Domestic shares tumbled across the board on Monday as dismal global cues and rising COVID-19 cases triggered profit selling. The barometer index, the S&P BSE Sensex, fell 811.68 points or 2.09% at 38,034.14. The Nifty 50 index lost 254.40 points or 2.21% at 11,250.55.
The broader market underperformed the benchmarks. The BSE Mid-Cap index declined 3.43% and the BSE Small-Cap index lost 3.61%.
Sellers outpaced buyers. On the BSE, 595 shares rose and 2165 shares fell. A total of 178 shares were unchanged.
F&O Market:
The Nifty September 2020 futures were at 11,226.10, a premium of 3.9 points compared with the Nifty's spot closing of 11,222.20.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, jumped 13.02% at 22.655.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 31,028,757 with 9,60,698 deaths. India reported 10,03,299 active cases of COVID-19 infection and 87,882 deaths while 43,96,399 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
India-China standoff:
In Ladakh Region, India and China are engaging in Commander level Talks for the 6th time at Moldo, in Chinese side of Line of Actual Control. The Core Commanders are sitting across the table after a gap of one and half month to discuss the border situation. This is a significant development as far as the talks between India and China to arrive into certain implementable decisions to restore the peace and tranquility in the region.
Economy:
India Inc's business sentiment has improved during July-September quarter as the government gradually unlocked the economy and business activity resumed, according to the CII's business outlook survey. The latest CII Business Confidence Index has surged to the level of 50.3 in July-September 2020, bouncing back from its lowest reading of 41 recorded in April-June 2020, the industry chamber said in a statement.
Parliament passes two farm bills:
Parliament passed two bills aimed at transforming agriculture in the country and raising farmers' incomes. The Farmers' Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 and The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020 which were passed by Lok Sabha on 17 September 2020, were passed by the Rajya Sabha on 20 September.
The new legislation will create an ecosystem where the farmers and traders will enjoy freedom of choice of sale and purchase of agri-produce. It will also promote barrier-free inter-state and intra-state trade and commerce outside the physical premises of markets notified under State Agricultural Produce Marketing legislations. The farmers will not be charged any cess or levy for sale of their produce and will not have to bear transport costs.
The Bill also proposes an electronic trading in transaction platform for ensuring a seamless trade electronically. In addition to mandis, farmers will get freedom to do trading at farmgate, cold storage, warehouse, processing units, etc. Farmers will be able to engage in direct marketing thereby eliminating intermediaries resulting in full realization of price. Farmers in Punjab, Haryana and several others states have been protesting against the new legislations ever since the bills cleared Lok Sabha earlier last week.
Numbers to Watch:
The yield on 10-year benchmark federal paper rose to 6.015% as compared with 6.014% at close in the previous trading session.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 73.3850, compared with its close of 73.4550 during the previous trading session.
In the commodities market, Brent crude for November 2020 settlement fell 97 cents at $42.18 a barrel. The contract fell 15 cents, or 0.35% to settle at $43.15 a barrel in the previous trading session.
Foreign Markets:
The US Dow Future slumped 524 points on Monday, indicating a weak start to Wall Street today.
Shares in Europe and Asia tumbled on Monday. Meanwhile, Hong Kong-listed shares of HSBC and Standard Chartered and slipped 2% to 5% today following reports that they allegedly moved large sums of suspicious funds. The moves came after the banks among several global lenders were identified in media reports as having allegedly moved suspicious funds over a period of nearly two decades, according to media reports.
The US stocks declined for third straight session on Friday, 18 September 2020, with the major averages finished firmly into negative territory, on rising tensions between the world's two largest economies after Trump administration announcement to ban Chinese-owned apps TikTok and WeChat from US app stores starting late on Sunday.
Meanwhile, selloff also fuelled amid renewed concerns about the economic outlook following the Federal Reserve's monetary policy announcement on Wednesday. While the Fed indicated it plans to leave interest rates at near-zero levels for years to come, traders seem skeptical that will be enough to support the economy.
US consumer sentiment index climbed to 78.9 in September from 74.1 in August, the University of Michigan released a report on Friday. The index reached its highest level since March but is still well below the pre-pandemic reading of 101.0 seen in February.
Buzzing Segments:
The Nifty Bank index fell 3.36% to 21,290.10 after Financial Crimes Enforcement Network (FinCEN) leaks reportedly said almost all Indian banks could be part of suspicious transactions.
IndusInd Bank (down 8.67%), RBL Bank (down 6.39%), IDFC First Bank (down 5.31%), ICICI Bank (down 5.15%), Bank of Baroda (down 4.88%), Axis Bank (down 4.52%) and Federal Bank (down 4.14%) tumbled.
The media reported that between 2010 and 2017, a number of Indian banks (public, private and foreign) helped facilitate transactions red-flagged by the US Treasury Department's Financial Crimes Enforcement Network (FinCEN) for suspected money laundering, terrorism, drug dealing and financial fraud. Indian banks reportedly received $482,181,226 from outside the country and transferred from India $406,278,962. These transactions were red flagged to the US authorities.
Punjab National Bank fell 5.98%. The Financial Regulator of Kazakhstan has revoked the license of JSC Tengri Bank, wherein Punjab National Bank has 41.64% stake, on account of failure to observe prudential standards and other mandatory norms and limits by the JSC Tengri Bank.
HDFC Bank fell 0.82%. With reference to the various media reports related to filing of class action claims by certain US law firm against the bank, HDFC Bank clarified to the bourses it was aware of a complaint filed against it and its three employees in the United States. The lawsuit, which was filed by a single small security holder who seeks to represent a class of the Bank's security holders, is based on allegations that the security holder claims caused a temporary decline in the bank's ADR stock price in July 2020. The bank denied the allegations and intends to defend itself vigorously in the lawsuit. The bank expects its response to the lawsuit to be due in early 2021.
State Bank of India fell 3.53%. The committee of directors for capital raising at its meeting held on 21 September 2020 approved allotment of 70,000 Basel III compliant non-convertible, taxable, redeemable, subordinated, unsecured, fully paid-up debt instruments in the nature of debentures qualifying as Tier II capital of the bank, of face value of Rs 10 lakh each, at par, bearing a coupon of 6.24% per annum payable annually for a tenor of 10 years with call option after 5 years and on anniversary dates thereafter, aggregating to Rs 7000 crore to bond subscribers on 21 September 2020.
Bandhan Bank slumped 7.18%. The bank's collection efficiency ratio reportedly touched 80% at the end of August, and the bank expects collections to normalise by December. The ratio, which is improving on a "daily basis", is likely to be over 90% in October, it reportedly added.
The Nifty Metal index tumbled 5.53% to 2,231.55. The index has lost 6.88% in three sessions.
Jindal Steel & Power (down 11.67%), Hindalco Industries (down 6.83%), SAIL (down 6.47%), JSW Steel (down 6.03%), Tata Steel (down 5.58%), NALCO (down 5.02%), NMDC (down 4.26%), Hindustan Copper (down 4.11%), Hindustan Zinc (down 3.44%) and Vedanta (down 1.75%) tumbled.
Stocks in Spotlight:
Tata Metaliks slipped 5.50%. The company on Saturday (19 September 2020) informed about the execution of a planned shutdown of one of its blast furnaces and its associated facilities at the company's Kharagpur plant for repair & maintenance including hearth profiling. The operations are expected to be back on stream in 2nd half of October 2020, it added.
Amber Enterprises India fell 3.14%. The company said that it had acquired 9,000 equity share of face value of Rs 1000 each, comprising of 20% stake, of Sidwal Refrigeration Industries. Accordingly, Sidwal Refrigeration Industries has become a wholly-owned subsidiary of Amber Enterprises India with effect from 18 September 2020.
Mangalore Refinery and Petrochemicals (MRPL) lost 2.43% after the company said its shareholders approved the proposal to raise upto Rs 5,000 crore through issue of unsecured non-convertible debentures (NCDs)/bonds.
GOCL Corporation soared 5.72% after the company said its UK subsidiary will garner about Rs 257 crore by paring stake in Quaker Houghton.
Ramco Systems rose 4.11% at Rs 393.60 after the company said it signed an agreement with CHI Aviation for delivering the full suite Ramco Aviation Software. The agreement comprises maintenance & engineering, supply chain, MRO sales, flight operations, manufacturing, and finance.
RITES fell 3.39%. The company said that it had secured a contract for railway electrification works on competition basis amounting to Rs 474.92 crore.
On Friday, 18 September 2020, RITES said its board of directors has approved buyback of 96,98,113 equity shares at Rs 265 per share, translating into the total buy back amount not exceeding Rs 257 crore. The board fixed 30 September 2020 as record date for the purpose of ascertaining the eligibility of shareholders for the buyback.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
