MARKET WRAP: Sensex dips 286 pts, Nifty ends at 10,856 despite RBI rate cut

All that happened in markets today

A 35-basis point (bps) rate cut by the Reserve Bank of India (RBI) failed to lift the investor sentiment on Wednesday as the benchmark indices ended in the red.

The S&P BSE Sensex lost 286 points or 0.77 per cent to settle at 36,690.50, with HUL being the top gainer and M&M the biggest loser. The broader Nifty50 index ended the session at 10,855.50, down 93 points or 0.85 per cent. 

On the sectoral front, rate-sensitive stocks took the biggest knock with Nifty Bank, Nifty Auto and Nifty Realty slipping 1 per cent to 2 per cent.  Volatility gauge, India VIX climbed nearly 5 per cent to 16.88 levels. 

The broader market fared better than the benchmark indexes. The S&P BSE MidCap index slipped 60 points, or 0.44 per cent, to 13,509, while the S&P BSE SmallCap index ended at 12,482 level, down 14 points or 0.11 per cent.

RBI POLICY

The Reserve Bank of India's (RBI's) monetary policy committee (MPC) on Wednesday decided to reduce the repo rate by 35 basis points (bps) to 5.40 per cent to help revive the economy. It was the fourth straight rate cut by the central bank in 2019. Consequently, the reverse repo rate now stands at 5.15 per cent. Click to read key highlights

BUZZING STOCKS

Shares of Mahindra & Mahindra (M&M) hit an over five-year low on the BSE in intra-day trade on Wednesday after the company reported a 26 per cent decline in its consolidated net profit before exceptional items at Rs 918 crore for June quarter (Q1FY20). The stock eventually settled at Rs 518.45, down nearly 6 per cent. READ MORE

Shares of Titan Company hit a six-month low of Rs 999, down 4 per cent intra-day on the BSE on Wednesday after it reported 6 per cent year-on-year (YoY) growth in standalone net profit at Rs 371 crore in the June quarter (Q1FY20), due to lower-than-expected revenue. The firm had posted a profit of Rs 349 crore in the year-ago quarter.

GLOBAL CUES

A cautious calm returned to stock markets on Wednesday as softer rhetoric from Washington on the US-China trade war soothed investors. MSCI’s broadest index of Asia-Pacific shares outside Japan was slightly lower. Also easing the mood were signs that China is intervening to steady the yuan after its recent sharp fall, allaying investor fears of a global currency war.

3:45 PM

Sectoral losers and gainers on the NSE

3:44 PM

Top losers and gainers on the S&P BSE Sensex

3:34 PM

CLOSING BELL

The S&P BSE Sensex lost 286 points or 0.77 per cent to end at 36,691 levels while the NSE's Nifty50 index dropped 93 points or 0.85 per cent to settle at 10,856. 

3:19 PM

MARKET CHECK | Top gainers on the BSE at this hour

CENTRALBK	19.80	+2.40	+13.79
J&KBANK	44.40	+6.90	+18.40
NILKAMAL	1,005.00	+70.70	+7.57
ASTRAZEN	1,978.00	+121.30	+6.53
GESHIP*	236.85	+11.30	+5.01

3:01 PM

Earnings Alert | Cipla Q1 consolidated net profit at Rs 478.2 cr, up 6% YoY

- Revenue comes in at 3,989.02 cr, up 1.27% YoY

2:54 PM

S&P BSE Sensex stocks that hit fresh 52-week lows

COMPANY	LATEST	52 WK LOW	PREV LOW	PREV DATE	VOLUME
ITC	255.25	254.95	257.60	05-AUG-2019	410074
M & M	524.20	522.40	538.95	01-AUG-2019	329280
TATA MOTORS	118.60	117.55	121.85	06-AUG-2019	2789597
TATA MOTORS-DVR	56.10	55.50	57.25	06-AUG-2019	791436
TATA STEEL	385.00	382.40	389.75	05-AUG-2019	735382

2:49 PM

Nifty sectoral indices at this hour

2:46 PM

Indiabulls Housing Finance extends fall to over 11%

2:43 PM

DHFL tumbles 10%

2:32 PM

CRUDE CHECK | Oil hits new seven-month low on Sino-US trade tensions

Brent crude futures were down 11 cents, or nearly 2%, at 1:53 pm to set a fresh seven-month low. Prices have lost more than 20% since hitting their 2019 peak in April. US West Texas Intermediate (WTI) crude futures were flat at $53.63.

2:24 PM

ICICI Securities on Titan Company

Rating: BUY

 

CMP: Rs 1,009 

 

Target: Rs 1,190 (18%) 

 

Target Period: 12 months

 

Given the recent headwinds, we revise our revenue and earnings estimates downwards for FY20, FY21E. A sustained increase in gold prices and weak consumer sentiments can lead to postponement of purchase, which may defer the revenue growth recovery in the near term. We model revenue and earnings CAGR of 17% and 24%, respectively, in FY19-21E. We maintain our BUY rating on the stock with a target price of Rs 1,190 at 49.0x FY21E EPS (earlier target price of Rs 1,250).

2:22 PM

MARKET CHECK | Top losers on the BSE at this hour

IBREALEST	70.45	-13.40	-15.98
SUZLON	3.99	-0.26	-6.12
JAMNAAUTO	39.05	-2.15	-5.22
WELSPUNIND	47.60	-2.85	-5.65
DHFL	50.55	-4.85	-8.75

2:13 PM

Tyre makers to go through rough patch due to slowdown in auto sector

The replacement segment, which represent over 55 per cent of industry volumes, is likely to grow by 5-6 per cent in FY2020 (PY: 5.7%) while demand growth in original equipment (OE) segment is pegged at lower levels of 2-3 per cent (PY: 7.8%) affected by subdued vehicle production in fiscal 2020. READ MORE

Photo: Shutterstock

2:04 PM

Sudden fall in Sensex

1:54 PM

Lupin Q1 results

-- Consolidated EBITDA at Rs 860.1 crore
 

-- EBITDA margin at 19.5%

-- Consolidated net profit at Rs 303 crore

-- Consolidated revenue at Rs 4418.4 crore