Here’s how market fared this week:
1. Sensex & Nifty down nearly 3% & Nifty bank 6% this week
2. Sensex & Nifty erase nearly 70% of gains seen in previous two weeks
3. Nifty Bank down 6% this week; erases 60% of gains seen last week
4. Midcap Index down 2.5% this week; Nifty PSU Bank top losing index with 9%
5. Only 12 Nifty stocks give positive returns this week; Bharti Infratel, Tata Motors top gainers
6. Axis Bank, ICICI Bank, Sun Pharma and SBI are top Nifty losers this week
Here are the key highlights from today’s trading session:
1. Market slips at over 2-week low following weak global cues
2. Frontline Indices fall nearly 2% each; 48 of 50 Nifty stocks end lower
3. Sensex declines 634 points to 38,857 and Nifty 194 points to 11,334
4. Nifty Bank falls 519 points to 23,012 and Midcap index 288 points to 16,926
5. All sectoral indices close in the red with volatility index surging over 8%
6. Maruti & TCS close higher in a weak trading session
7. Tata Steel, Axis Bank, JSW Steel, Adani Ports, NTPC top Nifty losers
8. JSPL, Adani Green & Future Group stocks amongst top Midcap losers
9. Market Breadth favours declines; advance-decline ratio at 1:2
Closing Bell: Sensex ends 634 points lower, Nifty below 11,350; all scetors in the red
Indian shares ended over 1.5 percent lower on Friday after a selloff on Wall Street rippled across the Asian markets, with almost all major sector indices trading lower.
The Sensex ended 634 points lower at 38,357 while the Nifty lost 193 points to settle at 11,334. Indian benchmarks also ended lower for the week after two weeks of gains, down around 2.5 percent.
Meanwhile, the broader Asian stock markets saw their worst session in two weeks after Wall Street’s main indexes marked their steepest losses since June on the back of a tech-led plunge.
On the Nifty50 index, Maruti was the only stock that ended in the green. Tata Steel, Axis Bank, Adani Ports, JSW Steel, and NTPC led the losses.
Broader markets were also negative for the day with Nifty Midcap and Nifty Smallcap down 1.5 percent and 1.1 percent, respectively.
All sectors were in the red at closing. Nifty Metal fell 2.8 percent while Nifty Realty lost 2.2 percent. IT and FMCG indices were also down 1.3 percent each, while Fin Services and Pharma sectors fell around 1.8 percent each.
IndiGo holds 17th AGM, co-founder Rakesh Gangwal attends
India’s largest airline IndiGo today held its 17th annual general meeting. The AGM comes at a time when the global aviation sector is reeling under the COVID-induced stress and is looking at ways to survive the pandemic. The annual general meeting of 2019-20 was held on an online platform. Read here the key takeaways from the AGM.
Stock Update: Ahluwalia Contracts’ shares rose as much as 4.74 percent as the company has secured a new order worth Rs 99.5 crore from Bandhan Bank in Kolkata.The order involves constructing a new civil and structural work for the bank’s headquarters.
Rupee Update: The Indian currency recovers from two-day losing streak on Friday. The rupee ended at 73.14 against the US dollar as compared to the Thursday’s close of 73.47.
European markets edge higher as banks rally
European stocks edged higher Friday morning, looking to shrug off uncertainty fueled by Wall Street’s tech sell-off, with banks dragging the major indices into positive territory.
The pan-European Stoxx 600 edged 0.2 percent in early trade, with food and beverages dropping 0.5 percent while banks surged 2.4 percent.
DAX opened 1.4 percent lower at 13,057 and so did the CAC index, down 1.1 percent at 4,953.
Here’s why Bharti Infratel jumped over 22 percent in just 3 sessions
Bharti Infratel share price has surged over 22 percent in just 3 sessions after the company got a nod from the board for its merger with Indus Tower, which has already been postponed twice earlier.
The stock today was up as much as 5.4 percent to hit an intra-day high of Rs 230.75 on BSE. Meanwhile, it had settled over 11 percent higher in the previous session.
In a filing, Bharti Infratel said that its Board of Directors, in a meeting held on August 31, discussed the scheme of arrangement with Indus Towers and related agreements, and has decided to proceed with the merger.
“After deliberations, the Board has authorised the chairman to proceed with the scheme and comply with other procedural requirements to complete the merger – including approaching the National Companies Law Tribunal (NCLT) to make the scheme effective subject to certain procedural condition precedents,” the company’s statement added. Read more
Digital brokerages see rise in business amid COVID-19 pandemic; hiring activity picks up
The coronavirus pandemic has resulted in job losses, layoffs and pay cuts in many industries. However, digital brokerages have seen a huge surge in their business, as more customers are shifting to trading as a means of saving. To cater to the demand, brokerages are now scaling up their operations and hiring activity.
Tejas Khoday, CEO and Co-Founder, FYERS—one of the discount brokers—claims to have witnessed a 40 percent surge in business. He expects this number to increase in the coming months as investors are now considering stock markets as an alternative asset platform.
Angel Broking—another stockbroker firm—also claims to have witnessed an uptick in their business.
“Over the last couple of months, as clarity emerged with respect to restarting the economy, markets have bounced back significantly. During this period, as valuations become more attractive, not only did existing investors become active but the industry also saw many new investors entering the market,” says Vinay Agrawal, CEO, Angel Broking Ltd. Click here to read
RBI says bank loans to start-ups (up to ₹50 cr) & loans for setting up Compressed Bio Gas (CBG) plants, included in PSL. RBI also gives PSL status for loans for installing solar power plants for solarisation of grid connected agriculture pumps.
Gold rate today: Yellow metal rises; Support seen at Rs 50,400 per 10 grams; Buy on dips, suggest experts
Gold prices in India traded flat with a positive bias on the Multi Commodity Exchange (MCX) Friday after a fall in the previous session tracking gains in international spot prices. Weakness in equity markets supported safe-haven buying in the yellow metal, analysts said.
At 11:15 am, gold futures for October delivery rose 0.12 percent to Rs 50,804 per 10 grams as against the previous close of Rs 50,742 and opening price of Rs 50,865 on the MCX. Silver futures traded 0.37 percent lower at Rs 66,678 per kg. The prices opened at Rs 67,102 as compared to the previous close of Rs 66,926 per kg.
“Gold prices were marginally higher but were in a range. In the international prices, $1,920-1,927 levels were intact,” said Ajay Kedia, director, Kedia Commodity Comtrade. Click here to read more
CreditAccess Grameen shares rally over 9% after board approves fundraising
The share price of CreditAccess Grameen rallied over 9 percent on Friday after the company’s board approved raising of funds. The company’s board has approved raising of Rs 1,000 crore via equity.
The stock gained as much as 9.34 percent to Rs 749 per share on the NSE. The stock, however, lost some steam and traded 6.13 percent higher at Rs 726.75, at 11:15 am.
For August, the company’s loans under moratorium have come down to 18 percent from 24 percent in July.
Collection efficiency has improved to 82 percent in August vs 76 percent in July. Meanwhile, the collection efficiency of the company’s acquisition in Madura Microfinance improved to 75 percent in August vs 64 percent in July, added the exchange filing.
“Disbursements of Rs 484.6 crore in August 2020. New disbursements were made only to borrowers making on-time payments,” added the company’s filing further.
As on August 31, 2020, the company’s cash/bank balance and liquid investments stood at Rs 1,778 crore compared to Rs 1,636 crore in July.
CLSA has a ‘buy’ rating on the stock with a target of Rs 840 per share. The Madura Micro acquisition will help the company consolidate its leadership position, said CLSA, adding that the company is better placed to capture the Indian MFI opportunity.
Explained: Why brokers are protesting SEBI’s new margin, share pledge norms
In order to plug in the loopholes and bring more transparency in the capital market ecosystem, the Securities & Exchange Board of India (SEBI) released the new margin and share pledging norms that came into effect from September 1.
After delaying the implementation twice, SEBI decided to go ahead with the rules even as brokers and high networth investors sought a further extension of the deadline. Market observers feel the new norms could impact trading volumes in the short term.
New margin rule
The new rules mandate the buyer or seller of securities to have 20 percent upfront margin in their account before entering into the transaction.
Also, the trader cannot use the realized profit from an intraday trade to enter into another trade. Continue reading!
Here’s why Bharti Infratel jumped over 22 percent in just 3 sessions
Bharti Infratel share price has surged over 22 percent in just 3 sessions after the company got a nod from the board for its merger with Indus Tower, which has already been postponed twice earlier. The stock today was up as much as 5.4 percent to hit an intra-day high of Rs 230.75 on BSE. Meanwhile, it had settled over 11 percent higher in the previous session. In a filing, Bharti Infratel said that its Board of Directors, in a meeting held on August 31, discussed the scheme of arrangement with Indus Towers and related agreements, and has decided to proceed with the merger.
JBM group believes worst is behind and it’s seeing a pick-up in Q2
Yellow metal rises; Support seen at Rs 50,400 per 10 grams
Gold prices in India traded flat with a positive bias on the Multi Commodity Exchange (MCX) Friday after a fall in the previous session tracking gains in international spot prices. Weakness in equity markets supported safe-haven buying in the yellow metal, analysts said. At 11:15 am, gold futures for October delivery rose 0.12 percent to Rs 50,804 per 10 grams as against the previous close of Rs 50,742 and opening price of Rs 50,865 on the MCX. Silver futures traded 0.37 percent lower at Rs 66,678 per kg. The prices opened at Rs 67,102 as compared to the previous close of Rs 66,926 per kg. More here
Fund managers interested in India but not comfortable due to fears of 2nd lockdown, says EPFR Global
In an interview to CNBC-TV18, Sean Darby of Jefferies and Cameron Brandt, director of research at EPFR Global spoke at length about India and global markets. Darby said there was no obvious reason for the US market sell-off yesterday. “However, if you look inside the internal dynamics of the US equity market, it has been dominated by 5 or 6 very large tech names which have become much overbought on all our measures. Second, we had a rise in the VIX index as we coming into the US election, which normally happens and third, we think positioning became very one-way that is it’s dominated by a large amount of money going into a very few select sectors,” he added. More here
Market Watch: Manish Hathiramani, Proprietary Trader & Technical Analyst of Deen Dayal Investments
“I am working with two by calls, my first buy call is on Tata Steel which is for a target of Rs 460 and a stop loss of Rs 410. The intermediate high of Tata Steel which is Rs 442 was crossed and now this stock is taking a bit of a breather. We could actually use that favourably to go long.”
“The second buy is on Zee Entertainment Enterprises for a target of Rs 250 and a stop loss of Rs 195, here too the intermediate high which was Rs 210 which was recorded in June this year has been crossed. We are trading above that level and we are also backing it with very good volumes which is a positive sign”
Balmer Lawrie expects Q2FY21 logistics volumes to be same as Q2FY20
Oil Falls 1% on lacklustre demand, set for biggest weekly drop since June
Oil futures slipped 1 percent on Friday, with prices on both sides of the Atlantic heading for their biggest weekly drops since June, as lacklustre demand and ample fuel supplies offset support from a weaker dollar. Brent crude fell 44 cents to USD 43.63 a barrel by 0325 GMT, while US West Texas Intermediate was at USD 40.94 a barrel, down 43 cents and set for its first weekly drop in five weeks. The volume of crude arriving in China, the world’s largest crude importer, is set to slow in September after rising for five straight months as its refiners gradually digest bloated inventories, according to data on Refinitiv Eikon.
JUST IN: Force Motors sees an increase of 23% to 1,389 units month-on-month
Expect to complete Air India stake sale by end of year: Aviation minister Hardeep Singh Puri
The civil aviation ministry aims to complete stake sale exercise in Air India by the end of this year, union civil aviation minister Hardeep Singh Puri told CNBC-TV18 on Thursday. “Answer is a emphatic No. We would not have given this extension also. But some prospective bidders requested the concerned government departments and transaction advisors that under these conditions they would find it difficult to come here. So this was a difficult decision made after considerable consideration,” Puri said when asked whether the government would postpone Air India divestment beyond the current financial year 2020-21 (April-March) due to COVID-19. The government recently extended the deadline till October 30 for submission of preliminary bids to buy 100 percent stake in Air India.
Rupee Opens | The Indian rupee opened 11 paise higher at 73.36 per dollar against the previous close of 73.47.
Technical View | Even though we have opened with a gap down, we still need to breach 11,300 on a closing basis to term this as a short term weakness for our markets. A good risk-reward trade would be to go long at current levels with a stop at 11,300 and a target of 11,600, says Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments.
Indian companies raise record $31 billion equity capital in shrinking economy
Indian companies have raised a record USD 31 billion in equity capital in 2020, Refinitiv data showed, as banks strengthen their balance sheets to prepare for future economic uncertainty and corporates tap into the elevated global liquidity levels. The record raising comes despite India’s economy contracting 23.9 percent in the June-quarter, year on year, which puts it on track for the first annual contraction since 1980. The rush of deals though has not been extended to initial public offerings (IPOs), which have fallen to a five-year low to be worth just USD 1.5 billion, in the eight months year to date, the data showed. Banks have been the most active issuers, raising USD 13.68 billion, followed by the energy and power sector with USD 7.05 billion, and consumer products with USD 3.41 billion.
All Nifty stocks are in the red
Opening Bell: Sensex, Nifty open lower, all sectors in the red
Indian shares opened lower on Friday as Asia’s stock markets slipped, following the steepest Wall Street selloff since June. The US markets snapped gained after rising in 11 of the last 13 sessions. On the domestic front, selling was seen in all key indices and stocks. At 9:18 am, the Sensex was down 593 points at 38,397 while the Nifty lost 173 points at 11,354. On BSE Sensex, no constituent was trading in green in early trade, while Kotak Bank, SBI, IndusInd Bank, ICICI Bank and Axis Bank led the losses. Broader markets were also lower with the midcap and smallcap indices down around 2 percent each.