The market declined for second straight trading session on Monday, dragged by weakness in banking and financial stocks. Negative cues from other Asian indices put pressure on the bourses.
The barometer index, the S&P BSE Sensex, fell 155.24 points or 0.40% to 38,667.33. The Nifty 50 index fell 35.15 points or 0.31% to 11,477.25.
There were more sellers than buyers. On the BSE, 782 shares rose and 1711 shares fell. A total of 157 shares remain unchanged.
In the broader markets, the S&P BSE Small-Cap index fell 1.21%. The S&P BSE Mid-Cap index fell 1.13%.
The Nifty saw a gap-down opening and extended losses as the session progressed. The index hit fresh intraday low of 11,390.80 in early afternoon trade. Buying emerged at lower levels, pushing the Nifty above 11,500 mark in the mid-afternoon trade. After some volatility, it finally managed to close above 11,450 level.
In the foreign exchange market, the partially convertible rupee edged lower and was hovering at 70.765, compared with its close of 70.565 during the previous trading session.
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In the commodities market, Brent crude for December 2019 settlement was down 71 cents at $60.33 a barrel. The contract fell 70 cents or 1.13% to settle at $61.04 a barrel in the previous trading session.
Overseas, shares in Europe were mixed while most Asian shares ended lower on Monday. China's factory activity shrank for the fifth straight month in September. The official Purchasing Managers' Index (PMI) was at 49.8 in September, slightly higher than 49.5 in August, data from the National Bureau of Statistics (NBS) showed.
In Eurozone, British PM Boris Johnson, on Sunday, 29 September 2019, said that he would not step down even if he fails to secure a deal to leave the European Union (EU). He also added that, only his Conservative Party would be able to deliver a Brexit on the stated 31 October 2019.
On the data front, the euro zone's jobless rate fell to its lowest level in more than 11 years during August. The EU's statistics agency said on Monday that the unemployment rate fell to 7.4% from 7.5% in July, hitting its lowest since May 2008.
A final estimate of UK second quarter GDP (gross domestic product) showed the British economy contracting by 0.2%.
US stocks fell on Friday after reports that the Trump administration was considering delisting Chinese companies from US stock exchanges, raising worries about a further escalation in the US-China trade war.
On the equity front back home, banks shares declined sharply. Among private sector banks, IndusInd Bank (down 6.84%), Federal Bank (down 3.57%), ICICI Bank (down 3.51%), Axis Bank (down 2.31%) and HDFC Bank (down 1.35%).
Yes Bank was down 15.06% to Rs 41.45. The stock plunged 26.05% in four trading sessions from a recent closing high of Rs 56.05 on 24 September 2019.
Yes Bank said it received acknowledgment from the Reserve Bank of India to go ahead with the proposed increase in its authorized share capital. The bank shall now seek necessary shareholders' consent and proceed expeditiously with its capital raise. The announcement was made before market hours today, 30 September 2019.
Among state-run banks, Syndicate Bank (down 6.81%), Indian Bank (down 6.15%), Andhra Bank (down 6.03%) and State Bank of India (down 3.68%).
Shares of Lakshmi Vilas Bank (LVB), a scheduled commercial bank, was locked in 5% lower circuit at Rs 34.75 after the Reserve Bank of India placed the bank under prompt corrective action (PCA) framework with effect from 27 September 2019.
On Friday, 27 September 2019, shares of LVB fell 4.94% after the Economic Offences Wing (EOW) of the Delhi Police registered a case against the bank alleging misappropriation of Religare Finvest's fixed deposits held in the bank.
In early of April 2019, LVB announced its plan to merge with Indiabulls Housing Finance. The merger was approved by the Competition Commission of India (CCI) On 21 June 2019.
Shares of Indiabulls Group companies slumped after the Delhi High Court admitted petitions to probe Indiabulls Housing.
Indiabulls Integrated Services (down 4.98%), Indiabulls Real Estate (down 9.91%), Indiabulls Ventures (down 19.98%) and Indiabulls Housing Finance (down 34.39%) slumped.
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.
IT shares bucked weak market trend. HCL Technologies (up 3.76%), Oracle Financial Services Software (up 3.52%), Infosys (up 2.93%), TCS (up 2.06%), Tech Mahindra (up 1.60%), Hexaware Technologies (up 1.52%) and Wipro (up 1.42%).
Asian Paints fell 0.71% to Rs 1763.70 after a global research firm reportedly downgraded the stock to 'equalweight' from 'overweight' with a target price of Rs 1,820 per share. The brokerage reportedly said that Asian Paints is a long-term player and expects it to yield a balanced risk-reward ratio at the current market price.
Drug major Cipla lost 3.28%. The company informed that the United States Food and Drug Administration (USFDA) conducted a cGMP inspection at our Goa manufacturing facility from 16 to 27 September 2019. The inspection ended with 12 observations, none of which are related to data integrity. The company will respond to the agency within the stipulated timeline. The announcement was made on Saturday, 28 September 2019.
Reliance Nippon Life Asset Management fell 2.13%. Nippon Life Insurance Company of Japan completed the acquisition of 75% stake in Reliance Nippon Life Asset Management. With this latest acquisition, Nippon Life's total gross investment for Reliance Nipoon Life Asset Management stake is now over Rs 7,800 crore.
Shares of HDIL slumped 4.91%. The managing director of the crisis-hit Punjab and Maharashtra Cooperative Bank (PMC), Joy Thomas, has reportedly admitted to the RBI that the bank's actual exposure to HDIL is over Rs 6,500 crore, or a staggering 73% of its entire assets of Rs 8,880 crore. As per regulations, single entity exposure limit for banks is 15% of their capital fund. For group companies, the exposure limit is 20%. Thus, PMC's exposure to HDIL is almost four-times of what RBI mandates.
In the primary market, the initial public offer (IPO) of Indian Railway Catering and Tourism Corporation (IRCTC) opened for bidding today. As of 16:45 IST, the issue received bids for 1.56 crore shares and it was subscribed 78%.
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. IRCTC, a Mini Ratna public sector enterprise under the administrative control of Ministry of Railways, is the sole entity authorized by Indian Railways (IR) to provide catering services to railways, online railway tickets and packaged drinking water at railway stations and trains in India. Additionally IRCTC along with Balmer Lawrie & Company and Ashok Travels & Tours, are the three entities permitted by the Government of India to offer air ticketing service to different ministries at both the Central and State Government level.
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