The market declined for second straight trading session on Monday, dragged by weakness in financial stocks. Negative cues from other Asian indices also put pressure on the bourses.
The barometer index, the S&P BSE Sensex, fell 155.24 points or 0.4% to 38,667.33, as per the provisional closing data. The Nifty 50 index fell 34.05 points or 0.3% to 11,478.35, as per the provisional closing data.
On the BSE, 788 shares rose and 1705 shares fell. A total of 157 shares remain unchanged. In Nifty 50 index, 24 stocks advanced and 26 stocks declined.
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.
On the domestic macro front, India's infrastructure output data for August will be unveiled after market hours on today, 30 September 2019.
The initial public offer (IPO) of Indian Railway Catering and Tourism Corporation (IRCTC) opened for bidding today. As of 15:15 IST, the issue received bids for 1.28 crore shares and it was subscribed 64%.
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.
Bank stocks witnessed selling pressure. The S&P BSE Bankex was down 2.53% at 32,927.37. The Bank Nifty index was down 2.53% at 29,120.30
Private sector bank stocks tumbled. Yes Bank (down 14.75%), RBL Bank (down 10.43%), IndusInd Bank (down 7.69%), ICICI Bank (down 3.53%), Axis Bank (down 2.33%) and HDFC Bank (down 1.06%) declined.
PSU Banks witnessed heavy selling. Union Bank of India (down 5.81%), Syndicate Bank (down 5.06%), Bank of India (down 4.92%), Canara Bank (down 3.77%), State Bank of India (down 3.54%), Allahabad Bank (down 3.21%), Bank of Baroda (down 2.42%), Oriental Bank of Commerce (down 2.27%) and Punjab National Bank (down 1.75%) sank.
Shares of IT companies bucked weak market trend. Oracle Financial Services Software (up 5.03%), HCL Technologies (up 3.73%), Infosys (up 3.11%), Mphasis (up 2.44%), TCS (up 2.07%), Zensar Technologies (up 1.72%), Tech Mahindra (up 1.27%), Wipro (up 1.18%) and Hexaware Technologies (up 0.77%) advanced. The BSE IT index was up 2.35% at 15,671.57. The Nifty IT index was up 1.92% at 15,529.65.
Shares of Indiabulls Group companies tumbled 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 33.43%) 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.
Cipla lost 3.22% after 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.
Tata Power Company was up 0.72% to Rs 62.55. Tata Power Company said its wholly-owned subsidiary Tata Power Solar Systems has won bid of one of the largest floating solar plants in the world worth approx. Rs 343 crore to be installed at NTPC Kayamkulam in Kerala. The announcement was made after market hours on Friday, 27 September 2019.
Kajaria Ceramics was down 0.5%. Kajaria Ceramics announced after market hours on Friday, 28 September 2019, that its wholly-owned subsidiary, Kajaria Tiles, started commercial production of tiles on 29 September 2019 at its manufacturing facility situated near Srikalahasti, Andhra Pradesh. The capacity of the said manufacturing facility of KTPL will be 5 million square metres (MSM) tiles per annum.
Reliance Nippon Life Asset Management was down 1%. 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.
Kalpataru Power Transmission rose 3.39% to Rs 489.65 after the company said it secured new orders worth about Rs 775 crore in T&D business from government and private clients. Kalpataru Power Transmission (KPTL) and its international subsidiary have secured new orders/notification of award of approximately Rs 775 crore in T&D business from government and private clients. The announcement was made during trading hours today, 30 September 2019.
Asian Paints fell 1.20% to Rs 1,755 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.
Overseas, most shares in Europe and Asia edged 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.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
