 "Sensex falls 300 points; P-Notes concern, global markets weigh")
Extending the losses from early morning trades, markets have continued to spiral downwards due to worries over P-notes amid the weakness across global peers. Rate-sensitive sectors are dragging the markets.
At 10:30 AM, the Sensex was at 27,821 levels, down by 290 points while the Nifty was at 8,435 levels, 88 points down.
The Supreme Court-appointed special investigative team (SIT) had, last week, recommended stricter norms for participatory notes (P-notes) to check the flow of unaccounted money. The markets seem to have viewed this development in a negative light.
He further added, “So given that kind of clarity, the markets will not read too many things into it right now. There may be overhang situation continuing till the law comes out. But at this point, I don’t think the market is going to have some knee-jerk reaction beyond a point. As of now this is a temporary reaction, and I think the markets will stabilise here after.”
The top losers on the Sensex are Tata Motors, L&T, ICICI Bank, GAIL (India) and Tata Steel, all down between 2.4-3.2% each on the BSE.
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(updated 9:45 AM)
Extending the losses from Friday’s session, markets have commenced the week on a lower note, tracking weakness in the global peers.
At 9:45 AM, the Sensex was at 27,830 levels, down by 280 points while the Nifty was at 8,430 levels, 85 points down.
The broader markets are in line with their larger peers with BSE Midcap and Smallcap trading at 0.7% and 0.4% down respectively. The market breadth is also negative with 803 declines against 626 advances on the BSE.
In the week ended July 24, the Sensex had declined by 351 points to settle at 28,112 and Nifty had shed 88 points to end at 8,521.
The corporate earnings from major companies such as Maruti, ITC, ICICI Bank, HDFC, NTPC and L&T would dictate the trend on the bourses for the week. Further, the futures and options (F&O) expiry for the month of July would also bring some volatility in the market.
Meanwhile, the on-going monsoon Parliament session would be keenly watched by the market participants in the hope of a rollout of key legislations such as the Land Acquisitions Bill as well as the GST Bill. The first week of the monsoon session, which commenced on July 21st, was a complete washout.
On the monsoon front, the progress of the southwest monsoon is crucial for the easing of the monetary policy and would be closely followed by the central bank and the traders.
RUPEE
The Indian currency is quoting marginally flat at 64.07, weaker by 3 paise against its previous close of 64.07. The rupee would remain weak ahead of the US Federal Open Market Committee (FOMC) meeting, which will be held later this week.
EXPERT VIEW
"CNX Nifty has been finding multiple hurdles near 8,650 levels from last five trading sessions and has witnessed buying interest on declines. It needs to hold 8,500 levels to witness further up move towards 8,550-8,580 leveks. On the downside, it has immediate support near 8,480 levels and below that we may continue to witness fresh selling towards 8,440 zones," points out a morning note from Anand Rathi Research.
RESULTS CALENDAR
Tech Mahindra, Ambuja Cement, Just Dial, Torrent Pharma are set to announce their quarterly earnings for the period April-June later in the day.
GLOBAL MARKETS
Asian shares have begun the week on a plaintive note amid losses on Wall Street and worries over China, while investors brace for a Federal Reserve meeting that might take another small step toward lifting US interest rates. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.2%.
Hang Seng dipped by 2% and Nikkei slipped 0.8% in early trade. China's Shanghai index slumped about 1% as the country's industrial profits declined 0.3% year-on-year in June, according to data. The Straits Times and Taiwan indices ahve also shed about 1% each.
SECTORS & STOCKS
Sectorally, the rate sensitive sectors are driving the Sensex down with BSE Auto , Realty and Bankex down by 1% each.
ICICI Bank and HDFC are down by 1.6% and 1% respectively ahead of their Q1 results later this week.
Tata Motors is down 2.5% on a slowdown in China’s industrial production, which can have impact on its luxury-arm
JLR sales.
From the metal pack, Hindalco, Tata Steel, Vedanta are down between 0.6-1.4% each on the BSE as base metals on
London Metal Exchange (LME) took a beating on Friday as the demand from China has slowed down.
Ahead of its Q1 results, Tech Mahindra is up 2% on the BSE.
Other notable stocks that took a beating in early morning trades are HDFC Bank, Bharti Airtel, Axis Bank, SBI, Hero Motocorp all down between 1-2% on the BSE.
At 10:30 AM, the Sensex was at 27,821 levels, down by 290 points while the Nifty was at 8,435 levels, 88 points down.
The Supreme Court-appointed special investigative team (SIT) had, last week, recommended stricter norms for participatory notes (P-notes) to check the flow of unaccounted money. The markets seem to have viewed this development in a negative light.
Also Read
Speaking on the participatory notes (P-Notes) issue, Deven Choksey, Managing Director and Chief Executive Officer, K R Choksey Shares and Securities said, “The Finance Secretary has clarified that this is just a recommendation and not a law. They are waiting to convert the recommendations into the law and they could then possibly take some correct directions. At the same time, the Finance Ministry has cleared that there is no need for any major reaction on this subject as this issue could be sorted out over a period of time.”
He further added, “So given that kind of clarity, the markets will not read too many things into it right now. There may be overhang situation continuing till the law comes out. But at this point, I don’t think the market is going to have some knee-jerk reaction beyond a point. As of now this is a temporary reaction, and I think the markets will stabilise here after.”
The top losers on the Sensex are Tata Motors, L&T, ICICI Bank, GAIL (India) and Tata Steel, all down between 2.4-3.2% each on the BSE.
--------------------------------------
(updated 9:45 AM)
Extending the losses from Friday’s session, markets have commenced the week on a lower note, tracking weakness in the global peers.
At 9:45 AM, the Sensex was at 27,830 levels, down by 280 points while the Nifty was at 8,430 levels, 85 points down.
The broader markets are in line with their larger peers with BSE Midcap and Smallcap trading at 0.7% and 0.4% down respectively. The market breadth is also negative with 803 declines against 626 advances on the BSE.
In the week ended July 24, the Sensex had declined by 351 points to settle at 28,112 and Nifty had shed 88 points to end at 8,521.
The corporate earnings from major companies such as Maruti, ITC, ICICI Bank, HDFC, NTPC and L&T would dictate the trend on the bourses for the week. Further, the futures and options (F&O) expiry for the month of July would also bring some volatility in the market.
Meanwhile, the on-going monsoon Parliament session would be keenly watched by the market participants in the hope of a rollout of key legislations such as the Land Acquisitions Bill as well as the GST Bill. The first week of the monsoon session, which commenced on July 21st, was a complete washout.
On the monsoon front, the progress of the southwest monsoon is crucial for the easing of the monetary policy and would be closely followed by the central bank and the traders.
RUPEE
The Indian currency is quoting marginally flat at 64.07, weaker by 3 paise against its previous close of 64.07. The rupee would remain weak ahead of the US Federal Open Market Committee (FOMC) meeting, which will be held later this week.
EXPERT VIEW
"CNX Nifty has been finding multiple hurdles near 8,650 levels from last five trading sessions and has witnessed buying interest on declines. It needs to hold 8,500 levels to witness further up move towards 8,550-8,580 leveks. On the downside, it has immediate support near 8,480 levels and below that we may continue to witness fresh selling towards 8,440 zones," points out a morning note from Anand Rathi Research.
RESULTS CALENDAR
Tech Mahindra, Ambuja Cement, Just Dial, Torrent Pharma are set to announce their quarterly earnings for the period April-June later in the day.
GLOBAL MARKETS
Asian shares have begun the week on a plaintive note amid losses on Wall Street and worries over China, while investors brace for a Federal Reserve meeting that might take another small step toward lifting US interest rates. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.2%.
Hang Seng dipped by 2% and Nikkei slipped 0.8% in early trade. China's Shanghai index slumped about 1% as the country's industrial profits declined 0.3% year-on-year in June, according to data. The Straits Times and Taiwan indices ahve also shed about 1% each.
SECTORS & STOCKS
Sectorally, the rate sensitive sectors are driving the Sensex down with BSE Auto , Realty and Bankex down by 1% each.
ICICI Bank and HDFC are down by 1.6% and 1% respectively ahead of their Q1 results later this week.
Tata Motors is down 2.5% on a slowdown in China’s industrial production, which can have impact on its luxury-arm
JLR sales.
From the metal pack, Hindalco, Tata Steel, Vedanta are down between 0.6-1.4% each on the BSE as base metals on
London Metal Exchange (LME) took a beating on Friday as the demand from China has slowed down.
Ahead of its Q1 results, Tech Mahindra is up 2% on the BSE.
Other notable stocks that took a beating in early morning trades are HDFC Bank, Bharti Airtel, Axis Bank, SBI, Hero Motocorp all down between 1-2% on the BSE.