 am

How the PMC Bank scam was kept hidden for many years

Anxious depositors wait outside PMC Bank’s Mahakali branch in Andheri

 

The disclosures made by Joy Thomas, former Managing Director at PMC Bank, shows how various dubious transactions in the bank were kept hidden since 2008. The accounts were managed in a way that neither the statutory auditors nor the periodical scrutiny by the Reserve Bank of India were able to catch the ongoings at the bank. Click here to read in full the report on How PMC Bank scam was kept hidden for many years.

9:45 am

Global shares steady, investors pin hopes on US-China talks

 

Global share prices ticked up on Tuesday as some investors clung to hopes that China and the United States could work towards reaching a deal on trade and other issues in the fourth quarter. Click here to read in full the global markets report.

9:25 am

Russian approval for Glenmark’s Montlezir

Glenmark Pharmaceuticals, a research led, integrated global pharmaceutical company, has received approval from the Ministry of Healthcare, Russia, to market Montlezir (Levocetirizine Dihydrochloride 5mg + Montelukast Sodium 10mg) film coated tablets as a prescription product for the treatment of seasonal and perennial allergic rhinitis in patients above 15 years of age. Montlezir is expected to be available in the Russian market in Q3 FY2019-20. Shares of Glenmark closed 2.55 per cent lower at ₹324.80 on the BSE.

9.15 am

Opening bell

The 30-share BSE index Sensex opened at 38.813.48 against the previous close of 38,667.33, higher by 146.1 points. The 50-share NSE index Nifty opened 71.2 points higher at 11,545.65 against the previous close of 11,474.45

9:10 am

Day Trading Guide for Tuesday, October 1, 2019

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

₹1227 • HDFC Bank

S1

S2

R1

R2

COMMENT

1216

1200

1240

1253

Initiate fresh short positions with a stiff stop-loss only if the stock falls below ₹1,216 levels

 

₹805 • Infosys

S1

S2

R1

R2

COMMENT

794

782

815

825

Fresh long positions can be initiated with a fixed stop-loss if the stock of Infosys reverses higher from ₹794 levels

 

₹259 • ITC

S1

S2

R1

R2

COMMENT

256

253

262

265

Near-term stance is bullish for the stock of ITC. Buy in declines while maintaining a stiff stop-loss at ₹256 levels

 

₹131 • ONGC

S1

S2

R1

R2

COMMENT

128

125

134

138

Fresh short positions are recommended with a tight stop-loss only if the stock falls below ₹128 levels

 

₹1332 • Reliance Ind.

S1

S2

R1

R2

COMMENT

1318

1305

1345

1360

Make use of intra-day declines to buy the stock of RIL while retaining a fixed stop-loss at ₹1,318 levels

 

₹270 • SBI

S1

S2

R1

R2

COMMENT

265

258

276

282

Fresh short positions can be initiated with a stiff stop-loss if the stock of SBI reverses down from ₹276 levels

 

₹2099 • TCS

S1

S2

R1

R2

COMMENT

2080

2060

2120

2140

Make use of intra-day dips to buy the stock of TCS with a fixed stop-loss placed at ₹2,080 levels

 

11534 • Nifty 50 Futures

S1

S2

R1

R2

COMMENT

11480

11430

11580

11630

Initiate fresh short positions with a tight stop-loss only if the contract declines below 11,480 levels

 

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

9:00 am

Today's Pick: UPL (₹603.7): Buy

Investors with a shot-term view can buy the stock of UPL at current levels. The stock surged 3.7 per cent accompanied by above average volume on Monday, breaking above a key immediate resistance at ₹587 as well as the 200-day moving average. Moreover, the stock has decisively breached its 21- and 50-day moving averages and hovers well above them. This reinforces the short-term uptrend.

Following a sharp fall in July and early August this year, the stock took support at ₹500 and changed direction triggered by positive divergence in the daily relative strength index. Since then the stock has been in a short-term uptrend. Click here to read in full Today's Pick on UPL.

 

Published on October 01, 2019