Sensex and Nifty fell for the sixth straight session today
Sensex and Nifty fell for the sixth straight session today

Sensex slumps nearly 500 points as selloff extends to sixth day

  • Reliance Industries and Bajaj Finance fell over 3.5% each
  • IndusInd Bank, NTPC, Sun Pharma, SBI, Bajaj Auto and Tata Motors were among other top losers

Indian markets fell sharply today amid a broad-based decline, as fears of escalation in trade war between the US and China continued to reverberate through global markets. The Sensex ended 487 points lower at 37,789 while Nifty settled at 11,359, down 1.2%. Among the 30 Sensex stocks, just three, Asian Paints, TCS and HCL Tech, ended in the green. RIL and Bajaj Finance fell over 3.5% each while IndusInd Bank, NTPC, Sun Pharma, SBI, Bajaj Auto and Tata Motors declining between 2% and 3%.


Here are 10 updates from Indian stock markets:


1) According to technical analysts Indian markets have broken key support levels and there could be further downside. Breach of intermediate supports at 11550/11450 aggravated the short-term selling pressure and "on the downside 11,000-11,100 is expected to be tested," said Sahaj Agrawal, head of derivatives at Kotak Securities.


2) Global stocks had a rocky start to the week after Washington on Monday accused Beijing of backtracking from commitments made during trade negotiations. That followed President Donald Trump's unexpected statement on Sunday that he would raise tariffs on $200 billion worth of Chinese goods to 25% from 10%.


3) Back home in India, the Sensex has also been dragged down by by a less-than-inspiring ongoing corporate earnings season and uncertainty over election outcome.


4) Besides that foreign institutional investors have turned net sellers over the past few trading sessions in Indian markets while midcap and smallcap stocks have also come under strong selling pressure.


5) “Indian markets have been on a shaky ground for the past couple of days driven by ambiguity associated with the US-China trade negotiations and less-than-inspiring ongoing corporate earnings season. Further, the ongoing election season is another major variable that markets are watching closely," says Jagannadham Thunuguntla, head of research (wealth) at Centrum Broking Limited.


6) "Key risks to Indian equities include unfavorable outcome of general elections, further increase in Brent crude price (leading to INR depreciation, widening trade deficit and rising inflation) and waning liquidity from FIIs and domestic mutual funds," Kotak Securities said in a note.


7) Neogen Chemicals made a strong debut on exchanges today, ending over 20% higher than its issue price.


8) China said on Tuesday that Chinese Vice Premier Liu He will visit Washington on Thursday and Friday for trade talks, setting up a last-ditch bid to salvage a deal that would avoid a sharp increase in tariffs on Chinese goods ordered by US President Donald Trump. If the talks break down, global markets are likely to again

go into a sell-off mode, said HDFC Securities in a note.


9) Stock exchange BSE Ltd's shares fell 4% after reporting a 16.5% dip in quarterly profit on Tuesday.


10) Mining and metals giant Vedanta Ltd shares fell 2% after CLSA cut price target and retained 'sell' rating, citing concerns on slow volume ramp-up in zinc and oil and increased costs in its unit Hindustan Zinc Ltd. The miner reported a better-than-expected net profit after market hours on Tuesday.

08 May 2019, 03:18:32 PM IST

Vedanta down 3%, CLSA cuts target price

Vedanta Ltd shares were down 3% in late trade after CLSA cut price target and retained 'sell' rating, citing concerns on slow volume ramp-up in zinc & oil and increased costs in its unit Hindustan Zinc Ltd. The miner reported a better-than-expected net profit after market hours on Tuesday.

08 May 2019, 11:55:55 AM IST

Natco Pharma's marketing partner gets USFDA approval for chest pain tablets

Drug firm Natco Pharma today said its marketing partner Alvogen has received final ANDA nod from USFDA for chest pain tablets. "The company is pleased to announce that its marketing partner Alvogen has received the final approval of Abbreviated New Drug Application (ANDA) from the United States Food and Drug Administration (FDA) for Nitroglycerin Sublingual Tablets USP, 0.3 mg, 0.4 mg, and 0.6 mg," Natco Pharma said in a BSE filing. Natco Pharma shares were flat at 531 in noon trade.

08 May 2019, 11:33:55 AM IST

Kotak Securities on market outlook, portfolio strategy

"One should focus on cash rich IT companies which are exhibiting improvement in earnings, large banks with improving credit cycle and balance-sheets, defensives with lowering regulatory risk (Pharma), companies which would benefit from government spending post elections (industrials) and upstream oil companies which would benefit from rising crude price. Key risks to Indian equities include unfavorable outcome of general elections, further increase in Brent crude price (leading to INR depreciation, widening trade deficit & rising inflation) and waning liquidity from FIIs & domestic mutual funds," the brokerage said in a note.

08 May 2019, 10:06:24 AM IST

Neogen Chemicals makes strong debut, shares jump over 20%

Neogen Chemicals made a strong debut on exchanges today with shares jumping over 20% to 260 on BSE. The IPO of Neogen Chemicals, which was open from April 24 to April 26, received a good response from investors. The 132 crore issue was subscribed over 41 times and the issue price was fixed at 215 per share.

08 May 2019, 09:20:11 AM IST

Asian stocks extend selloff

Asian stocks dropped today as the US threat of higher tariffs on imports from China continued to reverberate through global markets. Shares fell across the region with the brunt of declines seen in Japan, China and Hong Kong. Investor focus has turned to Washington for the visit of China’s top trade negotiator later this week as President Donald Trump ratchets up pressure to clinch a deal that many market participants had expected was all but done. Treasuries and the dollar were flat. (Bloomberg)

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