Markets pare losses: Sensex ends 561 pts lower, Nifty fails to hold 10,500

All that happened in the markets today

3:40 PM

Top sectoral loser: Nifty IT

3:37 PM

Sectoral Trend

3:36 PM

Sensex heatmap

3:33 PM

Markets at close

Benchmark indices pared some losses after sliding more than 3% and the rupee weakened as a global market rout whacked sentiment, adding to existing investor concerns ahead of a central bank meeting this week and a new capital gains tax later in the year.

 

The S&P BSE Sensex ended at 34,195, down 561 points while the broader Nifty50 index settled at 10,498, down 168 points.

3:22 PM

RBI in a fix, market eyes rate hike amid confidence crisis

The Reserve Bank of India’s job as the government’s debt manager just got harder after the federal budget unveiled a near-record $95 billion borrowing plan in the coming fiscal year.

Governor Urjit Patel needs to keep interest rates low to ensure Prime Minister Narendra Modi can bridge a widening fiscal deficit. But he also needs to bring down an inflation rate that breached the 4 per cent midpoint of the target band late last year, and which is expected to climb as the government increases spending before a general election next year. READ MORE

3:16 PM

RBI to turn hawkish, keep rates on hold through middle of 2019: Poll

 

The Reserve Bank of India will keep interest rates on hold through at least the middle of 2019 even though inflation is above its medium-term target and is expected to stay that way, a Reuters poll found.  

 

A majority of economists also expect the central bank's tone to turn hawkish when it announces its latest policy decision on Wednesday. 

 

In the poll of 60 economists, taken after the Budget announcement, 58 said the RBI would keep key rates unchanged - the repo at 6.00 per cent and the reverse repo at 5.75 per cent - when it meets on Wednesday. The other two forecast an increase. READ MORE

3:01 PM

Nifty could fall to 9,500 levels; not a good time to bottom fish: Experts

Despite the three per cent sell-off in the frontline Indian benchmarks on Tuesday, the S&P BSE Sensex and the Nifty50, market pundits expect more downside for domestic equities in the days to come. Since the market rout has been triggered by global factors, mainly rising bond yields in the US, they expect the bearish tone to continue for a few more sessions before the Indian markets stabilise. In a worst-case scenario, the Nifty50 can slip to 9,500 levels, they say. READ MORE

2:51 PM

Sensex heatmap

2:44 PM

Smallcap index plunges 16% from record high level; 26 stocks slip over 30%

 

The S&P BSE Smallcap index plunged nearly 5% to 16,945 in early morning trade on Tuesday, falling 16% from its record high level of 20,183 touched on January 15, 2018 in intra-day trade.

 

Total 124 stocks have fallen more than 25% from their respective all-time highs touched in January 2018. Of these 26 stocks slipped an over 30%, the list include Fineotex Chemicals, Philips Carbon Black, NACL Industries, BLS International, VIP Clothing, TPL Plastech and PC Jeweller.  READ MORE

2:29 PM

Markets check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	34,463.01	-294.15	-0.85
S&P BSE SENSEX 50	11,022.84	-108.41	-0.97
S&P BSE SENSEX Next 50	34,056.03	-390.45	-1.13
S&P BSE 100	10,926.08	-110.33	-1.00
S&P BSE Bharat 22 Index	3,709.98	-26.15	-0.70

(Source: BSE)

2:16 PM

Government will look into local market slump - Finance Secretary

The government will look into what it can do after a slump in local market reflecting global sell off, the finance secretary said on Tuesday.

 

Hasmukh Adhia said he will discuss the issue of fall in local markets with Finance Minister Arun Jaitley. READ MORE

2:00 PM

Sensex tanks over 1,000 points: What should your portfolio strategy be?

Indian markets witnessed a significant sell-off following the global market rout on Tuesday, with the Nifty50 and the S&P BSE Sensex slipping over 3%. The BSE Mid-cap and BSE Small-cap indices underperformed the frontline benchmarks, losing over 4% in intra-day trade.

The rout came after US stocks plunged in highly volatile trading on Monday, with the Dow industrials falling nearly 1,600 points during the session, its biggest intraday decline in history, as investors grappled with rising bond yields and potentially higher inflation.

So, what should your portfolio strategy be now? READ MORE

1:46 PM

RBI likely to keep policy rates on hold due to high inflation risks

In the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) meeting, which will be held in Mumbai on Tuesday, the apex bank is expected to keep policy rates on hold for this week.

The six-member MPC, which is headed by RBI Governor Urijit Patel will meet for the sixth bi-monthly Monetary Policy Statement for 2017-18, later in the day. 

However, the bank may toughen its warning against inflation, lying on the ground for a hike in 2018 after prices accelerated at the fastest pace in the last 17 months.  READ MORE

1:30 PM

Sectoral Trend

1:23 PM

Staring at a full-scale bear market: Devangshu Datta

 

The dip on Wall Street is very likely to lead to poor sentiment elsewhere in the world including on Dalal Street. READ MORE

 

1:16 PM

Bitcoin plunges 20% to $6,190; experts warn it may drop another 50%

 

Bitcoin plunged 20 per cent to a three-month low today, its latest sharp loss following a series of setbacks for the cryptocurrency that, with a collapse across global mainstream markets adding to the selling.

 

The virtual currency fell to $6,190 for the first time since mid-November.  READ MORE

1:08 PM

Gold demand slid to eight-year low in 2017: World Gold Council

Global gold demand slid 7 percent in 2017 to 4,071.7 tonnes, an eight-year low, the WGC said in it latest quarterly demand trends report.

 

Investment demand fell by nearly a quarter, driven by reduced inflows into bullion-backed exchange traded funds, the gold mining industry-funded WGC said. While gold prices rose last year on the back of dollar weakness, rising interest rates and a surge in stock markets detracted from the metal's appeal as an investment. READ MORE

12:58 PM

Investors lose Rs 10 trillion in three trading days

Investors have lost a whopping Rs 10 trillion in the stock market in past three trading sessions post Budget 2018-19, with over Rs 4.8 trillion being wiped out in Tuesday’s trade so far. Total investor wealth, measured in terms of cumulative market value of all listed stocks on BSE, fell by Rs 10 trillion in past three trading sessions to Rs 143 trillion at 11:07 AM; the exchange data shows READ MORE

12:47 PM

Market check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	33,880.36	-876.80	-2.52
S&P BSE SENSEX 50	10,840.25	-291.00	-2.61
S&P BSE SENSEX Next 50	33,464.28	-982.20	-2.85
S&P BSE 100	10,743.71	-292.70	-2.65
S&P BSE Bharat 22 Index	3,651.94	-84.19	-2.25

(Source: BSE)

12:45 PM

Govt allows investors to set off losses against long-term capital gains tax

 

It is better to wait beyond March 31 this year to sell equity shares or units of equity-oriented mutual funds if one is incurring losses.

 

This is so because these losses can be set off for long-term capital gains (LTCG) tax, to come into force from April 1 this year. These losses can be set off for a period of eight years.

 

"Long-term capital loss arising from transfer made on or after April 1, 2018, will be allowed to be set-off and carried forward. Unabsorbed loss can be carried forward to subsequent eight years for set-off against long-term capital gains," clarified the Central Board of Direct Taxes (CBDT) through frequently asked questions (FAQs). READ MORE

12:30 PM

Finance Secretary on market crash

The government will look into what it can do after a slump in local market reflecting global sell off, the finance secretary said on Tuesday.
 

Hasmukh Adhia said he will discuss the issue of fall in local markets with Finance Minister Arun Jaitley.

12:17 PM

View on market sell-off

 

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services

 

The crash in the mother market - the Dow plunging by 2200 points in 2 days- has unnerved equity markets globally. The sell off in the US has led to a global sell off. The trigger for the sell off in US is the fear that the Fed might be behind the curve. The latest reading in the wage growth in US shows wages have gone up by 2.9 percent. With very low levels of unemployment, the fiscal stimulus induced by the Trump tax cuts can trigger spike in inflation. Consequently, the Fed tightening can be higher than the market expectation of three.This is the immediate trigger for the sell off in the US. Since stock valuations are very high, the correction appears exaggerated. 

 

Indian market is in tune with global markets in this down turn.In India also valuations are high, particularly in mid and small caps. This is not the time to make aggressive purchases in the market. But this is the right time to churn the portfolio in favour of quality stocks. Investors should not panic and stop SIPs.   

 

12:07 PM

MARKET COMMENT: Hemang Jani, Head - Advisory, Sharekhan

 

Spike in interest rates in US and inflation concerns led to initial sell off, which got accentuated by over-bought positions. Contagion has spread to other asset classes (bitcoins, base metals, crude etc.) and most emerging markets which is usually the case. The fact is that markets were not prepared for a large sell off and there was a bit of complacency & exuberance across equity markets which were reflected in the low IVs (Implied volatility, which has reversed in past couple of days). 

 

If an investor has surplus funds and has a time frame of more than 12-24 months, this is the time to increase the allocation to equities, as there is a meaningful correction in the market after a long time. We see this as an opportunity for retail investors, as this is happening at a time when earnings growth revival is seen across companies after a gap of almost 3 years. Some of the companies like Maruti, Escorts, HDFC, HDFC Bank, L&T, JSW Steel that have reported good numbers this quarter and has upside potential of > 15% can be looked at in the positive light.

12:01 PM

Top Loser of S&P BSE Sensex: Tata Motors

Tata Motors was trading over 6% down on BSE after the company on Monday had reported lower than expected consolidated profits.

The company on Monday after market hours reported profits of Rs 12.14 billion against Rs 1.11 billion in the corresponding quarter of the previous year. Consolidated revenues grew 16.1% to Rs 741.56 billion during the quarter. The consolidated profits are lower than analysts’ expectations of more than Rs 30 billion.

11:47 AM

MARKET COMMENT: G Chokkalingam, founder, Equinomics Research and Advisory

 

With (interest) rates rising, oil prices, monsoon, state elections, inflation, US Fed rate hike on cards, 2018 may not give a more than 5 – 10% return in the best case scenario

11:47 AM

COMMENT: Aditya Agarwala, technical analyst, YES Securities

 

Nifty continues to slide lower following a bearish closing in the previous week which had formed a sizeable Bearish Engulfing pattern. Further, it has turned southwards after testing the upper end of a rising channel suggesting more weakness in the offing. 

 

Immediate supports on the downside are 10400-9940. As Index has reached oversold zone on shorter time frame a minor pull back rally cannot be ruled out, however, these pull backs can be used to create fresh shorts as the choppiness and volatility is likely to persist for some time.

11:45 AM

Sectoral Trend

11:37 AM

Views on Markets Crash by  Gautam Duggad, Head of Research, Motilal Oswal Institutional Equities

 

“The market is reacting to the global cues and hardening of bond yields across markets. In our recent strategy report, published a fortnight back, we had highlighted that market was looking expensive on our Excess RoE vs. P/B framework and with higher cost of capital, the valuations had a room to correct, especially in mid-caps. 

 

The fact that we did not have any significant drawdown in 2017 is making the current correction look more ominous than it is. However, with earnings recovery – 3QFY18 earnings are in-line so far – panning out, we believe the correction is offering a good opportunity to buy from a 2-3 year perspective. Our preference continues for large-caps over midcaps as Nifty valuations at 17-17.5x FY19 projected earning per share (EPS), while not inexpensive is not out of whack either”.

11:26 AM

Oil India gains in weak market on bonus issue plan

Oil India gained 2.7% to Rs 345 on BSE in intra-day trade after the company announced the board will consider issue of bonus shares in the meeting scheduled on February 9, 2018. The stock recovered 5% from its intra-day low of Rs 328 was the sole gainer among S&P BSE 200 index. READ MORE

11:13 AM

Sensex heatmap