MARKET WRAP: Sensex tanks 793 points; Nifty holds 11,550; India VIX up 7%
On Monday, the benchmark S&P BSE Sensex and the broader Nifty50 registered their biggest single-day-fall in four years. In two days, investors have lost Rs 4.95 trillion market capitalization.
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It was a bloodbath on D-street on Monday as markets fell for a second consecutive day with the benchmark S&P BSE Sensex and the broader Nifty50 registering their biggest single-day-fall in four years. The Sensex plummeted 908 points intra-day while the Nifty50 shed 288 points.
Union Budget 2019 triggered the fall as it failed to cheers investors. Proposals like surcharge on high income generating groups, increased threshold of minority shareholding from 25 per cent to 35 per cent and no specific announcement to revive consumption dampened investment sentiment. Furthermore, weak global cues and expectation of another muted quarter dragged the markets down. In two days, investors have lost Rs 4.95 trillion market capitalization.
Markets pared losses partially before the end of trading session. The Sensex closed 793 points, or 2 per cent, lower at 38,720 levels with Bajaj Finance, ONGC, NTPC and Hero MotoCorp being the top laggards. Of the 2,669 companies being traded on the BSE, shares of 571 companies advanced, 1,953 declined and 145 remained unchanged.
The Nifty50, too, settled 252 points, or 2.14 per cent, lower at 11,559 levels. Of the 50 companies on the 50-share index, shares of 5 companies advanced and 45 declined.
The Nifty50, too, settled 252 points, or 2.14 per cent, lower at 11,559 levels. Of the 50 companies on the 50-share index, shares of 5 companies advanced and 45 declined.
In the broader market, S&P BSE Mid-Cap ended 293 points, or 2 per cent, lower at 14,432 levels while the BSE Small-Cap dipped 347 points, or 2.46 levels, to settle at 13,794 levels.
Sectorally, public sector banks (PSU banks) took the biggest knock with the Nifty PSU Bank index settling nearly 6 per cent lower. This was follwoed by losses in realty, auto, financial services and metal counters which were down up to 4 per cent. NO index ended in the green. over 5 per cent, while Nifty Bank, Nifty Auto, Nifty Financial Services, and Nifty Realty indexes were all down over 2 per cent.
BUZZING STOCKS
Shares of automobile manufacturers, including auto ancillary companies, were reeling under pressure with the Nifty Auto index hitting 52-week low on Monday after no major direct measure to revive demand growth for the sector was announced in the Union Budget for the financial year 2019-20 (FY20). READ MORE
Shares of Punjab National Bank (PNB) slipped 10 per cent intra-day to quote at Rs 73 on the BSE on Monday after the state-owned bank reported a fraud of Rs 3,805 crore by Bhushan Power & Steel Ltd (BPSL). READ MORE
GLOBAL CUES
Global markets were weak on Monday after US investment bank Morgan Stanley reduced its exposure to global equities due to misgivings about the ability of policy easing to offset weaker economic data.
“Over recent weeks, you’ve heard us discussing why we think investors should fade the optimism from the recent G20. Why we think bad data should be feared rather than cheered because it will bring more central bank easing. Why we think the market is too optimistic on 2019 earnings and is underestimating the pressure from inventories, labour costs and trade uncertainty,” wrote Andrew Sheets, their chief cross-asset strategist in a July 7 report. READ MORE HERE
Among Asian peers, Japan's Nikkei closed 0.98 per cent lower while the South Korea's Kospi shed 2.2 per cent.
In the commodities market, oil prices rose boosted by escalating tensions around Iran’s nuclear program and better-than-expected U.S. jobs data. At 3:50 pm, Brent Crude Futures were at $64.34 per barrel.
4:22 PM
Market closing comment | HDFC Securities
The Nifty witnessed a sharp follow-through weakness today, the area of 11,600-11,425 levels is going to be a crucial support
The Nifty witnessed a sharp follow-through weakness today and closed the day lower. A long bear candle was formed today with gap down opening.
Technically, this pattern indicates a sharp downward reversal in the market. The Nifty is currently placed near the upper area of previous opening upside gap of 20th May at 11591 levels. Further weakness from here is likely to fill this gap around 11426 levels.
Hence, the area of 11,600-11,425 levels is going to be a crucial support zone for the market, and one may expect current downtrend to halt around these area.
3:46 PM
Sectoral trends on NSE at close
3:46 PM
Top gainers and losers on S&P BSE Sensex
3:45 PM
Market at close
3:44 PM
Market at close
3:29 PM
Ujjivan Financial Services dips over 6%
3:18 PM
Jindal Stainless Ltd slips over 4% in trade
3:18 PM
NEWS ALERT | SREI Infra makes interest payment on NCDs due July 8
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Piramal Ent slips 4%
3:01 PM
3:00 PM
Alkem Labs holds gains
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STOCK ALERT | Bajaj Finserv tanks 10%, set to register biggest 1-day fall ever
2:40 PM
IATA suspends Cox & Kings licence to sell airline tickets
-- Will continue selling tickets on "cash and carry" basis
2:38 PM
MARKET ALERT | Sensex falls up to 908 pts, biggest one-day fall in four years
2:27 PM
Heatmap: S&P BSE Sensex
Topics : MARKET WRAP
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First Published: Jul 08 2019 | 7:12 AM IST
