8 min read.Updated: 03 Sep 2019, 04:08 PM ISTAhana ChatterjeePremiumSensex, Nifty may open on a negative note on Tuesday. (Photo: Mint)
PSU Bank stocks were the biggest laggard, crashing over 4%
Midcap and Smallcap stocks also ended lower
The Indian equity market on Tuesday closed amid macroeconomic data, auto sales number and global cues.
Sensex closed 769.88 points, or 2.06%, at 36,562.91 while the broader Nifty settled at 10,797.90 tumbling 225.35 points, or 2.04%.
Investors were worried on economy slowdown, GDP data and merger of the the PSU Banks announced late on Friday. Also, the auto sales data which was released over the weekend likely to increase the nervousness of the Dalal Street.
"Market slid as deceleration in economic growth due to fall in consumption and subdued manufacturing activity diminished the scope for a turnaround in the near-term. The consolidation of PSU banks is a step in right direction however, they may take more time before earning benefits from synergy. Additionally, weak monthly auto sales and outflow from foreign investors added volatility to rupee," said Vinod Nair, Head of Research, Geojit Financial Services.
In the broader market, both the BSE Midcap and Smallcap indices slipped 1.65% and 1.32% respectively.
ICICI Bank, Tata Motors, Tata Steel, IndusInd Bank and Vedanta were the worst performing stocks, crashing as much as 4.45%. On NSE, 48 out of 50 stocks ended in the red zone with Tata Steel and UltraTech Cement taking the top position among the losers. Only Tech Mahindra and HCL Technologies were the gainers on the 50-share index.
“The sharp fall in the Q1 GDP growth to 5% and the weak core sector growth are the key factors that have caused a fall in the markets as it opened after a long weekend. The continuing negative global cues, the raging tariff war between the US and China, and the likely sluggishness in the economic fortunes of economies around the world have also been behind the rot in the markets here as well as elsewhere. Weak domestic consumption especially rural consumption has resulted mainly from low employment levels and non-availability of finance, which are issues that call for immediate measures to salvage the situation," said Joseph Thomas, Head of Research- Emkay Wealth Management.
Among sectors, Nifty PSU Banks was the biggest loser, falling 4.87%, followed by Metal (-3.10%), Media (-2.59%), Private Banks (-2.34%) and Financial Services (-2.28%).
Globally, MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.2% in early trade while Japan's Nikkei was flat.
The US bond yields were little changed in early Tuesday trade after a market holiday in the United States on Monday. The 10-year US Treasuries yield was flat at 1.506%. Global shares faced headwinds from tariffs Washington and Beijing slapped on each other.
03 Sep 2019, 03:57:05 PM IST
Market at close
Sensex closed 769.88 points, or 2.06%, at 36,562.91 while the broader Nifty settled at 10,797.90 tumbling 225.35 points, or 2.04%.
03 Sep 2019, 03:22:53 PM IST
Sensex tanks 800 points
The 30-share index plunged 802 points, or 2.15%, to 36,529.83.
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03 Sep 2019, 03:10:04 PM IST
PSU Banks down over 4%
Nifty PSU Bank sector is down 4.73% with Indian Bank (-10.88%) taking the pole position among top losers followed by Canara Bank (-10.29%), Union Bank (-8.33%), Punjab National Bank (-8.24%) and Oriental Bank of Commerce (7.07%).
03 Sep 2019, 03:04:02 PM IST
Top losers on BSE Midcap
Midcap stocks continue to decline. BSE Midcap index is trading 1.55% lower with Indian Bank (10.84%) being the top loser.
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03 Sep 2019, 03:04:03 PM IST
Government to recapitalize IDBI Bank
“Cabinet clears recapitalization of IDBI Bank with one-time infusion of funds by both Government and LIC. Will help both IDBI and LIC, and shows government's commitment to take banking to a sound level," the government said in a tweet.
Shares of IDBI Bank on BSE is up 9.16% at ₹29.20.
03 Sep 2019, 02:38:38 PM IST
40 stocks decline on Nifty
40 out of 50 stocks on Nifty slipped today with UltraTech Cement, ICICI Bank, HDFC, Vedanta and Indian Oil being the top losers, falling as much as 3.83%. However, 10 stocks trades in green with Tech Mahindra taking the lead.
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03 Sep 2019, 02:13:12 PM IST
Sensex falls over 600 points
Sensex tanks 600 points, or 1.60%, to 36,733.61.
03 Sep 2019, 02:00:51 PM IST
Infosys and TCS touched 52-week high
Shares of Infosys and Tata Consultancy Services (TCS) touched 52-week high today at ₹822.30 and ₹2,296 respectively.
Infosys is trading 0.11% higher on BSE while TCS gained 0.78%.
Gold has historically been a favoured asset class for Indians but billionaire banker Uday Kotak believes there should be a new policy that will reset investor priority to equity, a more productive asset than the precious metal.
Kotak said in a series of tweets on Monday why pouring Indians’ savings into gold was not good for the health of India’s economy. Gold has historically been a favoured asset class for Indians but billionaire banker Uday Kotak believes there should be a new policy that will reset investor priority to equity, a more productive asset than the precious metal.
Kotak said in a series of tweets on Monday why pouring Indians’ savings into gold was not good for the health of India’s economy. He said net gold and precious stone imports between 2011 and 2019 scaled ₹24,500 crore, while net inflows from FPIs in debt and equity was only $145 billion during the period.
Shares of Indian Bank slipped 9.09% to ₹182.20 on BSE post merger announcement with Allahabad Bank on Friday. On NSE, the stock is down 8.89%.
03 Sep 2019, 01:07:18 PM IST
Top loser on Nifty Bank
Punjab National Bank, ICICI Bank, Federal Bank, Axis Bank and State Bank of India biggest laggards on the sector.
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03 Sep 2019, 12:44:27 PM IST
Market extends loss
Sensex down 509.49 points, or 1.36%, at 36,823.30 while the 50-share index is at 10,870.45 falling 152.80 points, or 1.39%.
03 Sep 2019, 12:33:38 PM IST
Gainers on Nifty
Tech Mahindra, Britannia, HCL Technologies, TCS, Infosys and Hero Motor Corp are the only gaining stocks on Nifty50, gaining as much as 2.36%.
03 Sep 2019, 12:05:08 PM IST
Rupee suffers big fall against US dollar today: Things to know
The Indian rupee (INR) today fell sharply against the US dollar (USD) today to go past 72-a-dollar mark again. Weak GDP data and a broad strengthening of the US dollar weighed on the Indian rupee. Further, a sharp fall in the domestic stock market indices Sensex and Nifty also put pressure on the rupee. Opening at 71.97 a dollar, the rupee fell to 72.27 at day’s low, as compared to previous close of 71.40. Rupee’s weakness however sent gold and silver prices higher in domestic markets today.
BSE Midcap and Smallcap continue with their south-bound journey with both shredding 0.79% and 0.47% respectively.
03 Sep 2019, 11:41:54 AM IST
Vikas Jain of Reliance Securities on why PSU Bank falling
"PSU bank index corrected by 3% in opening trade on Monday as the broader markets were weak and due to the announcement of merger of 10 PSB's into 4 anchor banks. While the development is positive but it will take long time for the better economics of scale to materialize and will face initial profitability pain. Merger ratio would be key to watch going forward which is yet to be announced and therefore investors are moving out of the PSU Bank counters," Vikas Jain, senior research analyst, Reliance Securities on PSU Bank Index.
03 Sep 2019, 11:34:14 AM IST
IT stocks rise as rupee tumbles
Information Technology (IT) stocks trades positive as rupee fell against the US-dollar.
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03 Sep 2019, 11:08:02 AM IST
Reliance Power trades over 7%
Shares of Reliance Power soared 7.69% on Nifty after the company on Tuesday said it has signed a partnership agreement with Japanese energy major JERA for jointly setting up 750 mega watt (MW) gas-based combined cycle power project (phase-1) at Meghnaghat, Bangladesh.
"Reliance Power will hold 51% stake, while JERA will hold 49% stake in the joint venture company," Reliance Power said in a regulatory filing.
03 Sep 2019, 11:03:37 AM IST
L&T Construction bags order for Navi Mumbai airport
"L&T Construction have secured a prestigious project from the Navi Mumbai
International Airport Private Limited (NMIAPL) for the Engineering, Procurement and
Construction of the greenfield Navi Mumbai International Airport at Navi Mumbai.
The key development spectrum covers cut and fill works, terminal works including departure and arrival forecourts, airfield development works (a 3,700 m long south runway, apron systems, taxiway systems, airfield ground lighting and other facilities), landside facilities (roads, multilevel car parking), utilities and support facilities," the company said in a statement to the exchanges.
Shares of the company is trading down 1.50% at ₹1,308.15 on BSE.
03 Sep 2019, 10:49:45 AM IST
Ashok Leyland falls on weak sales number
Ashok Leyland total domestic sales was at 8,296 units, down 50% year-on-year while the total domestic and export sales was down 47% (YoY) at 9,231 units.
Shares of the company is down 2.56% at ₹62.80 on BSE, while on NSE it fell 2.40%.
03 Sep 2019, 10:37:23 AM IST
Merger of 10 PSU banks unlikely to revive credit flow, says Credit Suisse
The merger of 10 public sector banks (PSBs) into four entities is unlikely to revive credit growth or have meaningful cost synergies, said a report by Credit Suisse.
"Coupled with the ongoing moderation in growth for private banks led by auto sector slowdown and increased cautiousness, credit growth, thus, is unlikely to be revived by PSB mergers," it said in a report dated 2 September.
Indian Oil (-4.04%), Tata Motors (-3.17%), ICICI Bank (-3.03%), BPCL (-2.93%) and UltraCement (-2.87%) are the worst performing stocks on Nifty pack.
03 Sep 2019, 10:02:49 AM IST
Auto stocks reaction
Auto stocks continues fall on week August sales number. Tata Motors top losing stock among the pack losing 2.83%.
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03 Sep 2019, 09:41:46 AM IST
Punjab National Bank down over 5%
Shares of Punjab National Bank is trading at ₹61.60 down 5.61% on BSE. Finance Minister Nirmala Sitharaman on Friday announced that Punjab National Bank, Oriental Bank of Commerce and United Bank of India will be combined to form the nation's second-largest lender.
On NSE, the bank is fell 4.70%.
03 Sep 2019, 09:31:21 AM IST
Sectors in red
Except for Nifty Information Technology (0.70%), all the ten sectors compiled on Nifty trades negative. PSU Banking sector worst performing sector.
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03 Sep 2019, 09:25:56 AM IST
Rupee opens lower
Rupee on Tuesday opened at 71.97 against the US dollar and touched a low of 72.07.
03 Sep 2019, 09:19:49 AM IST
Opening session
Sensex opened at 37,181.76 down 151.03 points, or 0.40%, while the broader Nifty tumbled 100.70 points, or -0.91%, opening at 10,922.55.
03 Sep 2019, 09:06:03 AM IST
Sensex drops after opening positive
Sensex slipped to the red zone after it started on a positive note.
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03 Sep 2019, 09:02:40 AM IST
Market at pre-open
Sensex opens 263.86 points, or 0.71%, higher at 37,332.79 during the pre-open session, while the Nifty resumed at 11,023.25up 74.95 points, or 0.68%.
03 Sep 2019, 09:02:40 AM IST
Shares of PSU banks: Why some analysts remain cautious on merger candidates
Equity analysts predict that India’s move to merge several of its state banks will slow their loan growth, and many brokers advise buying shares of the lenders’ rivals who stand to benefit from the uncertainty.
While the mergers will reduce the number of state-owned banks to 12 from 27 and are aimed at creating bigger and healthier lenders, the time needed for integration and challenges related to staff, branch and process overlaps are expected to be the main immediate risks.
Auto stocks: Indian auto companies reported a week sales numbers for the month of August. India’s largest carmaker, Maruti Suzuki Ltd’s sales fell by 32.7% to 106,413 units in August this year. This is the worst decline for the company ever. Tata Motors Ltd too reported a 58% decline in its domestic passenger vehicle sales at 7,316 units in August. Mahindra & Mahindra and Honda Cars India also witnessed a decline in sales.
Banking stocks: Finance Minister Nirmala Sitharaman announced four new set of PSU Bank mergers -- Punjab National Bank, Oriental Bank of Commerce and United Bank of India will combine to form the nation's second-largest lender; Canara Bank and Syndicate Bank will merge; Union Bank of India will amalgamate with Andhra Bank and Corporation Bank; and Indian Bank will merge with Allahabad Bank.
Post the mega merger, here are the six PSU banks that will remain independent: Indian Overseas Bank, UCO Bank, Bank of Maharashtra and Punjab and Sind Bank, which have strong regional focus, will continue as separate entities.
Tata Steel: The steel maker said on Monday it would shut parts of its non-core businesses in the United Kingdom, a move that could cost about 400 jobs.
Yes Bank: The board approved increase in authorised share capital.
Jet Airways: Synergy Group Corp., one of the three potential investors for Jet Airways (India) Ltd, is willing to take a majority stake in the grounded airline if lenders agree to take a deep haircut and convert their debt into equity, a representative of the South American company said.
CG Power: The company's board sacked the chief financial officer VR Venkatesh on Friday.
Indiabulls Housing Finance: Credit rating agency Icra has downgraded Indiabulls Housing Finance Ltd’s (IBHFL) ₹1.12 lakh crore long-term debt programme to AA+ citing increased challenges for NBFCs and housing finance companies (HFCs) owing to higher costs and tighter availability of funds.
03 Sep 2019, 08:42:06 AM IST
SGX Nifty closed with gains
SGX Nifty suggests a flat opening for the markets as it closed 0.03% higher at 10,945.00.
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