Market updates: A selloff across sectors barring information technology shares pulled the markets lower
Domestic stock markets suffered sharp losses on Friday with benchmark indices finishing the week nearly 3 per cent lower. The S&P BSE Sensex reversed direction in the second half of the session, plunging as much as 770.18 points from the day's highest level to hit 37,633.36 on the downside, after the Reserve Bank of India reduced the key interest rates to the lowest level in nine years. The broader NSE Nifty benchmark - which climbed to as high as 11,400.3 in morning - fell to hit 11,158.35 at the weakest level of the day. A selloff across sectors barring information technology shares pulled the markets lower with the banking and financial services counters worst hit.
Here are highlights of the movement in domestic stock markets (Sensex and Nifty) on October 4:
Kotak Mahindra Bank, ICICI Bank And HDFC Bank Top Laggards
Twenty two out of 30 Sensex stocks were trading in the negative zone. Kotak Mahindra Bank, ICICI Bank and HDFC Bank were trading with losses up to 3.46 per cent.
Rupee Falls By 12 Paise Against Dollar
The rupee pared its morning gains and fell by as much as 12 paise after the Reserve Bank of India cut its repo rate by 0.25 per cent on Friday. At 2:45 pm, the rupee traded at 70.95 against the US currency, down 6 paise - from its previous close of 70.89.
Sensex Down Nearly 327 Points, Nifty Near 11,200
At 2:30 pm, the Sensex traded down 327.45 points - or 0.86 per cent - at 37,779.42 while the Nifty was at 11,207.10 - down 106.90 points from its previous close.
Nifty Bank Index Falls 2%; Federal Bank, Kotak Bank Top Losers
Eight of 11 sector gauges compiled by National stock Exchange were trading lower led by the Nifty Bank index's 2 per cent fall.
Nifty Media, Nifty Financial Services, Nifty FMCG, Nifty PSU Bank and Nifty Private Bank indexes also fell between 1.4-1.8 per cent each.
Top losers in banking space:
- Federal Bank down 4.39%
- Kotak Mahindra Bank down 3.16%
- HDFC Bank down 2.04%
- Bank oof Baroda down 1.87%
- ICICI Bank down 1.71%
RBI Lowers Growth Forecast To 6.1%
The Reserve Bank of India lowered India's economic growth projection for the current financial year to 6.1 per cent from 6.9 per cent projected in the August monetary policy.
"Various high frequency indicators suggest that domestic demand conditions have remained weak. The business expectations index of the Reserve Bank's industrial outlook survey shows muted expansion in demand conditions in Q3. Export prospects have been impacted by slowing global growth and continuing trade tensions," the Reserve Bank of India said in its policy document.
Manpasand Beverages Locked In Lower Circuit After Statutory Auditor Resigns
Shares of the beverage retailer - Manpasand Beverages - were locked in a 5 per cent lower circuit at Rs 6.45 after the company informed stock exchanges that its statutory auditor Batliboi & Purohit resigned as auditors of the company with the immediate effect.
In its resignation letter Batliboi & Purohit said that the team members of auditors were not allowed to enter the Vadodara factory for the statutory audit.
Sensex, Nifty Erase Gains After RBI's Policy Decision
The S&P BSE Sensex and NSE Nifty 50 indexes erased gains after the Reserve Bank of India reduced repo rate by 25 basis points to 5.15 per cent.
As of 12:27 pm, the Sensex was up 43 points at 38,150 and the Nifty was at 11,327, up 13 points.
Interest rate sensitive banking shares declined after the RBI's decision as some market participants were expecting the central bank to deliver 35-40 basis points.
Top Nifty gainers:
- Cipla up 2.34%
- Mahindra & Mahindra up 1.95%
- IndusInd Bank up 1.50%
- HDFC up 1.42%
- Tech Mahindra up 1.40%
Top Nifty losers:
- Bharat Petroleum down 2.94%
- Zee Entertainment down 2.56%
- Kotak Bank down 2.52%
- Grasim Industries down 2.34%
- ITC down 1.82%
RBI Cuts Repo Rate By 0.25 Percentage Point, Retains "Accommodative" Stance
The RBI's Monetary Policy Committee decided to cut the repo rate by 25 basis points - or 0.25 percentage point - to 5.15 per cent - a level last seen in April 2019. The six-member MPC retains an "accommodative" stance on policy, which rules out hikes in the key lending rates for now.
Traders Can Go Long On Nifty With Stop Loss At 11,250: Sumeet Bagadia
Traders can go long on Nifty and Bank Nifty, Sumeet Bagadia, associate director at Choice Broking told NDTV. "There can be some volatility owing to monetary policy review but traders can go long on Nifty with stop loss at 11,250," Mr Bagadia said.
On the Bank Nifty he advises going long for target of 29,000-29,250 with stop loss to be placed at 28,100.
Services Sector Contracts In September, Business Optimism Hits Over 2-Year Low: Survey
The services sector slipped into contraction in September as new business orders fell for the first time since early 2018, according to a private survey which also found business optimism at its lowest in two and a half years.
The IHS Markit Services Purchasing Managers' Index fell to a 19-month low of 48.7 in September. Friday's survey adds to the deepening gloom around businesses and consumers, underlining the broadening cracks in the economy as growth slipped to six-year low in the April-June quarter.
IndusInd Bank Shares Jump
IndusInd Bank was the top gainer in the Nifty Bank index, which comprises shares of 12 major banks in the country. On the BSE, IndusInd Bank shares jumped as much as 2.98 per cent to hit Rs 1,292.95.
At 10:07 am, the IndusInd Bank stock traded 2.71 per cent higher at Rs 1,289.50 apiece on the NSE. Other prominent gainers at the time were Yes Bank, RBL Bank and SBI.
Rate-Sensitive Stocks Spike Ahead Of RBI Policy Statement
Shares of interest rate-sensitive sectors such as banking, financial services and auto rose ahead of the RBI's decision on interest rates, barring realty stocks which were flat.
The National Stock Exchange (NSE)'s gauge of auto shares - the NSE Auto index - rose as much as 0.79 per cent and was the top percentage gainer among sectoral indices.
Banking, Financial Services Sectors Lead Gains
Nine out of the 11 sectoral indices on the National Stock Exchange (NSE) traded higher, led by the banking and financial services spaces.
|Nifty Financial Service||+0.47%|
|Nifty PSU Bank||+0.47%|
|Nifty Private Bank||+0.45%|
|Nifty Fast-Moving Consumer Goods||+0.04%|
|Nifty Media||-1.35%|Sensex Up Over 200 Points, Nifty Firm Above 11,350
At 9:33 am, the Sensex traded 222.48 points - or 0.58 per cent - higher at 38,329.35 while the Nifty was up 55.80 points - or 0.49 per cent - at 11,369.80. Top gainers on the 50-scrip benchmark index at the time were Yes Bank, IndusInd Bank, HDFC, SBI and Wipro, trading between 1.18 per cent and 5.76 per cent higher.
Top Nifty Gainers/Losers
|Mahindra & Mahindra||-0.67%|
|Yes Bank||5.76%|Sensex Opens Nearly 300 Points Higher, Nifty Above 11,350
The S&P BSE Sensex index opened 294.62 points higher at 38,401.49, and the broader NSE Nifty benchmark started the session at 11,388.45, up 74.45 points from its previous close.
On Thursday, the Sensex and Nifty had declined 0.52 per cent and 0.40 per cent respectively to close lower for a fourth straight session.
RBI To Cut Key Rates By 25 Basis Points Most Probably: CARE Ratings
"After all the measures taken by the government to revive the economy it may be expected that the RBI will reduce rates by 25 bps most probably," Madan Sabnavis, chief economist, CARE Ratings, told NDTV in an email response. "There is scope for further easing may be up to repo rate of 5 per cent by the end of the year if the economy is sluggish and inflation under control." (Also read: What to expect from RBI policy today
Sensex, Nifty Rise In Pre-Open Market
The S&P BSE Sensex rose as much as 259.82 points to 38,366.69 in the pre-opening session. At 9:04 am, the Sensex was up 265.06 points - or 0.70 per cent - at 38,371.93 while the broader NSE Nifty benchmark was at 11,401.95, up 87.95 points - or 0.78 per cent - from the previous close.
RBI Likely To Announce Fifth Rate Cut Of Year Today
The Reserve Bank of India will release the fourth policy statement of the current financial year at 11:45 am, followed by a press conference and media interaction with the top brass of the central bank between 12:00 pm and 12:45 pm. Many economists expect the six-member Monetary Policy Committee, chaired by the central bank Governor Shaktikanta Das, to deliver its fifth straight reduction in key interest rates.
Asian Shares Edge Higher
Asian share markets edged higher tracking gains on Wall Street, but the mood was cautious before a key US job report that could help determine whether the Federal Reserve cuts interest rates further. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent. Japan's Nikkei stock index lost 0.17 per cent, but Australian shares edged 0.05 per cent higher.
Investors have been caught out by a set of weak US data this week, including surveys on services and manufacturing sectors, deepening fears the China-US trade war is starting to hurt growth in the world's biggest economy.
SGX Nifty Futures Indicate Higher Opening For Domestic Markets
Domestic stock markets are likely to start Friday's session on a positive note, as analysts await the outcome of a three-day bi-monthly policy review by the Reserve Bank of India which concludes today.
At 8:48 am, the Singapore Exchange (SGX) Nifty futures - an early indicator of the National Stock Exchange (NSE) Nifty index in India - were up 17.50 points - or 0.15 per cent - at 11,376.50.