Market updates: Losses in financial and metal stocks pulled the markets lower
Domestic stock markets fell in volatile trade on Thursday with benchmark indices extending losses to the fourth session in a row, amid weakness in Asian peers. The S&P BSE Sensex index fell as much as 347.85 to hit 37,957.56 on the downside during the session, before trimming some of those losses by the end of the session. The broader NSE Nifty benchmark moved to as low as 11,257.35, down 102.55 points from the previous close. Losses in financial and metal stocks pulled the markets lower however gains in energy shares arrested the fall. Analysts awaited the outcome of the Reserve Bank of India's fourth bi-monthly policy meeting due on Friday. Many economists expect the central bank to deliver at least one more rate cut this year, after lowering the key interest rates by a total 1.1 percentage point in four consecutive bi-monthly reviews.
Here are highlights of the movement in domestic share markets (Sensex and Nifty) today:
Sensex Suffers Its Longest Losing Streak In Over Two Months
With Thursday's fall, the Sensex index lost a total 882.87 points - or 2.26 per cent - in four consecutive sessions, marking its longest losing streak since July 25. The broader Nifty benchmark gave up 258.1 points - or 2.23 per cent - in the four-day period.
Sensex Ends 199 Points Lower, Nifty Settles At 11,313
The Sensex ended 198.54 points - or 0.52 per cent - lower at 38,106.87 and the Nifty settled at 11,313.10, down 46.80 points - or 0.41 per cent - from the previous close.
Thirty one stocks on the 50-scrip index closed lower.
Top Nifty Gainers/Losers
|Vedanta||-4.66%|Sensex Down Over 200 Points, Nifty Back Above 11,300
At 3:11 pm, the Sensex traded 206.47 points - or 0.54 per cent - lower at 38,098.94 while the Nifty was down 44.15 points - or 0.39 per cent - at 11,315.75. Twelve of the 19 sectoral indices on the Bombay Stock Exchange moved lower in late afternoon deals. The S&P BSE Metal and Telecom were worst hit in percentage terms, down 2.78 per cent and 1.94 per cent respectively.
|S&P BSE Metal||-2.78%|
|S&P BSE Telecom||-1.94%|
|S&P BSE Basic Materials||-1.59%|
|S&P BSE Finance||-0.95%|
|S&P BSE Bankex||-0.90%|
|S&P BSE Capital Goods||-0.67%|
|S&P BSE Industrials||-0.25%|
|S&P BSE Teck||-0.19%|
|S&P BSE IT||-0.11%|
|S&P BSE Utilities||-0.10%|
|S&P BSE Power||-0.10%|
|S&P BSE Healthcare||-0.05%|
|S&P BSE Consumer Discretionary Goods & Services||+0.14%|
|S&P BSE Fast-Moving Consumer Goods||+0.16%|
|S&P BSE Consumer Durables||+0.46%|
|S&P BSE Auto||+0.49%|
|S&P BSE Energy||+0.74%|
|S&P BSE Realty||+1.40%|
|S&P BSE Oil & Gas||+1.66%|Sensex, Nifty Set To Close Lower For Fourth Straight Day Amid High Volatility
The NSE India VIX index - which measures the market's expectation of volatility in the near term -jumped as much as 7.68 per cent in afternoon deals. At 2:05 pm, the index was up 6.07 per cent.
The 50-scrip stock benchmark Nifty was down 47.45 points - or 0.42 per cent - at 11,312.45.
Advance-Decline Ratio Favours Losses
Market breadth was sharply negative with an advance-decline ratio of about 1:2. On the Bombay Stock Exchange (BSE), 831 stocks rose, 1,469 declined while 146 remained unchanged in afternoon. On the National Stock Exchange (NSE), 659 stocks advanced, 1,089 declined while 381 were flat.
Hindalco, Vedanta, Coal India, Grasim Top Nifty Laggards
Twenty seven stocks on the 50-scrip benchmark index moved lower.
Top Nifty Gainers/Losers
|Yes Bank||+24.69%|Sensex, Nifty Trim Losses; IT Stocks Provide Support
At 12:49 pm, the Sensex traded 101.83 points - or 0.27 per cent - lower at 38,203.58 while the Nifty was at 11,342.45, down 17.45 points - or 0.15 per cent - from the previous close.
Six out of the 11 sectoral indices on the NSE moved lower at the time, with metal and financial sectors the worst hit.
IRCTC Initial Public Offer (IPO) Subscribed More Than 3.5 Times
By 10:30 am, bids for 7.30 crore shares were received as against the total 2.02 crore shares on offer under the IRCTC initial public offer, marking a subscription of 3.62 times, data from the National Stock Exchange (NSE) showed. The Rs 645-crore IRCTC public offer will close for subscription by the end of trade today.
Yes Bank Shares Surge After CEO Says Lender's Performance "Absolutely Sound"
Yes Bank shares surged as much as 29.38 per cent, after chief executive Ravneet Gill said the recent drop in the stock price does not reflect the lender's performance. "The operating metrics of the bank, the performance of the bank is absolutely sound," the CEO said on a conference call. Yes Bank shares had declined 42.91 per cent in five straight days of fall.
Sensex Opens 168 Points Lower, Nifty Starts Session At 11,322
The S&P BSE Sensex index opened 167.54 points - or 0.44 per cent - lower at 38,137.87 and the broader NSE Nifty benchmark started the session at 11,322.25, down 37.65 points - or 0.33 per cent - from its previous close.
Sensex Falls Over 150 Points In Pre-Open Market
The S&P BSE Sensex index declined as much as 190.04 points to 38,115.37 in the pre-opening session. At 9:07 am, the Sensex was down 169.45 points - or 0.44 per cent - at 38,135.96 while the broader NSE Nifty benchmark was at 11,515.40, down 40.95 points - or 0.36 per cent - from its previous close.
Selloff In Banking Stocks Has Dragged Markets Nearly 2% Lower In Past Three Days
The S&P BSE Sensex index has declined a total 684.33 points in the past three consecutive sessions, marking a decline of 1.76 per cent, and the broader NSE Nifty benchmark fallen 211.3 points - or 1.83 per cent. That is in line with a similar three-day fall in the Nifty Bank index - comprising shares of 12 major lenders in the country, which has descended 4.26 per cent.
Banking System Safe And Stable, No Need To Panic: RBI
The Reserve Bank of India (RBI) on Tuesday assured the general public that the banking system is safe and stable and there is no need for panic based on rumours. The RBI statement came following an intraday plunge of 1.30 per cent in the the Nifty Bank index amid a barrage of negative news from the sector.
Banking Stocks To Be In Focus Today
At 8:34 am, the SGX Nifty futures were down 4.50 points - or 0.04 per cent - at 11,351.00. The Nifty futures had declined as much as 35.00 points - or 0.31 per cent - earlier on Thursday.
On Tuesday, the domestic share markets had declined around 1 per cent hurt by a selloff across sectors led by banking and financial services stocks. The Sensex ended 361.92 points - or 0.94 per cent - lower at 38,305.41 on that day, and the Nifty settled at 11,359.90, down 114.55 points - or 1.00 per cent - from its previous close.
“Loan Melas” In 250 Districts From Today To Meet Credit Demand
Banks will organise the first phase of "loan melas" in 250 districts from today. An outreach programme initiated by government banks, the "loan melas" are aimed at meeting the demand of borrowers during the festival season.
In a period of four days starting October 3, agriculture, vehicle, home, education and personal loans will be sanctioned to retail customers as well as micro-small and medium enterprises (MSMEs) on the spot. The second phase of "loan melas" will be held in 150 districts, starting from October 21.
RBI Seen Cutting Key Interest Rates On Friday
The Reserve Bank of India's Monetary Policy Committee will meet for the second day today, and release its fourth bi-monthly policy statement at the end of the final day on Friday. Many analysts expect the central bank to cut the repo rate once again. If that happens on Friday, it would mark the fifth consecutive bi-monthly reduction.
The RBI is predicted to lower its key lending rate or the repo rate by 25 basis points (bps) to 5.15 per cent, which would take cumulative cuts so far this year to 135 bps, according to news agency Reuters.
Liquidity Position Well In Excess Of Regulatory Requirements: Yes Bank
In its regulatory filing to the BSE on Wednesday, Yes Bank also said its liquidity position remains "well in excess of regulatory requirements". Its liquidity coverage ratio - a measure of highly liquid assets held by a financial institution - was in excess of 125 per cent as on September 30, it said. Financial institutions are required to maintain a liquidity coverage ratio of 100 per cent.
Yes Bank Share Price In Focus Today
Yes Bank said on Wednesday that the steep fall in its shares the previous day was primarily on account of a forced stake sale by a large shareholder.
The statement from the private sector lender came a day after the Yes Bank stock nosedived as much as 29.92 per cent during the session before paring some of those losses to still close at its lowest level recorded in over a decade. In a regulatory filing, Yes Bank said its "financial and operating metrics remain intrinsically sound and stable".
Asian Markets Fall On Trade War Concerns
Other Asian markets tumbled after New York markets slumped overnight following the opening of a new trade war front by the US, which said it would impose tariffs on $7.5 billion of goods from the European Union.
MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.38 per cent. Japan's Nikkei stock index fell 1.96 per cent and Australian shares declined 2.19 per cent. Asian markets have already been under pressure on concerns about global growth and the US-China trade war.
SGX Nifty Futures Indicate Flat-To-Negative Opening For Domestic Markets
Domestic stock markets are likely to open on a flat to negative note amid weakness in Asian Peers. At 8:08 am, The Singapore Exchange (SGX) Nifty futures - an early indicator of the National Stock Exchange (NSE) Nifty benchmark index in India - traded 6.50 points - or 0.06 per cent - lower at 11,349.00.