MARKET WRAP: Global cues see Sensex tumble 690 points; IT, auto worst hit

The S&P BSE Sensex crashed 690 points or 1.89 per cent to settle at 35,742. Out of 30 constituents on the index, 27 ended in the red and just three in the green.

Weak global cues and across-the-board selling saw benchmark indices crashing nearly 2 per cent on Friday. The S&P BSE Sensex tumbled 690 points or 1.89 per cent to settle at 35,742. Out of 30 constituents on the index, 28 ended in the red and just two in the green. Heavyweights RIL, Infosys, TCS and HDFC Bank were the major contributors to the Sensex’s decline.

The broader Nifty50 index of the National Stock Exchange (NSE) lost 198 points or 1.81 per cent to close the session at 10,754. Volatility benchmark India VIX jumped nearly 12 per cent to 15.99, indicating increase in volatility in the market.

As many as 40 stocks hit 52-week lows on NSE. The list includes names such as BSE, DSM Ltd and Khadim's India. On the other hand, 8 counters hit one-year high.

In the broader market, the S&P BSE Midcap Index slid 276 points or 1.79 per cent to 15,253 while the S&P BSE SmallCap ended at 14,634, down 148 points or 1 per cent. 

NDTV, Bata outperform

Among individual stocks, shares of NDTV were locked in the upper circuit limit of 10 per cent at Rs 39.25 on the BSE, with only buyers being seen on the counter, after the company and Taboola, the world’s largest content platform, signed a five-year exclusive deal worth more than Rs 3 billion.

Shares of Bata India hit a new high of Rs 1,135, up 3% on the BSE in intra-day trade on Friday in otherwise weak market, surpassing its previous high of Rs 1,128 recorded on Wednesday. Thus far in calendar year 2018, the stock of footwear outperformed the market by surging 52% from Rs 747 level, as compared to 5% rise in the S&P BSE Sensex.

Global Markets

Asian stocks fell further Friday after Wall Street slid on recession fears, with Chinese stocks on track to end 2018 as the world’s worst performing market, with a loss of around 24%.

Japan’s Nikkei 225 index lost 1.1%, on track to end the year off almost 12%. Hong Kong’s Hang Seng, however, ended up 0.5%.

(with Agency inputs)

4:07 PM

MARKET COMMENT Hemang Jani, Head - Advisory, Sharekhan by BNP Paribas

Volatility ruled Indian markets as key benchmark indices ended this week on a negative note. Sensex dropped by over 600 points led by profit booking in Index heavyweights. Market to  closely track GST council meet due tomorrow, likely to see reduction of tax slabs for several items. Global markets to brace more volatility from the ongoing trade tensions and slowdown in economies.

Back home movement in Crude oil prices, Currency, Corporate earnings due next month are likely to drive market in the near-term. Given improving macro-economic parameters, Investor needs to adopt stock specific approach. We prefer Apollo Tyres, as rubber prices have corrected from their recent highs in domestic and international markets, thereby improving earning visibility of tyre companies in near term. We prefer Hindustan Unilever, as government to focus on rural and farm sector spending to boost rural consumption

4:06 PM

Index watch (Image source: NSE)

4:05 PM

HEAT MAP :: Sensex - Maruti, Infosys, TCS among top losers

3:39 PM

MARKET AT CLOSE

 

The S&P BSE Sensex crashed 690 points or 1.89 per cent to settle at 35,742.07 while NSE's Nifty50 index dropped 198 points or 1.81 per cent to end at 10,754.

3:18 PM

NEWS ALERT | Bandhan Bank in talks with Gruh Fin to merge with itself, reports CNBC TV18; stock trades 2% lower

3:14 PM

HDFC Securities on International Paper APPM

 

Taking into the consideration of initiatives for efficient productivity with strong financials, and decent parentage, we have a positive view on the stock. We feel investors could buy the stock at the CMP, and add on dips to the Rs 410-415 band (8.75x FY20E EPS) for sequential targets of Rs 519 (11x FY20E EPS) and Rs 566 (12.0x FY20E EPS). At the CMP of Rs 460, the stock trades at 9.8x FY20E EPS.

2:55 PM

As many as 36 securities hit 52-week lows in today's trade

Symbol	Security	New 52W/L	Prev. Low	Prev. Low Date	LTP	Prev. Close	Chng	% Chng
ADHUNIK	Adhunik Metaliks Limited	2.10	2.10	20-Dec-2018	2.20	2.10	0.10	4.76
ADROITINFO	Adroit Infotech Limited	17.00	17.00	18-Dec-2018	17.10	18.00	-0.90	-5.00
ARSHIYA	Arshiya Limited	24.00	25.60	20-Dec-2018	31.10	25.95	5.15	19.85
CALSOFT	California Software Company Limited	24.10	24.40	14-Dec-2018	24.80	25.35	-0.55	-2.17
CHROMATIC	Chromatic India Limited	0.95	0.95	20-Dec-2018	1.00	.95	0.05	5.26
DCM	DCM Limited	69.05	69.05	19-Dec-2018	74.35	69.90	4.45	6.37
EASUNREYRL	Easun Reyrolle Limited	4.85	5.05	20-Dec-2018	5.00	5.05	-0.05	-0.99
EUROMULTI	Euro Multivision Limited	1.40	1.45	20-Dec-2018	1.40	1.45	-0.05	-3.45

2:45 PM

Market witnesses across-the-board selling

2:25 PM

Why allowing weak state-run banks to lend again could unwind RBI's autonomy

After sending two pesky central bank governors packing in a little over two years, Indian bureaucrats have turned their attention to unwinding the monetary authority’s autonomy.

 

Their first move, unveiled Thursday, is an innocuous – even laudable – infusion of Rs 410 billion ($5.9 billion) into troubled state-run lenders, bumping up this fiscal year’s outlay for bank recapitalization by 63 per cent to Rs 1.06 trillion. The fresh capital partially replaces a shortfall in the Rs 2.11 trillion bank recap announced in October last year. Read more

 

2:15 PM

Top losers on BSE500

COMPANY	PRICE()	CHG()	CHG(%)	VOLUME
I O C L	140.45	-7.35	-4.97	1356122
SHRIRAM TRANS.	1204.35	-62.35	-4.92	56028
PIDILITE INDS.	1146.00	-46.20	-3.88	50297
SREI INFRA. FIN.	34.90	-1.40	-3.86	367700
GLAXOSMI. PHARMA	1413.00	-56.10	-3.82	909

2:03 PM

Trend of buybacks offsetting shares entering market is worrying: Experts

 

Share buybacks in the domestic market have skyrocketed in the past three years, following the increase in dividend tax and impetus from government disinvestment. This has been to the extent that they are beginning to eat into the domestic equity float. READ MORE

1:54 PM

Market Check

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	36,010.58	-421.09	-1.16
S&P BSE SENSEX 50	11,326.07	-133.70	-1.17
S&P BSE SENSEX Next 50	32,878.81	-326.21	-0.98
S&P BSE 100	11,120.62	-128.10	-1.14
S&P BSE Bharat 22 Index	3,469.77	-33.99	-0.97

1:39 PM

Web Exclusive How CLSA, UBS, Nomura, Morgan Stanley see global financial markets in 2019

 

Calendar year 2018 (CY18) turned out to be a choppy phase for the global financial markets that battled trade war fears, wild swings in oil prices, rise in bond yields and rate hikes by the US Federal Reserve.

 

Though most leading brokerages and research houses expect the emerging markets (EMs) to fare well in comparison to their developed market (DM) peers in CY19, they do caution that the next year will be marked with volatility. Read more
 

1:29 PM

Mutual funds hope India's mom-and-pop investors keep the faith in 2019

 

India’s $2 trillion stock market has been rattled in recent months by everything from high oil prices and tariff threats to a slumping rupee and a sell-off in non-bank lenders. The one thing that’s kept the gloom from worsening: robust flows from mom-and-pop investors.

 

That backstop is seen extending into 2019 after the bull market over the past five years helped ingrain a buy-the-dip mentality among locals. Consider this: equity funds bought a record 1.18 trillion rupees ($17 billion) of shares this year, negating sales of $4.5 billion by foreigners. Read more

1:16 PM

Nifty IT index extends decline for fourth day; Infosys, TCS fall up to 2%

 

Shares of information technology (IT) companies were under pressure with Nifty IT index falling fourth straight day, down 1% after the US indices extended falls as sentiment remained fragile. Tata Consultancy Services (TCS), Infosys, Wipro, NIIT Technologies, Larsen & Toubro Infotech, KPIT Technologies, Tata Elxsi and Sonata Software were down 1% to 2% on the National Stock Exchange (NSE). Read more