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MARKET WRAP: Sensex cracks 551 pts as rupee breaches 73/$; IT, autos fall

Among sectoral indices, the Nifty IT index settled 2 per cent lower led by a fall in the share prices of Tata Consultancy Services (TCS) and Infosys.

SI Reporter  |  New Delhi 

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MARKET COMMENT VK Sharma, Head Private Client Group & Capital Market Strategy at HDFC Securities The RBI refused to open a special window for oil marketing companies, which impacted market sentiment. Rupee touched a new low of 73.40 to a dollar. The Sensex lost 550 points or 1.3% and hit the lowest level in the current downturn. Automobile stocks were battered, as fears of margin compression came to fore. Metal stocks, especially aluminum producers, were in limelight. World’s largest alumina refinery Norsk Hydro's closure buoyed aluminum players. Small-cap index bucked the trend and  managed to close in positive on back of value buying. MARKET COMMENT HDFC Securities on auto sector The relentless surge in fuel prices over the past few months and devastating flood in Kerala dampened PVs(-3% YoY) demand. Inventory has piled up to 40-45 days and all eye now focusing on festive season to drive up PV demand. However, revival in rural demand and festive season inventory build-up aided decent growth (+6%) in 2Ws. Despite higher fuel prices, CV demand remains healthy (+23%, M&HCV-26% and LCV22%) led by healthy freight availability and pick up in Ecommerce, white goods and infra segment.   We believe good monsoon, improving rural demand and upcoming festive season will augur well for automotive Industry and recent correction in stocks price provides a good entry opportunity. Our top picks in OEMs space are MSIL (extensive distribution network and strong rural franchise), Ashok Leyland (leadership in high tonnage trucks) and Bajaj Auto (diversified product and geographical mix) Sectoral Losers at NSE Gainers and Losers in BSE Sensex Market at close The S&P BSE Sensex ended at 35,976, down 551 points while the broader Nifty50 index settled at 10,858, down 150 points. India's Q4 gold imports to jump as investors seek safer bets than stocks India's gold imports may rise in the fourth quarter as investors seek alternatives to faltering equity markets and a plunging rupee at the same time traditional buying will rise during the festival season, said multiple sources involved in the market. READ MORE

The benchmark settled around 1.5 per cent lower amid a weak rupee, which slipped below 73 per dollar mark for the first time to hit an all-time low of 73.34 in intraday deals.

The Indian currency dropped to a record low in intraday trade on Wednesday as a sharp rise in global crude oil prices over the last two sessions weighed on sentiment for the local unit.

The S&P ended at 35,976, down 551 points while the broader Nifty50 index settled at 10,858, down 150 points.

Among sectoral indices, the IT index settled 2 per cent lower led by a fall in the share prices of Tata Consultancy Services (TCS) and Infosys.

Auto down

Auto were in focus on Wednesday, with the Auto index slipping nearly 3 per cent led by a fall in of Eicher Motors, Maruti Suzuki and Mahindra & Mahindra. Eicher Motors hit a 52-week low of Rs 23,050, down 6.9 per cent in intraday trade. The stock settled 6.8 per cent lower at Rs 23,070.

RBI monetary policy
 
Going ahead, investors will keep a close watch on the Reserve Bank of India's (RBI) decision on key interest rates. The RBI's monetary policy committee has started its three-day meeting from today to decide on the fourth bi-monthly monetary policy. After two successive hikes, the repo-rate currently stands at 6.50 per cent.

Global Markets

Asian ticked lower on Wednesday and the euro held at six-week lows as Italy’s mounting debt and Rome’s budget plan set it on a collision course with the European Union.

Investors remained jittery even as a new US-Mexico-Canada trade agreement appeared to ease global trade tensions. A controversial clause in the trilateral pact put the focus back on the Sino-US tariff dispute.

Japan's Nikkei eased 0.1 per cent on a stronger yen while South Korea's KOSPI index slipped 1.3 per cent.

(with Reuters inputs)

First Published: Wed, October 03 2018. 08:15 IST
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MARKET WRAP: Sensex cracks 551 pts as rupee breaches 73/$; IT, autos fall

Among sectoral indices, the Nifty IT index settled 2 per cent lower led by a fall in the share prices of Tata Consultancy Services (TCS) and Infosys.

The benchmark settled around 1.5 per cent lower amid a weak rupee, which slipped below 73 per dollar mark for the first time to hit an all-time low of 73.34 in intraday deals.

The Indian currency dropped to a record low in intraday trade on Wednesday as a sharp rise in global crude oil prices over the last two sessions weighed on sentiment for the local unit.

The S&P ended at 35,976, down 551 points while the broader Nifty50 index settled at 10,858, down 150 points.

Among sectoral indices, the IT index settled 2 per cent lower led by a fall in the share prices of Tata Consultancy Services (TCS) and Infosys.

Auto down

Auto were in focus on Wednesday, with the Auto index slipping nearly 3 per cent led by a fall in of Eicher Motors, Maruti Suzuki and Mahindra & Mahindra. Eicher Motors hit a 52-week low of Rs 23,050, down 6.9 per cent in intraday trade. The stock settled 6.8 per cent lower at Rs 23,070.

RBI monetary policy
 
Going ahead, investors will keep a close watch on the Reserve Bank of India's (RBI) decision on key interest rates. The RBI's monetary policy committee has started its three-day meeting from today to decide on the fourth bi-monthly monetary policy. After two successive hikes, the repo-rate currently stands at 6.50 per cent.

Global Markets

Asian ticked lower on Wednesday and the euro held at six-week lows as Italy’s mounting debt and Rome’s budget plan set it on a collision course with the European Union.

Investors remained jittery even as a new US-Mexico-Canada trade agreement appeared to ease global trade tensions. A controversial clause in the trilateral pact put the focus back on the Sino-US tariff dispute.

Japan's Nikkei eased 0.1 per cent on a stronger yen while South Korea's KOSPI index slipped 1.3 per cent.

(with Reuters inputs)

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