MARKET WRAP: Sensex falls 561 pts ahead of F&O expiry; financials top drag

All that happened in the markets today

Brisk selling in financial, auto, and pharma counters ahead of the expiry of futures and options contracts (F&O) for June series, due tomorrow saw the benchmark indices ending over 1.5 per cent lower on Wednesday. Further, weak global cues due to a spike in coronavirus cases, too, added to the investors' woes.

The S&P BSE Sensex slipped 561 points or 1.6 per cent to 34,869 levels, with ICICI Bank (down 7 per cent), IndusInd Bank (down over 6 per cent), and Power Grid (down around 5 per cent) being the top losers. Of 30 constituents, 24 ended in the red and rest 6 in the green. 

Asian Paints (up nearly 4 per cent) ended as the top gainer on the index. The stock rallied up to 7.68 per cent to Rs 1,813.10 during the session. READ MORE

NSE's Nifty50 ended at 10,305, down 166 points or 1.6 per cent. Volatility index, India VIX, gained over 2 per cent to 29.99 levels. 

Sectorally, all the indices on the NSE, barring Nifty FMCG, ended in the red. Nifty Bank tumbled 838 points or 3.76 per cent to end at 21,426.80 while Nifty Private Bank index declined 4 per cent to 11,739.45 levels.  Nifty FMCG, on the other hand, ended around 0.5 per cent higher at 29,487.40 levels. 

In the broader market, the S&P BSE MidCap index fell 1 per cent while the S&P BSE SmallCap index slipped 1.24 per cent. 

Global markets

European stocks fell from a two-week high on Wednesday as investors turned cautious following a surge in the number of coronavirus cases globally. The pan-European STOXX 600 fell 1.5 per cent, with the economically sensitive sectors such as travel & leisure, automakers and banks leading declines.

Asian stocks, too, ended in the red. Dow Junes 30 Futures were trading around 300 points or over 1 per cent lower, suggesting a negative start for the US market.

In commodities, oil prices fell, reversing the previous session’s surge as worries about a second wave of the coronavirus pandemic outweighed support from a gradual reopening of global economies.

Gold, on the other hand, climbed to its highest level in nearly eight years.

(With inputs from Reuters)

4:06 PM

MARKET COMMENT:: Vinod Nair, Head of Research at Geojit Financial Services

"In spite of opening positive, markets finally ended negative, in sync with negative global cues. The rising cases of virus infections worldwide, especially in the Americas, unnerved the global markets. Domestic cases, too, show no signs of abating and this must be weighing in on the investors. Almost all sectoral indices ended in the red, with the Bank index the major loser. Ahead of F&O expiry, markets are expected to remain volatile and investors advised to keep booking profits."

3:43 PM

SECTOR WATCH:: Nifty FMCG ends in the green

3:42 PM

MARKET AT CLOSE:: Losers and gainers on the S&P BSE Sensex

3:37 PM

CLOSING BELL

The S&P BSE Sensex declined 561 points pr 1.58 per cent to end at 34,869 while NSE's Nifty ended at 10,305, down 166 points or 1.58 per cent.

3:28 PM

MARKET CHECK

3:20 PM

NEWS ALERT:: Cooperative banks brought under RBI supervision: Union Cabinet decision

3:16 PM

MARKET CHECK:: Nifty Bank tumbles over 4%

3:03 PM

Analysts cautious on Page Inds even as management view sounds comforting

Despite significantly weaker-than-expected March 2020 quarter (Q4) results, the stock of Page Industries (Page) – the Indian franchise of popular inner-wear brand ‘Jockey’ – surged 10.5 per cent in intra-day trades on Wednesday and is now around Rs 20,850 levels. READ MORE

2:57 PM

Gold price rises in India with little demand for the physical metal

Debajit Saha, Senior Analyst, Precious Metals at Refinitiv, “In the month of April and May, less than one tonne of the metal was imported for domestic consumption. Though the situation has certainly improved this month with the opening of key markets, the demand is still estimated to be 40 per cent lower than normal. However, paper gold has observed traction. Both sovereign gold bonds and gold ETFs have seen strong inflows. This sudden increase in inflows could be attributed to the non-accessibility in the domestic market due to the lockdown. Nevertheless, we believe investors might continue to bet on these two products, while physical jewellery demand is not expected to return with any resurgence until the October quarter when festival and wedding demand kicks in.” READ MORE

2:55 PM

Top losers on BSE today

COMPANY	PRICE(rs)	CHG(%)
UNION BANK (I)	33.10	-7.93
INDIABULLS HOUS.	222.15	-7.55
TV18 BROADCAST	37.15	-6.31
DCB BANK	81.10	-5.86
INDUSIND BANK	491.60	-5.58

2:51 PM

Reliance may bring Jio and retail IPOs to unlock shareholder value: Report

RIL has raised $22.3 billion capital market through the sale of 24.7 per cent stake in Jio Platforms and $7 billion equity-raise.

 

"Following the rights issues and 24.7 per cent sell down in Jio, RIL is now effectively debt free. We expect a break-up of the company in the next three-four years through the IPO of Jio and retail business segment which should further unlock shareholder value," Bernstein Research said. READ MORE

2:44 PM

MARKET CHECK :: Nifty breaks below 10,400

2:43 PM

MARKET CHECK :: Sharp slide in indices; Sensex down nearly 400 pts

2:41 PM

Heatmap: S&P BSE Sensex gainers and losers at this hour

2:36 PM

Jio poised to play key role in development of 5G ecosystem in India: RIL

On the issue of floor price for mobile services, the company noted that market dynamics have improved in the recent past as reflected by December tariff hikes by operators.

 

The government has also expressed its intentions of conducting the next round of spectrum auctions during the fiscal year 2020-21, it said. READ MORE