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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.

SI Reporter  | New Delhi 

EVENT HIGHLIGHTS

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It was a bloodbath on D-street on Monday as 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 down. In two days, investors have lost Rs 4.95 trillion market capitalization.

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.

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.

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