CNBC-TV18 Market Highlights: Indices see sell-off across sectors on macro worries, Sensex drops 642 points, Nifty settles below 10850

Here’s a quick round-up of how markets fared today##Here’s a quick round-up of how markets fared today

-Market sees a major sell-off, Nifty erases 2019 gains.
-Sensex slips 642 points to end at a 2-week closing low.
-Nifty Bank turns negative for 2019, all its constituents end in the red.
-Nifty Bank falls 723 points, biggest single-day fall in 2 months.
-Nifty Midcap index falls 313 points, biggest 1-day fall in a month.
-44 of 50 Nifty stocks close lower, autos top losers.
-HDFC Bank, ICICI Bank and Axis Bank account for over 50 percent of Nifty Bank fall.
-Rupee approaches 72 against the US Dollar.
-Autos under pressure ahead of GST Council meet, Nifty Auto down 4 percent.
-All sectoral indices close in the red; auto, realty, psu bank top losers.
-Volatility index surges over 7 percent to close above the level of 16.
-Titan gains for a third straight session after the company’s comment on August demand.
-Oil marketing companies fall 3-4 percent as crude surges to $69/bbl.

Sensex heatmap at close: Only HUL, Asian Paints, Infosys end positive, Hero MotoCorp top loser##Sensex heatmap at close: Only HUL, Asian Paints, Infosys end positive, Hero MotoCorp top loser

Closing Bell: Sensex drops 642 points, Nifty settles below 10850##Closing Bell: Sensex drops 642 points, Nifty settles below 10850

The BSE Sensex dropped over 642 points, or 1.73 percent, to settle at 36,481. The Nifty also fell 186 points lower, or 1.69 percent, to trade at 10,817.60. The Nifty MidCap index slipped almost 2 percent, while the banking gauge, Bank Nifty slumped 2.6 percent. All sectoral indices ended lower with banks, financials, auto, pharma and metals declining the most. Among Nifty losers, Hero MotoCorp plunged 6.25 percent, Tata Motors, Tata Steel, Axis Bank and Maruti Suzuki fell between 4 and 5 percent. Only 6 Nifty stocks advanced with GAIL, Titan, Hindustan Unilever, Asian Paints and Infosys rising between 0.5 percent and 2 percent. 

Nifty, Nifty Bank erase 2019 gains,  Sensex, Nifty set for a 2-week closing lows##Nifty, Nifty Bank erase 2019 gains,  Sensex, Nifty set for a 2-week closing lows

Nifty IT down on selling by funds post 2 days of gains##Nifty IT down on selling by funds post 2 days of gains

The Nifty IT index nearly reversed it two-day gaining streak and fell due to heavy all-round selling by some foreign exchange traded funds and investors, who would now prefer to wait for July-September earnings early next month before betting on the sector, said dealers. The Nifty IT index is the lone sectoral index which is still up so far in 2019, outperforming the benchmark indices, and investors would rather take some profits and then increase their holding ahead of the results from such companies, said an analyst. At 1508 IST, the Nifty IT index was down 0.8 percent, with shares of HCL Technologies down 1.2 percent, Tata Consultancy Services down 1.2 percent, Tech Mahindra down 2 percent, and Wipro down 1.1 percent. So far in 2019, the Nifty IT index has risen 8.1 percent, while the Nifty 50 has fallen 0.3 percent.

Amitabh Chaudhry over-promised and didn't deliver: Macquarie on negativity towards Axis Bank##Amitabh Chaudhry over-promised and didn't deliver: Macquarie on negativity towards Axis Bank

The negative sentiment towards Axis Bank is caused by the "mismanagement of expectations" as CEO Amitabh Chaudhry over-promised and did not deliver, said Suresh Ganapathy, banking analyst, Macquarie Capital Securities.

"The bank, compared to other private sector banks, has a large SME portfolio which is a bit more vulnerable in the current economic slowdown. Even in some of the latest names which are supposed to be stressed, Axis Bank invariably has exposure to most of them. Some of these names were not even classified as a watch list," said Ganapathy in an interview with CNBC-TV18. READ MORE

UFO Moviez falls 5% as ICRA cuts outlook to negative##UFO Moviez falls 5% as ICRA cuts outlook to negative

Shares of UFO Moviez India fell over 5 percent to Rs 141.05 after ICRA Ratings cut the long-term outlook on the company to "negative" from "stable" on account of reduced financial flexibility. The reduced financial flexibility comes in response to the recent fall in share price. The stock has fallen over 44% in 2019 so far. The ratings agency also believes the company's liquidity position moderated due to high dividend payout of Rs 940 million in April-June, reducing the consolidated cash surplus to Rs 752 million as on June 30 from Rs 1.19 billion earlier, the company said in an exchange filing.

Here's a quick round-up on what has so far happened in the markets today##Here's a quick round-up on what has so far happened in the markets today

-Indian shares plunged sharply in Tuesday’s afternoon trade, mirroring the weakness in global markets as concerns over the country's macroeconomic health reignited following a steep rise in crude oil prices.

-The Nifty 50 index fell below the crucial support level of 10900 points. The Sensex plunged over 700 points.

-Losses in the shares of index heavyweights Housing Development Finance Corp, HDFC Bank, ICICI Bank, Axis Bank, Reliance Industries and Larsen & Toubro weighed on the indices.

-Shares of state-owned oil refiners - Hindustan Petroleum Corp, Indian Oil Corp, and Bharat Petroleum Corp--were down 2-3 percent due to concerns over their margins after a surge in crude oil prices on Monday.

-Shares of automobile companies extended losses and fell 1-5 percent as concerns over demand exacerbated given the sharp jump in global crude oil prices, which will make owning a car more expensive at a time when the industry faces a slowdown.

Why Morgan Stanley upgraded this stock just 2 months after downgrading##Why Morgan Stanley upgraded this stock just 2 months after downgrading

Just two and a half months after global brokerage firm Morgan Stanley downgraded Titan to 'equal-weight' from 'overweight', it has upgraded it back to 'overweight' and raised its target price to Rs 1,300 per share from Rs 1,110 earlier. The brokerage believes that strong growth in a difficult macro environment should be rewarded by re-rating. The research firm has raised FY20, FY21 and FY22 earning per share estimates by 3 percent, 2 percent, and 1 percent respectively. It also said that Titan's ongoing marketing and promotion spends are unprecedented. READ MORE

Concrete Times: Indian cement producers face bleak outlook##Concrete Times: Indian cement producers face bleak outlook

The cement sector has been in a downtrend in the last few months due to subdued demand and sluggish growth prospects. And the outlook is even bleaker owing to weak infrastructure spending and investments, according to analysts.

IDBI Capital expects the cement demand growth to surprise negatively in the coming months. “Better cement pricing will result in offsetting the impact of weak demand in H1FY20, however, sustained slowdown in cement demand will lead to lower pricing resulting in slower earnings progression than expected,” the brokerage said in a report. READ MORE

Commerce Minister on STC/PEC Closure: Govt should not run companies only for gold imports##Commerce Minister on STC/PEC Closure: Govt should not run companies only for gold imports

MMTC, STC stocks tank up to 19% on reports of shutdown##MMTC, STC stocks tank up to 19% on reports of shutdown

Shares of State Trading Corporation (STC) and Metals & Miners Trading Corporation of India (MMTC) plunged up to 19 percent on Tuesday on reports that the Commerce Ministry may shut down the firms.

STC fell as much as 19 percent to Rs 108.45, while MMTC tanked 16 percent to Rs 20.70 per share. At 12:50 PM, STC was trading 17 percent lower at Rs 110.65, while, MMTC was 15 percent lower at Rs 21. In comparison, the BSE Sensex fell 0.9 percent or 328 points to 36,794. READ MORE

This dairy stock eroded 98% of its investors' wealth in two years##This dairy stock eroded 98% of its investors' wealth in two years

The debt-ridden dairy firm was doing perfectly fine until 2016 when it raised Rs 300 crore from KKR Financial Services along with an additional commitment of Rs 200 crore. This amount was raised by the company to expand its reach and enter the consumer segment. However, Kwality failed to repay the amount as scheduled to its lender, which resulted in the company to appear in front of the National Company Law Tribunal (NCLT). READ MORE

Ashmore Investment's Ashwini Agarwal: This is a good time to invest with a medium-term view##Ashmore Investment's Ashwini Agarwal: This is a good time to invest with a medium-term view

Indian economy is going through a slowdown and the downturn is reflected in the underperformance of the markets. However, Ashwini Agarwal, co-founder and partner, Ashmore Investment Management India, feels that it is a good time to invest but with a medium, not short-term view.

Agarwal told CNBC-TV18 in an interview that the big disappointment for the market in the last three months has been the sharp slowdown in earnings and economic environment, and although valuations look attractive in certain situations, one needs to take a medium-term view of 2-3 year while investing in stocks for the earnings rebound to be visible. READ MORE