MARKET: Sensex slips 260 pts; financials dip as RBI extends loan moratorium
All that happened in the markets today
 "markets, share market")
NSE's Nifty ended at 9,039, down 67 points or 0.74 per cent.
The domestic equity market ended in the negative territory on Friday after the Reserve Bank of India (RBI) decided to cut the policy rate by 40 basis points from 4.4 per cent to 4 per cent to trim the impact of coronavirus on the economy. That apart, the central bank also extended the moratorium on loan repayments by three more months, resulting in sell-off in financial stocks. READ MORE
Nifty Bank today tumbled over 2.5 per cent to 17,279 levels while Nifty Private Bank declined around 3 per cent to 9,421.55 points, with 8 out of 10 constituents ending in the red.
The benchmark S&P BSE Sensex shed 260 points or 0.84 per cent to settle at 30,672.59. HDFC, HDFC Bank, ICICI Bank, and Axis Bank contributed the most to the Sensex's fall. On the other hand, IT majors, Infosys and TCS, supported the index.
NSE's Nifty ended at 9,039, down 67 points or 0.74 per cent.
On a weekly basis, Sensex slipped 1.36 per cent and Nifty declined 1 per cent.
Markets will remain closed on Monday, May 25 on account of Eid al-Fitr.
Among individual stocks, SBI Cards hit new low of Rs 495 on the BSE after the RBI announced an extension of the moratorium on loan EMIs by three months. The stock ended at Rs 510, down 6 per cent. READ MORE
RIL ended over 0.5 per cent lower at Rs 1,431.60 after the company announced that investment firm KKR will invest Rs 11,367 crore in Jio Platforms.
In the broader market, the S&P BSE MidCap index fell 0.83 per cent to 11,270 whereas the S&P BSE SmallCap index ended at 10,524.23, down 0.23 per cent.
Global markets
World stocks took a hit on Friday as China moved to impose a new security law on Hong Kong after last year’s pro-democracy unrest, further straining fast-deteriorating US-China ties. Additionally, news that China has dropped its annual growth target for the first time added to concern about the fallout from the COVID-19 pandemic.
Among Asian shares, Hong Kong's Hang Seng index slid more than 5 per cent to a seven-week low, MSCI's broadest index of Asia-Pacific shares outside Japan fell 2.7 per cent.
Japan's Nikkei slipped 0.8 per cent, while US stock futures fell almost 1 per cent -- pointing to a weak open for Wall Street.
European shares, too, opened broadly lower.
In commodities, oil prices fell over 5 per cent towards $34 a barrel as tensions rose between the United States and China, and doubts grew about the pace of demand recovery from the coronavirus crisis.
(With inputs from Reuters)
4:05 PM
MARKET COMMENT | Quote by S Ranganathan, Head of Research at LKP Securities
Markets ended in the red ahead of a long weekend as the extension of moratorium on loans by the RBI today weighed heavily on Financials. Select Pivotals like Asian Paints; however, bucked the trend as the street seems to be betting on consumers painting their houses even as it fears that they may not repay their loans.
3:48 PM
SECTOR WATCH | Bank stocks decline
3:45 PM
MARKET AT CLOSE | Losers and gainers on the S&P BSE Sensex
3:36 PM
CLOSING BELL
The S&P BSE Sensex shed 260 points or 0.84 per cent to 30,672.59 levels while NSE's Nifty ended at 9,039, down 67 points or 0.74 per cent.
3:26 PM
Cement stocks in focus; India Cements hits 2-yr high, soars 33% in 6 days
The stock today hit a 2-year high of Rs 134.40, up 6 per cent, on the BSE in an otherwise weak market and was trading at its highest level since May 9, 2018. In the past six trading days, it has rallied 33 per cent, as compared to a 1.4 per cent decline in the S&P BSE Sensex. READ MORE
3:18 PM
COMMENT:: George Alexander Muthoot, MD, Muthoot Finance on RBI announcement
“We welcome the RBI announcement to cut the repo rate by 40 bps which will infuse liquidity into the system in such challenging times. Also, the reduction in reverse repo rates will discourage banks to park idle money with RBI and lend further. We appreciate the decision of extending the moratorium by three months thereby providing the much-needed relief to the borrowers. It will help in reducing the repayment pressure and provide necessary time to analyze the cash flow status. We believe RBI measures will aid in restoring the financial health of the economy.”
3:11 PM
MARKET UPDATE | Supreme Ind jumps over 7%
3:03 PM
HDFC twins contribute the most to today's fall in Sensex
2:58 PM
COMMENT:: Navneet Munot, ED & CIO, SBI Mutual Fund
RBI announced measures to provide further relief to borrowers and enhance credit flow including the extension of moratorium period. We reiterate that further relaxations may be needed for greater flexibility to lenders on one-time restructuring. Hasten to add, while this is the crying need of the hour, we must keep an eye on hard-earned gains on the credit culture across all segments. It’s our collective responsibility.
We have been maintaining a relatively high duration in fixed income funds. While structural view remains unchanged, we will take advantage of tactical opportunities as we expect bond market to be in a consolidation mode for the time being. Credit spreads are highly elevated but they also reflect the economic uncertainty and constraints in the financial system. The equity market in the near term will continue to be driven by cues from global markets and the evolution of health crisis and economic situation. Our focus will continue to be on bottom up stock-picking.
2:54 PM
» More on Top Losers
Top losers on BSE today
| COMPANY | PRICE(rs) | CHG(%) |
|---|---|---|
| MAHINDRA HOLIDAY | 155.30 | -7.34 |
| M & M FIN. SERV. | 126.65 | -7.01 |
| HAWKINS COOKERS | 4237.00 | -6.76 |
| TCI EXPRESS | 530.45 | -6.76 |
| SHRIRAM TRANS. | 537.05 | -6.53 |
2:47 PM
BUZZING STOCK | Infosys gains 3%
2:40 PM
» More on 52 Week Low
Stocks that hit 52-week low on BSE today
| COMPANY | PRICE(rs) | 52 WK LOW | CHG(%) |
|---|---|---|---|
| BAJAJ FIN. | 1896.85 | 1865.50 | -4.63 |
| BAJAJ FINSERV | 4308.20 | 4086.90 | -5.06 |
| BRIGADE ENTERPR. | 92.60 | 90.70 | 0.38 |
| C P C L | 50.20 | 49.50 | -2.14 |
| CHALET HOTELS | 102.60 | 99.00 | -0.82 |
2:34 PM
MARCH QUARTER RESULTS | Godrej Industries Q4 revenue up 6.4% YoY at Rs 3,120.7 crore
-- Net profit down 91.3 per cent to Rs 25.9 crore
-- Ebitda down 15.6 per cent to Rs 211.5 crore
-- Ebitda margin narrows to 6.8 per cent from 8.5 per cent
-- Ebitda down 15.6 per cent to Rs 211.5 crore
-- Ebitda margin narrows to 6.8 per cent from 8.5 per cent
2:28 PM
NEWS ALERT | Vistara opens bookings for flights starting May 25: CNBC TV18
-- Company says it will operate reduced network connecting 24 cities over next few weeks
2:25 PM
Global Markets check
World stocks took a hit on Friday as China moved to impose a new security law on Hong Kong after last year’s pro-democracy unrest, further straining fast-deteriorating US-China ties.
European shares opened broadly lower , with blue-chip indexes in London, Paris and Frankfurt all down more than 1.5 per cent.
That followed a sharp selloff in Asia after China said it would impose new national security legislation on Hong Kong — sparking a warning from U.S. President Donald Trump that Washington would react “very strongly” against an attempt to gain more control over the former British colony.
Hong Kong's Hang Seng index .HSI slid more than 5% to a seven-week low, MSCI's broadest index of Asia-Pacific shares outside Japan fell 2.7 per cent. Japan's Nikkei slipped 0.8 per cent, while U.S. stock futures fell almost 1 per cent -- pointing to a weak open for Wall Street.
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First Published: May 22 2020 | 7:41 AM IST
