Markets Live: Sensex sinks 572 points to 35,312, Nifty closes at 10,601 on global sell-off

Closing bell

The S&P BSE Sensex crashed 572.28 points or 1.59 per cent to 35,312.13 and the Nifty 50 plunged 181.75 points or 1.69 per cent to 10,601.15 due to sell-off in global equities as the arrest of a Huawei top executive fed worries over a fresh build-up in the Sino-US trade war.

Domestic sentiment was also hit as the RBI had on Wednesday decided to hold the interest rates in light of easing inflation to support the economy. It has kept the interest rates unchanged and retained its 'calibrated tightening' stance as widely expected and took steps to persuade banks to lend more to help boost an economy that has lost some momentum.

Among BSE sectoral indices, auto and realty plunged the most followed by infrastructure, TECk and oil & gas.

Top five Sensex losers were Maruti, Tata Motors, YES Bank, Adani Ports and Reliance, while Sun Pharma was the only gainer among 30-share Sensex constituents.

“Markets will remain volatile till we come out with the verdict on the state elections,” said Siddharth Sedani, head of equity advisory at brokerage firm Anand Rathi, adding that there is some nervousness from the commentary around the US-China trade spat as well.

Election results for the five states of Madhya Pradesh, Mizoram, Chhattisgarh, Rajasthan and Telangana will be published on December 12, which will set the tone for 2019 general elections.

As per provisional data, foreign portfolio investors sold shares worth Rs 357.82 crore and domestic institutional investors were net sellers to the tune of Rs 791.59 crore on Wednesday.

Rupee trading weak at 70.84

The rupee depreciated by 68 paise to 71.14 due to strengthening of American currency and a weak equity market. It hovered in a range of 71.14 and 70.78 before quoting at 70.84 down 38 paise at 3.50 pm local time. Read more

European markets

European shares fell sharply on Thursday after the arrest of a Huawei top executive fed worries over a fresh build-up in the Sino-US trade war, hitting export-oriented tech and auto stocks.  By 0817 GMT, the pan-regional STOXX 600 index fell 1.2 per cent. Read more

RBI may cut policy rates by 0.25% at upcoming review

The Reserve Bank of India may cut key policy rates by 0.25 per cent either at the upcoming policy review in February or the one after that in April, says Bank of America Merrill Lynch. The brokerage said it expects RBI to step up liquidity injection through its open market operations to Rs 50,000 crore a month during the March quarter. Read more

Alembic Pharma to raise Rs 500 cr

Alembic Pharma board of directors has approved the issue of unsecured listed redeemable NCDs of up to Rs 500 crore on a private placement basis under a shelf disclosure document in multiple tranches. Read more

Sensex gainers, losers

Top five Sensex losers were Maruti, Tata Motors, Bharti Airtel, Asian Paints and YES Bank, while the only two gainers were Sun Pharma and PowerGrid.

Nifty gainers, losers

MCX gold

Gold prices rose Rs 80 to Rs 31,155 per 10 gram at the futures trade as speculators widened their bets, tracking a firm trend overseas. Gold for February delivery was up by Rs 75 or 0.24 per cent at Rs 31,150 per 10 gram with a business volume of 13,296 lots. Read more

Pre-close trade

The S&P BSE Sensex crashed 523.87 points or 1.46 per cent to 35,360.54 and the Nifty 50 plunged 169.7 points or 1.57 per cent to 10,613.20 on sell-off in global equities as the arrest of a Huawei top executive fed worries over a fresh build-up in the Sino-US trade war.

By 0817 GMT, the pan-regional STOXX 600 index fell 1.2 per cent, marching towards the lowest level since December 2016 it hit during the sell-off seen over the last two months.

Domestic sentiment was also hit as the RBI had on Wednesday decided to hold the interest rates in light of easing inflation to support the economy. It has kept the interest rates unchanged and retained its 'calibrated tightening' stance as widely expected and took steps to persuade banks to lend more to help boost an economy that has lost some momentum.

“Markets will remain volatile till we come out with the verdict on the state elections,” said Siddharth Sedani, head of equity advisory at brokerage firm Anand Rathi, adding that there is some nervousness from the commentary around the US-China trade spat as well.

Election results for the five states of Madhya Pradesh, Mizoram, Chhattisgarh, Rajasthan and Telangana will be published on December 12, which will set the tone for 2019 general elections.

Dollar falls as risk aversion hits bond yields

The dollar fell against the yen as growing investor aversion to riskier assets hit equities and pushed down US Treasury yields. The US currency dropped 0.4 per cent to 112.72 yen, handing back its modest gains made overnight. Read more

Rupee may fall to 75/dollar by 2019-end

Fitch Ratings has projected the rupee to fall to 75 to a dollar by the end of 2019 due to widening of current account deficit and tighter global financing. The Indian rupee is currently hovering at a two-week low level of around 71 to the US dollar. Read more

Copper extends losses on US-China trade woes

Prices of non-ferrous metals extended losses, as worries over weak demand caused by Sino-US trade tensions persisted. Three-month copper on the London Metal Exchange fell 0.8 per cent to $6,142 a tonne by 0132 GMT, extending losses from the previous session. Read more

Lending rates may continue to move higher

With credit growing at a faster pace than deposits, exerting pressure on banks’ funding resources, deposit rates and, in turn, lending rates have continued to rise over the past two months. This is despite the RBI holding its policy rate since August and the yield on G-Secs cooling off. Read more

BSE sectoral indices

All sectoral indices were in the red with realty, auto, consumer durables and infrastructure posting steep losses.

Domestic shares fell more than 1 per cent as the Reserve Bank of India has decided to hold interest rates in light of easing inflation to support the economy.

The Reserve Bank of India had kept interest rates unchanged and retained its 'calibrated tightening' stance on Wednesday as widely expected and took steps to persuade banks to lend more to help boost an economy that has lost some momentum.

Meanwhile, the government, which has been at loggerheads with the central bank, said it welcomed the Monetary Policy Committee's assessment but it believed the “policy stance probably required calibration,” suggesting it may be unhappy with the RBI retaining its tightening bias.

Also, the RBI had slashed its inflation projection to 2.7-3.2 per cent by March-end from its prior view of 3.9-4.5 per cent.

Weaker Asian shares further dampened the trading sentiment. Asian shares tumbled after Canadian authorities arrested a top executive of Chinese tech giant Huawei for extradition to the United States, feeding fears of a fresh flare-up in tensions between the two superpowers.

The broader NSE index was trading lower by 118 points or 1.1 per cent at 10,664.10. The benchmark BSE index also declined 355.31 points or 0.99  per cent to 35,529.10. Both the indexes posted their worst intraday fall in at least about six weeks.

“Markets will remain volatile till we come out with the verdict on the state elections,” said Siddharth Sedani, head of equity advisory at brokerage firm Anand Rathi, adding that there is some nervousness from the commentary around the US-China trade spat as well.

“In terms of the monetary policy outcome, it was in line with expectations, although there were some pockets who were expecting a CRR (Cash Reserve Ratio) cut which did not happen,” Sedani said.

Nifty 50 December Futures (10,690)

A strong break above 10,700 can provide a corrective upmove to 10,725 or even to 10,750 levels. That said, failure to move beyond the key resistance level of 10,750 can drag the contract down once again. Read more

DHFL Pramerica Global Equity Opportunities

DHFL Pramerica Global Equity Opportunities is a fund-of-fund. It invests in PGIM Jennison Global Equity Opportunities Fund that has a strong track record since its inception in April 2011. Its annualised returns in US dollar terms is 12.4 per cent since-inception, 10.2 per cent over five years, 11.4 per cent over three years and 3.2 per cent over a year.  Read more

A sombre year for gilt funds

After a lacklustre 2017, the performance of gilt funds — schemes that invest primarily in long-duration government bonds — this year is still nothing to write home about. From the beginning of the year, yield on 10-year G-Secs has gone up by about 40 basis points, impacting the performance of gilt funds (yield and price of government bonds are inversely related). Read more

Maruti Suzuki chart suggests more downside

Shares of Maruti Suzuki India fell as much as 4.48 per cent. The stock has broken a support at Rs 7,299.4. Support is identified as the 14.6 per cent Fibonacci projection level of the downtrend from the July 24 high to the October 31 low (wave A). Read more

Invesco India Midcap

Investors looking to invest in mid-cap funds can consider Invesco India Midcap. The scheme has managed to contain the downside well in the ongoing market correction. While mid-cap funds as a category have slumped about 10 per cent on an average over the past year, Invesco India Midcap has fallen by a lower 3.8 per cent.  Read more

Fitch lowers GDP growth forecast

Fitch Ratings has revised downwards India’s GDP growth forecast to 7.2 per cent for the current fiscal citing higher financing cost and reduced credit availability. Fitch has projected that for 2019-20 and 2020-21 financial years, India’s GDP growth will be 7 per cent and 7.1 per cent, respectively. Read more

Spot gold up at $1,240/ounce

Gold edged higher as growing risk aversion weighed on the dollar, while palladium held ground at a premium to the bullion. Spot gold was up 0.2 per cent at $1,239.86 per ounce, as of 0429 GMT, while US gold futures were 0.2 per cent higher at $1,244.9 per ounce. Read more

Aurobindo Pharma slumps 4%

Shares of Aurobindo Pharma Ltd fell as much as 4 per cent to Rs 764.55, their lowest since November 13, as according to a media report, the company is facing a class action lawsuit in the US over carcinogenic elements in its blood pressure drug. Read more

Nifty gainers, losers

Pre-noon trade

The S&P BSE Sensex was trading lower by 371.49 points or 1.04 per cent at 35,512.92 and the Nifty 50 down 127.65 points or 1.18 per cent at 10,655.25 on heavy selling in realty, auto, consumer durables and oil & gas stocks.

Global investor sentiment turned weak as the chances of peaceful trade negotiations between the US and China dimmed on news that Huawei chief financial officer Meng Wanzhou had been held in Canada and faces extradition to the United States over alleged Iran sanctions breaches by the firm.

Domestic investor sentiment was also weak after the Reserve Bank of India had on Wednesday kept the interest rates unchanged.

“From a market stand point, the expectation of a more accommodative view from RBI, in line with similar view on the US Fed rate trajectory was a disappointment, which explains the post announcement volatility,” said Dhananjay Sinha, Head of Research, Economist & Strategist, Emkay Global Financial Services.

Shankara Building Products down 1%

Shares of Shankara Building Products recovered strongly on Wednesday, thanks to buying by Singapore-based funds. The stock’s decline got aggravated last week after the company gave a cautious outlook in the face of heightened competition. On Thursday, the company shares were trading down 0.98 per cent at Rs 573.90 on the BSE. Read more

PFC to raise $500 million

Power Finance Corporation plans to raise $500 million through medium-term notes maturing in December 2028. Proceeds from the issue will be used by PFC to finance power projects and for general corporate purposes in line with the guidelines on external commercial borrowings. Read more

Brent crude falls to $61/barrel

Oil prices fell along with weak stock markets, but trading was tepid ahead of a meeting by producer group OPEC that is expected to result in a supply cut aimed at draining a glut that has pulled down crude prices by 30 per cent since October. International Brent crude oil futures were down 7 cents, or 0.1 per cent, at $61.49 per barrel. Read more

Rupee slumps to 71/$ mark

The rupee opened weak at 70.72 and then further depreciated by 54 paise and hit the 71 per dollar mark due to strengthening of American currency and a weak equity market. Bonds rose to over 8-month highs. Read more

RattanIndia Infra promoter offer-for-sale

The offer-for-sale of Arbutus Consultancy LLP, a promoter group entity, of RattanIndia Infrastructure, opens today. The promoter plans to dilute 6.49 crore shares, representing 4.71 per cent of the total paid-up equity capital of the company, to meet SEBI’s minimum public shareholding norm. For non-retail investors, the window opens on Thursday and for retail investors on Friday. The floor price has been pegged at ₹3.40 a share. Read more

Zydus Wellness board meet today

The board of Zydus Wellness Ltd will meet today to consider fund raising plans through issue of securities on a preferential allotment basis and issue of secured or unsecured redeemable, non-convertible debentures on private placement basis. The company shares were trading down 0.8 per cent at Rs 1,215 on the BSE. Read more

The Sensex slumped 361.57 points or 1.01 per cent to 35,522.84 and the Nifty dropped 121.1 points or 1.12 per cent to 10,661.80 due to heavy selloff in metal and oil stocks ahead of the OPREC meeting to discuss production policy and weak global cues.

Global investor sentiment was hit as the chances of peaceful trade negotiations between the US and China dimmed on news that Huawei chief financial officer Meng Wanzhou had been held in Canada and faces extradition to the United States over alleged Iran sanctions breaches by the firm.

All BSE sectoral indices were in the red with realty, metal, auto and infrastructure posting steep losses.

Top five Sensex losers were Vedanta, Maruti, ONGC, ICICI Bank and Bharti Airtel, while the only three gainers were Sun Pharma, PowerGrid, and Adani Ports.

Domestic investor sentiment was also weak as the Reserve Bank of India had on Wednesday kept the interest rates unchanged.

“From a market stand point, the expectation of a more accommodative view from RBI, in line with similar view on the US Fed rate trajectory was a disappointment, which explains the post announcement volatility,” said Dhananjay Sinha, Head of Research, Economist & Strategist, Emkay Global Financial Services.

As per provisional data, foreign portfolio investors sold shares worth Rs 357.82 crore, and domestic institutional investors were net sellers to the tune of Rs 791.59 crore on Wednesday.

Muthoot Finance board meet

The board of Muthoot Finance will meet today to consider the unaudited standalone financial results for the quarter and half-year ended September 30, 2018. For the first quarter of the current fiscal, the Kerala-based firm had reported a net profit of ₹491.56 crore and revenues of ₹1,622.88 crore; for FY18, Muthoot Finance had posted a PAT of ₹1,720.27 core and revenues of ₹6,161.83 crore. The company shares were up 0.04 per cent at Rs 447.90 on the BSE.

Warehousing norms for non-agri goods

SEBI has proposed a framework for warehouse companies and other allied service providers engaged in non-agricultural goods, a move which will help in improving the delivery and settlement mechanism. Read more

Broker's call

Equirus

Arvind (Buy)

CMP: ₹103.65

Target: ₹144

Click here to read more

Broker's call

Prabhudas Lilladher

S Chand & Co (Buy)

CMP: 225.2

Target: ₹400

Click here to read more

Sensex gainers, losers

Nifty gainers, losers

Opening bell

The S&P BSE Sensex plunged 223.16 points to 35,661.25 against Wednesday's close of 35,884.41 and the Nifty 50 dropped 73.8 points to 10,709.10 against 10,782.90 on weak global cues.

US stock futures and Asian shares tumbled after Canadian authorities arrested a top executive of Chinese tech giant Huawei for extradition to the US, fanning fears of a fresh flare-up in tensions between the two superpowers.

Day Trading Guide

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

₹2099 • HDFC Bank

₹681 • Infosys

₹275 • ITC

₹143 • ONGC

₹1154 • Reliance Ind.

₹280 • SBI

₹2006 • TCS

10827 • Nifty 50 Futures

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

Today's stock pick

 Jai Corp (₹102): Sell

The short-term outlook is bearish. The stock can continue to trend down and reach the price targets of ₹98 and ₹95.5 in the coming trading sessions. Traders can sell the stock with a stop-loss at ₹104.5. Read more

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