MARKET WRAP: Sell-off continues, Sensex loses 199 pts, Nifty ends at 11,313
All that happened in markets today
 "BSE, Markets")
Photo: Kamlesh Pednekar
Weak global cues, selling in index heavyweights such as HDFC twins, Infosys, and Axis Bank and cautiousness ahead of the release of RBI monetary policy due Friday weighed on the investor sentiment on Thursday. While select stocks such as YES Bank and Abott India had a dream run today, the broader market sentiment remained weak.
The benchmark S&P BSE Sensex lost 199 points or 0.52 per cent to settle at 38,106.87, with Vedanta (down around 5 per cent) being the top drag and YES Bank (up 33 per cent) the biggest gainer. During the day, the index hit an intra-day high and low of 38,310.93 and 37,957.56, respectively.
YES Bank logged the biggest ever one-day gain after its chief executive officer (CEO) Ravneet Gill assured investors that the bank remains on solid financial footing. The stock ended at Rs 42.55 apiece on the BSE, up 33 per cent.
Market breadth remained in favour of the bears as out of 2,651 companies traded on the BSE, 961 advanced and 1,530 declined while 160 scrips remained unchanged.
In the broader market, the S&P BSE MidCap index closed at 13,844.48, down 42 points or 0.30 per cent while the S&P BSE SmallCap index shed 49 points or 0.38 per cent to end at 12,910.18.
On the NSE, the Nifty50 index ended at 11,313.10, down 47 points or 0.41 per cent. Volatility index India VIX jumped nearly 6 per cent to 17.70 levels.
On the sectoral front, most sectoral indices on the NSE ended in the red with metal stocks leading the decline. The Nifty Metal index slipped 3 per cent to 2,325 levels, with 14 out of 15 components ending in the red. Nifty Fin Service index dropped over 1 per cent to 12,843.55 levels. On the other hand, realty stocks surged the most with the Nifty Realty index gaining over 1 per cent to 250.90 levels.
Shares of IndusInd Bank slipped for the fourth straight day, hitting an over two-year low of Rs 1,220 during the intra-day trade on concerns over exposure to stressed sectors. The stock eventually settled at Rs 1,256.60 apiece on the BSE.
Shares of Abbott India hit an all-time high of Rs 11,297, up 4 per cent on the BSE on Thursday in an otherwise range-bound market, on hopes that high growth momentum will continue. The scrip ended at Rs 10,926, up over half a per cent.
Click here to read about other stocks that made a buzz during the day
3:42 PM
IPO WATCH :: IRCTC
Demand data (Source: NSE website)
3:40 PM
Rate sensitives end mixed ahead of RBI policy on Friday
3:39 PM
Financials among top losers today
Index contribution
3:38 PM
Sensex heat map
YES Bank sees a massive jump in trade
3:37 PM
Index watch
| Index | Current | Pt. Change | % Change |
|---|---|---|---|
| S&P BSE Bharat 22 Index | 3,302.99 | +10.92 | +0.33 |
| S&P BSE 100 | 11,418.39 | -46.93 | -0.41 |
| S&P BSE SENSEX Next 50 | 30,482.41 | -132.36 | -0.43 |
| S&P BSE SENSEX 50 | 11,820.19 | -48.16 | -0.41 |
| S&P BSE SENSEX | 38,106.87 | -198.54 | -0.52 |
3:36 PM
CLOSING BELL
The S&P BSE Sensex lost 199 points or 0.52 per cent to end at 38,106.87 levels while the NSE's Nifty50 index ended at 11,313.10, down 47 points or 0.41 per cent.
3:27 PM
Will the RBI cut repo rate tomorrow?
We continue to expect the RBI MPC to follow RBI Governor Shaktikanta Das into another 'out-of-the-box' 35bp repo rate cut on October 4. This should send a strong signal for bank lending rate cuts with the 'busy' industrial season round the corner.
(Source: BofAML report)
(Source: BofAML report)
3:25 PM
Anand Rathi Securities on Amber Enterprises
We initiate coverage on the stock with a Buy recommendation and a target price of `1,248, based on a sum-of-parts calculation, which values the standalone business and each of its subsidiaries separately. Synergies of the standalone business and its subsidiaries, along with Sidwal, could together result in the RoCE expanding from 14% to 18% over FY19-21. Risk: Lower volumes in the domestic room-AC segment
3:25 PM
Elara Capital on OMCs
We revise our stance to positive on OMC from negative. We prefer HPCL among OMC, as its earnings are most exposed to marketing. We recommend Accumulate on BPCL and raise our target price to Rs 507. We revise our rating for HPCL to Buy from Accumulate and raise our target price to Rs 415. We revise our rating for IOCL to Buy from Accumulate and raise our target price to rs 182. We value refining at 5.5x (unchanged), petchem at 5.5x (unchanged), marketing at 4.2-4.5x (from 4.0-4.4x) FY21E EBITDA and retail MS & HSD gross margin of Rs 3.4/liter from Rs 3.0/liter
3:23 PM
MARKET COMMENT :: Elara Capital
Given the potential uptick in current and future earnings on the back of corporate tax reductions and expected rate cut ahead of festive season (25bps in Oct19 policy), we believe that the party is far from over.
The market is currently trading at 17.6x (fairly valued vs historical trend and as per our proprietary framework) one year rolling forward earnings. At the current multiple and rolling 1 year forward EPS (INR 680); we reiterate our December 2019 Nifty target of 12,000
3:23 PM
Jefferies on M&M
M&M will acquire a 51% stake in most of Ford's India operations at an EV of US$138mn & equity value of US$93mn. Despite potential cost savings, we do not see much merit to the acquisition of additional manufacturing capacity & Ford's weak domestic franchise especially given investor concerns around M&M's capital allocation. The key logic seems to be to cement its strategic alliance with Ford which can help in technology access & product development in long run
3:22 PM
Emkay Global on United Spirits
Maharashtra is a key profitable state for UNSP and the increasing competitive intensity could impact growth and earnings going forward, in our view. Valuations at 45x FY21E EPS appear rich given downside risks to earnings from rising competition, higher input prices and slower volume growth. We currently maintain our forecasts and Hold rating on the stock with a target price of Rs650
3:07 PM
STOCK ALERT :: YES Bank logs biggest one-day gain ever
3:03 PM
Expert Comment :: RBI Policy expectations | ICICI Securities
-- We expect the August 2019 MPC to vote for a cut in Repo rate by 25 bps, with a 5-1 voting pattern, with a dovish guidance
-- Although not our base case, if the proposal on the table is that of 35-40 bps, given growth concerns, this would likely see a 4-2 voting pattern, given couple of members’ apprehensions of further efficacy of monetary policy
-- Food inflation could see volatile surges primarily due to vegetables and crop damage due to recent floods in several regions. However, other mitigating factors in the food group, as well as moderating core inflation, should keep overall inflation in check
-- Markets would expect some discussion about transmission in light of the fact that the banking system has just transitioned to an external benchmark linked lending system
3:01 PM
Market check | Sudden decline in Sensex
Topics : Markets MARKET WRAP
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First Published: Oct 03 2019 | 7:12 AM IST