MARKET WRAP: Sensex crashes 505 pts, Nifty at 11,378 on weak global cues

MARKET COMMENT Jayant Manglik, President, Religare Broking Nifty started the week on feeble note and lost over a percent, mainly pressurised by global cues. It opened gap down and remained under pressure till the end. The news of possibility of further escalation of trade war between the US and China didn't go well with the markets. Also, weakness in rupee further dented the sentiment. Mostly sectoral indices traded in line with the benchmark index and closed lower.   Markets are currently dancing to the global tunes and we do not see this changing any time soon. We reiterate our consolidation view in Nifty with bias on the negative side as sustainability seems difficult at higher level. In fact it may witness fresh fall if it fails to hold above 11,300. We advise maintaining balanced approach while trading stocks and keeping positions on both sides

Nifty FMCG index ends 1.38% lower. Top losers: COMPANY LATEST PREV CLOSE LOSS() LOSS(%) GODREJ INDS. 576.00 589.75 -13.75 -2.33 UNITED SPIRITS 569.50 581.90 -12.40 -2.13 P & G HYGIENE 9875.75 10060.50 -184.75 -1.84 ITC 302.10 307.15 -5.05 -1.64 EMAMI 547.05 555.70 -8.65 -1.56

Sectoral losers of the day on the NSE

BSE Sensex: Sun Pharma, HDFC, RIL among top losers of the day

Market at close   The S&P BSE Sensex ended at 37,586, down 505 points while the broader Nifty50 index settled at 11,378, down 137 points.

Gold edges up in range-bound trade amid looming US tariffs on China Gold inched up on Monday as investors looked for short-term gains using the metal's recent narrow trading range, amid increasing Sino-US trade tensions and prospects of further interest rate hikes by the US Federal Reserve.   Spot gold was up 0.2 per cent at $1,195.83 an ounce, after falling 0.6 per cent on Friday when it marked its third straight weekly decline. US gold futures were down 0.1 per cent at $1,199.80. READ MORE

China stocks drop to near four-year low as Trump said to prepare new tariffs China's main Shanghai Composite index fell to its lowest close in nearly four years on Monday as reports said U.S. President Donald Trump would unveil new tariffs on $200 billion of imported Chinese goods this week.   The Shanghai Composite index dropped 1.1 percent to 2,651.79 points, its worst close since Nov. 27, 2014. The blue-chip CSI300 index also declined 1.1 percent, to 3,204.92 points. In Hong Kong, the Hang Seng index was down 1.3 percent in late afternoon trade, and the China Enterprises index was off 1.2 percent. READ MORE

Oil higher as US Iran sanctions raise supply concerns Oil prices rose on Monday as investors focused on the impact of U.S. sanctions on Iran despite assurances by Washington that Saudi Arabia, Russia and the United States could together raise output fast enough to offset falling supplies. Brent crude oil was up 45 cents a barrel at $78.54. US light crude was up 45 cents at $69.44. READ MORE

IPO Watch   Ircon issue subscribed 15% so far on Day 1 of the offer

Sector watch: NBFCs India Ratings and Research (Ind-Ra) has maintained a stable outlook for the non-banking financial company (NBFCs) sector and for the major NBFCs rated by it for 2HFY19. NBFCs have continued to increase their market share in the credit domain, as many public sector banks have been placed under the Prompt Corrective Action framework, leading to lending restrictions and NBFCs’ increased ability to structure loans.   Ind-Ra expects NBFCs to clock loan growth of 16%-18% yoy in FY19, by continuing their market share gains. In light of rising funding cost, NBFCs have resorted to higher short-term borrowings and have increased focus on higher yielding segments such as used commercial vehicle (CV) financing, unsecured SME loans and small ticket loans against property.

China Inc's global retreat set to continue despite $17 bn asset selloff The global retreat by some of China’s biggest and most-indebted conglomerates shows no signs of stopping -- even after more than $17 billion of asset sales.   A unit of HNA Group Co. last week missed payments on a 300 million yuan ($44 million) loan, illustrating how the once-acquisitive Chinese company will need to unload more properties and shares to overcome liquidity challenges. And in the U.S. on Friday, Dalian Wanda Group Co. scaled back its bet on movie-theater chain AMC Entertainment Holdings Inc. READ MORE