MARKET WRAP: Sensex ends 305 pts higher, Nifty at 11,370 as rupee recovers

The benchmark indices ended higher as the rupee recovered after hitting a record low of 72.91 against US dollar and value buying at lower levels.

The S&P BSE Sensex ended at 37,718, up 305 points while the broader Nifty50 index settled at 11,370, up 82 points.

Among sectoral indices, the Nifty FMCG index ended 2.5 per cent led by a rise in the share prices of GlaxoSmithKline Consumer Healthcare and ITC. The Nifty Pharma index, too, rose 1.1 per cent led by Sun Pharmaceutical Industries.

The markets will remain closed on Thursday on account of Ganesh Chaturthi. On Friday, the investors will react to July industrial production and August CPI inflation data, which will be announced later today.

Rupee recovers from record low of 72.91/$

The rupee bounced back from its fresh lifetime low, recovering around 70 paise to trade at 72.20 against the greenback.

Earlier in the day, it hit a new record low of 72.91 per dollar, weighed down by inflationary concerns and amid weakness in global currencies against the dollar.
 

Global Markets

Asian stocks slipped to 14-month lows on Wednesday with investor confidence chilled by the latest round of verbal threats in an intensifying US-China trade conflict.

MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.3 per cent, plumbing its lowest levels since July 2017. Hong Kong’s Hang Seng fell 0.4 per cent and the Shanghai Composite Index dropped 0.3 per cent. Tokyo’s Nikkei declined 0.4 per cent and South Korea’s KOSPI shed 0.3 per cent.

The mood was dimmed by the verbal sparring between Washington and Beijing as the months-long escalation in trade tensions between the world’s two biggest economies took its toll on riskier assets.

(with wire inputs)

4:10 PM

MARKET COMMENT Jayant Manglik, President, Religare Broking

After correcting sharply over the last two sessions, the Indian equity benchmark indices staged a smart comeback, led by a sharp recovery in the Rupee (vs USD) from record lows of 72.91. After trading in a narrow range during first half, the Nifty index bounced back sharply post noon from intra-day low from 11,250 and ended the session near the day’s high at 11,370 levels, up 0.7%.

The broader market indices exhibited a mix picture with BSE Smallcap underperforming the benchmark and closing lower by 0.3%, while BSE Midcap ended higher by 0.5%. Barring Realty & Banks, which underperformed, all the other sectoral indices ended in the green with FMCG, Metals & Capital Goods being the top gainers. Globally, most Asian indices ended on a weak note, while European markets were trading flat to marginally higher.

 

Despite today’s upmove, we continue to remain cautious on the Indian markets. Key macro data like IIP & CPI, movement of crude oil prices, currency (INR vs USD) and global developments, especially on the trade war front will dictate the market trend in the coming sessions. Traders should strictly hedge their positions, as we expect volatility to increase in the coming sessions

3:44 PM

Nifty FMCG index ends 2.53% higher. Top gainers:

COMPANY	LATEST	PREV CLOSE	GAIN()	GAIN(%)
GODREJ CONSUMER	866.70	832.17	34.53	4.15
GLAXOSMITH C H L	7409.95	7144.25	265.70	3.72
ITC	306.70	297.20	9.50	3.20
UNITED BREWERIES	1319.05	1281.05	38.00	2.97
TATA GLOBAL	221.30	216.00	5.30	2.45

3:40 PM

Sectoral gainers & losers of the day

3:38 PM

BSE Sensex: Top gainers & losers

3:34 PM

Market at close
 

The S&P BSE Sensex gained 305 points or 0.81 per cent to settle at 37,718 while NSE's Nifty50 index ended 82 points or 0.73 per cent higher at 11,370. 

3:17 PM

KIOCL gains 11% as board mulls share buyback proposal

Shares of KIOCL have moved higher by 11% to Rs 195 per share on the BSE after the state-owned company announced that its board will meet on Tuesday, September 18, 2018, to consider share buyback proposal. The stock bounced back 16% from its intra-day low of Rs 168 touched in early morning deal. READ MORE

3:02 PM

10 years of Lehman: Is the next global financial crisis already brewing?

As financial market participants reflect on the 10th anniversary of Lehman Brothers' collapse, the consensus is there will be no repeat of the near-death experience, largely because authorities simply will not allow it.

 

The once-in-a-generation financial meltdown and economic catastrophe were so grave that, to borrow from ECB chief Mario Draghi, they will do whatever it takes to make sure it does not happen again. Painful lessons have been learned. READ MORE

2:46 PM

Sun Pharma shares gain 4% after declining 7% in past three days

Shares of Sun Pharmaceutical Industries have moved higher by 4% to Rs 655 per share, bouncing back 6% from their early morning low of Rs 620 per share on the BSE on Wednesday.
 

The stock of drug firm has fallen 7% in past three trading days till Tuesday, on reports that company received six observations by US Food and Drug Administration (FDA) for Halol unit and inspection of the company’s Mohali facility. READ MORE

2:31 PM

10 years of financial crisis: Ghost of Lehman haunts emerging markets again

The flood of liquidity that supported the global financial system after the fall of Lehman Brothers has turned into a pain-point for emerging markets (EMs) 10 years later.

 

Tightening liquidity conditions in developed markets (DMs) has raised the spectre of EM outflows, contributing to a rout which has seen the Turkish lira and the Argentine peso fall over 40 per cent and the Indian rupee hit a record low by going past the 72-mark against the dollar. READ MORE

2:20 PM

Exports up 19.21% in August; Trade Deficit at $17.4 bn

India's exports grew by 19.21 per cent to USD 27.84 billion in August on account of healthy performance by sectors such as petroleum. Merchandise imports too rose by 25.41 per cent in August to USD 45.24 billion due to the rising crude oil prices, leaving a trade deficit of USD 17.4 billion. READ MORE

2:04 PM

Top gainers in Nifty 50 index:

COMPANY	LATEST	PREV CLOSE	GAIN()	GAIN(%)
SUN PHARMA.INDS.	652.90	630.40	22.50	3.57
ITC	305.05	297.20	7.85	2.64
POWER GRID CORPN	191.45	186.90	4.55	2.43
HIND. UNILEVER	1624.90	1590.65	34.25	2.15
HINDALCO INDS.	236.35	231.60	4.75	2.05

2:02 PM

NEWS ALERT Rupee firms 60 paise from lifetime low of 72.91 against dollar. Currently trading at 72.34/$

2:00 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	37,601.75	+188.62	+0.50
S&P BSE SENSEX 50	11,866.06	+58.02	+0.49
S&P BSE SENSEX Next 50	33,882.19	+149.97	+0.44
S&P BSE 100	11,621.93	+56.02	+0.48
S&P BSE Bharat 22 Index	3,583.87	+12.62	+0.35

(Source: BSE)

1:57 PM

NEWS ALERT: Govt official say, not ruling out RBI rate hike in October, according to media reports

1:56 PM

NEWS ALERT: Govt may announce measures on rupee, oil post meet, media reports say