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Market Wrap, October 11: Sensex crashes 760 pts on global selloff; IT and banking stocks decline
Today on Market Wrap: 1. Sensex crashes 760 pts on global selloff; IT and banking stocks decline 2. YES Bank surges 15% intra-day ahead of its CEO search committee meeting 3. Aviation stocks surge, IndiGo climbs 5% as govt cuts excise duty on ATF
The benchmark indices settled over 2 per cent lower on Thursday following a sharp selloff in the global markets.
 
The S&P BSE Sensex ended at 34,001, down 760 points. The index had fallen 1,037 points to 33,723.53 in intra-day trade. The broader Nifty50 index settled at 10,235, down 225 points. It had it an intra-day low of 10,138.60.
 
Among the sectoral indices, the Nifty IT index fell 3 per cent led by losses in the shares of NIIT Technologies, Infosys and Tata Consultancy Services (TCS). The Nifty Bank index, too, slipped 2.1 per cent weighed by State Bank of India (SBI) and IndusInd Bank.
 
The rupee, which had slipped to a new record low of 74.48 against the US dollar, erased its losses to rise 19 paise to 74.02 in intra-day trade.
 
Shares of YES Bank have moved higher by 15 per cent to Rs 268 on the BSE in intra-day trade ahead of the first meeting of the search & selection committee today for finalization of the advisory firm. The stock bounced back 24 per cent from its intra-day low of Rs 217. The stock ended at Rs 241, up 3 per cent.
The private sector lender on Friday after market hours had said that it has invited proposals from global leadership advisory firms and will finalise the company in the committee’s first meeting, which is scheduled to be held on October 11.
 
Since then, the stock of YES Bank has rallied 25% as compared to 0.65% decline in the S&P BSE Sensex. It surged 55% from its 52-week low of Rs 166 on September 29, 2018, on the BSE in intra-day trade.
 
The board of private sector lender at their meeting held on October 5, inducted TS Vijayan, former chairman of Insurance Regulatory and Development Authority of India (IRDAI) and Life Insurance Corporation of India (LIC), and OP Bhatt, former CMD of State Bank of India (SBI), as external experts in the committee.
 
Bucking the broader market trend, aviation stocks climbed up to 5.7 per cent in the early trade on Thursday after the government on Wednesday cut excise duty on jet fuel to 11 per cent.
 
At 09:50 am, shares of InterGlobe Aviation were trading 4.60 per cent higher at Rs 780.05 apiece on BSE while those of SpiceJet were up 3 per cent at Rs 70.25. Jet Airways was trading over 1 per cent higher at Rs 191 on BSE. InterGlobe Aviation hit a high of Rs 789, up 5.7 per cent during the session.
 
Excise duty on aviation turbine fuel (ATF) has been reduced to 11 per cent from 14 per cent with effect from October 11.
 
Investors will look forward to the September quarter (Q2FY19) financial results of the IT bellwether TCS, which is due later today. Majority of the analysts expect IT companies to report healthy numbers led by the ramp-up of recent large deal wins, improving the macro environment, and strong seasonality.