Markets Live: Sensex plunges 295 points; Nifty drops to 11,279 on US-China trade row

PSU Bank index tanks 5.44%, realty 3.05%

3.55 pm

Closing bell

The Sensex plummeted 294.84 points or 0.78 per cent to 37,290.67 and the Nifty dropped 98.85 points or 0.87 per cent to 11,278.90.

Heavy selling in PSU Bank, realty, media, and metal stocks pulled the indices down. Only FMCG index remained investors' favourite.

 

Top five Nifty losers were State Bank of India, Indiabulls Housing Finance, Tata Motors, HPCL and Bajaj Auto, while the gainers were HUL, YES Bank, ONGC, Dr Reddy's and ITC.

Domestic sentiment was hit as US President Donald Trump had on Monday announced imposition of new tariffs on an additional $200 billion worth of imports from China, sharply escalating the trade fight between the two economic giants.

Alleging that China has been unwilling to change its unfair trade practices, Trump said the new additional tariff structure would be effective September 24 from when it would be at 10 per cent until the year end, but would increase to 25 per cent level from January 1.

As per provisional data, domestic institutional investors had sold shares worth Rs 180.36 crore, while foreign portfolio investors also offloaded shares to the tune of Rs 106.54 crore on Monday.

3.45 pm

Global markets

 

Who's afraid of the big bad trade war? Not the world stock markets it seems. The response to US President Donald Trumps decision to go ahead next week with collecting 10 per cent tariffs on another $200 billion of Chinese goods, ratcheting up to 25 per cent in January, was unusual and unexpected on Tuesday. Read more

3.30 pm

Bullion prices

 

Gold advanced by Rs 10 to Rs 31,610 per 10 gram at the bullion market on sustained buying by local jewellers, even as a weak trend prevailed overseas. Silver prices too firmed up by Rs 20 to Rs 37,700 per kg due to increased offtake by industrial units and coin makers. Read more

3.15 pm

Heavy selling in realty, PSU, power and banking stocks pulled the benchmark indices down by nearly one per cent.

 

 

The Sensex plunged 293.65 points or 0.78 per cent to 37,285.30 and the Nifty dropped 96.05 points or 0.84 per cent to 11,281.50.

Top 10 Nifty gainers, losers

 

 

3 pm

The Sensex plunged 191.96 points or 0.51 per cent to 37,393.55 and the Nifty dropped 70.15 points or 0.62 per cent to 11,307.60 on heavy selling in realty, PSU, power and banking stocks. Only FMCG stocks remained in the green.

 

 

Top five Sensex losers were State Bank of India, Tata Motors, Axis Bank, Bajaj Auto and Bharti Airtel, while the major gainers were HUL, YES Bank, Wipro, ONGC and M&M.

 

The rupee weakened to 72.66 on heavy capital outflows. As oer provisional data, domestic institutional investors had sold shares worth Rs 180.36 crore, while foreign portfolio investors also offloaded shares to the tune of Rs 106.54 crore on Monday.

2.45 pm

IRCON primary offer

 

Investors can subscribe to the initial public offering of the company with a two to three-year perspective. The Centre is looking at divesting a 10 per cent stake in the firm.

A large order book, high-value contract wins, expertise in project management and execution, and a healthy mix of domestic and international revenues are positives for the company. IRCON is a net debt-free company with robust financials. Read more

2.35 pm

The Sensex fell 57.72 points or 0.15 per cent to 37,527.79 and the Nifty dropped 20.15 points or 0.18 per cent to 11,357.60.

Barring FMCG, consumer durables and oil & gas, all other BSE sectoral indices were trading in the negative zone.

 

Top five Sensex gainers were HUL, YES Bank, ONGC, Asian Paints and Wipro, while the major losers were State Bank of India, Bajaj Auto, Tata Motors, Bharti Airtel and Axis Bank.

 

2.25 pm

Brent crude drops to $78

 

Oil markets slipped as the latest escalation in the Sino-US trade war clouded the outlook for crude demand from the two countries, the world's top crude consumers. Brent crude futures had dropped 29 cents, or 0.37 per cent, to $77.76 per barrel by 0632 GMT. Read more

2.15 pm

Forex market

 

The dollar fell for a second consecutive day and the euro gained on Tuesday after US President Donald Trump escalated his trade war with China by imposing 10 per cent tariffs on about $200 billion worth of Chinese imports. The dollar index fell 0.2 per cent to its lowest since end-July at 94.35. Read more

2.05 pm

European markets

 

European shares opened little changed after US President Donald Trump imposed 10 per cent tariffs on an additional $200 billion worth of Chinese imports, and warned of duties on more products if China took retaliatory action. At 0720 GMT, the pan-European STOXX 600 was down a meagre 0.02 per cent.  Read more

1.50 pm

Cadila Healthcare

 

Firms having a strong domestic presence — apart from a growing US business — with a focus on niche, high-margin, specialty complex generics, are likely to deliver better performance in the medium and long run. Cadila Healthcare is one such company that can deliver on multiple fronts. Click here to read more

1.40 pm

Domestic shares were trading marginally lower as US President Donald Trump has imposed tariffs on $200 billion of Chinese goods escalating the trade conflict between the world's two largest economies.

The Sensex was down 27.94 points or 0.07 per cent at 37,557.57 and the Nifty down 7.6 points or 0.07 per cent at 11,370.15.

Top five Sensex gainers were HUL, YES Bank, ONGC, Adani Ports and M&M, while the major losers were State Bank of India, Bajaj Auto, Tata Motors, Coal India and Axis Bank.

Among BSE sectoral indices, PSU, realty, metal and power succumbed to selling pressure, while only FMCG and consumer durables remained investors' favourite.

 

1.20 pm

Gruh Finance (₹335.4)

 

The long-term trend is up for the stock of Gruh Finance. Since June, the stock has been in a sideways consolidation phase in the ₹300-345 range. The stock is range-bound within the uptrend; however, the bias is positive.

PI Industries (₹766.2)

 

Investors with a long-term perspective can stay invested with a stop-loss at ₹535 levels. An upward reversal from the key support at ₹720 or ₹700 can take the stock up to ₹800 or ₹820 levels. Click here to view the full recommendation

1.10 pm

Nifty 50 September futures (11,497)

 

Traders can make use of intra-day rallies to initiate fresh short positions, while maintaining a fixed stop-loss at 11,425 levels. On continuation of the down-move, the contract can re-test supports at 11,475 and 11,357. Click here to read more

1 pm

 Is spotting good debt funds a Herculean task?

 

Those who think investing in debt funds are risk-free, be cautious. Recently, rating downgrades of debt instruments of Infrastructure Leasing & Financial Services and its subsidiary IL&FS Financial Services had sent at least 25 mutual fund schemes that had exposure to IL&FS group companies, into a tizzy. Read more

12.45 pm

Yuan edges lower

 

China's yuan edged lower after US President Donald Trump said Washington will impose duties on an extra $200 billion worth of Chinese imports, sharply escalating the trade fight between the two economic giants. Read more

12.35 pm

The S&P BSE Sensex was trading down 19.46 points or 0.05 per cent at 37,566.05 and the Nifty50 down 8.4 points or 0.07 per cent at 11,369.35.

Top five Sensex gainers were HUL, YES Bank, ONGC, M&M and Adani Ports, while the major losers were State Bank of India, Tata Motors, Vedanta, Coal India and Bajaj Auto.

Among BSE sectoral indices, FMCG gained the most followed by healthcare and consumer durables. On the other hand, realty, PSU, metal and banking succumbed to selling pressure.

 

 

12.25 pm

HUL jumps to over 2-week high

 

Shares of Hindustan Unilever Ltd rose as much as 3.5 per cent to Rs 1,660.80, their highest in over two weeks. The stock posted biggest intraday percentage gain since May 16. Read more

12.15 pm

Gainers, losers

State-run Bank of Baroda Ltd fell as much as 14.2 per cent after the government's decision to merge it with Dena Bank and Vijaya Bank failed to enthuse investors.

 

While Bank of Baroda saw its steepest fall in over three years, shares of Dena Bank and Vijaya Bank rose sharply as the smaller peers are expected to benefit from the merger.

The Nifty PSU bank index dropped as much as 2.8 per cent to its lowest since July 26.

 

Some metal stocks also fell, with Vedanta Ltd and Hindalco Industries Ltd among the top percentage losers.

 

Tata Motors Ltd dropped 1.8 per cent after unit Jaguar Land Rover said on Monday it will cut output at a UK car plant after warnings on the impact of Brexit and diesel policy.

 

Hindustan Unilever Ltd rose as much as 3.5 per cent after management commentary at a recent analyst meet for the company's growth boosted sentiment. - Reuters

12.05 pm

Domestic shares were trading flat as sentiment across the globe turned sour amid worsened trade tensions between the US and China.

The Sensex was up 54.1 points or 0.14 per cent at 37,639.61 and the Nifty up 8.75 points or 0.08 per cent at 11,386.50.

Asian shares fell, and copper prices eased after Washington announced new tariffs on Chinese imports, inflaming trade tensions between the world's two biggest economies. MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.3 per cent.

Statements made by the US and China are keeping the market subdued and the government's recent measures to stem the rupee fall did not please investors, said Gaurang Shah, senior vice president, Geojit Financial Services.

Markets have corrected and it's only healthy, he added.

11.55 am

MCX gold, silver

 

Gold prices fell 0.23 per cent to Rs 30,705 per 10 grams at the futures trade. Silver prices were down by Rs 119 to Rs 37,314 per kg. Read more

11.40 am

Spot gold falls to $1,198/ounce

 

Gold prices fell as investors sought safety in the US dollar amid concerns of slowing global trade after the United States imposed a new round of tariffs on Chinese imports. Spot gold fell 0.2 per cent to $1,198 an ounce at 0309 GMT, after rising 0.6 per cent in the previous session. Read more

11.25 am

SEBI tweaks norms for buyback offers

 

SEBI has revised the share buyback mechanism to bring clarity on the requirement to make public announcements. In fact, the regulatory changes have come as record number of buybacks were announced by companies in the past couple of years that surpassed the money raised via new issues. Read more

11.15 am

Bank of Baroda sinks 14%

 

Shares of state-run Bank of Baroda fell as much as 14.2 per cent to Rs 116.1, their biggest daily percentage fall since January 2015, on merger announcement. Read more

11.05 am

Bank Nifty

 

In the put options side for the September 27 expiry, the 26,900 in-the money put was active on Monday. The option contract price gained 83.11 per cent or Rs 123.50 and closed at Rs 272.10. Read more

10.55 am

The Sensex was trading down 57.31 points or 0.15 per cent at 37,528.20 and the Nifty down 20.15 points or 0.18 per cent at 11,357.60 on escalating global trade concerns after US President Donald Trump announced new tariffs on an additional $200 billion worth of imports from China.

Alleging that China has been unwilling to change its unfair trade practices, Trump said the new additional tariff structure would be effective September 24 from when it would be at 10 per cent until the year end, but would increase to 25 per cent level from January 1.

As per provisional data, domestic institutional investors had sold shares worth Rs 180.36 crore, while foreign portfolio investors also offloaded shares to the tune of Rs 106.54 crore on Monday.

10.50 am

 

 

Shree Rama Newsprint has informed the exchanges that due to collapse of the cooling tower of its power plant early on Monday, the entire plant has been shut down. The company shares were trading down 0.77 per cent at Rs 25.80 on the BSE. Read more

10.45 am

 

 

 

RCI Industries & Technologies has received two purchase orders from Ordnance Factory Katni (MP), Ministry of Defence, for supply of 100 tonnes (approx) CR GM strips within delivery schedule of two months. The company shares were trading down 2.92 per cent at Rs 81.50 on the BSE. Read more

10.35 am

KIOCL board to consider buyback

 

The board of directors of KIOCL will meet today to consider a proposal for buyback of the company’s fully paid-up equity shares. The company shares were trading down 0.75 per cent at Rs 232.45 on the BSE. Read more

10.25 am

HCL Tech buyback opens today

 

Shares of HCL Technologies gained as much as one per cent as the company’s ₹4,000-crore buyback offer opened today. It will close on October 3.  Following a positive open at Rs 1,080 against the previous close of Rs 1,078.20, the stock touched intraday high of Rs 1,088.95 and a low of Rs 1,077.75. Read more

10.15 am

SEBI board to announce key policies

 

SEBI is likely to take a host of high-profile decisions, including committee report on fair market conduct, report on settlement mechanism, inter-operability of clearing corporation, status report on NSEL enforcement action and cutting down of listing time of IPOs to just three days. Read more

10.05 am

 

 

Redington board has approved a buyback proposal for purchase by the company of its own fully paid-up equity shares of ₹2 each not exceeding 1.11 crore equity shares (being 2.78 per cent of total paid-up equity capital of the company) at a price of ₹125 an equity share for an aggregate amount of up to ₹139 crore. The company shares were down 3.65 per cent at Rs 103 on the BSE. - Our Bureau

9.55 am

Broker's call

Equity99

Crest Ventures (Buy)

CMP: ₹193

Target: ₹317

Read more

9.45 am

Sensex gainers, losers

Top five gainers were HUL, YES Bank, Asian Paints, ONGC and M&M, while the major losers were PowerGrid, Vedanta, Tata Motors, State Bank of India and Bharti Airtel.

Among BSE sectoral indices, FMCG, consumer durables, healthcare and oil & gas found investors' support, while PSU, TECk, power and IT succumbed to selling pressure.

 

 

9.40 am

The Sensex was trading marginally higher by 48.61 points or 0.13 per cent at 37,634.12 and the Nifty up 17.15 points or 0.15 per cent at 11,394.90 owing to weak global cues.

US stock futures and Asian shares fell after US President Donald Trump imposed tariffs on an additional $200 billion worth of Chinese imports, in a sharp escalation of the trade conflict between the world's two biggest economies. The tariffs will be set at 10 per cent.

9.25 am

Trump imposes tariffs on Chinese goods

 

US President Donald Trump had escalated his trade war with China on Monday, imposing 10 per cent tariffs on about $200 billion worth of Chinese imports, but spared smart watches from Apple and Fitbit and other consumer products such as bicycle helmets and baby car seats. Read more

9.15 am

Opening bell

The 30-share BSE index Sensex opened lower by 25.96 points at 37,559.55 against Monday's close of 37,585.51 and the 50-share NSE index Nifty down 5.95 points at 11,377.75 against 11,371.80.

9.10 am

Today's stock pick

 L&T Finance Holdings (₹156): Sell

 

Overall, the short-term outlook is bearish for the stock. It can extend its fall and reach the price targets of ₹150 and ₹146.5 in the coming trading sessions. Sell the stock with a stop-loss at ₹159.5. Read more

9.05 am

Day Trading Guide

₹1992 • HDFC Bank

S1

S2

R1

R2

COMMENT

1982

1967

2005

2029

Fresh short positions can be initiated with a fixed stop-loss if the stock fails to move beyond ₹2,005 levels

 

₹726 • Infosys

S1

S2

R1

R2

COMMENT

720

712

734

742

Consider initiating fresh short positions with a stiff stop-loss if the stock of Infosys falls below ₹720 levels

 

₹301 • ITC

S1

S2

R1

R2

COMMENT

298

296

305

308

Near-term outlook is turning bearish for the stock of ITC. Make use of rallies to sell the stock with a fixed stop-loss

 

₹171 • ONGC

S1

S2

R1

R2

COMMENT

169

166

174

177

Fresh long positions are recommended with a tight stop-loss only if the stock advances above ₹174 levels

 

₹1226 • Reliance Ind.

S1

S2

R1

R2

COMMENT

1210

1190

1238

1252

The stock is experiencing selling pressure at higher levels. Consider selling in intra-day rally with a stiff stop-loss

 

₹285 • SBI

S1

S2

R1

R2

COMMENT

280

275

290

296

Fresh short positions can be initiated with a tight stop-loss if the stock of SBI reverses down from ₹290 levels

 

₹2071 • TCS

S1

S2

R1

R2

COMMENT

2050

2030

2095

2115

Initiate fresh long positions with a stiff stop-loss if the stock rebounds up from ₹2,050 levels

 

11407 • Nifty 50 Futures

S1

S2

R1

R2

COMMENT

11360

11310

11460

11510

Fresh short positions can be initiated with a tight stop-loss if the contract fails to move above 11,460 levels

 

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

Published on September 18, 2018