Skip to main content

Sensex sinks 440 pts to end at 3-month low; Nifty sub-9800 ahead of F&O expiry

The fall was driven by selling pressure across sectors. Nifty Pharma and PSU Bank indices fell the most among sectoral indices, down 3 percent each followed by auto, FMCG and infra.

The market fell sharply by 1.4 percent on Wednesday, after Federal Reserve Chair Janet Yellen hinted at an interest rate hike by December this year. The steep fall in rupee and Indian Army's retaliatory fire on insurgents at Myanmar border also caused selling pressure. The NSE Nifty closed below psychological 9,800 level ahead of expiry of September derivative contracts on Thursday.

The fall was driven by selling pressure across sectors. Nifty Pharma and PSU Bank indices fell the most among sectoral indices, down 3 percent each followed by auto, FMCG and infra.

Equity benchmarks slipped for seventh consecutive session today. The 30-share BSE Sensex closed down 439.95 points or 1.39 percent at 31,159.81, the lowest level since June 30.

The 50-share NSE Nifty ended below its 100-DMA (daily moving average), falling 135.75 points or 1.38 percent to 9,735.75. INTRADAY STOCK FREE TIPS

Experts feel the market sentiments are expected to be week for few more sessions, citing economic & earnings growth concerns, likely fiscal deficit woes, geopolitical tensions etc. The recovery is likely only in October, especially after the start of September quarter earnings season, they said.

They advised traders to remain cautious and avoid creating fresh long positions as technical indicators point towards 9,685 in the near term.

The correction was more in broader markets as the Nifty Midcap and Smallcap 100 indices tumbled 2.3 percent each. About six shares declined for every share rising on the NSE.

Meanwhile, the rupee hit fresh six-month low of 65.75 against the United States Dollar intraday today, falling 26 paise to end at 65.72 due to fall in equities and FIIs selling.

The Nifty Bank closed down 1.6 percent at 23,812.95, the lowest level in last 10 weeks. ICICI Bank, Yes Bank and SBI were down 2-3 percent while HDFC Bank declined 0.88 percent.

Sun Pharma was down 2.5 percent after the founder Dilip Shanghvi retained tepid outlook for FY18. He expects single digit decline in current year revenue due to continued US pricing pressure. Divis Labs share price plunged 11.6 percent following six observations from the USFDA for its Vizag unit 2.

Technology stocks TCS (up 0.8 percent) and Tech Mahindra (up 0.6 percent) on sharp rupee depreciation.

Among other largecaps, Reliance Industries, Adani Ports, ITC, L&T, Vedanta, Maruti and Dr Reddy's Labs were down 1.5-4.6 percent.

In broader space, Bajaj Finserv, Reliance Capital, Edelweiss Financial, DHFL, L&T Finance, REC, PFC, PTC India Financial, PNB Housing Finance, Tata Global Beverage, Avenue Supermarts, Cyient, JSW Energy and Eros International were down 3-10 percent.

After subdued listing, ICICI Lombard General Insurance rebounded to end with 3.11 percent gains at Rs 681.55 against issue price of Rs 661 per share.

Shriram Transport gained nearly 4 percent after a media report indicated the Shriram Group and IDFC have abandoned merger plan worked out in July 2017.

Den Networks ended with 4 percent rally after a media report indicated that Mukesh Ambani-owned Reliance Industries is in talks to acquire the company.

On the global front, European markets were mildly higher on growing expectations of another rate hike in the United States before year-end. France's CAC, Germany's DAX and Britain's FTSE were up 0.2-0.5 percent at the time of writing this article. Asian markets ended mixed.

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.


Popular posts from this blog

Nifty could slip towards 9,900; 3 stocks which could give up to 11% return

A close beyond 10,400 levels with healthy volumes can pause the current bearishness triggering a short covering to levels of 10,640-10,730.

The Nifty index Futures continued to slide lower for the second month in a row making it 10 percent decline from the record highs. Further, it has broken down from a broadening wedge pattern along with a close below the 200-DMA, affirming weakness dominant in the markets at the moment.

A sustained trade below 10,050 can accelerate the fall to levels of 9,930-9,700. However, a close beyond 10,400 levels with healthy volumes can pause the current bearishness triggering a short covering to levels of 10,640-10,730.

Moreover, the relative strength index or the RSI has turned down from the neutral levels of 50 on two occasions in recent pullbacks suggesting further weakness in the coming trading sessions.

Here is the list of stocks which can give up to 11 percent return:

Arvind Ltd: SELL| Target Rs345| Stop Loss Rs410| Return 11%

On the weekly chart, Arv…

Dark secrets of share market

Dark secrets of share market
Stock market has some dark secrets that no broker tells. And what is more surprising is that these secrets belong to the steps taken to make money.
Let’s see how positive things turn negative
1# Commodity price risk
When price of commodity escalates, it brings joy to the companies that see commodities as output. But for companies that see commodities as inputs see loss in increased. Companies that don’t deal in commodities also face difficulties with price escalation. It is so because the customers start selling commodities. And it won’t be an exaggeration to say that commodity pricing effects the entire economy.
2# Headline risk
Do you remember the news of Fukushima nuclear crisis? This news surfaced in 2011 and it drowned all the stocks related to businesses related to nuclear power like uranium miners. It is called headline risk and no business is free from this risk. A torrent ofnews-reports regarding a business can have an adverse effect on its commodity p…

Market Update: PSU bank index outperforms as PNB, Syndicate Bank jump 2-5%; JP Associates zooms 11%

The market breadth was in favour of the advances with 957 stocks advancing while 668 declined and 383 remained unchanged. On the other hand, in the BSE, 1176 stocks advanced and 888 declined and 108 remained unchanged.

The Indian markets on Friday morning were trading flat with the Nifty shedding 51 points or 0.49 percent  while the Sensex was down 178 points.

The Nifty PSU banking index was up 0.6 percent led by stocks like Syndicate Bank which jumped 5 percent followed by Allahabad Bank which gained over 3 percent. IDBI Bank and OBC were the other gainers. PNB gained 2.38 percent.

The top Nifty gainers included Mahindra & Mahindra and Aurobindo Pharma which were up 1.7 percent each followed by UPL, Yes Bank and Zee Entertainment.

The top Nifty losers included IOC and BPCL which fell 2 percent each followed by HPCL, Tata Motors and NTPC.

The most active Nifty stocks included IDBI bank which jumped over 3 percent while JP Associates zoomed over 10 percent after Rakesh Jhunjhunwala…