MARKETS WRAP: Sensex snaps 3-day gaining streak, slips 194 pts; banks weigh
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Markets ended Wednesday’s choppy session with losses after registering gains for three consecutive days amid selling in banking and financial services counters. Investor sentiment also took a hit on weak global cues.
The benchmark S&P BSE Sensex closed at 39,757 levels, down 194 points or 0.48 per cent with Tata Steel and ONGC being the top gainers while YES Bank and Maruti Suzuki were the top stragglers. The market breadth remained in favor of decline with 122 shares advancing and 320 shares slipping.
The broader NSE Nifty50 settled at 11,906 levels, down 59 points or 0.5 per cent. While realty stocks took the hardest beating, with the index sliding over 2 per cent, banks, financial services and auto stocks skid over a per cent each. Metal scrips were the only sectoral gainer, rising 0.3 per cent.
The S&P BSE Sensex touched an intra-day low of 39,623 levels while the Nifty50 drifted to 11,866 levels during the day before staging a partial recovery.
In the broader market, the S&P BSE Midcap settled 118 points lower at 14,922 levels while the BSE Smallcap ended 70 points lower at 14,549 levels.
Buzzing stocks
Shares of newly-listed Neogen Chemicals hit a new high of Rs 337, up 10 per cent on the BSE in an otherwise weak market on Wednesday. The stock, which got listed on the bourses on May 8, 2019, has rallied 57 per cent against its issue price of Rs 215 per share. The stock finally settled at Rs 364 per share, up 18.48 per cent.
Indiabulls Housing Finance dropped out of the club of 100 most valued companies in terms of market capitalisation (market-cap) after a sharp decline in stock price over the past few sessions. The fall comes on the back of reports alleging that the firm has misappropriated Rs 98,000 crore of public money.
Global cues
Asian markets were in a defensive crouch on Wednesday as Washington took a tough line on trade talks with China, coupled with the anticipation that a looming US inflation could scramble odds of an early cut in interest rates there.
MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.6 per cent after two days of gains. Japan’s Nikkei dipped 0.3 per cent, while Shanghai blue chips eased 0.7 per cent.
3:43 PM
MARKET SUMMARY | Umesh Mehta, Head of Research, SAMCO Securities
Market is falling on its own weight given that there are no triggers for the markets to get any direction. Now, valuation is weighing on the bourses. Nifty50 is trading at a P/E multiple 29x which is highest in decades. Statistically, this high valuation sustains for less than 5% of the time in a bull cycle. FIIs too have scaled down their purchases after a euphoric Modi Government win. All these factors along with negative international news took the bourses down and across-the-board selling was witnessed in the market. A post-election victory range of 11,600-11,400 looks reasonable in reality for Nifty.
3:38 PM
Sectoral gainers and losers on NSE
3:38 PM
MARKET COMMENT :: Umesh Mehta, head of research, Samco Securities
Market is falling on its own weight given that there are no triggers, news for the markets to get any direction and therefore now valuation is what is weighing the bourses. Nifty50 is trading at a P/E multiple 29x which is highest in decades. Statistically, this high valuation sustains for less than 5% of the time in a bull cycle.
FIIs, too, have scaled down their purchases after a euphoric 'Modi-win' in the general election. All these factors along with negative international news took the bourses down and across the board selling was witnessed in the market. A post-election range of 11,600-11,400 looks reasonable in reality for Nifty
FIIs, too, have scaled down their purchases after a euphoric 'Modi-win' in the general election. All these factors along with negative international news took the bourses down and across the board selling was witnessed in the market. A post-election range of 11,600-11,400 looks reasonable in reality for Nifty
3:38 PM
Top gainers and losers on S&P BSE Sensex
3:36 PM
MARKETS AT CLOSE
The S&P BSE Sensex ended 194 points or 0.48 per cent lower at 39,757 while the broader Nifty50 index lost 59 points or 0.50 per cent to settle at 11,906.
3:22 PM
Lakshmi Vilas, J&K Bank trade weak for second straight day; fall over 10%
J&K Bank slipped 13 per cent to Rs 42.30, plunging 29 per cent in three trading days, after the Anti-Corruption Bureau (ACB) alleged Parvez Ahmed, now-removed chairman-cum-managing director, of indulging in unlawful activities. CLICK HERE TO READ FULL REPORT
3:19 PM
Lakshmi Vilas, J&K Bank trade weak for second straight day; fall over 10%
Shares of Lakshmi Vilas Bank and Jammu & Kashmir (J&K) Bank were under pressure for the second straight day on Wednesday, falling by up to 13 per cent on the BSE, on the back of negative news flow.
J&K Bank slipped 13 per cent to Rs 42.30, plunging 29 per cent in three trading days, after the Anti-Corruption Bureau (ACB) alleged Parvez Ahmed, now-removed chairman-cum-managing director, of indulging in unlawful activities. READ MORE
3:01 PM
NEWS ALERT | UK High Court denies bail to Nirav Modi
2:56 PM
Neogen Chemicals hits highest level since listing; surges 31% in one month
Shares of newly-listed Neogen Chemicals hit a new high of Rs 337, up 10 per cent on the BSE in an otherwise weak market on Wednesday.
The stock, which got listed on the bourses on May 8, 2019, has rallied 57 per cent against its issue price of Rs 215 per share. In the past one-month, the scrip rallied 31 per cent, as compared to a 7 per cent rise in the S&P BSE Sensex. READ MORE
2:51 PM
NEWS ALERT | Bimal Jalan panel expected to finalise RBI capital framework report by the end of this month: CNBC TV18
2:46 PM
J&K Bank continues slide
2:39 PM
MARKET OUTLOOK | Sahaj Agrawal, Head of Derivatives, Kotak Securities
Nifty continues to consolidate in the range of 11,700-12,100. We expect the same to continue for the next few sessions. Trend support for the index is seen at 11,700; if the same is held, we expect a breakout of the mentioned trading range. If 11,700 is broken, significant selling pressure is expected. Broader market health weakened in the last week and we are yet to get a reversal confirmation on the same.
2:37 PM
Click to view full list
Most active stocks in terms of volume
| COMPANY | PRICE(rs) | CHG(rs) | CHG(%) | VOLUME |
| REL. COMM. | 1.62 | -0.05 | -2.99 | 9165492 |
| RELIANCE POWER | 6.07 | 0.12 | 2.02 | 5432775 |
| PC JEWELLER | 61.85 | -0.15 | -0.24 | 3858551 |
| YES BANK | 134.90 | -4.40 | -3.16 | 3683675 |
| SUZLON ENERGY | 4.62 | -0.16 | -3.35 |
3110675 |
Click to view full list
2:28 PM
NEWS ALERT | IDBI Bank cuts 1-3-year MCLR by 5-10 bps with immediate effect
2:26 PM
Why the buoyancy in g-Sec markets augurs well for public sector banks
Though the markets are worried about the banks’ inability to fully transmit the rate cuts, the latter is likely to boost earnings of public-sector banks (PSBs) with lower government bond (g-Sec) yields. Rate cuts in the last three consecutive monetary policy meetings and accommodative stance by the Reserve Bank of India in the recent policy announced on June 6 have cheered the g-Sec markets.
Yields on 10-year g-Sec have dropped by 35 basis points since March 2019 levels to 7 per cent currently. Yields are inversely related to bond prices, thus, lower yields indicate improvement in bond prices and PSBs are major investors in the g-Sec markets. READ MORE
Yields on 10-year g-Sec have dropped by 35 basis points since March 2019 levels to 7 per cent currently. Yields are inversely related to bond prices, thus, lower yields indicate improvement in bond prices and PSBs are major investors in the g-Sec markets. READ MORE
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First Published: Jun 12 2019 | 7:13 AM IST
