Equity indices end down 2%, Sensex settles 769 points lower at 36,562

File Photo   -  BusinessLine

Nifty sinks 225 points to 10,797

 

3:40 pm

Closing bell

The benchmark indices, the BSE Sensex and the NSE Nifty, finished Tuesday's session 2 per cent lower. The Sensex closed at 36,562, down 769 points or 2.06 per cent lower, while the Nifty ended at 10,797, down 225 points or 2.04 per cent lower.

Tech Mahindra and HCL Tech were the only stocks in the Sensex pack to close in the green. The laggards were led by ICICI Bank and Tata Steel, which dropped 4.5 per cent, followed by Tata Motors (down 4.07 per cent), IndusInd Bank (3.89 per cent) and Reliance (3.87 per cent).

All the sectoral indices on the 30-share benchmark ended in the red, with metal sector shares dropping the most by 3.23 per cent. It was followed by energy (down 2.98 per cent), consumer durables (down 2.78 per cent), basic materials (2.72 per cent), banking (2.43 per cent), finance and oil and gas (2.39 per cent) and realty (2.35 per cent).

3:30 pm

Euro slides to 28-month low as ECB stimulus eyed

file photo

 

The euro touched a 28-month low against the dollar on Tuesday as investors priced in deeper negative interest rates for longer in the euro zone.

Money markets have ratcheted up to 83 per cent the probability that the European Central Bank will cut its benchmark rate by 20 basis points when it meets next week. It now stands at minus 0.40 per cent.

The ECB has also all but promised a monetary policy stimulus package, including new quantitative easing, as economic growth falters and Germany's manufacturing drops into recession. Click here to read in full the global forex report.

 

3:20 pm

Oil falls 1 per cent, pressured by trade war and swelling output

File photo   -  Bloomberg

 

Oil prices fell by 1 per cent on Tuesday, weighed down by the protracted US-China trade dispute that has dragged on the global economy as well as rising OPEC and Russian oil output.

US crude was down 65 cents, or 1.19 per cent, at $54.45 a barrel by 0857 GMT, while Brent was down 47 cents at $58.19 a barrel. Click here to read in full the global oil markets report.

3:10 pm

European shares fall for first time in four sessions

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

 

European shares fell for the first time in four sessions on Tuesday, as uncertainty over Britain's chaotic exit from the European Union and trade tensions between the US and China weighed on sentiment.

British lawmakers will decide on Tuesday whether to move the country one step closer to a snap election when they vote on the first stage of their plan to block British Prime Minister Boris Johnson from pursuing a no-deal Brexit. Click here to read in full the European share markets report.

2:50 pm

Asia stocks dented by trade war

 

Global stocks dropped on Tuesday, hurt by US-China trade frictions, while the British pound fell to its lowest since January 2017 amid political uncertainty as British Prime Minister Boris Johnson tried to stymie lawmakers' efforts to stop a no-deal Brexit.

MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.7 per cent. India, closed on Monday, led losses, with the benchmark dropping 1 per cent following worse-than-expected economic growth data on Friday. Click here to read in full the Asian markets report.

2:30 pm

Ashok Leyland gets BS VI nod for its full heavy truck range

Truck and bus maker Ashok Leyland on Tuesday said the company had received the certificates, confirming compliance to BS-VI emission standard, from Automotive Research Association of India (ARAI), for its heavy trucks range. Click here to read in full the report on Ashok Leyland gets BS VI nod for heavy truck range.

2:15 pm

Petronet LNG to take 26 per cent stake in BPCL’s Krishnapatnam LNG terminal

 

Petronet LNG Ltd (PLL), India’s biggest importer of liquefied natural gas(LNG), will take a 26 per cent stake in a planned 1 million tonne (mt) capacity terminal for import and re-gasification of the super cooled fuel. This terminal will be helmed by Bharat Petroleum Corporation Ltd (BPCL) at Krishnapatnam port in Andhra Pradesh’s Nellore district. Click here to read in full the report on Petronet LNG to take 26 per cent stake in BPCL LNG terminal.

2:00 pm

Indian Hotels in talks with Tata Group to convert guest houses into homestays

“Our target is to reach 100,” Puneet Chhatwal, Managing Director and CEO of IHCL said. File Photo   -  BusinessLine

 

Indian Hotels Company Ltd (IHCL) is in talks with other Tata Group entities, including Tata Power, to convert their guest houses to homestays under its newly created brand Ama Trails and Stays. The target is to reach 100 homestay properties. Click here to read in full the report on Indian Hotels in talks with Tata Group to convert guest houses into homestays.

1:45 pm

Sensex, Nifty down 1.5%

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

The Sensex was trading at 36,776, down 556 points or 1.49 per cent, while the Nifty dropped 167 points or 1.52 per cent to 10,856.

The top gainers on the Sensex were Tech Mahindra, TCS, HCL Tech, HeroMotoCorp and Infosys, while the laggards were ICICI Bank, HDFC, Tata Steel, Tata Motors and ONGC.

The 30-share benchmark index was propped up by gains in IT and technology sector shares. However, the majority of the sectoral indices were in the red, with banking and finance sector shares dropping 2 per cent, followed by metals, energy, basic materials, consumer durables, capital goods and oil and gas which lost between 1.5 and 2 per cent.

 

1:20 pm

Nifty Call: Sell with stop loss at 10,970

 

After making a sharp recovery on Friday, the Nifty opened today’s session on a weaker note, pricing in the sharp fall in GDP growth to a six-year low. Rallies are being sold-off and the index is currently trading below its 20-day moving average, falling 1.2 per cent so far today.

The Sensex too has fallen 1.2 per cent in today’s session. Asian peers are trading flat, outperforming Indian indices. Click here to read in full the Nifty call report.

12:15 pm

Sensex, Nifty drop lower

The benchmark indices, the BSE Sensex and the NSE Nifty, extended their losses at mid-session on Tuesday. The Sensex was trading at 36,886, down 446 points or 1.20 per cent, while the Nifty dropped 128 points or 1.21 per cent to 10,889.

The top gainers on the Sensex were Tech Mahindra, HCL Tech, TCS, HeroMotoCorp and Infosys, while the laggards were Tata Motors, ICICI Bank, Tata Steel, HDFC and M&M.

The 30-share benchmark index was propped up by gains in IT and technology sector shares, which rose 0.67 per cent and 0.42 per cent respectively. However, the majority of the sectoral indices were in the red, with basic materials down 1.81 per cent, followed by metal (down 1.82 per cent), finance (1.71 per cent), consumer durables (1.69 per cent), capital goods (1.67 per cent) and oil & gas (down 1.66 per cent).

According to an agency report, the Sensex dropped on heavy selling in financial and auto stocks amid weak domestic and global cues.

In the previous session on Friday, the BSE barometer ended 263.86 points, or 0.71 per cent, higher at 37,332.79, while the Nifty rose 74.95 points, or 0.68 per cent, to close at 11,023.25.

Financial markets remained closed on Monday on account of ‘Ganesh Chaturthi’

On the other hand, IT stocks rallied as the rupee depreciated 65 paise against its previous close to trade at 72.07 in early session. TechM, HCL Tech, TCS and Infosys all gained during the session.

According to traders, market sentiment took a hit on account of weak macroeconomic data releases and double-digit decline in auto sales in August as the sector continued to reel under one of the worst slowdowns in its history.

Official data released after market hours on Friday showed that India’s GDP growth slipped to an over six-year low of 5 per cent in the June quarter of 2019-20, hit by a sharp deceleration in manufacturing output and subdued farm sector activity.

Additionally, the country’s manufacturing sector activity declined to its 15-month low in August, owing to slower increases in sales, output and employment, the IHS Markit India Manufacturing Purchasing Managers’ Index showed.

“GDP growth slowing down to 5 per cent is indeed worrying,” said Deepthi Mathews, Economist at Geojit Financial Services, adding that the number shows that the economy has not still entered the recovery path.

Meanwhile, in an attempt to boost economic growth, the government on Friday unveiled a mega plan to merge 10 public sector banks into four as part of plans to create fewer and stronger global-sized lenders.

It gives a positive signal that the government is not just focusing on recapitalising the bank but also in improving the governance in the public sector banks (PSBs), Matthews said. “Measures taken to improve the efficiency of the PSBs is in the right direction as they are competing with the private sector.”

On Friday, foreign portfolio investors bought shares worth a net of Rs 1,162.95 crore, while domestic institutional investors purchased shares worth Rs 1,502.27 crore, provisional data showed. (with inputs from PTI)

 

 

 

12:05 pm

IRCTC’s revenues to get a boost from levy of convenience fee

While IRCTC IPO could fetch about Rs 500 crore, public offering of IRFC could garner close to Rs 1,000 crore.   -  The Hindu

 

With effect from September 1, 2019, the Indian Railway Catering and Tourism Corporation (IRCTC) will charge a convenience fee of Rs 15 and Rs 30 for booking railway tickets online for non-AC and AC classes, respectively. The new fee is expected to boost revenues of IRCTC, which had witnessed a revenue loss on account of the withdrawal of service charges post demonetisation, impacting its top line over the past two fiscals.

The company had earned Rs 362.25 crore as service charges in FY17, prior to the Centre withdrawing the same from November 23, 2016, in a bid to drive digital transactions. While the new convenience fee to be levied starting September is 25 per cent lower than the earlier service charge, it would help bump up IRCTC’s revenues notably in the current fiscal. Click here to read in full the report on IRCTC revenues to get a boost from levy of convenience fee.

11:40 am

Panel on fintech submits a final report to FM Nirmala Sitharaman

 

A steering committee on fintech-related issues has recommended that a comprehensive legal framework for consumer protection be put in place early keeping in mind the rise of fintech and digital services.

This panel, headed by the DEA Secretary, submitted its final report to the Finance and Corporate Affairs Minister Nirmala Sitharaman here at North Block on Monday. Click here to read in full the report on panel on fintech submits final report to Nirmala Sitharaman.

11:15 am

Four killed, three injured after fire breaks out at Uran ONGC plant

 

A massive fire broke out at the Uran ONGC gas complex, near JNPT port, on Tuesday morning. The fire started in the oil and gas processing plant.

Four killed, three injured after fire breaks out at the ONGC plant in Navi Mumbai and a village near the plant has been evacuated.

Fire brigade personnel of JNPT and Navi Mumbai municipal corporation have been fighting to control the fire. Click here to read in full the report on fire at ONGC's Uran plant.

11:00 am

Govt restores duty-free replenishment facility for jewellery exporters

 

The government has again permitted gold and silver jewellery exporters to replenish the precious metal duty-free after selling it at international exhibitions, a move which would help in promoting the growth of the sector. Click here to read in full the report on duty-free replenishment facility for jewellery exporters.

10:50 am

PSBs plunge on big bank merger plans

The four key large lenders at the centre of the merged groups fell on Tuesday. File Photo   -  BusinessLine

 

Investors knocked down shares of large public sector banks after the government unveiled its plan to merge several of the lenders, amid concerns that the integration process might delay its bad-loan clean up and slow lending approvals.

Read more: Govt banks on big bang mergers as GDP tanks

The four key large lenders at the centre of the merged groups - Punjab National Bank, Canara Bank, Union Bank of India and Indian Bank - fell on Tuesday as investors fretted over the impact of absorbing their weaker peers. The mergers were announced after the market shut on Friday and Monday was a public holiday.

While the Modi government is keen for banks to give more loans to boost an economy growing at its slowest in six years, the timing of the mergers means that management attention may shift to realigning resources and processes. That could leave them little time to focus on their key immediate task of cleaning up the worst stressed-asset ratio among major economies.

Related news: India's GDP growth slumps to 5% in April-June quarter

As of 10.35 am, Punjab National Bank was down 8.16 per cent, Canara Bank 6.78 per cent, Union Bank of India 6.2 per cent, Indian Bank 6.64 per cent, Oriental Bank of Commerce 5.44 per cent. However some of the weaker lenders shares jumped - United Bank of India rose 1.82 per cent, Syndicate Bank 0.46 per cent, Andhra Bank 2.53 per cent, and Corporation Bank 2.65 per cent.

10:40 am

Rupee tumbles 67 paise to 72.09 against USD in early trade

At the interbank foreign exchange, the rupee opened weak at 71.65.   -  The Hindu

 

The rupee tumbled by 67 paise to 72.09 against the United States (US) dollar in early trade on Tuesday, tracking weak opening in domestic equities amid strong dollar demand from banks and importers.

Forex traders said the US tariffs on imports from China took effect on Sunday and were followed later by Beijing’s retaliation. Following this the domestic currency was under pressure.

The rupee had appreciated by 38 paise to close at a two-week high of 71.42 against the US dollar on Friday led by a rally in domestic equities and renewed hopes of the US-China trade talks.

The forex market was closed on Monday on account of Ganesh Chaturthi. Click here to read in full the rupee report.

10:20 am

Oil prices mixed as market eyes US-China trade war

File photo   -  Bloomberg

 

Oil prices were mixed on Tuesday as the ongoing US-China trade war cast a pall over markets, with soft South Korean data adding to concerns over emerging markets and a rise in OPEC output.

US crude was down 21 cents, or 0.4%, at $54.89 a barrel by 0244 GMT, while Brent was 5 cents higher at $58.71 a barrel.

The United States this week imposed 15% tariffs on a variety of Chinese goods and China began to impose new duties on a $75 billion target list, deepening the trade war that has rumbled on for more than a year.

US President Donald Trump said both sides would still meet for talks later this month. Click here to read in full the global oil markets report.

10:15 am

Sterling nears two-year low as investors worry about Brexit

file photo

 

Sterling wallowed near a more than two-year low on Tuesday on growing investor worries about a “no-deal Brexit” as rival British lawmakers fought for control over negotiations to leave the European Union.

The euro fell to the lowest in more than two years as weak economic data from the EU underscored expectations for the European Central Bank to ease monetary policy at a meeting next week.

The yuan will come into focus during Asian trading after it slipped to a record low versus the dollar in offshore trade due to fading hopes for a resolution to the U.S.-China trade war. Click here to read in full the global forex markets report.

 

10:05 am

Asian shares dented by trade war, Brexit showdown paralyses pound

 

Global stocks faced headwinds on Tuesday, stymied by US-China trade frictions while the British pound was near 2 1/2-year lows as Prime Minister Boris Johnson indicated he could call an election to block lawmakers' efforts to avert a no-deal Brexit. Click here to read in full the Asian markets report.

9:55 am

Sensex, Nifty in the red

The benchmark indices, the BSE Sensex and the NSE Nifty, traded in the red in the early session on Tuesday. The Sensex was at 36,961, down 371 points or 0.99 per cent lower, while the Nifty was trading at 10,910, down 112 points or 1.02 per cent weaker.

The markets were closed on Monday for Ganesh Chaturthi.

The top gainers on the Sensex were YES Bank, Tech Mahindra, HCL Tech, TCS and HeroMotoCorp, while the laggards were Tata Motors, ICICI Bank, ONGC, HDFC and Tata Steel.

The IT and technology sector shares were the only shares in positive territory. On the other hand, the oil and gas sector lost 1,74 per cent, while banking was down 1.56 per cent and finance sector shares down 1.48 per cent. The power, metals, consumer durables, capital goods, energy and basic materials shares lost between 1-1.3 per cent on the 30-share benchmark index.

 

9:45 am

SEBI says ₹106 cr refunded to Sahara investors; company wants ‘idle’ money back

 

More than six years after initiating a Supreme Court-monitored recovery and refund process for an estimated ₹24,000 crore collected by Sahara group from nearly three crore investors, regulator SEBI has received less than 20,000 claims while two-third of them have been refunded a total amount of ₹ 106.10 crore. Click here to read in full the report on SEBI refunds to Sahara investors.

 

9:35 am

Big Story: The metamorphosis of Reliance Industries

 

Stock charts often reveal the stories and journeys of companies. Sure enough, the chart of market behemoth Reliance Industries (RIL) over the past decade tells many a tale. From mid-2009 to early 2017 — nearly seven-and-a-half years — the RIL stock moved in and around a narrow range of ₹350-550 (adjusted for bonus issues).

Investors were understandably glum about this long hibernation, given the company’s reputation of rewarding shareholders. But then, the stock broke out — more than doubling over the past two-and-half years. Its moves over the past few months are also striking. After losing nearly 20 per cent since April due to concerns over high debt, the stock has made a comeback over the past few weeks, following RIL’s deal to sell 20 per cent of its oil-to-chemicals business to Saudi Aramco. Click here to read in full the Big Story on the metamorphosis of Reliance Industries.

 

 

9:25 am

Index Outlook: Indices to face key resistance

 

After a strong rally in the beginning of the week, the key benchmark indices — the Sensex and the Nifty — lost momentum and witnessed a marginal decline. Nevertheless, despite volatility, the indices closed in the green, snapping their two-week fall.

The real GDP growth in the first quarter of the current fiscal plunged to a six-year low of 5 per cent. This, along with the mega PSU bank merger announcement, is likely to keep investors on tenterhooks in the near term. A weakening rupee, rising gold prices and the persisting US-China trade war will remain in focus in the truncated week ahead. The August domestic auto sales numbers will also need a watch this week. Investors should continue to tread with caution. Click here to read in full the Index Outlook on indices to face key resistance.

 

9:15 am

Opening bell

The benchmark indices the BSE Sensex and the NSE Nifty opened Tuesday's session in the red. The Sensex was at 37,011, down 321 points or 0.86 per cent lower, while the Nifty was at 10,921, down 101 points or 0.92 per cent lower.

 

9:00 am

Weekly Trading Guide for week beginning Sept 3, 2019

SBI (₹273.85)

SBI opened the week on a solid note, with a 6.2 per cent gap-up at ₹288 against the previous close of ₹271.10. However, the gap-up did not sustain, and the stock failed to rally. It began to fall right from the start of last week’s first trading session. The stock attempted to recoup its losses but was once again sold off at ₹288 levels and ended the week at ₹273.85. The broader trend remains bearish. The stock closed below the critical level of ₹280, also breaching a rising trend-line in the daily time-frame. ₹263 remains a key support and until that level holds, the stock might not see further selling. But a downside break of ₹263 can drag the stock to ₹257 levels, a break of which will open the doors for further decline towards ₹250. On the other hand, if the price bounces from the current levels on short-covering, the stock can advance to ₹280 and even ₹292 over the short term.

ITC (₹245.65)

Following its major trend, ITC extended its losses below the 52-week low towards an important demand zone between ₹236 and ₹238. It attempted a recovery and closed at ₹245.65, marginally gaining over the past week. However, recoveries are being rejected at ₹246, which acts as a significant resistance. Hence, a breakout, pushing the price beyond that level, is needed for the stock to attract fresh buying interest. If that breakout sustains and the stock moves up, it can face an immediate hurdle at ₹250. Inthe recent past, the 20-day moving average has arrested the uptrend numerous times, preventing the stock from moving higher. Above ₹250, the stock has more room to appreciate and can reach ₹260 over the medium term. Alternatively, if the price drops by aligning with the major trend, it can retest the ₹236-238 zone. If the level fails to hold the decline, the stock can tumble to ₹224.

Infosys (₹814.90)

Infosys broke out of the consolidation band between ₹762 and ₹804 and ended the week at ₹814.90 — its life-time high. After consolidating for over a month, the stock closed above the upper limit of the range on Friday, confirming the breakout. The price bounced from the 20-day moving average and closed above the critical resistance of ₹800 with good volumes. With such a solid breakout, the IT major has the potential to appreciate towards ₹840. The daily relative strength index is at 63 and has more room to reach the over-bought levels; the other oscillator — moving average convergence divergence — too points up. But, if the price retracts below ₹800, the breakout might be negated, and the scrip may decline to ₹787. If the decline continues and the price weakens below ₹787, there is opportunity for the stock to test ₹762. A drop below ₹762 is highly unlikely in near term, as it provides a strong support.

RIL (₹1,248.55)

The chart of Reliance Industries suggests that the stock has been sluggish for some time. Though the broader trend is bullish, it seems to be losing steam. The consolidation range has become tighter and the stock now trades back and forth between ₹1,226 and ₹1,304. On Friday, the stock bounced from the 20-day moving average, recouping some of the past week’s losses. For the bulls to regain control, the price must break above ₹1,304. If such a breakout occurs, the stock price will rise to the ₹1,360 levels in short term; in fact, the stock appreciating to ₹1,400 levels cannot be ruled out. However, the RSI seems to be on the verge of breaking below 50 level, while the MACD may drop into the negative territory even with a minor fall in price from the current level, both indicating a possible weakness. If the weakness results in the stock breaking below ₹1,226, the price may fall to ₹1,200 or even ₹1,180 in short term.

Tata Steel (₹344.90)

Tata Steel has been in a sideways trend for nearly two weeks, trading in the band between ₹330 and ₹350. The stock also trades below the 20-day moving average, indicating that the broader bearish trend is still intact. There’s a support at ₹320 and the scrip has recently bounced off from that level. Hence, until the stock remains above₹320, the bears might find it difficult to drag it down. From the current levels, immediate resistance falls at the upper side of the consolidation range at ₹350. So, for the stock to rise, either the upper or the lower limit of the sideways trend should be breached. If the steel company’s price manages to break above the upper limit of the range because of external factors that have been affecting the stock, the price could appreciate towards ₹395 levels in the medium term. But, if it breaks below ₹320, the price could, most probably, decline to ₹300 or even ₹290 over the medium term.

Published on September 03, 2019