Markets staged a strong comeback Thursday after six straight sessions of losses as investors accumulated recently hammered healthcare, energy and power stocks towards the fag-end even as the rupee breached the 72-level for the first time.
The BSE Sensex rebounded 224.50 points to end at 38,242.81, while the broader Nifty gained 59.95 points to 11,536.90.
Benchmarks largely benefited from value buying in beaten-down stocks lead by RIL and Sun Pharma, tracking a rebound in European shares in late-morning trade, traders said. The session was marked by high volatility and stock-specific action.
The 30-share Sensex stayed choppy on alternate bouts of buying and selling and shuttled between 38,320.96 and 37,912.50. It finally ended 224.50 points or 0.59 per cent higher at 38,242.81.
The index had lost 878.32 points in the previous six sessions as the rupee plunged to a record low amid a general flight of capital from emerging market assets.
The broader NSE Nifty too reclaimed the key 11,500-mark. It touched a high of 11,562.25, before finally settling at 11,536.90, showing a gain of 59.95 points, or 0.52 per cent. Intra-day, it touched a low of 11,436.05.
Meanwhile, domestic institutional investors (DIIs) made purchases worth a net of Rs 176.95 crore, while foreign portfolio investors (FPIs) net sold shares worth Rs 383.67 crore Wednesday, as per provisional data.
Inditrade (erstwhile JRG), a player in the agri-commodity financing and microfinance business, has launched microfinance operations in Karnataka (through its wholly-owned subsidiary Inditrade Microfinance Ltd). Read more
The lead futures contract on the Multi Commodity Exchange (MCX) has been trading volatile over the last week. The contract broke above the key ₹148-₹149 resistance to record a high of ₹151.65 per kg on Monday. But it failed to sustain the momentum and reversed sharply lower. The contract tumbled 3.6 per cent to make a low of ₹146.15 per kg on Wednesday. However, the contract has bounced-back recovering some of the loss and currently trades at ₹149 per kg. Read more
World shares fell for a fifth straight day on Thursday as investors braced for another escalation in a trade war between the United States and China, while emerging-market currencies paused near 15-month lows. Read more
The Sensex was trading 279 points higher at 38,297.70. Similarly, the NSE Nifty was up 0.72 per cent or 82.25 points at 11,559.20. The rally was led by Reliance and HDFC group stocks.
Bank of Baroda, on Wednesday, said it will raise its marginal cost of funds-based lending rate (MCLR) across all tenors by 5 basis points with effect from September 7. Read more
The Sensex made a smart recovery after falling into negative zone post rupee fall. The 30-share index was trading 142.71 points or 0.38 per cent higher at 38,161.02. The recovery was aided by RIL, Kotak Bank, HDFC Bank, IndusInd Bank, Sun Pharma, PowerGrid and Infosys.
The NSE Nifty was up 0.27 per cent or 31.50 points at 11,508.45.
The Telangana Cabinet recommended the dissolution of the state assembly on Thursday, official sources said. They said Chief Minister K Chandrasekhar Rao is likely to meet Governor ESL Narasimhan shortly to convey the decision. Read more
Gold inched up on Thursday, supported by physical buying and as the dollar remained under pressure, but a weaker yuan amid worries of looming US tariffs on China capped the metal's gains. Read more
In a strong move, Transport and Highways Minister Nitin Gadkari on Thursday said no permits would be required for alternative fuel vehicles, including CNG, ethanol and electric vehicles. Read more
The Sensex erased its gains and declined as the rupee breached the 72-mark against the dollar.
At about 1.30 pm, the Sensex was trading flat at 38,005.09, down 13.22 points or 0.03 per cent after hitting a low of 37,912.50.
Similarly, the NSE Nifty was down 0.12 per cent or 13.25 points at 11,463.70.
The VIX index in India was up 2.54 per cent at 13.9975.
The Nifty call: Go short in intra-day rallies
Traders can make use of intra-day rallies to go short while maintaining a fixed stop-loss at 11,525 levels. Continuation of the down-move can make the index find support at 11,450 levels. Read more
Rupee plunges below 72-mark for first time
The rupee opened higher at 71.66 but could not sustain the gains and fell sharply to a low of 72.12 in afternoon trade. At about 1 pm, the rupee was trading at 72.04, revealing a steep loss of 29 paise from Wednesday's close. Read more
Singh vs Singh: A family feud or distraction from the main course?
When Shivinder Singh says in a public statement that “Malvinder and I...have been synonymous with one another” for two decades, that’s precisely how people who have dealt with the brothers describe them. Read more
Editorial: SEBI’s intent in cracking down on NRI-controlled FPIs is right, but some rules can be relooked
An avoidable public spat has broken out between the Securities Exchange Board of India (SEBI) and a section of Foreign Portfolio Investors (FPIs), after a recent circular by the regulator giving registered FPIs time until December 31 this year, to provide a list of their beneficial owners and to wind up structures where NRIs, persons of Indian origin (PIOs) or Overseas Citizens of India (OCI), are in the driving seat. Read full edit here
Shares of Srei Infrastructure Finance Ltd jumped as much as 5.7 per cent to Rs 54.6. Consolidated June-quarter profit more than doubled to Rs 140 crore, helped by higher revenue, the company said after market close on Wednesday. Read more
Hudco shares jump 13% on higher profit
Shares of Housing and Urban Development Corporation Ltd jumped as much as 13.1 per cent to Rs 63, its highest since June 13. Read more
The Sensex lost some steam in the noon session and was trading just about 0.14 per cent higher. The Sensex was up by 54.50 points or 0.14 per cent at 38,072.81. Similarly, the NSE Nifty was quoting at 11,483.25, up 6.30 points or 0.05 per cent.
The 30-share index had declined to a near three-week low in the previous session. The rupee fell to a low of 71.95 per dollar before reversing some of the losses as the central bank likely supported the local currency from declining to 72 per dollar levels.
The broader NSE index has given up 203.55 points in the previous three sessions.
“This could be termed as some sort of a relief rally,” said Arun Kejriwal, founder of advisory firm Kejriwal Research.
NTPC, PowerGrid and Kotak Mahindra Bank Ltd were the top gainers on the NSE index, rising 2.5 per cent, 2.27 per cent and 1.59 per cent, respectively. Consumer goods maker Hindustan Unilever Ltd , which lost nearly 9.5 per cent in the last three sessions on valuation concerns, climbed as much as 1.5 per cent.
The Nifty realty index gained 1.8 per cent after reports that the country's top court lifted a ban imposed on construction in Maharashtra and Uttarakhand.
Indiabulls Real Estate Ltd was the top gainer on the realty index, rising as much as 5.4 per cent.
IT stocks declined with Tata Consultancy Services Ltd and Tech Mahindra Ltd shedding 0.9 per cent and 1.3 per cent, respectively.
Zee Entertainment Enterprises Ltd was the top loser with a drop of 9.6 per cent to a 20-month low after Morgan Stanley downgraded it on concerns over margins.
The Nifty Media Index slumped 5.48 per cent to its lowest since December 2016.
Shares of Zee Entertainment Enterprises Ltd plunged as much as 9.6 per cent to Rs 436.05, their lowest since December 2016. Morgan Stanley downgraded the stock to ‘underweight’ from ‘overweight’ and lowered the price target by 33 per cent to Rs 410. It has also cut FY-19/20 EBITDA estimates. Read more
India imported about 5,23,000 barrels per day (bpd) of oil from Iran in August, down 32 per cent on a month earlier, preliminary tanker arrival data showed, as the United States steps up pressure on buyers to halt Iranian energy imports from November. Read more
A depression has sprung up over the North-West Bay of Bengal a week into the monsoon withdrawal month of September to the accompaniment of squally winds and heavy rain, initially over East India. This came about as yesterday's low-pressure area intensified twice over into the night as it lay partly over land and sea this morning across the North-West Bay and adjoining Bengal and the North Odisha coasts. Read more
The rupee on Thursday recovered from its all-time low by rising 9 paise to 71.66 against the US dollar in early trade at the Interbank Foreign Exchange market on fresh selling of the US currency by exporters and banks. However, the domestic unit soon gave up its gains and slipped to hit a low of 71.94. At about 11.20 am, the rupee was quoting at 71.90. Read more
Bank Nifty call options see surge in open interest
Stock markets witnessed selling pressure on Wednesday on foreign outflows amidst weaker rupee. Investors have turned extremely cautious as international trade conflicts weighed heavily against any fresh commitments. Read more
Shares of telecom operator Vodafone Idea Ltd fell as much as 2.71 per cent to Rs 46.6, their lowest since March 23, 2009. The stock broke below a support at Rs 49.8, the 50 per cent Fibonacci projection level of the downtrend from April 17, 2015, high to November 9, 2016 low (wave (1)). Read more
Realty and cement stocks rose on reports the apex court had lifted construction ban in Maharashtra and Uttarakhand. The Nifty Realty index was up as much as 1.8 per cent. Read more
The BSE Sensex rebounded over 150 points in opening trade on Thursday on value-buying in select bluechip stocks, recovery in rupee and fall in global crude oil prices, but pared some gains on mixed Asian trend. The 30-share BSE index recovered by 164.46 points, or 0.43 per cent, to 38,182.77 in opening trade. It, however, lost some steam and was trading 121.68 points, or 0.32 per cent, higher at 38,139.99 at 10.30 am.
The NSE Nifty was up 28.05 points, or 0.24 per cent, at 11,505.
Sectoral indices, including realty, metal, healthcare, consumer durables, PSU, FMCG and capital goods were trading in the positive zone by rising up to 1.41 per cent.
The Sensex had lost 878.32 points in the previous six sessions as rupee slumped to a record low of 71.97 (intra-day) amid trade US-China trade spat and concerns over rising global crude prices.
Major gainers were PowerGrid, Kotak Bank, Tata Steel, HUL and Bajaj Auto, rising up to 3.23 per cent.
ONGC, Axis Bank, Vedanta, Bharti Airtel and TCS were among the top losers, falling up to 1.12 per cent.
Domestic institutional investors (DIIs) made purchases worth a net of Rs 176.95 crore, while foreign portfolio investors (FPIs) sold shares worth a net of Rs 383.67 crore Wednesday, as per provisional data.
Aurobindo Pharma Ltd has signed a definitive agreement to acquire certain assets from Sandoz Inc, USA , a Novartis division for a consideration of $0.9 billion ($900 million). The proposed acquisition comprises dermatology business and a portfolio of oral solid products along with commercial and manufacturing infrastructure in the US. Aurobindo’s scrip gained 4.15 per cent after opening of trade on the Bombay Stock Exchange on Thursday and was trading at Rs 725 at 10 am today. Read more
Asian markets extend losses on trade, emerging market anxiety
Asian shares fell for the sixth straight session on Thursday as oil skidded and safe-haven gold gained, with investor confidence shaken by turmoil in emerging markets and jitters over a potentially severe escalation in the US-China trade war. Read more
TCS: ₹16,000-crore buyback offer opens
The shares will be bought back at ₹2,100 a share through the tender offer route. Only those shareholders whose names had appeared on the company’s books as on August 18 are eligible to participate in the mega buyback offer.
Religare Enterprises: Board meets for Q1 nos
The board of Religare Enterprises (REL) will meet on Thursday to consider unaudited standalone financial results for the quarter ended June 30. On July 13, the company had clarified (on exposure to promoters’ entities) that Religare Finvest, subsidiary of REL, has exposure of ₹2,036.70 crore and as part of recovery process RFL had issued legal notices and was initiating further action. Investors would look for clarifications on the issue.
SORIL Infra: Focus on fund-raising plans
The board meet of SORIL Infra Resources would be held on Thursday to consider and approve a preferential issue of equity shares or convertible securities to the promoter group and/or their PACs, and pricing of the issue. Read more
The Sensex opened at 38,161.85 against Wednesday's close of 38,018.31. Similarly, the Nifty opened at 11,514.15 against the previous close of 11,476.95.
On Wednesday, the Sensex spiralled lower for the sixth straight session as a weak rupee and widespread selloff in emerging market assets dented risk appetite. The benchmark 30-share index tumbled 139.61 points to end at an over two-week low of 38,018.31, while the wider NSE Nifty slipped 43.35 points to 11,476.95. As of Wednesday, the Sensex had lost 878.32 points in six sessions -- its longest string of losses in six months.
Day Trading Guide For September 6
Given below are supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading:
₹2044 • HDFC Bank
₹729 • Infosys
Investors with a short-term horizon can buy the stock of Kirloskar Ferrous Industries at current levels. The stock has been in an intermediate-term downtrend since registering a 52-week high at ₹121.9 in early January this year. However, the stock found support in the band between ₹78 and ₹80 in late July and early August. Subsequently, the stock changed direction and has been in a short-term uptrend since then. Read more