Sensex slides over 200 points as selling resumes, Yes Bank slumps 8%1 min read . Updated: 15 May 2019, 04:11 PM IST
- Other top losers included Sun Pharma, Tata Motors and IndusInd Bank
- Support for Nifty seen in the range of 10850-10900: Analyst
Tuesday's bounce after a nine-day drop proved short-lived. Indian markets came under renewed selling pressure today as Sensex fell over 200 points amid a broad-based decline. The decline in Indian markets came despite Asian stocks bouncing from a 3-1/2-month low. Most of the Asian markets ended higher today as a slight softening in rhetoric from US President Donald Trump helped ease worries about the US-China tariff war and on expectations Beijing could release more economic stimulus.
In volatile trade, the Sensex fell 203 points to settle at 37,114, reversing a nearly 250-point intraday gain, after it hit 37,559 at day's high. On NSE, Nifty settled 0.60% lower at 11,157, significantly lower than its intraday high of 11,286.
"Support is seen in the range of 10850-10900 and we expect the same to hold going ahead. Volatility to remain high on account of the upcoming election results," Sahaj Agrawal, VP for research (derivatives) at Kotak Securities.
Among the Sensex stocks, Yes Bank shares slumped 8% after the RBI appointed former deputy governor Rama Subramaniam Gandhi as an additional director on the board of Yes Bank for two years.
Automaker Tata Motors also slumped 8% while IndusInd Bank fell 3.7%, Coal India 2.8%, Sun Pharma 2.7%. Other top losers included PowerGrid, Bharti Airtel, Axis Bank, Tata Steel , Maruti, HUL and L&T, down between 1% and 2%. Shares of Lupin ended 3% lower after its Q4 net missed the Street's estimates.
Among gainers Bajaj Finance stood out, rising 4%.
Jayant Manglik, president for retail distribution at Religare Broking Ltd, said: "In the near term, we expect volatility to continue in the backdrop of US-China trade tension as well as weak domestic cues owing to nervousness surrounding elections. Further, oil price and rupee-dollar movement will also be on investors’ radar."
Yes Bank shares fall as much as 6% to ₹146.85 at day's low. The Reserve Bank of India (RBI) has appointed former deputy governor Rama Subramaniam Gandhi as an additional director on the board of Yes Bank for two years, from 14 May 2019 to 13 May 2021, the bank said on Tuesday in a notice to the stock exchanges. (Read: RBI’s night lamp in Yes Bank will ensure stability but capital raising a challenge)
Tata Sons Ltd. is set to transfer all its branded food businesses to Tata Global Beverages Ltd. from Tata Chemicals Ltd, Bloomberg reported, according to people with knowledge of the matter. Tata Global shares were up 1.5% at ₹202.
Nestle India shares were trading 1.6% higher at ₹10,364. The company, popular for its Maggi noodles, delivered a satisfactory performance for the March quarter. Revenue rose 9% year-on-year to ₹2,982 crore in January-March. At a time when consumer companies are harping on demand slowdown, Nestle’s management commentary was contrary. “The market momentum remained strong," said Suresh Narayanan, chairman and managing director Nestle India, in a press statement. (Read: Nestle India gives investors something to munch on)
Indian rupee today strengthened for the second session against US dollar, tracking gains in local equity and Asian currencies market. The rupee traded at 70.26 a dollar, up from its previous close of 70.44. The Indian currency opened at 70.34 a dollar.