Markets Live: Healthcare, bank stocks drive Sensex up 347 points; Nifty ends at 11,067

Closing bell

The 30-share BSE index Sensex closed at 36,652.06, up by 347.04 points or 0.96 per cent in a volatile trade on value-buying in healthcare, banking, FMCG and auto stocks.

 

 

The Sensex touched a high of 36,705.79 and a low of 36,064.10. The gauge had lost 1,785.62 points in the previous five sessions.

The 50-share NSE index Nifty ended sharply higher by 100.05 points, or 0.91 per cent, at 11,067.45 points. Intraday, it hovered between 11,080.60 and 10,882.85.

A firm trend in European markets largely on the back of strong earnings accelerated buying activity towards the fag-end.

According to brokers, the session was marked by volatility and stock-specific action, even as the overall sentiment remains weak as a fresh round of US-China tariffs and a surge in oil prices to near four-year highs added to worries about risks to global growth.

 

The rupee also pared initial losses to trade 6 paise higher at 72.57 against the dollar (intraday). Covering-up of short positions by speculators ahead of September month expiry in the derivatives segment on Thursday also helped the market stage a smart rally.

As per provisional data, domestic institutional investors made purchases worth Rs 1,527.67 crore while foreign portfolio investors sold shares worth Rs 523.94 crore Monday. _ PTI

World markets

 

World stocks struggled to make headway after another round of US-China tariffs kicked in and investors' nerves were frayed by rising expectations of central bank rate hikes and oil prices near four-year highs. Read more

European markets

 

The pan-European STOXX 600 index rose 0.2 per cent by 0801 GMT, recovering part of the losses suffered in the previous session when worries over a protracted US-Sino trade war sparked profit-taking. Read more

'Will not allow IL&FS to collapse'

 

Life Insurance Corporation has assured that it would do all it can to prevent the collapse of beleaguered IL&FS, which has now begun to implode and started to renege on several of its repayment obligations. Read more

New telecom policy

 

The Union Cabinet is likely to discuss the draft new telecom policy, known as National Digital Communications Policy 2018 on Wednesday. NDCP will set the roadmap for attracting an investment of around Rs 6.5 lakh crore in the telecom sector. Read more

Pre-close trade

The Sensex jumped nearly 250 points on heavy buying in healthcare, banking, FMCG and auto stocks amid firm European cues.

 

 

The S&P BSE index was trading up 234.29 points or 0.65 per cent at 36,539.31 and the Nifty50 up 53.7 points or 0.49 per cent at 11,021.10.

Top five Sensex gainers were HDFC, Sun Pharma, Kotak Bank, Maruti and Axis Bank, while the major losers were YES Bank, PowerGrid, Adani Ports, Coal India and Tata Steel.

 

European shares were supported in morning trading on Tuesday by gains among oil stocks, while British clothing retailer Next rallied after raising its profit guidance.

The pan-European STOXX 600 index rose 0.2 per cent by 0801 GMT, recovering part of the losses suffered in the previous session when worries over a protracted US-Sino trade war sparked profit-taking.

Flair Writing IPO

 

Flair Writing Industries has filed its draft papers with the Securities and Exchange Board of India to raise funds through an initial public offer. The initial public offering comprises equity shares of face value of Rs 10 each of Flair Writing aggregating up to Rs 450 crore. Read more

Domestic shares were trading marginally higher as the risk appetite was dampened by weak rupee, foreign fund outflows, rising crude oil prices and weak global cues.

The Sensex was up 48.45 points or 0.13 per cent at 36,353.47 and the Nifty down 1.65 points or 0.02 per cent at 10,965.75.

Realty stocks succumbed to heavy selling pressure followed by infrastructure, oil & gas and PSU. 

 

 

Dewan Housing Finance shares erased their early gains and tumbled 23 per cent due to profit-booking as fears of a liquidity crisis continued to haunt the sentiment. Investors had already been set on edge by IL&FS Financial Services which has defaulted on a series of its coupon payments.

Top Nifty gainers were Infosys, Cipla, Dr Reddy's, HUL and Maruti, while the losers were Indiabulls Housing Finance, YES Bank, Adani Ports, GAIL and Tata Steel.

 

DHFL shares tumble 23%

 

Dewan Housing Finance shares erased their early gains and tumbled 23 per cent due to profit-booking as fears of a liquidity crisis continued to haunt the sentiment. Read more

Eicher Motors crashes to 1-1/2-year low

 

Shares of Eicher Motors Ltd fell as much as 2.5 per cent to Rs 25,211, lowest since March 31, 2017. The stock broke below a support at Rs 26,344.25, the 38.2 per cent Fibonacci retracement level of the uptrend from January 19, 2016 low to September 8, 2017. Read more

The Sensex was trading down 75.04 points or 0.21 per cent at 36,229.98 and the Nifty down 39.95 points or 0.36 per cent at 10,927.45 on heavy selling in realty, infrastructure, metal and oil & gas amid weak global cues.

Dewan Housing shares fell 23.2 per cent on Tuesday, undoing the previous day's recovery from Friday's catastrophic fall, when the stock nearly halved in value.

Investors had already been set on edge by IL&FS Financial Services which has defaulted on a series of its coupon payments. It could not service commercial papers (CPs) that fell due on Monday. IFIN has been having trouble servicing CPs over the past 10 days or so.

There was no let up in the suffering for investors in NBFCs, however, and others followed the fall in Dewan Housing Finance. Indiabulls Housing Finance Ltd fell as much as 8.7 per cent on Tuesday, with the stock shedding 15.3 per cent over the past two sessions.

Future Supply to raise Rs 199 cr

 

Future Supply Chain Solutions will raise Rs 199 crore by allotting non-convertible debentures on a private placement basis. Shares of Future Supply Chain Solutions were trading 0.46 per cent up at Rs 648 apiece on the BSE. Read more

Anmol Industries IPO

 

Anmol Industries, has received approval from the Securities and Exchange Board of India for its initial public offering. The company, which is into biscuits, cake and cookie manufacturing, plans to go public with an offer for sale of up to Rs 750 crore. Read more

Nifty 50 September futures (11,016)

 

The Nifty 50 futures contract is showing signs of relief after having fallen continuously over the past one week. Though the contract extended its fall in opening trade, it has managed to recoup from the day's low. The contract made a low of 10,909 and reversed higher, recovering all the loss and is currently trading at 11,012. Read more

Domestic shares steadied after an early wobble on Tuesday despite rupee close to record lows, and abiding fears that problems at two large non-banking financial companies could signal a wider credit crunch.

Alarm over potential for a credit crunch had heightened on Friday when bonds issued by Dewan Housing Finance Corp were sold by a large fund manager at hefty discount. Shares in the NBFC fell 23.2 per cent on Tuesday, undoing the previous day's recovery from Friday's catastrophic fall, when the stock nearly halved in value.

Investors had already been set on edge by IL&FS Financial Services which has defaulted on a series of its coupon payments. It could not service commercial papers (CPs) that fell due on Monday. IFIN has been having trouble servicing CPs over the past 10 days or so.

“There's a lack of confidence in the markets now, especially in the banking sector,” said Siddharth Sedani, head of equity advisory at brokerage firm Anand Rathi.

The central bank had late on Monday said it would buy Rs 10,000 crore ($1.38 billion) worth of government bonds, but Sedani said the market would need more long-term reassurance than open market operations can provide.

The main share indexes fell by up to 0.8 per cent in nervous early trading, before recovering. By early afternoon, the broader NSE index was 0.28 percent up, while the benchmark BSE index had gained 0.45 per cent.

There was no let up in the suffering for investors in NBFCs, however, and others followed the fall in Dewan Housing Finance. Indiabulls Housing Finance Ltd fell as much as 8.7 per cent on Tuesday, with the stock shedding 15.3 per cent over the past two sessions.

Finance Minister Arun Jaitley told investors on Monday that the government stood ready to take steps to ensure adequate liquidity for NBFCs, echoing assurances already given by the central bank and the market regulator. But investors said the markets needed more than verbal assurances.

Having posted record highs last month, equity markets were still in better shape than the rupee and the bond market.

The partially convertible rupee is Asia's worst performing currency so far this year, and on Tuesday it briefly weakened to 72.9650 per dollar, just a whisker away for the all-time low of 72.99 struck last week. By early afternoon the currency steadied to 72.82, still a shade weaker than Monday's close at 72.63.

Currency traders were expecting authorities to take some pressure off the rupee by granting direct dollar credit lines to oil companies or to put curbs on non-essential imports.

Meantime, yields on Indian bonds have hit their highest since November 2014, as investors retreated from rupee assets. The benchmark 10-year bond yield was flat at 8.12 per cent after earlier rising 2 basis points.

The one-year commercial paper rate has risen by 35 basis points to 8.85 per cent since the start of September as liquidity conditions have tightened.

In the money market, tight liquidity conditions moved the one-year OIS rate up to 7.51 per cent from Monday's 7.46 per cent, while the overnight call money rate rose to 6.60 per cent from Monday's close of 6.35 per cent.

Spot gold holds at $1,199

 

Gold held steady as the dollar stood firm ahead of the two-day US Federal Reserve meeting beginning later in the day, while simmering US-China trade tensions kept investors nervous about risks to global growth. Spot gold was barely changed at $1,198.80 by 0257 GMT. US gold futures were down 0.1 per cent at $1,203.10 an ounce. Read more

Brent crude hovers near 4-year high

 

Brent crude futures were at $81.32 per barrel at 0209 GMT, up 12 cents, or 0.2 per cent, and not far off the $81.48 a barrel peak reached the previous day, the highest since November 2014. Oil markets have been driven up by looming US sanctions against Iran and an unwillingness or inability by West Asia dominated producer cartel OPEC and Russia to raise output. Read more

Rupee trading weak at 72.80

 

The rupee pared some early losses but was still trading weak on increased demand for the American currency from importers as crude oil prices hit a four-year high. It hovered in a range of 72.96 and 72.73 before quoting at 72.80, down 17 paise at 12.30 pm local time. Read more

Forex market

 

The dollar carved out small gains against the euro and yen as investors looked to policy clues from the US Federal Reserve, which is widely expected to hike rates this week, and as the Sino-US trade dispute kept markets cautious. The dollar index, which measures the greenback against a basket of six major currencies, was 0.15 percent higher at 94.323. Read more

Autoline Industries rallies over 13%

 

Autoline Industries Ltd jumped as much as 13.6 per cent to Rs 74, its highest since June 18. The company's unit, Autoline Industrial Parks, entered into an agreement with Poddar Housing and Development to transfer 102.5 acres of land in Pune. Read more

YES Bank jumps over 3%

 

YES Bank Ltd’s shares rose over 3 per cent on Tuesday. The stock was the top percentage gainer on the Nifty and Sensex as the lender has reiterated FY19 credit cost guidance at 50-70bps. Read more

Bank Nifty

 

On the put option chain, the in-the-money Bank Nifty Put 25,000 option contract was the actively traded one on Monday. The put option price gained 101 per cent to Rs 199.70. OI too climbed by 104.50 per cent, showing a fresh addition of 3.59 lakh shares. Click here to read more

Manpasand strives hard to regain investor confidence

 

Manpasand Beverages is making all efforts to get back onto the radars of investors. Earlier this year, the fruit drinks maker’s stock price had suffered a huge crash following its auditor Deloitte Haskins & Sells walking out a few days before fourth quarter earnings were to be announced. Read more

IL&FS files petition

 

Infrastructure Leasing & Finance Services has filed an application with the National Company Law Tribunal, Mumbai Bench, seeking certain reliefs in connection with the filing of a scheme of arrangement under Section 230 of the Companies Act, 2013, in respect of the company and its subsidiary, IL&FS Financial Services. Read more

The 30-share BSE index Sensex was trading higher by 222 points or 0.61 per cent at 36,527.02 and the 50-share NSE index Nifty up 77.75 points or 0.71 per cent at 11,045.15 on heavy buying in healthcare, consumer durables, IT and banking stocks amid weak global cues.

 

 

Top five Sensex gainers were Axis Bank, Sun Pharma, IndusInd Bank, YES Bank and Infosys, while the major losers were Bharti Airtel, Adani Ports, PowerGrid, Kotak Bank and Tata Steel.

 

Platform for Investor Education launched

 

The National Stock Exchange Investor Protection Fund Trust and IIM-Bangalore have launched the Platform for Investor Education at IIM Bangalore. The launch of this platform is a result of synergy between NSE IPFT and IIM-Bangalore’s Centre for Capital Markets and Risk Management. Read more

The Sensex gained 115.25 points or 0.32 per cent to 36,420.27 and the Nifty jumped 25.4 points or 0.23 per cent to 10,992.80 on heavy buying in healthcare, consumer durables, auto and IT stocks amid weak global cues.

 

 

What to watch

The NSE has shifted 15 stocks to the restricted trading category from Thursday. These are Simbhaoli Sugars, Mawana Sugars, Sakthi Sugars, Rana Sugars, Ugar Sugar Works, Rajshree Sugars, Spentex Ind, Bedmutha Ind, Flexituff International, Jai Balaji Industries, Kesar Enterprises, Refex Industries, Kothari Sugars and Chemicals, Palash Securities and Precot Meridian. Delivery of shares and payment of consideration are mandatory for trading in these stocks.

Mangalam Drugs jumps 5%

 

Mangalam Drugs and Organics has recently received the final approval from World Health Organisation (WHO) for the drug Efavirenz, which is used in the treatment of HIV/AIDS. Read more

Future Supply shares up 1.2%

 

The board of directors of Future Supply Chain Solutions will meet today to consider raising of funds by way of issue of debt securities or any other mode. Read more

Rs 8.47 lakh cr investors' wealth wiped out

 

Market turmoil has wiped out Rs 8.47 lakh crore from investors’ wealth in five days, with the Sensex shedding nearly 5 per cent since early last week. The barometer has lost 1,785.62 points or 4.68 per cent in the past five trading sessions. Read more

Sensex gainers, losers

Top 10 Nifty gainers, losers

 

The Sensex was trading down 59.28 points or 0.16 per cent at 36,245.74 and the Nifty down 21.7 points or 0.2 per cent at 10,945.70 on foreign fund outflows, rising crude oil prices, weak rupee and negative global cues.

 

The rupee weakened by 33 paise to 72.96 against the US dollar on increased demand for the American currency from importers as crude oil prices hit a four-year high.

Brent crude hovered near 4-year high on looming US sanctions against Iran and an unwillingness or inability by West Asia dominated producer cartel OPEC and Russia to raise output.

Asia stocks struggled as a fresh round of US-China tariffs and a surge in oil prices to near four-year highs added to worries about risks to global growth.

As per provisional data, foreign portfolio investors sold shares worth a net of Rs 523.94 crore, while domestic institutional investors bought shares worth Rs 1,527.67 crore on Monday.

Broker's call

Reliance Securities

CGCEL (Buy)

CMP: ₹220

Target: ₹305

Click here to read more

Embassy REIT gets Provisional AAA from ICRA

 

ICRA has assigned Provisional (ICRA) AAA rating with a stable outlook to the first real estate investment trust to be launched in India later this year. Embassy REIT is the first SEBI-registered REIT to file draft offer documents for a public listing in India. Click here to read more

Why Monday mayhem was  not surprising

 

It was bloodbath on D-Street on Monday, as sheer panic gripped investors making them bolt for the exit. Smaller stocks bore the brunt of the selling. While the Nifty closed 1.58 per cent lower, the Nifty Midcap 100 index lost 2.72 per cent and the Nifty Smallcap 100 closed 2.6 per cent lower. Click here to read more

Benchmark indices erased their early gains on selling pressure in realty, banking, FMCG and power stocks amid weak global cues.

 

 

The 30-share BSE index Sensex was trading down 91.64 points or 0.25 per cent at 36,213.38 and the 50-share NSE index Nifty down 33.5 points or 0.31 per cent at 10,933.90.

Top five Sensex gainers were YES Bank, ONGC, Coal India, HDFC and Sun Pharma, while the major losers were Bharti Airtel, PowerGrid, M&M, ICICI Bank and Kotak Bank.

Asia stocks struggled as a fresh round of US-China tariffs and a surge in oil prices to near four-year highs added to worries about risks to global growth. MSCI's broadest index of Asia-Pacific shares outside Japan edged down 0.2 per cent.

Opening bell

The 30-share BSE index Sensex opened marginally higher by 8.88 points at 36313.9 against the previous close of 36,305.02 and the 50-share NSE index Nifty down 6.05 points at 10,961.35 against Monday's close of 10.967.40.

Day Trading Guide

₹1926 • HDFC Bank

 

₹717 • Infosys

 

₹298 • ITC

 

₹180 • ONGC

 

₹1232 • Reliance Ind.

 

₹264 • SBI

 

₹2198 • TCS

 

10997 • Nifty 50 Futures

 

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

Today's Pick

 

We recommend a buy in the stock of SpiceJet at the current levels of Rs 140.5. Stop-loss can be placed at ₹133.5 for the target of ₹154. Read more