Key benchmarks tumbled on Tuesday amid selling in banks and financial stocks. The euphoria over the recent corporate tax cut was overshadowed by deepening woes in the financial sector. Crisis at Punjab and Maharashtra Co-operative Bank (PMC) and fraud allegations against Indiabulls Housing Finance (IHFL) spoiled investors' risk appetite.
The barometer index, the S&P BSE Sensex, fell 361.92 points or 0.94% to 38,305.41, as per the provisional closing data. The Nifty 50 index fell 114.55 points or 1% to 11,359.90, as per the provisional closing data.
On the BSE, the market breadth was weak. 698 shares rose and 1784 shares fell. A total of 147 shares remain unchanged. In Nifty 50 index, 11 stocks advanced and 39 stocks declined.
The S&P BSE Small-Cap index fell 1.61%. The S&P BSE Mid-Cap index fell 1.54%.
The Nifty opened higher, but soon reversed gains and broke the crucial 11,500 level in morning trade. The 50-unit index staged a recovery in mid-morning trade and regained the 11,500-mark. Fresh selling pressure in afternoon session dragged the Nifty below 11,300 level. The index received a support at its 200-day simple moving average (DMA) placed at 11,254.89. Buying in the final hour of the trade pushed the index above 11,350 level. The Nifty, however, failed to cross its 100 DMA placed at 11,407.23.
Domestic stock markets will remain closed on Wednesday, 2 October 2019 on account of Mahatma Gandhi Jayanti.
The initial public offer (IPO) of Indian Railway Catering and Tourism Corporation (IRCTC) was oversubscribed on the second day of bidding. As of 15:30 IST, the issue received bids for 5.09 crore shares and it was subscribed 253%. The IPO of 2.01 crore equity shares will close on Thursday, 3 October 2019. The price band for the issue has been fixed at Rs 315 to Rs 320 per share. The minimum order quantity is for 40 equity shares and in multiples thereof.
Also Read
Banking stocks posted heavy losses. The S&P BSE Bankex was down 1.31% at 32,456.99. The Nifty Bank index was down 1.28% at 28,730.75.
PSU bank stocks witnessed heavy selling. UCO Bank (down 6.92%), Indian Bank (down 4.71%), Punjab National Bank (down 4.68%), State Bank of India (down 4.34%), United Bank of India (down 3.95%), IDBI Bank (down 3.47%), Bank of Baroda (down 3.33%), Corporation Bank (down 3.31%), Allahabad Bank (down 2.96%), Union Bank of India (down 2.94%), Punjab & Sind Bank (down 2.61%), Bank of India (down 2.54%), Syndicate Bank (down 2.41%), Canara Bank (down 2.17%) and Andhra Bank (down 2.05%) tumbled.
The Nifty PSU Bank index was down 3.87% at 2,205.30.
Private sector banking stocks logged heavy losses. RBL Bank (down 8.84%), IndusInd Bank (down 5.18%), Federal Bank (down 3.21%), City Union Bank (down 2.82%), ICICI Bank (down 1.64%) and Axis Bank (down 0.96%) declined.
The Nifty Private Bank index was down 1.32% at 16,038.15.
Shares of Yes Bank tanked 21.37% to Rs 32.55 after the company's Promoter & Promoter Group sold 2.16% stake in the company. As per the Bank's exchange filing, YES Capital (India), Morgan Credits and Rana Kapoor have together sold 5.52 crore shares, or 2.16% stake in Yes Bank via open markets on 26 and 27 September 2019. Prior to the stake sale, the Promoter & Promoter Group held 6.89% stake in Yes Bank. After the stake sale, the Promoter & Promoter Group held 4.72% stake in the Bank. Yes Bank has crashed 44.07% in five trading session from a recent closing high of Rs 56.05 on 24 September 2019.
Shares of Indiabulls Group companies continued to decline for second consecutive session. The shares took a beating after the Delhi High Court admitted petitions to probe Indiabulls Housing. Indiabulls Housing Finance informed after market hours on Friday, 27 September 2019, that the public interest litigation (PIL) filed by Citizens Whistle Blower Forum came up for hearing before the Delhi High Court on Friday, when the Court was informed that the averments made in the petition are a pack of lies motivated by vested interest and has been filed without any research even on publicly available records of the company. The High Court has listed the matter for 13 December 2019 to allow respondent company to place on record relevant documents in support of its rebuttal to the allegations contained in the PIL.
Indiabulls Housing Finance (down 0.78%), Indiabulls Integrated Services (down 4.97%), Indiabulls Real Estate (down 4.9%) and Indiabulls Ventures (down 9.98%) slumped.
Auto stocks were in spotlight after announcing September 2019 sales. The S&P BSE Auto was down 0.12% at 16,741.17.
Bajaj Auto slipped 1.31% to Rs 2903.5. Bajaj Auto reported a 20% decline in auto sales to 4.02 lakh units in September 2019 from 5.02 lakh units September 2018. In the domestic market, the auto maker sold 2.15 lakh units in September 2019 against 3.11 lakh units in September 2018, witnessing a fall of 31% in auto sales. The company exported 1.86 lakh units in September 2019 against 1.90 lakh units in September 2018, registering a contraction of 2%.
Mahindra & Mahindra advanced 1.61% to Rs 556.05. M&M announced its total auto sales fell 21% to 43,343 units in September 2019 as against 55,022 units in September 2018. The company added that its total domestic sales declined by 21% to 40,692 units while its total exports fell by 29% to 2,651 units in September 2019 over September 2018. The announcement was made during market hours today, 1 October 2019. The company's total auto sales rose by 20.11% to 43,343 units in September 2019 as against 36,085 units in August 2019. M&M's Farm Equipment Sector (FES) said that the total tractor sales contracted by 2% to 37,011 units in September 2019 as against 37,581 units in September 2018. The domestic tractor sales stood at 36,046 units while tractor exports dropped 41% to 965 units in September 2019 over September 2018.
SML Isuzu declined 3.36%. The company reported a 39.4% decline in sales at 614 units in the month of September 2019 as compared to 1014 units in September 2018.
Escorts gained 4.85% to Rs 609.2. Escorts' domestic tractor sales rose 1.2% to 10,521 units in September 2019 as against 10,396 units in September 2018. The company's tractor exports grew 51.1% to 334 units in September 2019 as against 221 units in September 2018.
Ashok Leyland was down 3.56% to Rs 66.30 after total vehicle sales fell 55% to 8780 units in September 2019 against 19374 units September 2018. Total domestic sales fell 57% to 7851 units while the domestic M&HCV sales declined by 69% to 4035 units in September 2019 over September 2018. Total vehicle sales fell by 5.80% to 8780 units in September 2019 as against 9231 units in August 2019.
Maruti Suzuki India was up 1.04% after total auto sales fell 24.4% to 122,640 units in September 2019 over September 2018. Total domestic sales fell 26.7% to 112,500 units in September 2019 as against 153,550 units in September 2018. Total exports fell 17.8% to 7,188 units in September 2019 as against 8740 units in September 2018.
National Peroxide lost 4.41%. National Peroxide said that the company's plant located at Kalyan, Maharashtra, has been temporarily shutdown from 30 September 2019 for carrying out expansion of production capacity from 95,000 MT per annum to 150,000 MT per annum for an approximate period of 90 days. The announcement was made after market hours yesterday, 30 September 2019.
On domestic macro front, the headline seasonally adjusted IHS Markit India Manufacturing PMI was at 51.4 in September, unchanged from August and thereby posting its joint-lowest reading since May 2018. The figure still showed an improvement in the health of the sector, although one that was historically subdued.
The index of Eight Core Industries carrying 40.27% weight of items included in the Index of Industrial Production (IIP) has declined by 0.5% in August 2019 as compared to the index of August 2018. The index of Eight Core Industries has moved up 2.4% in April to August 2019-20.
India's current account deficit (CAD) at $14.3 billion (2% of GDP) in Q1 of 2019-20 narrowed from $15.8 billion (2.3% of GDP) in Q1 of 2018-19, but was higher than $4.6 billion (0.7% of GDP) in the preceding quarter. The CAD contracted on a year-on-year (y-o-y) basis, primarily on account of higher invisible receipts at $31.9 billion as compared with $29.9 billion a year ago.
The fiscal deficit of central government declined 6.3% to Rs 553840 crore in April-August 2019-20 over April-August 2018-19. The fiscal deficit as a percentage of full year estimate stood at 78.7% in April-August 2019-20 compared with 94.7% touched in the corresponding period of last year.
India's external debt was placed at $557.4 billion end-June 2019, recording an increase of $14.1 billion over its level at end-March 2019.
Overseas, European stocks declined after a weak set of economic numbers out of the euro zone. The final reading of Purchasing Managers Index (PMI) manufacturing data for the euro zone in September came in at 45.7, 0.1 higher than the flash estimate but still hitting its lowest level since October 2012. Final new orders came in at 43.4, again better than the flash estimate but also the lowest since October 2012. Germany led the bloc's weakness, its PMI coming in at 41.7.
Most Asian stocks ended higher on Tuesday on hopes that China and the United States could work towards reaching a deal on trade. Chinese markets will be shut for a week from Tuesday to mark 70 years since the founding of the People's Republic of China.
US stocks rose on Monday, helped by gains in Apple, Microsoft and Merck & Co, as investors set aside worries about the US-China trade war.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content