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This article is more than 3 year old.

Closing Bell: Sensex plunges 792 points, Nifty dips 2.7% as RBI keeps repo rate unchanged at 6.50%, rupee hits 74 for the first time

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Indian shares extended losses to end sharply lower on Friday, after the Reserve Bank of India kept key policy rates unchanged, triggering further selling across sectors. The Sensex plunged over 790 points, while the Nifty dipped 2.67 percent to end near 10,300 mark. Benchmark indexes see the biggest ever weekly fall in absolute terms, ending at lowest level since April this year. Earlier the markets started on a tepid note after shares of oil marketing and refining companies tanked. Here are the main highlights from the stock markets today:

Closing Bell: Sensex plunges 792 points, Nifty dips 2.7% as RBI keeps repo rate unchanged at 6.50%, rupee hits 74 for the first time
  • Top Sensex losers: ONGC falls 16 percent, Reliance Industries 6.3 percent##Top Sensex losers: ONGC falls 16 percent, Reliance Industries 6.3 percent

    Closing Bell: Sensex plunges 792 points, Nifty dips 2.7% as RBI keeps repo rate unchanged at 6.50%, rupee hits 74 for the first time
  • Closing Bell: Sensex sheds 792 points, Nifty dips 2.6 percent##Closing Bell: Sensex sheds 792 points, Nifty dips 2.6 percent

    The BSE Sensex shed 792 points, or 2.25 percent, to end at 34,377, while the NSE Nifty50 dipped 283 points, or 2.67 percent, to settle at 10,316. Benchmark indexes saw the biggest ever weekly fall in absolute terms. For the week, Nifty shed 614 points, while the Sensex dropped 1,850 points. After a tepid opening, indexes remained under pressure for much of the day as shares of oil marketing companies tanked on absorbing excise duty cut in retail fuel prices. Both Sensex and Nifty extended losses after the RBI kept repo rate unchanged, triggering a sharp fall in the Indian rupee, which breached the 74 per dollar mark against the US currency. Broader markets mirrored frontline indexes in terms of decline. Both midcaps fell more than 2.6 percent. Only Nifty IT ended in the green after rupee's sharp fall, while all bank shares except IndusInd and HDFC settled negative. Shares of three oil marketing companies, IOC, HPCL and BPCL tanked over 17 percent each and the Oil & Gas sector turned out to be the worst performing sector today. ONGC shares fell 14.5 percent. Market breadth stands in favour of declines with 7 shares falling against 2 advances. 

  • Rupee at 74: Indian currency falls further to 74.11 against the US dollar##Rupee at 74: Indian currency falls further to 74.11 against the US dollar

  • Nifty PSU Bank tanks more as RBI leaves repo rate unchanged##Nifty PSU Bank tanks more as RBI leaves repo rate unchanged

    The Nifty PSU Bank index fell further into red after the RBI's monetary policy committee left the repo rate unchanged at 6.50 percent against the market expectation of a 25-basis-point hike. The Nifty Bank index also erased its gains after the outcome of RBI's policy meet. The Nifty PSU Bank index followed the sell-off in the broader market where benchmark indices Sensex and Nifty 50 shed nearly 2 percent each. Shares of Indian Bank, Central Bank of India, Bank of Baroda, State Bank of India, Canara Bank, Oriental Bank of Commerce and Union Bank fell 1.5-3.2 percent. At 3.09 pm, Nifty Bank index was down by 234 points, or nearly a percent, at 24,5548. The Sensex traded at 34,481.86, plunging by 687.30 points, or 1.95% percent, while the Nifty traded at 10,357.75, sharply down by 241.50 points, or 2.28 percent. 

  • RBI Monetary Policy Committee keeps repo rate unchaged at 6.50%##RBI Monetary Policy Committee keeps repo rate unchaged at 6.50%

    The Reserve Bank of India (RBI) on Friday surprised everyone by keeping repo rate unchanged at 6.50 percent and the reverse repo rate at 6.25 percent. The RBI Monetary Policy Committee said its decision is consistent with the stance of calibrated tightening of monetary policy to achieve the medium-term 4 percent CPI target. The CPI inflation has been projected at 4 percent in Q2FY19, 3.9-4.5 percent in H2 and 4.8 percent in Q1FY20. 

  • Sensex, Nifty recover mildly ahead of RBI monetary policy decision##Sensex, Nifty recover mildly ahead of RBI monetary policy decision

    The BSE Sensex traded at 34,762.73, lower by 406.43 points, or 1.16 percent, while the NSE Nifty50 was at 10,421.90, down by 177.35 points, or 1.67 percent ahead of the crucial October Monetary Policy Committee meeting today. 

  • Nifty Bank surges minutes ahead of RBI policy decision##Nifty Bank surges minutes ahead of RBI policy decision

  • Rate-sensitive sectors fall ahead of RBI MPC meet outcome##Rate-sensitive sectors fall ahead of RBI MPC meet outcome

    Shares of banks, real estate and automobile companies fell today due to fears that the RBI could hike interest rates by more than 25 basis points or change its stance from 'neutral' to 'hawkish', dealers said. Most market participants said that a 25-bps hike in rates has been factored in by the market, but any signal of multiple rate hikes would be negative for equities. The sharp fall in the rupee against the dollar and rising crude oil prices are likely to prompt the RBI to raise rates at its monetary policy meeting later today. Demand for loans, houses and automobiles is usually seen taking a hit because of higher interest rates. The Nifty Auto, Nifty Realty and the Nifty PSU Bank indices were down more than 2 percent each.  (Cogencis)

  • Indiabulls Housing up 14% in 4 days after sharp fall, selling continues in D-street##Indiabulls Housing up 14% in 4 days after sharp fall, selling continues in D-street

    Shares of Indiabulls Housing Finance jumped 14 percent so far during its four straight session of gains after the stock saw a sharp 26 percent knock in the past two weeks. Sentiment for the stock improved as concerns over liquidity eased following the RBI's measures. Also, investor sentiment was revived after the government took control of the crisis-ridden IL&FS. The housing finance company's shares had tanked in the past two weeks due to concern over high borrowing costs, and liquidity of NBFCs in general. Shares of Indiabulls Housing Finance were up 2.4 percent at Rs 973.80. Meanwhile, there is no respite in selling in equity market. Benchmark indexes dipped further with the Sensex plunging 485 points, or 1.38 percent, to trade at 34,684, while the Nifty plummetted 1.71 percent, or 181 points, at 10,418.

  • Rupee trading at the low point of the day##Rupee trading at the low point of the day

  • Emami near 4-year low on concern over low winter demand, Sensex, Nifty extend losses##Emami near 4-year low on concern over low winter demand, Sensex, Nifty extend losses

    Shares of Emami hit a near four-year low of Rs 415 on demand concerns. Emami's management told CNBC-TV18 that they are the market leaders for all their products, and that consumer demand remains good. At 1.23 pm, the shares were down 8.76 percent at Rs 432.25. Equity indexes continue to trade lower. The NSE Nifty50 dipped 178 points, or 1.68 percent, to Rs 10,419. The BSE Sensex plunged 463 points, or 1.32 percent, to trade at 34,706.

  • European markets open weak; Italian market down 3%##European markets open weak; Italian market down 3%

  • Bajaj Auto shares hit 52-week low, Nifty50 dips 1.6%##Bajaj Auto shares hit 52-week low, Nifty50 dips 1.6%


    Shares of Bajaj Auto Ltd fell as much as 3.74 percent to Rs 2,557.7, lowest since January 2, 2017. Bajaj Auto shares traded at Rs2,574.20, lower by 3.12 percent at 12.33 pm. BSE Auto index fell 1.71 percent, while Nifty Auto tanked 1.76 percent. Meanwhile, benchmark indexes slumped more with the NSE Nifty50 traded lower by 172 points, or 1.62 percent, at 10,427. The BSE Sensex traded at 34,716, plunging by 428 points, or 1.22 percent. 

  • Market update: Sensex, Nifty extend losses ahead of RBI MPC outcome##Market update: Sensex, Nifty extend losses ahead of RBI MPC outcome

    The BSE Sensex extended losses, falling by more than a percent, or by 368 points, to trade at 34,801, while the NSE Nifty50 dipped 1.35 percent, or 143 points, to trade at 10,456. Apart from public sector oil marketing companies and refiners, Hindalco shares dipped 4.5 percent, Reliance down by 3.7 percent, Vedanta traded lower by 3.46 percent, M&M also went down by 3.24 percent. Coal India shares lost 2.63 percent. Gainers include Titan, IndusInd Bank, Bharti Infratel, Infosys, HCL Technologies, Kotak Mahindra Bank, PowerGrid Corp, TCS, rising by up to 4.2 percent.

  • Mangalam Maloo’s quick take on why Titan shares have surged 5% today##Mangalam Maloo’s quick take on why Titan shares have surged 5% today

    Titan stock gains 5% as the company released its Q2 update on the exchanges last evening. Titan management seemed upbeat about the Jewellery segment performance in Q2 after a relatively soft Q1. They did lay out the challenges faced by the industry in the quarter: Lesser number of wedding dates, increase in Gold prices, tightening of the credit to the industry, subdued consumer demand etc. But the company said, their jewellery business has done well despite these challenges. 

    Titan attributed the following to good growth in the Jewellery Biz: 
    1) Gains in market share on the back of exciting new collection launches 
    2) Extended diamond studded activation

    On Other Segments here’s what they had to say: 
    Watches: Strong growth momentum of the Watch division continues 
    Eyewear:  Growth muted as there was activation last year in the quarter

    Market Outlook: Latest study seems to indicate a sense of optimism in the outlook of the economy in general, employment and household income. 

  • Market update: Sensex, Nifty trade sharply lower, IT, pharma shares in the green##Market update: Sensex, Nifty trade sharply lower, IT, pharma shares in the green


    The BSE Sensex traded at 34,864, down by 305 points, or 0.87 percent, while the NSE Nifty50 plunged 123 points, or 1.16 percent, to trade at 10,476. Sectoral indices largely trade in the red except IT, Pharma and Pvt Bank, which have rose by up to half a percent. FMCG, Media and Metal have fallen the most between 2 and 2.5 percent. PSU Bank is down over a percent, while Auto continues downtrend below a percent.

  • Not just retail investors, even Rakesh Jhunjhunwala's portfolio took a knock in stock rout##Not just retail investors, even Rakesh Jhunjhunwala's portfolio took a knock in stock rout

    The ongoing mayhem in the equity market has toppled everyone's portfolio, including that of seasoned investor Rakesh Jhunjhunwala. 
    Jhunjhunwala, who has a history of holding on to his investments for years, has seen many of his portfolio stocks tumble up to 75 percent, reported The Economic Times. This has resulted in notional losses and a fall his portfolio value below Rs 10,000 crore mark. 
    A study of Jhunjhunwala's portfolio of 27 stocks suggested that all of his stocks, except FirstSource Solutions, VIP Industries and Lupin, have offered negative returns this year, the report said. Read more

  • Sensex trades below 35,000##Sensex trades below 35,000

  • Opening Bell: Sensex, Nifty open lower, OMCs crash##Opening Bell: Sensex, Nifty open lower, OMCs crash

    Equity benchmark indices fell sharply in opening trade on Friday, extending yesterday's losses. The BSE Sensex traded 122 points lower, or 0.3 percent, at 35,048 at 9.20 am, after starting at 35,098 in the opening tick. The NSE Nifty50 also dipped more than 83 points, or 0.8 percent, to trade at 10,516, after starting at 10,514. Shares of oil marketing companies - HPCL, BPCL, IOC - crashed as brokerage firms revised ratings on these stocks, a day after the Centre directed them to absorb Rs 1 per litre excise duty cut. Shares of the three PSU refiners tanked between 20-25 percent, while ONGC slumped 11 percent and Gail shares dipped 16 percent. Among gainers, Bharti Airtel group shares rose along with Titan.

  • Rupee opens lower at 73.65 against the US dollar##Rupee opens lower at 73.65 against the US dollar

    The Indian rupee opens lower at 73.65 against the US dollar against its Thursday's close of 73.58. The 10-year government bond yield opened at 8.14 percent against the previous close of 8.16 percent.

  • Here’s what brokerage firms are saying on specific stocks, sectors##Here’s what brokerage firms are saying on specific stocks, sectors

    Morgan Stanley on ICICI Bank:
    OVERWEIGHT call, target at Rs 460/share
    Company did not provide details to reasons for chanda kochhar’s request. 
    Independent inquiry into alleged conflicts of interest at the bank continues.
    Kochhar’s early retirement removes an overhang from the stock.
    Expect earnings to show a turnaround from FY20.
    Underlying business at the bank is progressing well.

    Macquarie on ICICI Bank:
    OUTPERFORM call, target at Rs 416/share.
    Chanda Kochhar resigns; overhang goes.
    Believe, Bakshi is a credible successor in the current circumstances.
    With the right incentive mechanisms & focus, co could improve profitability.
    Valuations are attractive at current levels.
    Co to rerate considerably from current levels; it’s top pick in the sector.

    PhillipCap on IT Services:
    Expect Indian IT companies to continue the strong momentum of last quarter. 
    Most companies may report double-digit YoY growth in Q2.
    Expect strong deal flow to continue, providing for a bright outlook. 
    Expect companies to report CC organic revenue growth of 0.7-4.9% QoQ.
    May see a negative 80-120 bps cross-currency impact 
    Margins will expand QoQ due to sharp depreciation and absence of visa cost.
    Maintains BUY rating on TCS, Infosys and Wipro.
    Tech Mahindra remains our only SELL amongst the large caps.
    In the midcap space, we prefer Cyient and NIIT Tech.

    Goldman Sachs on IT Services:
    Stay selective with valuations inching up on falling rupee.
    Forecast average revenue growth of 2.8 percent QoQ in Q2FY19 is CC $ terms.
    Expect TCS, Infosys and Mphasis to deliver the strongest organic growth sequentially.
    Tech Mahindra to see flattish growth despite a pick-up in telecom. 
    Expect margin for our coverage to expand on average by 100 bps sequentially. 
    Increase FY19-21 EPS estimates; target for sector raised by up to 12 percent.
    Reiterates BUY on Tech Mahindra, Infosys and Mphasis; have SELL call on Wipro.

  • Meet Sandeep Bakhshi: The new boss of ICICI Bank##Meet Sandeep Bakhshi: The new boss of ICICI Bank

    ICICI Bank on Thursday appointed Sandeep Bakhshi as the CEO and MD, replacing Chanda Kochhar after she sought an early retirement from the bank. Bakhshi was currently serving as the whole time director and chief operating officer of ICICI Bank.

  • Here's a look at diesel prices after the excise duty cut##Here's a look at diesel prices after the excise duty cut  

  • Here’s what brokerage firms are saying on oil marketing companies##Here’s what brokerage firms are saying on oil marketing companies

    Citi:
    Govt finally buckled under the force of rising crude prices and falling currency. 
    Re-imposition of price controls is an unequivocal negative.
    Lower FY20-21 EBITDA by 32-35 percent for BPCL, 39-42 percent for HPCL and 25-27 percent for IOC.
    Lower gross marketing margins on the two fuels from Rs 1.70/l to Rs 0.70/l.
    Cut target by 42-57 percent and downgrade all 3 OMCs from BUY to SELL. 
    See further downside despite the sharp year-to-date underperformance. 

    HSBC:
    Retains BUY rating on BPCL, IOC and HPCL.
    Risks to near-term earnings increase, but we await more clarity.
    OMCs will likely earn zero margins on auto fuels in near-term.
    Downside risks of 13-18 percent to FY19 earnings if marketing margins were to average zero.
    With stocks trading at nearly bear-case valuations, find risk-reward attractive.
    Expect OMCs to be key beneficiaries of an upcycle in diesel margins. 
    In our base cases, expect marketing margins to normalise in FY20.

    Goldman Sachs:
    Excise cut confirms the reversal of de-regulation of the fuel retail market. 
    Believe this is negative for earnings and valuations of OMCs.
    HPCL is the most impacted with a 5-30 percent EPS cut. 
    HPCL has the highest exposure to fuel retailing business. 
    Cut FY19-21 EPS estimates by 5-30 percent for the three omcs under coverage.
    Downgrade HPCL/BPCL to SELL from BUY 
    New target price for HPCL/BPCL implies a 23 percent downside potential. 
    Maintain NEUTRAL rating on IOC with a 11 percent downside.

    CLSA:
    Fear of auto fuel deregulation unravelling rises
    Fuel price cut will bring down the EPS of OMCs by 23-46 percent.
    Cut EPS estimates and target prices for IOC, BPCL and HPCL.
    Retains SELL rating on oil marketing companies.
    ONGC and GAIL may also be impacted but these already build-in risk.
    Lower FY19-20 EPS for IOC, BPCL and HPCL by 3-46 percent.
    Fear of a return of the auto fuel subsidies will pull down belief in earnings. 
    Cuts target for IOC to Rs 105 from Rs 155/share.
    Cuts target for BPCL to Rs 240 from Rs 390/share.
    Cuts target for HPCL to Rs 150 from Rs 270/share.

    Nomura: 
    GAIL is our top pick in the sector.
    Remain positive on Reliance, IGL, Petronet LNG and oil marketing companies.
    Expect a 15th straight quarter of QoQ standalone profit growth for RIL.
    For Jio, see QoQ 10 percent higher EBIT, driven by higher subs, but offset by lower ARPUs.
    For oil marketing companies, after a strong Q1, earnings would be muted.
    For upstream companies, higher realisation to boost earnings and volumes may be flat.

  • These are the stocks making the biggest moves premarket##These are the stocks making the biggest moves premarket

    IL&FS: The Serious Fraud Investigation Office (SFIO) will probe the role of statutory auditors in crisis-hit IL&FS and its subsidiaries amid concerns over financial irregularities, sources privy to the developments told CNBC-TV18. Separately, the board of IL&FS appointed Vineet Nayyar as vice chairman and managing director of the company.


    IDBI Bank: LIC on Thursday came out with an open offer to buy 26 percent stake in IDBI Bank at a price of Rs 61.73 per share, entailing total payout of over Rs 12,602 crore.


    Jet Airways: Beleaguered carrier Jet Airways on Thursday said that it has received around Rs 258 crore from Jet Privilege, its customer loyalty programme, for advance ticket sale.


    Maruti Suzuki: RC Bhargava, chairman of the auto company, said he will not step down from his position due to the controversies surrounding the troubled infrastructure company.


    ICICI Bank: Chanda Kochhar, ICICI Bank CEO and MD, resigned with immediate effect on Thursday after the board accepted her request to seek an early retirement. Sandeep Bakhshi has been appointed as the new MD and CEO for five years, with effect from October 3.


    Oil marketing companies: The government on Thursday reduced excise duty on petrol and diesel by Rs 1.50 per litre and said the oil marketing companies (OMC) will absorb the impact to the tune of Re 1 per litre. Shares of oil marketing companies tanked right before the close as and when the announcement took place.

    Check more Hot Stocks today.

  • Here is what you need to know before the market opens##Here is what you need to know before the market opens

    Asia: MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.3 percent, while Japan’s Nikkei dropped 0.5 percent and Australian benchmark was up just 0.1 percent.

    US: The Dow Jones Industrial Average fell 200.91 points, or 0.75 percent, to 26,627.48, the S&P 500 lost 23.9 points, or 0.82 percent, to 2,901.61 and the Nasdaq Composite dropped 145.58 points, or 1.81 percent, to 7,879.51.

    SGX Nifty: At 06.50 AM, SGX Nifty, an early indicator of the Nifty 50's trend in India, plunged 0.61 percent to 10,539.50, indicating a weaker opening for the Indian market today.

    Crude oil prices: International benchmark Brent crude oil futures were at $84.94 per barrel at 0008 GMT, up 36 cents, or 0.4 percent from their last close. US West Texas Intermediate (WTI) crude futures were up 41 cents, or 0.6 percent, at $77.74 a barrel.

    Check more Market Opening Cues.

  • Here’s what CLSA’s greed & fear report says##Here’s what CLSA’s greed & fear report says

    Big implications of bond sell-off: "The bond sell-off is potentially of enormous significance since the breaking of a trend line of declining Treasury bond yields in place since 1981 is, on the face of it, marking the end of an extremely benign era for financial assets. The renewed steepening of the US yield curve also raises the potential for a greater number of Fed rate hikes than currently envisaged by the markets. That in turn raises the probability of more casualties in Asia and emerging markets from the current Fed tightening cycle."


    Stock level changes: The investment in Geely in the Asia ex-Japan long-only portfolio will be removed, while the investments in CNOOC, Reliance Industries, Indiabulls Housing Finance, GRUH Finance and Godrej Properties will be increased by 1ppt each.

  • Weak cues triggered risk aversion and sell-off in global equities##Weak cues triggered risk aversion and sell-off in global equities


    Markets: Markets took a turn for the worse on Thursday, characterized by broader risk aversion. The Treasuries sell-off the previous day and worrying headlines around China-US relations seem to have triggered caution in other markets, with equities getting spooked in particular. S&P closed down -0.82 percent, Nasdaq ended down 1.81 percent. Yields & USD remained stable, while EM FX traded heavily. Commodities, led by oil were red across the board.


    Risk aversion: What exactly triggered this?


    China concerns: Vice president Pence accused China of meddling in the 2018 US elections, noting “what the Russians are doing pales in comparison” and that China has used currency manipulation. Additionally, the US Navy is supposedly contemplating a show of strength to warn China in the South China Sea. Meanwhile an investigative Bloomberg report accuses China of employing microchips to infiltrate and spy on major US companies. It seems that US-China relations are going to get worse before they get any better.


    Equities spooked: The multi-year highs achieved in yields and the prospect of central banks stepping back their support forced equity markets lower.


    EM FX: Was the victim of broader risk aversion on Thursday, with little control. TRY & ZAR felt the most pain, with both depreciating around -3 percent on the day. CLP got hit too. RUB did not trade well either, with the possibility of further sanctions weighing.


    Up ahead - US jobs report: There are high expectations for payrolls on Friday. Expectations have rapidly risen after bumper ADP and ISM services reports. These data prints are what triggered the Treasuries sell-off on Wednesday, and it seems the market is ready for payrolls to confirm this narrative.

  • Here's what petrol prices look across the golden quadrilateral this morning##Here's what petrol prices look across the golden quadrilateral this morning

  • Here’s a set of data to help you guide in trade today##Here’s a set of data to help you guide in trade today

    MORNING CUES
    FIIs net sell Rs 2,761 crore in cash market (5387-8148).
    DII net buy Rs 1,824 crore in cash market (6132-4309).
    FIIs net buy Rs 5,055 crore in F&O.
    Date: October 4, 2018, Source: NSE
     

    FIIs in F&O
    FIIs net sell Rs 3,157 crore in Index Futures, OI +28263 contracts.
    FIIs net buy Rs 8,509 crore in Index Options, OI +37786 contracts.
    FII net sell Rs 365 crore in Stock Futures, OI +18845 contracts.
    Date: October 4, 2018, Source: NSE
     
    INDEX CUES
    Nifty Spot closed at 10599.25 down by 259 points.
    India VIX closed at 18.9150 up by 4.40 percent.
     
    F&O Ban: NIL
     
    OCTOBER SERIES: 
    Nifty OI +10.2 percent, adds 17.28 lakh shares.
    Nifty October Futures trading at 32 points premium v/s 35.35 points premium.
    Nifty Bank OI -13.5 percent, Sheds 2.54 lakh shares.
     
    OPTION CUES
    Nifty PCR fell to 1.21 from 1.36.
     
    OCTOBER SERIES: MAX OI at 10500 Put and 11000 Call.
    10900 Call adds 13.1 lakh shares, Prm at 83 vs 188.
    11000 Call adds 12.9 lakh shares, Prm at 53 vs 136.
    10800 Call adds 9.99 lakh shares, Prm at 122 vs 249.
    10700 Call adds 9.76 lakh shares, Prm at 171 vs 317.
    10500 Put adds 6.83 lakh shares, Prm at 155 vs 80. 
     
    STOCK FUTURES
    HINDPETRO -22 percent
    OI +9 percent, Fresh Shorts 
     
    BPCL -19 percent
    OI +29.7 percent, Fresh Shorts
     
    IOC -18 percent
    OI +7.4 percent, Fresh Shorts
     
    ONGC -10 percent
    OI +2.8 percent, Fresh Shorts
     
    RELIANCE -8 percent
    OI +3.5 percent, Fresh Shorts
     
    EICHERMOT -7.5 percent
    OI +10.8 percent, Fresh Shorts
     
    ICICI +4 percent
    OI -0.7 percent, Short Covering