MARKET WRAP: Sensex slides 642 pts amid rise in oil prices; autos worst hit

All that happened in markets today

3:54 PM

Here's how sectoral indices on the NSE performed today

3:53 PM

MARKET CHECK | S&P BSE Heatmap at close

3:39 PM

CLOSING BELL

The S&P BSE Sensex lost 642 points or 1.73 per cent to end at 36,481.09 levels while NSE's Nifty50 index ended at 10,818, down 186 points or 1.69 per cent.

3:27 PM

MARKET CHECK | Nifty Bank bleeds nearly 750 pts

2:59 PM

Sector watch | Nifty Bank declines more than 600 pts

2:52 PM

MARKET ALERT | 36 Nifty companies trade below 200-DMA

(Via CNBC TV18)

2:50 PM

CURRENCY CHECK | Rupee approaches 72/USD

(Source: Bloomberg)

2:41 PM

Market check | Buying on dips helps Sensex recover partially

2:39 PM

COMMENT :: Chris Midgley, global head of analytics, S&P Global Platts

S&P Global Platts Analytics forecast Dated Brent prices are likely to test the high $70s as currently supported by fundamentals. Price could move higher if Saudi production is confirmed to be curtailed for a more substantial period – but this is not our current assumption. However - it is legitimate to ask whether $80 Dated Brent could tip an already weakening global economy into recession. 

Prior to the attacks on Saudi Aramco, S&P Global Platts Analytics previous research shows a 35% chance of recession and questioned whether the spike in Dated Brent as a result of IMO2020 could be the tipping point. A $20/bbl increase in oil prices reduces global GDP by 0.35%.
 

The global economy has already weakened significantly over the past 9 months, and is currently estimated to be growing at 2.9%, well below the long-term trend. Normal recessions have in the past produced global GDP growth rates between 2.0% and 2.3%. In the post-world-war period, only the Recession in 2008-2009 produced negative economic growth rates globally. Therefore, the global economy could be pushed very close to a normal recession territory if oil prices test $80/bbl 

2:35 PM

Nomura on oil prices

On one hand, OPEC and Russia have some room to increase supply, and oil inventories can also be tapped to fill the temporary void from the lost Saudi production (and all this is happening against a backdrop of weakening global growth). If this truly is a temporary, one-off disruption, then oil prices could stabilise near current levels. On the other hand, if there is strong retaliation or more drone attacks, the situation could spiral out of control; in the worst case, it could escalate into a full-blown crisis in the Middle East and lead to larger and more permanent oil supply declines.

2:32 PM

Bank stocks among top losers today

2:28 PM

Most Energy stocks slip as crude oil price rises

2:26 PM

Sensex heat map

(Source: BSE)

2:26 PM

NEWS ALERT | PMLA Appellate Tribunal releases assets of 63 Moons from ED attachment: CNBC TV18

-- Restrains 63 Moons from dealing in the assets till pendency of other issues at PMLA court

2:24 PM

NEWS ALERT | NHPC Board approves raising up to Rs 2,500 cr in FY20: BSE Filing

2:18 PM

Market check | Sensex plunges 680 pts

2:12 PM

MARKET ALERT | Nifty turns negative for 2019

(via CNBC TV18)

2:08 PM

Market check | Bears tighten grip

2:06 PM

Global Markets Check

European shares fell on Tuesday, dragged by Germany’s Zalando, while energy stocks gave up some gains as crude prices eased slightly after surging in the aftermath of attacks on oil facilities in Saudi Arabia.

Zalando (ZALG.DE) tumbled 8 per cent, pulling down STOXX 600 index , after a share placement by top investor Kinnevik in the e-commerce retailer. The pan-European STOXX 600 dropped 0.2 per cent, with the retail index down 0.7 per cent.

Asian shares ended Tuesday's session flat. Japan's Nikkei settled 0.06 per cent higher, Sotuh Korea's Kospi added 0.01 per cent, while China's Shanghai Composite dipped 1.74 per cent.

(Via Reuters)

2:05 PM

Nifty tests 10,850 level

2:02 PM

Brent Crude slips around 1%

(Source: Bloomberg)

1:53 PM

Market check

1:46 PM

India VIX spikes 6%

1:43 PM

MARKET CHECK | Around 38 securities hit 52-week low on NSE

(Source: NSE)

Click to view full list

1:42 PM

Drone attack on Saudi oil facilities: Biggest disruption in three decades

The drone attack on Saudi Aramco’s Abqaiq oil processing facilities on Saturday almost destroyed the plants. It resulted in a direct disruption of nearly 5.7 million barrels of oil per day from Saudi Arabia to the world.

 

Put in context to the overall daily supply of crude oil, which was 99.24 million barrels per day (mbpd) in August 2019 (Opec data), this disruption was more than 6 per cent of global oil supply. READ MORE

1:31 PM

NEWS ALERT | Tata Comm & CreditPilot enter into p'ship to offer mobile, digital financial services sol to mobile operators

1:30 PM

Emkay Global on Indraprastha Gas

■    Indraprastha Gas (IGL) has maintained its volume growth guidance of 11-12% yoy for FY20/21E, with CNG and domestic PNG sales expected to increase at a 10-11% rate while industrial/commercial (I/C) PNG could see a higher 14-15% rate.

 

■    IGL has cited Q1FY20 EBITDA/scm of Rs6.3 as the new margin guidance, adjusted for IndAS 116. Blended margins are currently pulled down by lower third-party trading margins although after HCG Gurgaon acquisition, there could be some upsides.

 

■    The valuation exercise of HCG Gurgaon is still underway and the parties are yet to reach a consensus. The final order will be issued by the Supreme Court. The next date of hearing is in the last week of September 2019.

 

■    We maintain our estimates and target price of Rs330, valuing IGL on a SOTP-DCF basis. We have a Hold rating due to the expensive valuation of over 20x FY21E consol. EPS. We are also UW on the stock in sector EAP.

1:29 PM

NEWS ALERT | Not the business of govt to remain in business like STC and PEC, says Commerce Minister: CNBC TV18

-- Govt should not run companies only for gold imports: Commerce minister
 

-- Original purpose of PSUs like STC and PEC have come to an end

1:29 PM

HSBC on US Fed expectation

This week, the US Federal Reserve (Fed) is expected to cut the federal funds target range by 25 bps to 1.75%-2.00%. Recent evidence of firming inflationary pressure is likely to reduce the probability of more aggressive action. Policymakers have become increasingly concerned about slowing global growth and the negative impact of trade tensions. This has already led to an interest rate cut in July.

The latest summary of economic projections will be published at the same time, providing an update from officials on the anticipated path of policy, economic activity and inflation. Fed Chair Jerome Powell is also likely to repeat a commitment to act appropriately to sustain the domestic expansion at the post-meeting press conference.

1:27 PM

Kotak Securities on Gujarat Gas Limited (GGL)

We expect GGL to report an EPS of Rs.11.6 in FY20E and Rs.12.6 in FY21E. We recommend ADD on the stock. We maintain our positive view on GGL with a

multiple based price target of Rs.194/share. Margin improvement and strong revenue visibility makes us positive on its growth prospects. Additionally, strong free cash flow and healthy return ratios also provide high comfort. We value GGL at 15.4x PE (25% discount to its peers) based on EPS of Rs.12.6 for FY21E.