Sensex sinks 1624 points, Nifty ends at 7809 on global turmoil

24 Aug 2015

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03:30 pm Biggest single day fall in 2015: The market saw the biggest single day fall in 2015. The Sensex crashed 1,624.51 points or 5.94 percent to 25741.56.

The Nifty managed to hold 7800 level after hitting day's low of 7769.40. The index fell 490.95 points or 5.92 percent to 7809.

The market breadth was pathetic as about 2477 shares declined against 318 shares advanced on the Bombay Stock Exchange.

Today's carnage wiped out more than Rs 7 lakh crore market capitalisation.

Banks, metals, oil and capital goods stocks crumbled today. Vedanta, GAIL, Tata Steel, ONGC, Reliance Industries and Cairn India were the biggest losers, down 9-15 percent. However, only NMDC closed in green on Nifty 50.

03:25 pm Market Expert: Deven Choksey of KR Choksey Investment Managers said, "Currently we are more gripped with fear and as a result of which the larger part of the fall is also due to having a fear factor which is prevalent in the minds of the traders."

"From economic point of view things are not looking as bad, maybe from the market point of view certainly some position unwinding, some amount of hot money pulling out of the system. Those kinds of situation affect us with the sentiment and prices in the market. However, the best thing to do in this kind of a market situation is to stay calm and wait for the opportunity to come at a respective level," he added.

03:15 pm Panic selling: The Sensex fell 1,706.31 points or 6.24 percent at 25659.76, and the Nifty was down 509.30 points or 6.14 percent at 7790.65.

About 305 shares have advanced, 2485 shares declined, and 54 shares are unchanged on the BSE.

03:10 pm IOC OFS: The offer for sale of Indian Oil Corporation has been subscribed 66 percent so far, reports CNBC-TV18.

The issue received bids for 16,01,86,989 shares against issue size of 24,27,95,248 shares.

The company intends to sell 10 percent stake in IOC and to garner more than Rs 9,000 crore through this issue.

As of June 2015, the government has 68.57 percent stake in company.

03:00 pm Market Update: The market remained under pressure as the Sensex dropped 1,486.51 points or 5.43 percent to 25879.56 and the Nifty declined 443.65 points or 5.35 percent to 7856.30.

About 271 shares have advanced, 2462 shares declined, and 48 shares are unchanged on the BSE.

Only one stock was trading in green in Nifty 50, which was NMDC (up 0.5 percent).

02:50 pm Rate cut?: Interest rate cuts should only be delivered after sustained low inflation, and not as "goodies" doled out after public pleading, Reserve Bank of India Governor Raghuram Rajan said.

"Rate cuts should not be seen as goodies that the RBI gives out stingily after much public pleading," Rajan said in a speech to a banking event.

"Instead, what is important is sustained low inflation," he added. "And rate cuts are a natural consequence that the RBI has no hesitancy in delivering."

The comments come as corporate executives and Finance Minister Arun Jaitley is stepping up pressure on the RBI to cut rates as the economy struggles and price rises slow.

The RBI kept its policy rate on hold at 7.25 percent, at its last policy review earlier this month, while leaving the door open to ease further depending on the inflation outlook and how swiftly banks lower their lending rates.

02:35 pm FM on market crash: Finance Minister Arun Jaitley said there has been a great amount of turbulence in the global markets since last few days. Factors responsible for this are entirely external and not a single domestic factor that has added to it or contributed to it, he added.

"I have no doubt that once these transient factors are over, the markets in India will settle down, restore back. The RBI has already said that it's watching the situation very closely and is conscious of its responsibility on what is to be done under the circumstances," he said.

02:20 pm Expert on China: Contrary to perception that China devalued the yuan to boost economic growth, an Edelweiss report suggests the move was aimed at curbing capital outflows.

The report argues that despite a stronger yuan, China's share in world exports had increased and that a 4-5 percent yuan devaluation would hardly have any impact considering weakening of other emerging markets (EMs) currencies.

In an interview with CNBC-TV18, Nirav Sheth of Edelweiss says:''The fact that the biggest problem that China faces at this point of time is that there are growth pangs in the system."

This, he says, can be controlled through monetary policy.

''China, for the first time, seems be losing control of its monetary policy that is something that we need to worry about in terms of if China cannot handle the capital outflows,'' he says

Discussing the impact on India, he says rupee depreciating against the dollar would be felt in corporate earnings, especially in industrial and pharmaceutical sectors, he says.

Sheth is positive that India will recover soon from the current round of sell-off. ''Economic indicators will be better six months down the line,'' he added.

02:00 pm Market Check
The market crashed further in afternoon trade with the Sensex falling 1,512.95 points or 5.53 percent to 25853.12. The Nifty breached 7900 for the first time since October 2014, down 473.90 points or 5.71 percent to 7826.05.

The broader markets, too, extended losses as the BSE Midcap and Smallcap indices fell over 7 percent. About 275 shares have advanced, 2409 shares declined, and 45 shares are unchanged on the Bombay Stock Exchange.

Vedanta, Tata Steel, ONGC, BHEL, GAIL, Bank of Baroda, PNB and YES Bank were the biggest losers, down 8-14 percent.

The rupee also declined further, down 81 paise to 66.64 a dollar.

02:05 pm Market Check
The market slipped further in the afternoon trade on the back selling pressure. The Sensex is down 1,260.57 points at 26105.50, and the Nifty is down 391.35 points at 7908.60. About 284 shares have advanced, 2370 shares declined, and 39 shares are unchanged.

BHEL, Tata Steel, Vedanta, ONGC, Gail India, YES Bank, Bank of Baroda were down between 8-9 percent.

01:45 pm Europe Update: European markets traded sharply lower, as the selloff in stock markets around the world continued.

London's FTSE 100 index, the German DAX and French CAC all slipped by around 2 percent.

It comes as Friday's losses on Wall Street stretched into Asian trading Monday morning, with China's Shanghai Composite index ending the day down 8.5 percent as panic about the country's economic issues spread.

01:40 pm FII view: Market may have overreacted to global problems, but developing markets are a safer bet right now compared to emerging markets, feels Hartmut Issel of UBS.

Issel says China could ease its monetary policy further in the next few days.

"They are probably going to do it on a Saturday afternoon or a Sunday morning to keep us all busy in this financial mystery," he says.

While UBS is bearish on emerging markets in general, it is "slightly overweight" on India, citing positive improving macro indicators as the reason.

"In India, at least on a consumer price index (CPI) level we are still in a position where are already below the band of comfort zone for the RBI which is good, we are probably not even going to stay there, we are moving within the band by year end," he says.

01:20 pm RE in Indonesia: Royal Enfield, the two-wheeler division of Eicher Motors, today announced its entry into the Indonesian market, with plans to commence retail operations in the Southeast Asian country in the coming months.

The company announced its future plans for Indonesia, the third largest two-wheeler market in the world, as a part of its growth strategy and focused international thrust of leading and expanding the global mid-sized motorcycle segment (250-750cc), Royal Enfield said in a statement.

"Indonesia is a strategic market for Royal Enfield. With its large commuter base, this market has enormous potential to upgrade to the next level of motorcycles, should there be optimal product choice," Royal Enfield, Head of International Business Arun Gopal said.

01:00 pm Market Check
The market extended losses in afternoon trade, dragged by broadbased selling due to global turmoil on Chinese worries. The Sensex crashed 1,120.76 points or 4.10 percent to 26245.31 and the Nifty cracked 352.80 points or 4.25 percent to 7947.15.

The market breadth continued to be weak as about 280 shares have advanced against 2308 shares declined on the Bombay Stock Exchange. BSE Midcap and Smallcap indices plunged 5-6 percent.

Biggest contributors to the Sensex fall were ICICI Bank and Reliance Industries that tanked 5 percent each. HDFC, L&T, Infosys, HDFC Bank and ITC dropped 3-4 percent. ONGC topped the selling list on Sensex, down over 9 percent. Maruti Suzuki also lost 5 percent.

12:35 pm Europe Update: European markets have opened sharply lower following rout in Asia. France's CAC and Germany's DAX dropped over 3 percent. Britain's FTSE slipped 2.5 percent.

Brent crude declined 2.5 percent to USD 44.32 a barrel and NYMEX crude dipped 3.4 percent to USD 39.07 a barrel.

12:20 pm Market Expert: India is on a much better footing than it was in 2008, as far as macro economic indicators like current account deficit and forex reserves go, says Nirmal Jain, Chairman and Managing Director IIFL.

He tells CNBC-TV18 that right now global investors are panicking and redeeming their investments in emerging markets, including those in India.

So the market could drift lower, he says, but cautions investors against selling out in this panic or buying afresh in a hurry.

India's economy will benefit from lower commodity prices, particularly lower crude prices and so investors should not panic, Jain says.

Another positive for the Indian market right now is the strong fund flows into domestic mutual funds. But he says that if the downtrend persists, fund flows into mutual funds could shrink.

12:00 pm Market Check
The market saw biggest ever fall in a single day in 2015, dragged by nervousness across the globe on likely slowdown in Chinese economy. The Sensex crashed 1,045.26 points or 3.82 percent to 26320.81 and the Nifty slipped 322.15 points or 3.88 percent to 7977.80.

Dipen Shah, Head of Private Client Group Research, Kotak Securities said global risk off trade has impacted Indian equity markets also.

India, however, derives some positives from the current global meltdown, he added. "Brent crude, at USD 44 per barrel, will ease the current account deficit further, which will also have a positive impact on inflation. This will be a serious positive for several Indian companies. The rupee depreciation will also be positive for exporting sectors and companies, especially the ones which have large exports to US," he reasoned.

The BSE Midcap plunged 4 percent and Smallcap lost 4.8 percent. About 280 shares have advanced, 2140 shares declined, and 45 shares are unchanged on the Bombay Stock Exchange.

GAIL, BHEL, ONGC, Tata Steel, Vedanta and YES Bank topped the selling list on Sensex, down 5-7 percent.

All sectoral indices continued to be in the red. Bank Nifty plummeted almost 5 percent.

The rupee slumped to a fresh 2-year low, below the 66 mark, down 65 paise to 66.45 a dollar as Asian markets reeled under fears of a China-led global economic slowdown.

The China rout accelerated, leading Asia sell-off.. Markets hit multi-year lows. Shanghai index dropped 7.8 percent even as authorities allowed pension funds managed by local governments to invest in the stock market for the first time.

11:00 am Market Check
Equity benchmarks as well as broader markets continued to get hammered due to bloodbath across the globe, tracking likely slowdown in Chinese economy. The 30-share BSE Sensex slipped 995.44 points or 3.64 percent to 26370.63 and the 50-share NSE Nifty declined 309.45 points or 3.73 percent to 7990.50.

The BSE Midcap and Smallcap indices cracked over 5 percent. More than 10 shares declined for every share advancing on the Bombay Stock Exchange.

All sectoral indices were in the red. Bank Nifty plummeted almost 5.5 percent as stocks like Axis Bank, Yes Bank and ICICI Bank saw cuts of around 5-7 percent each.

The rupee slumped to a fresh 2-year low, below the 66 mark as Asian markets reeled under fears of a China-led global economic slowdown.

The China rout accelerated, leading Asia sell-off. Markets touched multi-year lows. Shanghai index fell over 8 percent even as authorities allowed pension funds managed by local governments to invest in the stock market for the first time. In commodities, crude prices hit fresh 6-year lows.

However, big brokerages remained bullish on India. Geoff Dennis of UBS remained overweight on India within their emerging market portfolio.

Viktor Shvets of Macquarie believes India is relatively better positioned compared to other Asian peers. Edward Morse of Citi Research expects Indian GDP growth to outstrip Chinese & global growth. And James Glassman of JP Morgan Chase says India's outlook is very promising.

ONGC and BHEL topped the selling list on Sensex, down 6.5 percent each.

10:45 am Buzzing: Shares of Astra Microwave Products gained 1 percent on the back of formation of joint venture (JVC) with Rafael Advanced Defence Systems, Israeli.

The company has signed a term sheet for joint production and supply of Tactical Radio Communication systems, Electronic war-fare systems and Signal intelligence systems.

The JVC will operate from Hyderabad and is expected to start business development activities in the first half of 2016. About USD 20 million is expected to be invested in the first two years in the JVC, as per BSE Release.

ASTRA and M/s Rafael will own 51:49 in the JVC and will become 50:50 subject to regulatory approvals.

10:30 am Market Update: The Sensex crashed 1,053.64 points or 3.85 percent to 26312.43 and the Nifty plunged 321.10 points or 3.87 percent to 7978.85.

About 233 shares have advanced, 1895 shares declined, and 36 shares are unchanged on the BSE. Bank Nifty lost over 900 points.

10:20 am Crude below $40/bbl: Crude prices dived in Asia today, with US oil hovering below the key USD 40 a barrel mark amid deepening concerns about weak Chinese economic growth and global oversupply, analysts said.

US benchmark West Texas Intermediate (WTI) for October delivery fell USD 1.04 to USD 39.41 while Brent crude for October eased 91 cents to USD 44.55.

WTI extended losses after briefly dipping to USD 39.86 on Friday in New York -- breaking USD 40 for the first time in six years after data showed an increase in US oil rigs despite ample global supplies.

"Soft manufacturing data from China and continued increase in weekly rig count led to the sharp sell-off" in oil prices, said Sanjeev Gupta, head of the Asia-Pacific oil and gas practice at consultancy EY.

A much weaker-than-expected manufacturing report on Friday also added to concerns energy demand is also waning in China.

10:00 am Market Check
The market continued to be controlled by bears as the frontline indices as well as major sectoral indices like Bank Nifty fell over 3 percent. Worries over Chinese economy dented sentiment across the globe.

The 30-share BSE Sensex dropped 854.57 points to 26511.50 and the 50-share NSE Nifty slipped 264.30 points to 8035.65. The broader markets, too, saw red tick as the BSE Midcap and Smallcap indices declined 3.3 percent and 3.7 percent, respectively.

The market breadth was pathetic as about eight shares declined for every share advancing on the Bombay Stock Exchange.

Timothy Moe, Goldman Sachs said growth risks, reduced policy confidence fueled the equity sell-off. Deteriorating data since June has hurt growth expectations, he added.

Bank Nifty dropped over 3 percent as ICICI Bank, HDFC Bank, State Bank of India, Axis Bank, Punjab National Bank and Bank of Baroda crashed 3-5 percent.

Tata Motors topped the selling list on Sensex, down 6 percent as likely slowdown in Chinese economy may impact luxury car sales growth. Jaguar Land Rover gets 20 percent sales growth from China.

09:50 am Oil Update: Brent and US crude oil futures hit fresh 6-1/2-year lows today as investors fretted that a slowing Chinese economy will lead to weaker demand amid a global supply surplus.

Other commodities also hit fresh lows in early Asian trading as fears spread that a more severe slowdown in China would pull down other economies in the region, denting energy and raw material consumption.

Brent oil LCOc1 was trading down 94 cents at an intraday low of USD 44.52 a barrel, its lowest since March 2009. On Friday, it ended USD 1.16, or 2.5 percent, lower at USD 45.46 a barrel.

US October crude CLc1 fell USD 1.07 to an intraday low of USD 39.38 a barrel, also it lowest since march 2009. In the previous session it settled 87 cents, or 2.1 percent, lower at USD 40.45 a barrel.

09:35 am Market Expert: Chances of Indian equity market bottoming out in the near future cannot be ruled out but danger of making fresh lows would continue to exist, says Sandip Shenoy of Pioneer investcorp.

He believes structural bull trend is intact and capital flows will have to return to India since it is the only growth story around. However, global situation will make volatility part and parcel of our market at least for next few quarters, Shenoy said.

Speaking about the fall, Hemant Thukral says rollovers suggest the market getting ready to rebound in two days.

09:15 am Market Check
The market has opened with a big gap down on carnage across the globe as investors worried over Chinese economic growth. The Sensex fell 883.55 points or 3.23 percent to 26482.52 and the Nifty dropped 244 points or 2.94 percent to 8055.95.

All Nifty stocks traded in red. Tata Motors, Axis Bank, Vedanta, GAIL, ICICI Bank, Yes Bank and Cairn India topped the selling list, down 5-7 percent.

Not only frontline indices, but also broader markets saw panic selling. The BSE Midcap and Smallcap indices slipped over 3.5 percent. Vakrangee, SKS Microfinance, OCL India, IFCI and Gujarat Flourochem lost 8-14 percent.

The Indian rupee has touched a fresh two-year low in early trade today following sharp sell-off in global markets as investors worldwide worried about Chinese economy.

The currency has opened at 66.47 per dollar, the lowest level for the first time since September 2013, down 65 paise compared to 65.83 a dollar seen at Friday's close.

Agam Gupta, StanChart Bank feels the USD-INR will open higher in-line with other emerging market currencies.

He expects the USD-INR to open at Rs 66.25-66.30/USD and trade in a Rs 66.10-66.60/USD range.

"We will keep an eye on supply of USD from local government banks but the move in global markets will remain key for the pair at the moment," Gupta said.

Major markets around the world suffered bruising losses as investors worldwide became increasingly concerned about Chinese economy.

All of the main US indices closed down more than 3 percent on Friday, the fourth consecutive day of falls. The Dow Jones Industrial Average closed down 531 points, or 3.1 percent, to 16,460 – the S&P 500 lost 3.2 percent to 1,971 and the Nasdaq closed down 3.5 percent at 4,706.

In Asia, Shanghai crashed 8.5 percent as new data suggested that Chinese factory activity had slowed to levels last seen in 2009 and added to investors' fears about the country's economy since Beijing devalued its currency last week. Hang Seng, Nikkei, Kospi, Taiwan Weighted and Straits Times plunged 3-5 percent.

US oil prices also crashed down to below USD 40 a barrel a one point, a level not seen since the financial crisis.

The dollar fell to a two-month low against the euro and added to speculation that the Federal Reserve may now not raise US interest rates next month, as had been widely expected by economists.

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