MARKET WRAP: Sensex cracks 468 pts, Nifty at 11,438 as rupee hits fresh low
In the broader markets, the S&P BSE MidCap index fell 1.7 per cent, while the S&P BSE SmallCap index ended down 1.1 per cent.
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The benchmark indices settled over 1 per cent lower on Monday as the rupee slipped to a new lifetime low of 72.67 per dollar in intra-day trade.
Rupee hits fresh low
The S&P BSE Sensex ended at 37,922, down 468 points while the broader Nifty50 index settled at 11,438, down 151 points.
In the broader markets, the S&P BSE MidCap index fell 1.7 per cent, while the S&P BSE SmallCap index ended down 1.1 per cent.
In the broader markets, the S&P BSE MidCap index fell 1.7 per cent, while the S&P BSE SmallCap index ended down 1.1 per cent.
Among stocks, Reliance Industries (RIL) and ITC ended over 1.5 per cent lower.
The rupee also extended weakness to hit 72.50 per dollar for the first time ever earlier in the day. The domestic currency fell to a fresh record low of Rs 72.67 against the greenback, contributing to the weak sentiment.
The Indian rupee and bonds sunk after the current-account deficit widened to the most in five years, as an emerging-market rout raises investor scrutiny of countries with worsening balance of payments.
Global MarketsThe Indian rupee and bonds sunk after the current-account deficit widened to the most in five years, as an emerging-market rout raises investor scrutiny of countries with worsening balance of payments.
A sell-off in Chinese shares pulled Asian equities to a 14-month trough on Monday as investors braced for a potentially damaging escalation in the Sino-US tariff row after US President Donald Trump raised the stakes in the dispute with Beijing.
MSCI’s broadest index of Asia-Pacific shares outside Japan skidded 0.9 per cent to the lowest since July 2017, extending losses from last week when it dropped 3.5 per cent for its worst weekly showing since mid-March.
MSCI’s broadest index of Asia-Pacific shares outside Japan skidded 0.9 per cent to the lowest since July 2017, extending losses from last week when it dropped 3.5 per cent for its worst weekly showing since mid-March.
Chinese shares were battered with the blue-chip index off 1.4 per cent while Shanghai’s SSE Composite stumbled 1.2 per cent. Hong Kong’s Hang Seng index slipped 1.3 per cent.
Japan’s Nikkei, which had opened lower, ended 0.3 per cent higher after revised second-quarter gross domestic product data showed the world’s third-biggest economy grew at its fastest pace since 2016.
(with Reuters inputs)
(with Reuters inputs)
3:54 PM
MARKET COMMENT Jayant Manglik, president, Religare Broking
Markets started the week on feeble note and lost over a percent. Weak global cues combined with widening trade deficit, due to continuous fall in rupee against the dollar, dampened the sentiment. Selling pressure was witnessed across the board and almost all the sectoral indices ended lower.
The fall was evident, citing deteriorating local cues and continuous threat of trade war escalation. We feel it's a normal correction, considering the rise that we had in Nifty in recent past. Indications are in the favour of further decline ahead and we expect Nifty to find support around 11,300. Trades have no option but to align their position accordingly and avoid naked longs
3:39 PM
Nifty sectoral losers of the day
3:35 PM
BSE Sensex: Sun Pharma, M&M, Vedanta among top losers of the day
3:32 PM
Market at close
The S&P BSE Sensex ended at 37,922, down 468 points while the broader Nifty50 index settled at 11,438, down 151 points.
The S&P BSE Sensex ended at 37,922, down 468 points while the broader Nifty50 index settled at 11,438, down 151 points.
3:20 PM
Manappuram Finance, Century Plyboards, Gujarat Gas hit 52-week lows
Shares of Manappuram Finance, Century Plyboards, Greenply Industries, Gujarat Gas and Shankara Building Products were among 34 stocks from the S&P BSE Smallcap index hitting their respective 52-week lows on Monday. READ MORE
3:13 PM
India becomes latest epicenter of nervousness sweeping emerging markets
India became the latest epicenter of the nervousness sweeping emerging markets as better-than-forecast current-account data failed to stem the slide in the rupee. The currency sank as much as 1.3 per cent, while stocks dropped the most since August and bonds tumbled to the lowest level since 2014. READ MORE
3:00 PM
Gold glitters on jewellers' buying; weak rupee
Gold overcame a sluggish global trend by surging Rs 200 to trade at Rs 31,550 per 10 gram on Monday on increased buying by local jewellers. Furthermore, a depreciating rupee which plunged to a fresh record low of 72.67 against the dollar, making imports costlier, fuelled the upmove, traders said. READ MORE
2:49 PM
Investors should tender in case PSUs buyback shares, say analysts
After a bumper listing of Rites Limited – a state-owned railway consultancy firm – that has seen the stock rise 26 per cent since its debut on July 2, 2018, the government seems to have changed its mind in favour of buying back shares of public sector enterprises (PSEs) given the volatile markets. READ MORE
After a bumper listing of Rites Limited – a state-owned railway consultancy firm – that has seen the stock rise 26 per cent since its debut on July 2, 2018, the government seems to have changed its mind in favour of buying back shares of public sector enterprises (PSEs) given the volatile markets. READ MORE
2:37 PM
Top losers in BSE Sensex:
| COMPANY | LATEST | PREV CLOSE | LOSS() | LOSS(%) |
| SUN PHARMA.INDS. | 642.75 | 664.20 | -21.45 | -3.23 |
| VEDANTA | 223.75 | 231.05 | -7.30 | -3.16 |
| M & M | 946.10 | 973.45 | -27.35 | -2.81 |
| INDUSIND BANK | 1826.30 | 1876.25 | -49.95 | -2.66 |
| ST BK OF INDIA | 285.40 | 291.85 | -6.45 | -2.21 |
2:26 PM
COMMENT UBS on economic growth
While we expect the Indian economy to see a cyclical recovery in FY19, the pick-up in growth is likely front loaded. We expect real GDP growth to slow to 7.0-7.3% YoY in H2FY19 from 8.2% YoY in June 2018 quarter. We believe headwinds, including tighter financial conditions, high oil prices, slowing global growth and a still muted private corporate capex recovery on legacy issues of high debt and weakened balance sheets will weigh on India's growth momentum. For the full year, we forecast real GDP growth to pick up from 6.7%YoY in FY18 to 7.5% YoY in FY19/20.
2:14 PM
The Indian rupee and bonds sunk after the current-account deficit widened to the most in five years, as an emerging-market rout raises investor scrutiny of countries with worsening balance of payments. READ MORE
Rupee plunges to record low as current account deficit widens to 5-yr high
The Indian rupee and bonds sunk after the current-account deficit widened to the most in five years, as an emerging-market rout raises investor scrutiny of countries with worsening balance of payments. READ MORE
2:01 PM
Market Check
(Source: BSE)
| Index | Current | Pt. Change | % Change |
| S&P BSE SENSEX | 38,074.58 | -315.24 | -0.82 |
| S&P BSE SENSEX 50 | 12,022.92 | -106.19 | -0.88 |
| S&P BSE SENSEX Next 50 | 34,464.47 | -462.30 | -1.32 |
| S&P BSE 100 | 11,782.54 | -112.15 | -0.94 |
| S&P BSE Bharat 22 Index | 3,639.98 | -18.35 | -0.50 |
(Source: BSE)
1:45 PM
ICICI Lombard hits highest level since listing; up 14% in September
Shares of ICICI Lombard General Insurance Company were up 4% to Rs 909 per share on the BSE in intra-day trade, extending its 10% rally in past five trading days in an otherwise weak market. The stock of the country’s largest private sector general insurer was trading at its highest level since listing on September 28, 2017. READ MORE
1:31 PM
Statsguru: Rupee slid as RBI didn't intervene as much as was expected
The rupee’s 11 per cent year-to-date decline against the US dollar should not come as a surprise, considering that other emerging market currencies (Chart 1) are also witnessing a rout. Investors are particularly harsh on countries that run current account deficits (CAD). READ MORE
1:12 PM
MARKET COMMENT Gaurang Somaiya, currency analyst, Motilal Oswal Securities
Rupee fell to fresh record low levels against the US dollar as panic buying by importers triggered further sell-off in the currency. Escalating trade war concerns between US and China is a still a hanging sword after US President announced that he has tariffs ready to go on $267 billion worth of Chinese imports in addition to the $200 billion of its goods already facing the risk of duties.
After imposing import tariff on Chinese goods, US president now has an eye on Japan with whom he looks to take trade issues. Asian as well as the emerging currencies are under pressure and rupee is feeling the contagion effect of the same. On the domestic front, data showed India’s CAD widened to $15.8billion in April-June this year as against $15 billion in the same quarter of 2017-18.
We expect that rupee could continue to feel the pain in the short term and intervention could restrict the pace but bias for the rupee is still negative. Rupee, in the short term, could test levels of 73.20 and break above 72.15 could negate the view for short term weakness
Rupee fell to fresh record low levels against the US dollar as panic buying by importers triggered further sell-off in the currency. Escalating trade war concerns between US and China is a still a hanging sword after US President announced that he has tariffs ready to go on $267 billion worth of Chinese imports in addition to the $200 billion of its goods already facing the risk of duties.
After imposing import tariff on Chinese goods, US president now has an eye on Japan with whom he looks to take trade issues. Asian as well as the emerging currencies are under pressure and rupee is feeling the contagion effect of the same. On the domestic front, data showed India’s CAD widened to $15.8billion in April-June this year as against $15 billion in the same quarter of 2017-18.
We expect that rupee could continue to feel the pain in the short term and intervention could restrict the pace but bias for the rupee is still negative. Rupee, in the short term, could test levels of 73.20 and break above 72.15 could negate the view for short term weakness
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First Published: Sep 10 2018 | 8:15 AM IST
