MARKET WRAP: Sensex crashes 505 pts, Nifty at 11,378 on weak global cues

In key stocks, RIL fell over 2.3 per cent, while Sun Pharma cracked over 2.7 per cent. Financial stocks such as HDFC, HDFC Bank, SBI fell up to 2.5 per cent.

The benchmark indices settled over 1 per cent lower on Monday taking cues from their global peers, which fell amid reports that the US was about to announce a new round of tariffs on Chinese imports.

The S&P BSE Sensex ended at 37,586, down 505 points while the broader Nifty50 index settled at 11,378, down 137 points.

That apart, a weak rupee also affected sentiment. The domestic currency slipped to an intra-day low of 72.62 against the greenback earlier in the day. The domestic unit on Friday had surged by 34 paise to close at a one-week high of 71.84 against the US dollar on positive macro data and hopes of policy intervention by the government to defend the volatile currency.

In key stocks, Reliance Industries (RIL) fell over 2.3 per cent, while Sun Pharmaceutical Industries (Sun Pharma) cracked over 2.7 per cent. Financial stocks such as HDFC, HDFC Bank, State Bank of India (SBI) and Axis Bank fell by up to 2.5 per cent.

Among sectoral indices, the Nifty FMCG index settled 1.4 per cent lower weighed by fall in share prices of Godrej Industries and Procter & Gamble Hygiene and Health Care.

Investor sentiment also took a hit as global financial services company Goldman Sachs said India's world-beating stock market run is over. It has downgraded domestic stocks to the equivalent of a hold rating from buy. This is the first time it has lowered Indian stocks since 2014. Here are five reasons why the global research house has lowered its India rating.

Global Markets

Most Asian share markets slid on Monday amid reports Washington was about to announce a new round of tariffs on Chinese imports, setting the stage for possible reprisals by Beijing. 

MSCI's broadest index of Asia-Pacific shares outside Japan dropped 1.2 per cent, snapping three straight sessions of gains. Shanghai blue chips fell 1.1 per cent, while the Hang Seng shed 1.6 per cent.
 

(with wire inputs)

4:10 PM

MARKET COMMENT Jayant Manglik, President, Religare Broking

Nifty started the week on feeble note and lost over a percent, mainly pressurised by global cues. It opened gap down and remained under pressure till the end. The news of possibility of further escalation of trade war between the US and China didn't go well with the markets. Also, weakness in rupee further dented the sentiment. Mostly sectoral indices traded in line with the benchmark index and closed lower.

 

Markets are currently dancing to the global tunes and we do not see this changing any time soon. We reiterate our consolidation view in Nifty with bias on the negative side as sustainability seems difficult at higher level. In fact it may witness fresh fall if it fails to hold above 11,300. We advise maintaining balanced approach while trading stocks and keeping positions on both sides

3:42 PM

Nifty FMCG index ends 1.38% lower. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS( )	LOSS(%)
GODREJ INDS.	576.00	589.75	-13.75	-2.33
UNITED SPIRITS	569.50	581.90	-12.40	-2.13
P & G HYGIENE	9875.75	10060.50	-184.75	-1.84
ITC	302.10	307.15	-5.05	-1.64
EMAMI	547.05	555.70	-8.65	-1.56

3:39 PM

Sectoral losers of the day on the NSE

3:38 PM

BSE Sensex: Sun Pharma, HDFC, RIL among top losers of the day

3:32 PM

Market at close

 

The S&P BSE Sensex ended at 37,586, down 505 points while the broader Nifty50 index settled at 11,378, down 137 points.

3:15 PM

Gold edges up in range-bound trade amid looming US tariffs on China

Gold inched up on Monday as investors looked for short-term gains using the metal's recent narrow trading range, amid increasing Sino-US trade tensions and prospects of further interest rate hikes by the US Federal Reserve.

 

Spot gold was up 0.2 per cent at $1,195.83 an ounce, after falling 0.6 per cent on Friday when it marked its third straight weekly decline. US gold futures were down 0.1 per cent at $1,199.80. READ MORE

2:57 PM

China stocks drop to near four-year low as Trump said to prepare new tariffs

China's main Shanghai Composite index fell to its lowest close in nearly four years on Monday as reports said U.S. President Donald Trump would unveil new tariffs on $200 billion of imported Chinese goods this week.

 

The Shanghai Composite index dropped 1.1 percent to 2,651.79 points, its worst close since Nov. 27, 2014. The blue-chip CSI300 index also declined 1.1 percent, to 3,204.92 points. In Hong Kong, the Hang Seng index was down 1.3 percent in late afternoon trade, and the China Enterprises index was off 1.2 percent. READ MORE

2:42 PM

Oil higher as US Iran sanctions raise supply concerns

Oil prices rose on Monday as investors focused on the impact of U.S. sanctions on Iran despite assurances by Washington that Saudi Arabia, Russia and the United States could together raise output fast enough to offset falling supplies.

Brent crude oil was up 45 cents a barrel at $78.54. US light crude was up 45 cents at $69.44. READ MORE

2:26 PM

IPO Watch

 

Ircon issue subscribed 15% so far on Day 1 of the offer

2:20 PM

Sector watch: NBFCs

India Ratings and Research (Ind-Ra) has maintained a stable outlook for the non-banking financial company (NBFCs) sector and for the major NBFCs rated by it for 2HFY19. NBFCs have continued to increase their market share in the credit domain, as many public sector banks have been placed under the Prompt Corrective Action framework, leading to lending restrictions and NBFCs’ increased ability to structure loans.

 

Ind-Ra expects NBFCs to clock loan growth of 16%-18% yoy in FY19, by continuing their market share gains. In light of rising funding cost, NBFCs have resorted to higher short-term borrowings and have increased focus on higher yielding segments such as used commercial vehicle (CV) financing, unsecured SME loans and small ticket loans against property.

2:14 PM

China Inc's global retreat set to continue despite $17 bn asset selloff

The global retreat by some of China’s biggest and most-indebted conglomerates shows no signs of stopping -- even after more than $17 billion of asset sales.

 

A unit of HNA Group Co. last week missed payments on a 300 million yuan ($44 million) loan, illustrating how the once-acquisitive Chinese company will need to unload more properties and shares to overcome liquidity challenges. And in the U.S. on Friday, Dalian Wanda Group Co. scaled back its bet on movie-theater chain AMC Entertainment Holdings Inc. READ MORE

2:00 PM

MARKET CHECK

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	37,695.87	-394.77	-1.04
S&P BSE SENSEX 50	11,929.28	-111.66	-0.93
S&P BSE SENSEX Next 50	34,452.73	-167.86	-0.48
S&P BSE 100	11,703.95	-101.59	-0.86
S&P BSE Bharat 22 Index	3,620.32	-23.25	-0.64

1:47 PM

Volumes soar at Entertainment Network (India) Ltd counter

Entertainment Network (India) Ltd clocked volume of 2 lakh shares on BSE, a 652.69 times surge over two-week average daily volume of 307 shares. The stock lost 0.07% to Rs.630.00. Volumes stood at 92 shares in the last session. READ MORE

1:31 PM

Here are five reasons why Goldman Sachs downgraded Indian equities

After remaining ‘strategically overweight’ on Indian equities since 2014, global research and brokerage firm Goldman Sachs has cut its India rating to ‘market-weight’ from ‘over-weight’. It expects the markets to consolidate ahead of the general elections and maintains a 12-month Nifty50 target of 12,000.

 

Indian equities, it says, have doubled over the past five years and have outperformed the region by 60 percentage points (pp) in $ terms. “Given the elevated valuations and the recent strong performance, we believe the risk/reward for Indian equities is less favourable at current levels,” wrote Sunil Koul of Goldman Sachs in a recent co-authored report. READ MORE

1:13 PM

Top losers in BSE 500:

COMPANY	PRICE( )	CHG( )	CHG(%)
8K MILES	261.90	-13.75	-4.99
KWALITY	19.50	-1.00	-4.88
ASHOKA BUILDCON	117.45	-5.00	-4.08
REDINGTON INDIA	107.25	-4.50	-4.03
PNC INFRATECH	150.65	-5.25	-3.37