Sharp Selloffs upsets D-Street, Market Expected to Remain in the Doldrums.
Sep 21, 2018 | 17:19 PM IST
Sep 21, 2018 | 17:19 PM IST
Our Analysis
The truncated week witnessed sharp selloff due to trade war tensions, rupee depreciation & rising crude oil prices. But on Friday market showed signs of recovery in early trade but sudden selloff in NBFCs led Nifty correction of 2% this week. IT, metal & OMC stocks witnessed good buying this week & are expected to remain on radar. In near term markets are expected to remain bearish & 11,000 mark will act as a support but likely to face resistance near 11,400 in near term. Next week GST council meeting, Infrastructure output, rupee movement & crude oil prices will be a event that investors will keep eye. Also on global front US GDP, Federal Interest Rate decision along with GBP GDP will be a event to watch.
This Weeks Market Highlights:
Benchmark Indices:
1. Bears took control on D-Street with the selloffs in Asian markets & a weaker rupee, Sensex tumbled 505 points while Nifty below 11,400.
2. All sectoral indices witnessed intense selling pressure led by pharma, banks & metals while IT index gained most. The Nifty midcap index fell over 2%.
3. On Tuesday rupee depreciation & higher crude oil prices dragged market as Sensex fell 295 points while Nifty closed below 11,300.
4. Except for FMCG, all sectoral indices closed lower led by banking & financials, realty, metal, auto, media & IT. The Nifty midcap index closed 1.40% lower.
5. On Wednesday volatile market ended on a negative note as Sensex 170 points down while Nifty below 11,250.
6. Nifty banks, auto & FMCG index weighed on the indices while metal & metal index closed higher. The Nifty Midcap index ended around 1% lower.
7. On Friday market started on a positive not however sudden broad based selloffs dragged market at lower levels.
Broader Index & Global Market:
- It was Friday that broader market witnessed sharp selloff where midcap & small indices corrected by almost 2% which led a correction of 4-6% this week. On the sectoral space broad based all round selling was seen throughout this week especially on Friday led by banking & financials, auto, realty, IT, pharma, media while metal, & FMCG outperformed.
- This week US market climbed to fresh records as trade tensions showed signs of easing. Asian market market also witnessed strong upside from lower level led by Japans topix index, China & Hong Kong. Emerging market assets continued to rally from recent lows. European market also remained higher amid fading fears over trade. US GDP, GBP GDP & Fed Interest rate decision will be a event to watch.
Movers & Shakers
Shares of Dena Bank surged over 15% this week following merger announcement. The government on Monday said state-owned Bank of Baroda, Vijaya Bank and Dena Bank will be merged to create the countrys third largest lender as part of efforts to revive credit and economic growth. Post this merger, the number of PSU banks will come down to 19.
Shares of Yes Bank tanked near 30% this week after the RBI shortened Rana Kapoor's term as CEO & MD. The lender said on September 19 that the RBI had extended Rana Kapoor's term till January 31, 2019. The RBI had on August 30 given its approval for the extension of Kapoor's term as CEO & MD.
Key Market Drivers
US President Trump announced the imposition of new tariffs on an additional USD 200 billion worth of imports from China, on Monday, escalating the trade war with the Asian giant. Further, he mentioned, the new additional tariff structure would be effective September 24 and would be at 10% till the end of the year, and then further would be increased to 25% from January 1. Trump said his administration is taking this action as a result of the Section 301 process which the USTR has been pursuing for more than 12 months. US Trade Representatives released a list of such items.
The U.S.-China trade war deepened , Beijing announced retaliatory tariffs on $60 billion of U.S. goods and the Trump administration threatened duties on virtually all Chinese imports. On Monday, President Donald Trump ordered his administration to levy 10% tariffs on about $200 billion in Chinese goods from Sept. 24 & and also aiming to increase the rate in January to 25% if Beijing refuses to offer trade concessions. In retaliation, Beijing has announced plans to hit U.S. goods, ranging from wheat to textiles, with 5% to 10% tariffs.
Event Watch
Indias Federal Fiscal Deficit (Aug.) & Infra. Output for Aug. (YoY) data will be presented on 28th Sept. 2018. GST Council meeting will be on the same day.
Global:- Fed. Interest Rate Decision will be on 26th Sept. 2018. US GDP for Q2 (QoQ) data will be on 27th Sept. 2018. GBP GDP for Q2 (QoQ) data will be on 28th Sept. 2018.
Stocks To Watch
Oil India Ltd. is on the upside while Jet Airways (India) Ltd. is on the downside.
Share Market News 19-September-2018
The Volatile Day Ended On A Negative Note, Sensex Down By 170 Points, Nifty Below 11235
The Benchmark indices started on a positive note,Sensex rose 100 points & Nifty above 11,300. The equity market continued to trade higher as Sensex was up 105 points while Nifty above 11,300. Nifty metal, banks, auto, pharma & IT pushed market higher while media, FMCG & realty indices capped gains. The Nifty midcap index underperformed market, traded 25 points lower.
In afternoon session market erased gains to trade lower, Sensex fall 30 points & Nifty below 11,300. Cut in banking & financials, media, realty & FMCG dragged market while metal, PSU bank, IT & pharma remained at higher levels. The Nifty midcap index continued to underperform market, traded 0.90% lower.
In last hour of trade market fall further where Sensex fell 120 points while Nifty below 11,250. The market ended a volatile day on a negative note. A selloff among major sectors such as banks, auto, FMCG as well as midcaps weighed on the indices whereas metal & metal index closed higher. The Nifty Midcap index ended around 1% lower. Sensex closed 169.45 points down at 37,121.22, Nifty down by 44.55 points at 11,234.35.
Top Gainers
Coal India by 3.04% to Rs.281.50, ONGC by 2.81% to Rs.177.40, GAIL by 2.72% to Rs.385.00, BPCL by 2.65%to Rs.364.50, Tech Mahindra by 2.02% to Rs.769.95.
Top Losers
Bajaj Finserv by -3.33% to Rs.6,310, Bharti Airtel by -3.17% to Rs.361.85, ZEEL by -3.11% to Rs.450.10, Bajaj Finance by -2.78% to Rs.2,499, IndusInd Bank by -2.67% to Rs.1,812.50.
Analysis Of Top Gainer And Loser
Coal India is the top gainer in today's market as Mahanadi Coalfields (MCL), wholly owned subsidiary unit of CIL, will buyback shares equivalent to 25% of its aggregate fully paid-up capital from the parent company.
Bajaj Finserv is the top loser in today's market duw to the intense selling pressure witnessed on the back of higher valuation.
Key Market News
The U.S.-China trade war deepened as Beijing announced retaliatory tariffs on $60 billion of U.S. goods and the Trump administration threatened duties on virtually all Chinese imports. On Monday, President Donald Trump ordered his administration to levy 10% tariffs on about $200 billion in Chinese goods from Sept. 24 & and also aiming to increase the rate in January to 25% if Beijing refuses to offer trade concessions. In retaliation, Beijing has announced plans to hit U.S. goods, ranging from wheat to textiles, with 5% to 10% tariffs.
The market regulator SEBI has decided to lower expenses paid by investors for equity mutual fund schemes. The total expense ratio will be brought down considering economies of scale, Ajay Tyagi, chairman of the SEBI, said in a press conference after the regulators board meet where it took a host of decisions. The change could have a Rs.1,300-1,500 crore impact on the revenue of the mutual fund industry, according to Madhabi Puri Buch, whole-time member at SEBI. Assets under management of the industry are at a record of Rs.25 lakh crore, resulting in a revenue of about Rs.13,000 crore.
Stocks To Watch
DCM Shriram Ltd. is on the upside while Reliance Infrastructure Ltd. is on the downside.
DCM Shriram is currently trading at Rs.476.00, up by Rs.52.90 or 12.50% from its previous closing of Rs.423.10 on the NSE. The scrip opened at Rs.429.60 & has touched a high & low of Rs.484.00 and Rs.427.55 respectively. So far 23,62,853 (NSE) shares were traded on the counter. The current market cap of the company is Rs.7,836.44 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.628.00 on 19-December-2017 & a 52 week low of Rs.237.00 on 15-May-2018.
Reliance Infra. is currently trading at Rs.387.10, down by Rs.40.75 or 9.52% from its previous closing of Rs.427.85 on the NSE. The scrip opened at Rs.430.00 & has touched a high & low of Rs.431.30 and Rs.383.10 respectively. So far 79,51,241 (NSE) shares were traded on the counter. The current market cap of the company is Rs.10,194.81 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.589.90 on 01-January-2018 & a 52 week low of Rs.364.65 on 16-July-2018.
Share Market News 18-September-2018
Rupee Depreciation & Higher Crude Prices Dragged Market At 2-Month Low
The Benchmark indices started on a flat note, Sensex fall 20 points & Nifty below 11,400. The equity market continued to swing in green & red as Sensex was up 10 points while Nifty below 11,400 amid mix Asian cues. Nifty PSU bank, realty, metal & IT capped gains while FMCG, & pharma index rose over a percent. Nifty midcap index underperformed the market, traded 36 points lower.
In the afternoon session, the market remains lower where Sensex was down 50 points & Nifty near 11,350. Nifty FMCG & pharma remained higher while PSU bank, realty, metal, media, auto & financials dragged market lower. The nifty midcap index continued to underperform the market, traded 0.80% lower.
In last hour of trade market fall further, Sensex fall 200 points & Nifty near 11,300 as the rupee continued its weakening journey against USD. The market closed lower for the 2nd consecutive day, amid a spike in crude oil prices & depreciating rupee. Except FMCG, all sectoral indices closed lower led by banking & financials, realty, metal, auto, media & IT, fell 0.5-5.5%. The Nifty midcap index also witnessed the selling pressure owing to which closed 1.40% lower. Sensex closed 294.84 points down at 37,290.67, Nifty down by 98.85 points at 11,278.90.
Top Gainers
HUL by 3.70% to Rs.1,664.90, Yes Bank by 1.88% to Rs.324.60, ONGC by 1.34% to Rs.174.00, Dr. Reddy by 1.18%to Rs.2,598.90, ITC by 0.83% to Rs.304.50.
Top Losers
SBIN by -4.10% to Rs.273.60, IBULHSGFIN by -3.57% to Rs.1,158, Tata Motors by -3.46% to Rs.251.25, HindPetro by -3.06% to Rs.250.45, Bajaj Auto by -2.96% to Rs.2,776.
Analysis Of Top Gainer And Loser
Hindustan Unilever is the top gainer in today's market as strong buying was seen in the stock after the recent correction due to the premium valuation.
State Bank of India is the top loser in today's market after mentioning plan of selling 8 non-performing assets to recover dues worth over Rs.3,900 crore & has invited bids from asset reconstruction companies (ARCs) and financial institutions (FIs).
Key Market News
US President Donald Trump announced the imposition of new tariffs on an additional USD 200 billion worth of imports from China, on Monday, escalating the trade war with the Asian giant. Further, he mentioned, the new additional tariff structure would be effective September 24 and would be at 10% till the end of the year, and then would be increased to 25% level from January
1. Trump said his administration is taking this action as a result of the Section 301 process which the USTR has been pursuing for more than 12 months. US Trade Representatives released a list of such items.
Goldman Sachs has downgraded its rating on Indian equities for the first time in four-and-a-half years, to marketweight from overweight, citing elevated valuations, macro headwinds, and upcoming election event risk. It is also the first downgrade for the Indian market in recent times. Firms such as CLSA and Morgan Stanley had reduced overweight on India in February-March but did not cut their ratings.
Stocks To Watch
Dena Bank Ltd. is on the upside while Bank Of Baroda Ltd. is on the downside.
Dena Bank is currently trading at Rs.19.05, up by Rs.3.15 or 19.81% from its previous closing of Rs.15.90 on the NSE. The scrip opened at Rs.19.05 & has touched a high & low of Rs.19.05 and Rs.19.05 respectively. So far 29,36,184 (NSE) shares were traded on the counter. The current market cap of the company is Rs.4,314.78 Crore. The NSE/BSE group stock has touched a 52 week high of Rs.33.60 on 22-September-2017 & a 52 week low of Rs.13.70 on 17-July-2018.
Bank of Baroda is currently trading at Rs.112.20, down by Rs.23.05 or 17.04% from its previous closing of Rs.135.25 on the NSE. The scrip opened at Rs.121.75 & has touched a high & low of Rs.126.45 and Rs.111.85 respectively. So far 14,48,91,921 (NSE) shares were traded on the counter. The current market cap of the company is Rs.30,013.38 Crore. The BSE/NSE group stock has touched a 52 week high of Rs.206.65 on 26-October-2017 & a 52 week low of Rs.109.50 on 02-July-2018.
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