 "Sensex down over 200 points; banks spearhead downfall")
After opening with a gap-down of nearly 1% key benchmark indices edged lower on Monday. Market has continued its downward trajectory for a second day now into the derivative expiry week. Market participants expected volatility to come down post Fed and RBI decisions. However, India VIX, a key indicator of volatility is up 7% currently at 26.36.
At 11:33AM, the 30-share Sensex fell 230 points at 20,033 and the 50-share Nifty declined 78 points at 5,933 levels.
Speaking on how market will pan out this week, Kunal Bothra, Technical Analyst, LKP Securities says, "I think now the crucial support zone for bulls could be the 200 DMA which is currently trading at 5842 on Nifty spot levels. And the resistance zone could be around the 6150-6200 mark. This would the broad range for the market for the next week or so."
The fall in sectors is led sharply by banks; BSE Bankex is down 3.6%, followed by realty and capital goods which are down 2%-2.4%. While, PSU, Oil & gas, power, auto, FMCG and metals packs are other major losers while consumer durables, IT and TECk are the only gainers BSE.
Top Sensex losers at this hour are Bank of Baroda, PNB, DLF, Axis bank and IDFC while gainers are Wipro, Sesa Goa, Hero Motocorp, Infosys and TCS.
The broader markets too are down with small-cap and mid-caps falling between 0.1% - 0.6% on the BSE.
The market breadth has turned negative. Out of 1,934 stocks traded, 1039 stocks declined while 777 stocks and 118 remained unchanged on the BSE.
Investors are also cautiously waiting for the government’s second half market borrowing schedule later today. Bank treasurers and fund managers expect government to stick to its gross borrowing target of Rs 5.79 lakh crore.
RUPEE
Rupee lost some ground today owing to month-end dollar demand from importers. Currency dealers see the rupee weakening further this week and touch Rs 63 per dollar. Last month, the rupee had touched an all-time low of Rs 68.85 in intra-day trades due to month-end dollar demand.
At 11:31AM, the partially convertible rupee was trading at 62.50 per dollar against the Friday’s close of 62.28 on the Interbank Foreign Exchange.
GLOBAL MARKETS
Asian stocks rose, with a regional benchmark index trading near a four-month high, after a private measure of Chinese manufacturing jumped more than forecast. Trading on Hong Kong markets was delayed due to a storm.
Singapore’s Straits Times fell 0.7% at 3,213 while China’s Shanghai Composite index was up 0.5% to 2,203. Japan’s market is closed today for a holiday.
Chinese factory output expanded for a second month in September. A preliminary HSBC Holdings Plc and Markit Economics’ purchasing managers index released today rose to 51.2 after jumping the most since 2010 to 50.1 in August.
STOCK MOVERS
MindTree is trading higher by over 3% at Rs 1,120 after the foreign investor purchase the company’s shares through open market.
FID Fund Mauritius on Friday bought 295,129 equity shares of MindTree at Rs 1,074.99 per share through a block deal, the BSE data shows.
At 11:33AM, the 30-share Sensex fell 230 points at 20,033 and the 50-share Nifty declined 78 points at 5,933 levels.
Speaking on how market will pan out this week, Kunal Bothra, Technical Analyst, LKP Securities says, "I think now the crucial support zone for bulls could be the 200 DMA which is currently trading at 5842 on Nifty spot levels. And the resistance zone could be around the 6150-6200 mark. This would the broad range for the market for the next week or so."
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Key benchmark indices are pressurised by rate-sensitive shares amid looming fear of another hike in repo rates by the Reserve Bank of India to contain inflation and support rupee.
The fall in sectors is led sharply by banks; BSE Bankex is down 3.6%, followed by realty and capital goods which are down 2%-2.4%. While, PSU, Oil & gas, power, auto, FMCG and metals packs are other major losers while consumer durables, IT and TECk are the only gainers BSE.
Top Sensex losers at this hour are Bank of Baroda, PNB, DLF, Axis bank and IDFC while gainers are Wipro, Sesa Goa, Hero Motocorp, Infosys and TCS.
The broader markets too are down with small-cap and mid-caps falling between 0.1% - 0.6% on the BSE.
The market breadth has turned negative. Out of 1,934 stocks traded, 1039 stocks declined while 777 stocks and 118 remained unchanged on the BSE.
Investors are also cautiously waiting for the government’s second half market borrowing schedule later today. Bank treasurers and fund managers expect government to stick to its gross borrowing target of Rs 5.79 lakh crore.
RUPEE
Rupee lost some ground today owing to month-end dollar demand from importers. Currency dealers see the rupee weakening further this week and touch Rs 63 per dollar. Last month, the rupee had touched an all-time low of Rs 68.85 in intra-day trades due to month-end dollar demand.
At 11:31AM, the partially convertible rupee was trading at 62.50 per dollar against the Friday’s close of 62.28 on the Interbank Foreign Exchange.
GLOBAL MARKETS
Asian stocks rose, with a regional benchmark index trading near a four-month high, after a private measure of Chinese manufacturing jumped more than forecast. Trading on Hong Kong markets was delayed due to a storm.
Singapore’s Straits Times fell 0.7% at 3,213 while China’s Shanghai Composite index was up 0.5% to 2,203. Japan’s market is closed today for a holiday.
Chinese factory output expanded for a second month in September. A preliminary HSBC Holdings Plc and Markit Economics’ purchasing managers index released today rose to 51.2 after jumping the most since 2010 to 50.1 in August.
STOCK MOVERS
MindTree is trading higher by over 3% at Rs 1,120 after the foreign investor purchase the company’s shares through open market.
FID Fund Mauritius on Friday bought 295,129 equity shares of MindTree at Rs 1,074.99 per share through a block deal, the BSE data shows.