Global rout sends Sensex 525 pts lower; metal index tumbles 7%, PSU bank 4%

Only six of 30 Sensex stocks ended in the green, mainly from the FMCG and financial space

4:31 PM

What led to a 7% crash in Nifty Metal index?

Metals have been under pressure today on buzz over Chinese firm Evergrande facing financial trouble and speculation over default on debt payment, which has led to a selloff in most risky assets. Metals complex has been roaring since the start of the year and looked quite overheated given the change in stance from Fed over its bond purchase programme and weaker data coming out of China over the last couple of months. Some metals have doubled from lows hit in 2020 and could find it difficult to sustain such highs, given the rapidly changing macros and spread of the virus once again. The market may have found its reason for a cool off / correction and we remain cautious on most metals in the short term. Medium term picture still looks promising, but the weak hands will have to find their way out in the short run.

Views by: Navneet Damani, Head of Commodities & Currencies Research, Motilal Oswal Financial Services

4:09 PM

TECH VIEW :: Rohit Singre, Senior Technical Analyst at LKP Securities

Index continued to show profit booking for the second consecutive session and closed a day at 17397 with loss of more than one percent forming a bearish candle on the daily chart. The index has now immediate support at 17300 followed by 17200 zone which will be trend changing level on the downside if managed to hold above-said levels one can expect a good pullback failing to hold can change the immediate trend to down, on the higher side strong hurdle is coming near 17450-17500 zone also any move around said levels will be again profit booking opportunity.

4:07 PM

MARKET QUOTE :: S Ranganathan, Head of Research at LKP Securities

Amidst heightened volatility and weak global cues the Nifty Metal Index plunged almost 7% in late afternoon trade today. As global markets corrected fearing the contagion around the Chinese Developer, risk aversion was seen across markets. Barring the FMCG pack, the market breadth was extremely weak with sectoral indices trading in the red.

 

4:07 PM

MARKET VIEW :: Fed not likely to hint on taper plans in upcoming meeting; here's why

Following high volatility and weak global sentiments, the domestic market ended in a bear grip with Metal and PSU Banks leading the downward rally. Global markets traded negatively as investors were cautious ahead of multiple central bank policy meetings scheduled this week. However, due to weak US job data and inflation increasing at a slower pace, Fed is not expected to hint on taper plans in the upcoming meeting.

-- Vinod Nair, Head of Research at Geojit Financial Services

4:06 PM

Market breadth in favour of buyers

>> Advance-decline ratio at 1:2

4:04 PM

Indian Hotels ends 8% higher, stock hit 52-week high in intra-day session

>> Most hotel stocks gained amid hopes of business revival following unlocking of the economy and pick-up in travel.

3:59 PM

Lupin slips 2% on receiving 7 observations from US FDA for Goa plant

>> Its Goa facility has received seven observations from the US drug regulator. The Goa plant was inspected in March 2017 and received a warning letter for the facility from the US Food and Drug Administration (USFDA). 

3:57 PM

BUZZING :: ITC ends flat after hitting 52-week high in intra-day deals

3:44 PM

Sector Watch :: Defensive bets trim losses! Nifty FMCG index rises 1%

3:41 PM

Sector Watch :: Nifty PSU Bank index extends decline into second day

3:40 PM

Sector Watch :: Nifty Metal index skids nearly 7%; Tata Steel, Jindal Steel fall 10% each

3:37 PM

BSE SmallCap index slips 1.84%

3:36 PM

Broader markets underperform; BSE MidCap index falls 1.8%

3:35 PM

Sectoral trends on the NSE :: All but FMCG index end in the red

3:34 PM

Sensex Heatmap :: 24 of the 30 constituents end in the red; Tata Steel falls 10%

3:32 PM

CLOSING BELL :: Nifty defends 17,350

3:32 PM

CLOSING BELL :: Sensex sinks 525 pts

3:15 PM

ALERT :: Nifty50 breaches below 17,400

3:12 PM

What's behind market rout?

Indian Equity benchmarks continue to trade in red terrain in noon deals as investors booked profits at higher levels, mainly in Metal, Basic Materials and PSU stocks. Investors were taking caution approach as across the world will be eyeing the FOMC meet this week for clarity on the outlook for tapering as well as interest rate timelines. While the Fed's planned reduction of bond purchases has been in focus this year, their view on interest rates will likely be the fresh triggers to move markets world over. However, downside remain capped as with the markets remaining buoyant as Foreign Portfolio Investors (FPIs) remained net buyers in domestic markets so far in September by investing a net sum of Rs 17,822 crore. FPIs invested Rs 11,287 crore into equities and Rs 5,018 crore in the debt segment on a net basis between September 1 and 17. On the global front; Asian markets were trading lower ahead of a week packed with global central bank meetings, with a torrid session for the world's most indebted property developer China Evergrande. Back home, hotel stocks were in focus on hopes of business revival following unlocking of the economy and pick-up in travel.

-- Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers

 

3:10 PM

Volatility Alert

India VIX surges 14%, trades above 17 levels

3:05 PM

Global markets :: Pan-Euro Stoxx 600 falls nearly 2%

2:55 PM

Forbes & Co jumps 5% as PE major Advent buys stake in Eureka Forbes

Shares of Forbes & Company were locked in the upper circuit of 5 per cent at Rs 4,184.35, also its 52-week high on the BSE in Monday's session after the private equity (PE) major Advent International on Sunday signed an agreement with Shapoorji Pallonji Group to acquire a majority stake in Eureka Forbes at an enterprise valuation of Rs 4,400 crore. READ MORE

2:46 PM

Global markets :: Dow Jones Futures tumble 1.5%

2:33 PM

ALERT :: RPP Infra Projects bags new order worth Rs 158 crore

>> The order includes engineering, procurement and construction of handicraft centre at Bareilly Haat and Mission

2:17 PM

Nifty Metal index slips over 4%; Tata Steel, Hindalco, JSPL plunge over 5%

Shares of metal companies came under heavy selling pressure on Monday with the Nifty Metal index slipping 4.5 per cent on the National Stock Exchange (NSE) in the intra-day trade. The index was quoting lower for the third straight trading day and has slipped 7 per cent during the period. Further, it has corrected 9 per cent from its record high level of 5,936.10, touched on August 16, 2021. READ MORE

2:05 PM

German shares slump 2%, European index hits two-month lows

European shares fell to a near two-month low on Monday and Germany's benchmark index sank 2%, as investors feared major central banks would start giving cues about tapering their pandemic-era stimulus programmes at various meetings this week.

 

The pan-European STOXX 600 index was down 1.5% by 0745 GMT, with mining stocks plunging 3.2% on a slide in commodities prices. The benchmark European STOXX 600 has now fallen for three straight weeks on worries about slowing global growth, soaring inflation, persistently high COVID-19 cases and the spillover from tighter regulation of Chinese firms.

 

The U.S. Federal Reserve's policy meeting is in focus on Tuesday and Wednesday, where the central bank is expected to lay the groundwork for a tapering. Overall, 16 central banks are scheduled to hold meetings this week, including in the UK, Norway, Switzerland and Japan.

 

Source: Reuters

2:01 PM

China Evergrande shares dive to 11-year low as default risks grow

Shares of Evergrande on Monday plunged to over 11-year lows, extending losses as executives try to salvage its business prospects and as default fears grow over a looming deadline for payment obligations this week. Evergrande has been scrambling to raise funds to pay its many lenders, suppliers and investors, with regulators warning that its $305 billion of liabilities could spark broader risks to the country's financial system if not stabilised. READ MORE

1:50 PM

Rupee falls sharply after Yellen renews call for raising US debt ceiling

The Indian rupee depreciated sharply on Monday after US Treasury Secretary Janet Yellen renewed her call for raising the country's debt ceiling to avoid a possible debt default by the world's largest economy. “The US has never defaulted. Not once. Doing so would likely precipitate a historic financial crisis that would compound the damage of the continuing public health emergency. Default could trigger a spike in interest rates, a steep drop in stock prices and other financial turmoil. Our current economic recovery would reverse into recession, with billions of dollars of growth and millions of jobs lost," wrote Yellen in her opinion piece in The Wall Street Journal. READ MORE

 

1:42 PM

Metal stocks continue to fall in trade; Welspun Corp only gainer on Nifty Metal

1:29 PM

Sensex Heatmap | Top gainers & losers at this hour