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Shares slide amid volatility on rupee woes, rising crude prices

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Capital Market
Last Updated : Oct 09 2018 | 4:31 PM IST

Key equity indices ended with modest losses, dragged by weakness in Reliance Industries, Tata Motors and ITC, as investors remained on the sidelines ahead of corporate results and weakening global cues. Falling rupee and boiling crude oil prices also put pressure on bourses. Trading was volatile throughout the session as indices swung between gains and losses in the intraday.

The Sensex fell 174.91 points or 0.51% to settle at 34,299.47. The index rose 237.30 points, or 0.69% at the day's high of 34,711.68. The index fell 240.88 points, or 0.70% at the day's low of 34,233.50.

The Nifty 50 index fell 47 points or 0.45% to settle at 10,301.05. The index rose 49.55 points, or 0.48% at the day's high of 10,397.60. The index fell 68.70 points, or 0.66% at the day's low of 10,279.35.

Among secondary barometers, the BSE Mid-Cap index fell 0.16%. The BSE Small-Cap index fell 0.45%.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1024 shares rose and 1591 shares fell. A total of 151 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Consumer Durables index (down 3.91%), the S&P BSE Auto index (down 2.62%), the S&P BSE Oil & Gas index (down 1.92%), the S&P BSE FMCG index (down 1.68%), the S&P BSE Consumer Discretionary Goods & Services index (down 1.47%), the S&P BSE Energy index (down 1.43%), the S&P BSE Industrials index (down 1.25%), the S&P BSE Realty index (down 1.06%), the S&P BSE Telecom index (down 0.81%), the S&P BSE Power index (down 0.62%) and the S&P BSE Utilities index (down 0.62%), underperformed the Sensex. The S&P BSE Bankex (down 0.47%), the S&P BSE Basic Materials index (down 0.35%), the S&P BSE Capital Goods index (down 0.25%), the S&P BSE IT index (up 0.18%), the S&P BSE Teck index (up 0.23%), the S&P BSE Finance index (up 0.30%), the S&P BSE Healthcare index (up 1%) and the S&P BSE Metal index (up 1.01%), outperformed the Sensex.

Index major Reliance Industries fell 1.58% to Rs 1,090.40. Another index heavyweight ITC fell 1.81% to Rs 268.50.

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Auto major Tata Motors fell 13.40%. Jaguar Land Rover (JLR) reported total retail sales of 57,114 vehicles in September 2018, down 12.3% year on year despite strong sales for new models including the Range Rover Velar and the Jaguar I-PACE and E-PACE. The announcement was made after market hours yesterday, 8 October 2018.

State-run Coal India (up 1.96%) and NLC India (up 2.21%) have signed a memorandum of understanding (MoU) for formation of joint venture (JV) company for solar power generation of 3,000 MW and thermal power projects of 2,000 MW capacity. The announcement was made after market hours yesterday, 8 October 2018.

Sugar shares were in demand. Dhampur Sugar Mills (up 12.39%), Dwarikesh Sugar Industries (up 10.46%), Balrampur Chini Mills (up 9.85%), Triveni Engineering & Industries (up 9.08%), KCP Sugar & Industries Corporation (up 6.82%), DCM Shriram Industries (up 5.49%), Sakthi Sugars (up 4.94%), Simbhaoli Sugars (up 4.92%), EID Parry (India) (up 3.84%), Shree Renuka Sugar (up 3.3%), Rana Sugars (up 3.25%) and Bajaj Hindusthan Sugar (up 0.21%), edged higher.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 74.325, compared with its close of 74.06 during the previous trading session.

In the global commodities markets, Brent for December 2018 settlement was up 85 cents at $84.76 a barrel. The contract had fallen 25 cents, or 0.30% to settle at $83.91 a barrel during the previous trading session.

India's growth is expected to increase to 7.3% in 2018 and to 7.4% in 2019 (slightly lower than in the April 2018 World Economic Outlook (WEO) for 2019, given the recent increase in oil prices and the tightening of global financial conditions), up from 6.7% in 2017, the International Monetary Fund (IMF) said in its latest World Economic Outlook report. This acceleration reflected a rebound from transitory shocks (the currency exchange initiative and implementation of the national Goods and Services Tax), with strengthening investment and robust private consumption. India's medium-term growth prospects remain strong at 7.75%, benefiting from ongoing structural reform, but have been marked down by just under 50 percentage point relative to the April 2018 WEO, the fund noted. If projections are true, then India would likely retain the tag of fastest growing major economies of the world.

Meanwhile, the National Housing Bank (NHB) has decided to increase the Refinance limit to Rs.30,000 crore. Now, eligible Housing Finance Companies & Other entities will have increased availability of funds. National Housing Bank had set an initial limit to sanction Rs 24,000 crore this year (July 2018-June 2019) towards refinancing eligible institutions. Till date, Rs 8835 crore has been sanctioned. This refinancing is a credit flow to Housing Finance Companies & other Institutions.

National Housing Bank (NHB) is the Principal Agency to promote Housing Finance Institutions, currently 97 in number, and to provide financial support to eligible institutions. As a regulator, National Housing Bank regularly monitors the liquidity position of Housing Finance Companies.

Overseas, European shares declined amid simmering tensions between Italy and the European Union (EU) over the former's 2019 budget. Traders are closely monitoring the political situation in Italy, where tensions are growing between Rome and Brussels over the new coalition government's first budget and deficit targets.

Asian shares ended mixed on Tuesday as China allowed its currency to slip past a psychological bulwark amid sharp losses in domestic share markets, a shift that pressured other emerging currencies to depreciate to stay competitive. South Korea's markets are closed for a public holiday.

IMF added to the malaise by cutting forecasts of global growth for both this year and next, including downgrades to the outlook for the United States, China and Europe.

In US, the Dow Jones Industrial Average bounced back from earlier losses to finish higher Monday, but the broader stock market closed lower as fears over rapidly rising rates continued to weigh on sentiment. The market was influenced by worries that US economic growth may be jeopardized by higher interest rates.

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First Published: Oct 09 2018 | 4:21 PM IST

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