Seven countries, including Sri Lanka, Pakistan and Turkey, are at risk of an exchange rate crisis as investors reassess their investments following the contagion in Argentina and Turkey https://t.co/QiV1nnvFj1— Livemint (@livemint) September 10, 2018
Closing bell: Sensex tanks 467 points; Nifty settles at 11,438 amid rupee woes
BSE Sensex closed 467.65 points lower at 37,922.17, while the Nifty 50 ended 151 points down at 11,438.10. Here are the highlights from the markets
- 3.36 pm ISTClosing bell: Sensex, Nifty closes over 1% lower
- 3.23 pm ISTGovernment worried about rupee drop, mulls tapping NRIs
- 3.05 pm ISTGold prices surge Rs 200 today on local demand, solver follows
- 2.55 pm ISTDebt MFs see redemptions of Rs 6,800 crore in August
- 2.40 pm ISTSeven emerging markets at risk of exchange rate crises: Nomura
- 2.22 pm ISTTata Motors global wholesales up 14% in August
- 2.15 pm ISTOil prices rise as US drilling stalls, Iranian sanctions bite
- 1.55 pm ISTRupee pares losses after hitting record low of 72.67 a dollar
- 1.40 pm ISTSpiceJet to start dedicated air cargo services from 18 September
- 1.20 pm ISTShares of ILFS group companies fall
- 1.07 pm ISTEuropean stocks steady at open
- 1.00 pm ISTMarket Update: Sensex, Nifty extend losses
- 12.54 pm ISTAlembic Pharma board approves Rs 300 crore NCD issue
- 12.30 pm ISTRupee @72: When Goldilocks was mauled by a bear
- 12.17 pm ISTBASF India to phase out agency business
- 12.03 pm ISTPower Mech Projects gets Rs 247 crore orders, shares recover
- 11.43 am ISTIT stocks trade higher as rupee extends losses
- 11.37 am ISTJSW Steel August steel production up 8%
- 11.30 am ISTA smug India VIX despite jitters in Sensex, Nifty
- 11.22 am ISTNCLT rejects Ajanta Pharma’s scheme of arrangement with Gabs Investments
- 11.12 am ISTInfosys announces partnership with Australian Open
- 11.00 am ISTAugust inflation seen easing below RBI’s mid-term target: Reuters poll
- 10.40 am ISTAs rupee bleeds, economic policy uncertainty rears its head again
- 10.33 am ISTTata Global Beverages shares jump 5% on restructuring
- 10.30 am ISTEther, bitcoin prices tumble as cryptocurrency selloff deepens
- 10.22 am ISTRupee hits fresh record low, bond prices at 4-year low
- 10.09 am ISTMarket update: Sensex, Nifty extend losses
- 9.57 am ISTNMDC shares gains on plans to explore Tungsten
- 9.37 am ISTGlenmark Pharma shares rise 4%
- 9.25 am ISTAxis Bank shares rise over 4% as RBI clears CEO appointment
- 9.20 am ISTICICI Bank shares down 2% over Sebi probe
- 9.15 am ISTRupee falls further against dollar
- 9.07 am ISTThe curious effect of mutual fund SIPs on Sensex, Nifty
- 8.58 am ISTCommodity Corner: Gold rates edge lower, oil prices gain
- 8.50 am ISTCurrencies: Dollar steady as trade tensions keep markets on edge
- 8.42 am ISTOpening bell: Cues to look out for before trading today
- Mumbai: BSE Sensex and NSE’s Nifty 50 declined over 1 percent on Monday to their lowest close in nearly four weeks as a depreciating rupee dampened investor sentiment amid negative cues from global markets. World stocks flirting with their longest run of declines since early 2016 on Monday, hit by rising anxiety about the US-China trade war and another interest rate increase by the Federal Reserve later this month. European shares defended its ground early on, but it was proving a struggle after a fresh sell-off by Chinese stocks pulled Asian and emerging-market equities to 14-month lows. Meanwhile, DIIs purchased shares worth Rs 942.45 crore on net basis on Friday, while FIIs bought equities worth Rs 37.56 crore, provisional data showed. Here are the highlights from the markets:
- 3.36 pm IST Closing bell: Sensex, Nifty closes over 1% lowerBSE Sensex closed lower by 467.65 points, or 1.22%, to 37,922.17, while the Nifty 50 fell 151 points, or 1.30%, to close at 11,438.10. Both the benchmark indices marked their worst closing levels since 16 August.BSE MidCap and SmallCap slumped 1.68% and 1.07%, respectively. Sixteen out of 19 sectoral indices on BSE lost over 1%. Auto, energy, FMCG, metal, oil and gas, realty and finance declined most. IT gained 0.02%.Axis Bank, Wipro, HCL Tech, Yes Bank and TCS were among the top gainers, whereas Sun Pharma, Bajaj Finance, BPCL, Mahindra and Vedanta were among the major losers.
- 3.23 pm IST Government worried about rupee drop, mulls tapping NRIsIndia expressed concern about the rupee’s decline for the first time and said it’s considering a plan to tap its citizens overseas, according to a government official. The finance ministry and the Reserve Bank of India (RBI) are in touch and the central bank is intervening in the currency market when needed, the government official told reporters in New Delhi on Monday, asking not to be identified citing rules. The RBI has been selling dollars, albeit in a restrained manner, leading to a drop in India’s foreign exchange reserves to $400 billion from a record high of $426 billion in mid-April. Read more
- 3.05 pm IST Gold prices surge Rs 200 today on local demand, solver followsGold prices surged Rs 200 to Rs 31,550 per 10 gram on Monday due to rising demand from local jewellers amid depreciating rupee, which makes gold imports costlier, reported PTI. In Delhi, gold rates of 99.9% and 99.5% purity bounced Rs 200 each to Rs 31,550 and Rs 31,400 per 10 gram, respectively. The metal had lost Rs 160 in the last two days. Sovereign however ruled flat at Rs 24,500 per piece of eight gram.
- 2.55 pm IST Debt MFs see redemptions of Rs 6,800 crore in AugustDebt mutual funds witnessed an outflow of over Rs 6,800 crore by investors in August as yields hardened due to concerns on weakness in the rupee and rising oil prices and their impact on inflation and current account deficit (CAD). In comparison, such funds saw inflows to the tune of Rs 9,810 crore in August last year, according to the latest update with Association of Mutual Funds in India (Amfi). Debt funds have seen net outflows in 4 out of 5 months in this fiscal so far. With this, total outflow has reached to a little over Rs 52,700 crore so far in the current financial year (April-August). PTI
- 2.40 pm IST Seven emerging markets at risk of exchange rate crises: NomuraGiven that India runs a current account deficit, it remains vulnerable to bouts of global risk aversion, said Nomura, adding that higher oil prices and portfolio outflows are its key external vulnerabilities.
- 2.22 pm IST Tata Motors global wholesales up 14% in AugustTata Motors Ltd said global wholesales in August, including Jaguar Land Rover, rose 14% to 107,030 units. Global wholesales of all Tata Motors commercial vehicles and Tata Daewoo range rose 29% to 45,719 units. Global wholesales of all passenger vehicles in August were at 61,328 units, up 4 percent. Tata Motors shares traded 0.79% higher at Rs 279.70 per share.
- 2.15 pm IST Oil prices rise as US drilling stalls, Iranian sanctions biteOil prices rose as US drilling stalled and as investors anticipated lower supply once new U.S. sanctions against Iran’s crude exports kick in from November. Benchmark Brent crude oil was up 90 cents a barrel, or almost 1.2 percent, at $77.73 by 1.40pm. US light crude was 65 cents higher at $68.40.The number of rigs drilling for oil in the United States has stalled since May, reflecting increases in well productivity but also bottlenecks and infrastructure constraints. Outside the United States, Iranian crude oil exports are declining ahead of a November deadline for the implementation of new U.S. sanctions. Reuters
- 1.55 pm IST Rupee pares losses after hitting record low of 72.67 a dollarThe rupee pared losses on Friday after a Bloomberg report said the government may take measures like raising funds from overseas Indians. At 1.29pm, the rupee was trading at 72.19 a dollar, down 0.62% from its Friday’s close of 71.74. It opened at 72.11 per dollar. “The government is worried on rupee fall and its actively working on reducing current account deficit. If needed, govt can think of ways to increase foreign direct investments, foreign inflows. Can take measures like deposit scheme for overseas Indians”, reported Bloomberg, quoting a government official. Read more
- 1.40 pm IST SpiceJet to start dedicated air cargo services from 18 SeptemberSpiceJet will launch its dedicated air cargo services from 18 September. The carrier, which is working on ambitious business plans, Monday said it would operate the cargo services under the brand name ‘SpiceXpress’ and has a detailed plan for domestic as well as international routes. SpiceJet will be the first schedule domestic airline to start dedicated air cargo services in India. A Boeing 737-700 plane has been inducted as the first freighter aircraft. Shares traded 0.44% down at Rs 79.75. Read more
- 1.20 pm IST Shares of ILFS group companies fallShares of Infrastructure Leasing and Financial Services group fell around 13% after ratings agency ICRA cuts rating on the parent group’s Rs 5,225 crore NCDs to BB, “under watch for developing actions.” Shares of IL&FS Investment Managers falls as much as 15.7% to Rs 9.70, biggest daily percent loss since April 2009. IL&FS Transportation Networks crashed over 16% to a record low of Rs 25.25. IL&FS Engineering and Construction Co. declined as much as 10% to an all-time low of Rs 15.25. Reuters
- 1.07 pm IST European stocks steady at openEurope’s stock markets stabilised in opening trade on Monday, with London’s benchmark FTSE 100 index down 0.1 percent at 7,272.60 points. In the eurozone, Frankfurt’s DAX 30 also shed nearly 0.1 percent to 11,950.55 points, while the Paris CAC 40 was almost flat at 5,250.76 compared with Friday’s close. AFP
- 1.00 pm IST Market Update: Sensex, Nifty extend lossesBSE Sensex traded lower by 409.03 points, or 1.07%, to 37,980.79, while the Nifty 50 fell 127.85 points, or 1.10%, to 11,461.25. BSE MidCap and SmallCap fell 1.29% and 0.82%, respectively.All the sectoral indices on BSE, except IT and teck, declined with energy, oil and gas, FMCG and finance losing most. Infosys, Axis Bank, Wipro and TCS were among the top gainers, whereas Sun Pharma, Vedanta, IndusInd Bank and HDFC were among the major losers.
- 12.30 pm IST Rupee @72: When Goldilocks was mauled by a bearFormer RBI governor Y.V. Reddy had talked up the rupee during the 1997 Asian financial crisis. Governor Urjit Patel would do well to take a leaf out of Reddy’s book
The Goldilocks period of calm for the Indian rupee in 2017 is now just a distant dream, with the currency plummeting 13% this year. https://t.co/gcV4BMmxod— Livemint (@livemint) September 10, 2018
- 12.17 pm IST BASF India to phase out agency businessBASF India Ltd said that the company has decided to phase out the agency business following new rules framed by Organisation for Economic Cooperation and Development. Accordingly, the board has approved a proposal to replace the agency business of the company with the merchandise business model effective financial year 2019-20. BASF India shares traded 1.33% down at Rs 1900.
- 11.43 am IST IT stocks trade higher as rupee extends lossesShares of IT companies gained today as the Indian rupee fell further to a fresh record low, with the Nifty IT Index rising 0.5% led by HCL Tech and Infosys. At 11.35am, the rupee was trading at 72.46 a dollar, down 1.01% from its Friday’s close of 71.74.
- 11.30 am IST A smug India VIX despite jitters in Sensex, NiftyNSE’s Volatility Index (India VIX), or the fear gauge, rose by 10% in the last one week to 13.89.
- 11.22 am IST NCLT rejects Ajanta Pharma’s scheme of arrangement with Gabs InvestmentsAjanta Pharma shares traded 0.54% lower at Rs 1263.40. The company said NCLT did not approve a proposed scheme of amalgamation and arrangement between Gabs Investments Pvt. Ltd and Ajanta Pharma Ltd and their respective shareholders.
- 11.00 am IST August inflation seen easing below RBI’s mid-term target: Reuters pollIndia’s inflation likely eased below the Reserve Bank of India’s (RBI) medium-term target in August on softer food prices, a Reuters poll showed, raising the probability the central bank will keep interest rates on hold at its next rate review. The poll of nearly 40 economists conducted from 4-7 September predicted retail inflation eased to 3.86 percent from July’s 4.17 percent, below the RBI’s 4 percent target for the first time this year. Inflation data is due to be published on 12 September at 5.30pm. Read more
- 10.40 am IST As rupee bleeds, economic policy uncertainty rears its head againIndia’s economic policy uncertainty index surged to the level of 80 in August. This is the highest seen, so far, in 2018
As rupee bleeds, economic policy uncertainty rears its head again.— Mint Mark to Market (@livemint_m2m) September 10, 2018
For investors in India, the 2019 Lok Sabha elections will also add to near-term economic policy uncertainty, writes @imharshaj https://t.co/4S74SlNwny
- 10.33 am IST Tata Global Beverages shares jump 5% on restructuringShares of Tata Global Beverages Ltd gained as much as 5.5% to Rs 235.15, their biggest intraday percent gain in nearly 10 weeks. The company has restructured its international operations in order to unlock synergies for the business, optimize costs and streamline operations.■ Erstwhile EMEA (UK, Europe, Middle East and Africa) and CAA (Canada, Australia, and Americas) units of TGB have been merged into a single unit called the International Business Division■ In Russia, the company has restructured its operating model. It has divested its stake in plantations in Sri Lanka, and exited its joint venture business in China.■ Identified back office processes in HR, Finance and Operations, and outsourced the management of these back office processes to Tata Consultancy Services (TCS). This will result in cost savings, increase business efficiency and build digital capability for the business.
- 10.30 am IST Ether, bitcoin prices tumble as cryptocurrency selloff deepensThe cryptocurrency bear market plumbed a fresh 10-month low, led by a tumble in Bitcoin’s biggest rival. Ether slumped 8.1 percent from its level at 5 p.m. New York time on Friday, according to Bloomberg composite pricing. Bitcoin lost 2 percent, while the market capitalization of digital assets tracked by CoinMarketCap.com shrank to $196 billion, down about $640 billion from its January peak. Read more
- 10.22 am IST Rupee hits fresh record low, bond prices at 4-year lowThe rupee on Monday weakened further to hit a fresh record low against the US dollar while 10-year government bond prices hit near a fresh four-year low after India’s current account deficit widened to a four-quarter high due to rising crude oil prices. At 10.15am, the rupee was trading at 72.30 a dollar, down 0.79% from its Friday’s close of 71.74. It opened at 72.11 per dollar and touched a fresh low of 72.35 per dollar. The 10-year bond yield stood at 8.105%, from its previous close of 8.029%. So far this year, the rupee has weakened 11.5%, while foreign investors have sold $424.80 million and $6.25 billion in equity and debt markets, respectively. Read more
- 10.09 am IST Market update: Sensex, Nifty extend lossesBSE Sensex traded lower by 282.57 points, or 0.74%, to 38,107.25, while the Nifty 50 fell 87.95 points, or 0.76%, to 11,501.15. BSE MidCap and SmallCap fell 0.34% and 0.04%, respectively.All the sectoral indices on BSE, except IT and teck, declined with consumer durables, FMCG, oil and gas and power falling nearly up to 1%. Axis Bank, Wipro, Infosys and Lupin were among the top gainers, whereas Power Grid, Asian Paints, Kotak Bank and Vedanta were among the major losers.
- 9.37 am IST Glenmark Pharma shares rise 4%Shares of Glenmark Pharmaceuticals Ltd rose as much as 4.14% to Rs 711.55 per share after the company said that unit Glenmark Arzneimittel GmbH has secured marketing authorization in Germany for Fluticasone/Salmeterol dry powder inhaler, a generic version of GlaxoSmithKline’s Seretide Accuhaler.
- 9.25 am IST Axis Bank shares rise over 4% as RBI clears CEO appointmentAxis Bank shares rose as much as 4.22% to Rs 672.60 per share after the bank said it received the Reserve Bank of India’s approval to appoint Amitabh Chaudhry as the managing director and chief executive officer for a period of three years. Chaudhry’s term will be effective from 1 January 2019 up to 31 December 2021.
- 9.20 am IST ICICI Bank shares down 2% over Sebi probeShares of ICICI Bank fell 2.10% to Rs 328 per share after PTI reported that Sebi may soon summon the bank’s on-leave CEO Chanda Kochhar and her husband Deepak Kochhar as part of an investigation into alleged regulatory lapses with regard to his business dealings.
- 9.15 am IST Rupee falls further against dollarThe Indian rupee weakened further against the US dollar after India’s current account deficit widened to four quarter high due to higher crude oil prices. At 9.10am, the rupee was trading at 72.16 a dollar, down 0.58% from its Friday’s close of 71.74. It opened at 72.11 per dollar and touched a low of 72.18 per dollar. The 10-year bond yield stood at 8.074%, from its previous close of 8.029%. So far this year, the rupee has weakened 11.5%, while foreign investors have sold $424.80 million and $6.25 billion in equity and debt markets, respectively.
- 9.07 am IST The curious effect of mutual fund SIPs on Sensex, NiftyMonthly inflows from mutual fund SIPs have more than doubled in the past two years and now stand at ₹7,658 crore. This is despite the correction in the markets this year
Monthly inflows from mutual fund SIPs have more than doubled in the past two years and now stand at ₹7,658 crore. This is despite the correction in the markets this year. https://t.co/aHp07zX6vu— Livemint (@livemint) September 10, 2018
- 8.58 am IST Commodity Corner: Gold rates edge lower, oil prices gainGold: Gold prices held on to a small loss from the previous session, as the dollar firmed amid expectations of a US Federal Reserve rate hike in September and fears of escalating trade tensions between US and China. Spot gold rate was down 0.1 percent at $1,194.61 at 7.55am, having fallen 0.4 percent in the previous session. US gold futures were almost flat at $1,200.30 an ounce. Gold rates have fallen over 8 percent this year.Oil: Oil prices rose as US drilling for new production stalled and as the market eyed tighter conditions once Washington’s sanctions against Iran’s crude exports kick in from November. US WTI crude futures were at $67.96 per barrel at 7.30am, up 21 cents, or 0.3 percent, from their last settlement. Brent crude futures climbed 30 cents, or 0.4 percent, to $77.13 a barrel.Metals: London copper slipped on Monday after U.S. President Donald Trump threatened to ratchet up trade sanctions on China, raising concerns about weaker demand growth for metals. London Metal Exchange copper fell by 0.7 percent to $5,890 a tonne, after closing mostly flat in the previous session. Zinc premiums jumped $10 to $190-$210 amid a shortfall of supply in China’s domestic market. Reuters
- 8.50 am IST Currencies: Dollar steady as trade tensions keep markets on edgeThe dollar held largely steady against a basket of major currencies thanks to strong US August jobs data and amid fears of a possible escalation in the China-US trade conflict. The dollar on Monday edged lower against the safe-haven Japanese yen and the Swiss franc, trading at 110.94 yen and $0.9693, respectively. The yen strengthened on positive GDP data. The dollar index, which measures the greenback against a basket of six currencies, was basically flat at 95.381, not far off a three-week high of 95.737 hit on Tuesday last week. Reuters
- 8.42 am IST Opening bell: Cues to look out for before trading today■ Asian stocks opened lower. Stocks dropped in morning trade as the US dollar climbed against major currencies, reports Reuters. Over the weekend, US stocks closed lower.■ The Sebi may soon summon ICICI Bank Ltd’s on-leave CEO Chanda Kochhar and her husband Deepak Kochhar as part of an investigation into alleged regulatory lapses with regard to his business dealings, reports PTI.■ Axis Bank on Saturday said it had received the Reserve Bank of India’s approval to appoint Amitabh Chaudhry as the managing director and chief executive officer for a period of three years. Chaudhry’s term will be effective from 1 January 2019 up to 31 December 2021.■ The Reserve Bank of India (RBI) is likely to conduct an open market operation (OMO) purchase this week to infuse liquidity into the banking system, which is further going to tighten on account of advance tax payments, say bankers.■ Petrol and diesel prices set new records on Sunday as they continued their upward march on fall in rupee and surge in global crude oil rates.■ Infrastructure Leasing and Financial Services Ltd (IL&FS), the unlisted parent to a cluster of companies in various infrastructure verticals, failed to raise immediate funds from shareholders at a snap board meeting on Friday. Meanwhile, rating agency ICRA has effected a multi-notch rating downgrade for IL&FS, reports Business Standard.■ Property developer RMZ is in negotiations to acquire 14-acre land of Larsen & Toubro (L&T) in Bengaluru, reports Business Standard.■ Stepping up scouting activities for strategic minerals, NMDC Ltd has approached the Western Australian Government, seeking a license to explore Tungsten, a metal much in need for the Indian defence and aerospace sectors. R. Sree Ram/MintWith inputs from Reuters