MARKET WRAP: Sensex dips 333 pts; PMI data, proposed FPI norms spook Street

The benchmark indices ended nearly 1 per cent lower on Monday after India's manufacturing growth eased in August on softer domestic demand and on concerns over the escalation of the global trade war.

That apart, the sentiment was impacted by reports that the government and the capital market regulator Sebi are discussing fresh criteria to stop ‘dubious’ money flowing into the country — particularly, in the run up to the 2019 elections. The S&P BSE Sensex ended at 38,313, down 333 points while the broader Nifty50 index settled at 11,582, down 98 points.

In individual stocks, fast moving consumer goods giant Hindustan Unilever (HUL) slipped 4.5 per cent to Rs 1,700 levels on the BSE. That apart, shares of private banks such as ICICI Bank and Axis Bank also declined 2.3 per cent and 2.5 per cent, respectively. Car-maker Maruti Suzuki too settled 2.1 per cent lower at Rs 8904.

Among sectoral indices, the Nifty FMCG index settled over 2.5 per cent lower weighed by HUL and Britannia Industries.

India's manufacturing growth eases in August

Growth in India's manufacturing sector unexpectedly slowed in August as domestic demand softened, a private business survey showed on Monday.

Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, suggested the activity gauge fell to a three-month low of 51.7 from July's 52.3. READ MORE HERE

Global Markets

Global stock markets fell for a third straight day on Monday, hurt by worries over the escalation of trade disputes between world powers and a deepening sell-off across emerging market currencies.

European shares mostly opened lower while in Asia, MSCI's broadest index of shares outside Japan and Tokyo's blue-chip Nikkei shed about 0.7 per cent each. A holiday in the United States subdued trading activity.

(with Reuters inputs)

3:45 PM

Nifty FMCG index ends 2.44% lower. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
HIND. UNILEVER	1699.10	1780.10	-81.00	-4.55
UNITED SPIRITS	609.65	630.25	-20.60	-3.27
DABUR INDIA	466.35	478.75	-12.40	-2.59
GODREJ INDS.	629.95	646.65	-16.70	-2.58
BRITANNIA INDS.	6565.85	6736.75	-170.90	-2.54

3:43 PM

Nifty sectoral losers of the day

3:41 PM

BSE Sensex: HUL, Axis Bank among top losers of the day

3:34 PM

Market at close

The S&P BSE Sensex ended at 38,313, down 333 points while the broader Nifty50 index settled at 11,582, down 98 points.

3:14 PM

Vedanta Resources Chairman Anil Agarwal to take company private on Oct 1

Vedanta Resources Plc Chairman Anil Agarwal will take the London-listed miner private on October 1, after the holders of 26 per cent of shares agreed to sell to his family trust Volcan Investments.

 

Volcan now holds or has received acceptances for 92.31 per cent of Vedanta's shares, it said. READ MORE

3:11 PM

Bumper IPO year continues: 11 cos approach Sebi in Aug to raise Rs 70 bn

As many as 11 firms, including AGS Transact Technologies and ASK Investment Managers, have approached capital market regulator Sebi in August to raise over Rs 70 billion through IPOs largely to fund their expansion projects and working capital requirement. READ MORE

3:01 PM

India manufacturing growth eases in August on softer domestic demand: PMI

Growth in India's manufacturing sector unexpectedly slowed in August as domestic demand softened, a private business survey showed on Monday.

The activity gauge fell to a three-month low of 51.7 from July's 52.3. Analysts polled by Reuters had expected growth to pick up, forecasting a reading of 52.8. READ MORE

2:45 PM

LIC board to meet on Tuesday to decide raising stake in IDBI Bank to 51%

The LIC board will meet Tuesday to decide on the modalities for increasing stake in debt-ridden IDBI Bank to 51 per cent, a move that will provide the insurance behemoth entry into the banking space.

 

The board will discuss timeline for the open offer, board-level appointments and future strategy for revitalising IDBI Bank, sources said. READ MORE

2:31 PM

Coffee Board pegs crop loss due to rains in South India at 82,000 tonnes

The Coffee Board, under the Ministry of Commerce, has estimated a crop loss of around 82,000 tonnes due to heavy rains in the traditional coffee tracts across South India. Industry representatives, however, believe that these losses may not affect prices -- which are decided on the basis of international demand and supply -- as global supply is already more than the demand at present. READ MORE

2:16 PM

Pharma funds make a comeback; now rises 17.3% for a one-year period

The rally in pharmaceutical stocks owing to the rupee depreciation and easing regulatory environment in the US has boosted the returns of mutual fund (MF) schemes that invest in this sector. Pharma funds, which had been laggards for many months now, are now up 17.3 per cent for a one-year period, outperforming infrastructure and banking funds that gave returns of 2.3 per cent and 9.8 per cent, respectively, show data from Value Research. READ MORE

2:02 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	38,597.84	-47.23	-0.12
S&P BSE SENSEX 50	12,224.83	-5.98	-0.05
S&P BSE SENSEX Next 50	35,745.65	+88.91	+0.25
S&P BSE 100	12,016.43	-0.54	0.00
S&P BSE Bharat 22 Index	3,748.31	-2.78	-0.07

(Source: BSE)

1:46 PM

Biggest bond inflow in 7 months fails to rescue rupee; headwinds to persist

Global investors in August bought the most Indian bonds in seven months, showing signs of returning to a market they’d abandoned for the better part of 2018. The inflow brought no joy for currency traders as the rupee hit multiple new lows in the past two weeks. READ MORE

1:30 PM

Valuations, premium, earnings: India stock market surge explained in charts

Another thousand-point milestone is within reach for India’s benchmark equity index.

 

Following the drubbing earlier this year, the S&P BSE Sensex is nearing the 39,000 level, the gauge’s third round-number mark since surpassing its life-time peak two months ago -- a rally that’s helped the gauge cement the tag of Asia’s best performer this year. READ MORE

1:18 PM

MARKET COMMENT Indranil Sen Gupta, India Economist, DSP Merrill Lynch (India)

The good news is that higher-than-anticipated GDP growth, at 8.2% (7.6% BoFAMLe, 7.8% consensus) re-affirms India's position as the fastest growing EM. We raise our FY19 growth forecast by 20bp to 7.4% in GVA terms. The reality is that high growth is largely driven by the base effects of last year's dip to 5.6% due to demonetiation and GST implementation.

Although base effects have driven growth to our estimated ‎8% potential this quarter, it is still 6.9% averaging across June 2017 and 2018. Not surprisingly, investment has slipped to 28.8% from 29.1% in March. Finally, we worry that rising lending rates will hit growth in the busy industrial season after October as base effects fade.

1:12 PM

Devangshu Datta Bullish on consumption

A comparison of foreign portfolio investor (FPI) and mutual fund portfolios can yield some interesting insights into the differences in their thought processes. FPIs have sold Rs 32 billion in calendar 2018, while domestic institutional investors (not just funds) have bought Rs 665 billion. The data reveals obvious differences in attitude.

 

There are more subtle differences in approach, too. Fund research house Value Research has some details of aggregated portfolios at end-June. READ MORE