Sensex down 173 points; midcaps outperform

CNBC

Market at Close: A sharp selloff in the last hour of trade weighed on equity benchmarks on Wednesday, with the Nifty giving up 11,700-mark. Weakness among giant index names such as Reliance Industries, HDFC Bank, and Infosys, among others, dragged the market lower as well. 

Banks had a negative impact on the market, along with energy stocks, infra, IT and pharmaceutical names. However, PSU banks and metals tried to offset the losses, but bulls had the tide in their favour. 
However, there was a strong upmove in the broader markets, with the Nifty Midcap index ending just around half a percent higher. The index had managed to soar a percent during the day’s trade. 
Rise in crude oil prices due to withholding of supply by Iran as well as a depreciating rupee too added to the negative sentiment. The Indian currency managed to fall to a fresh record low of 70.57 per US dollar. Analysts that Moneycontrol spoke to attributed this to the month-end dollar demand by oil companies. 
“As such, all other factors are supportive of the currency. It could see appreciation after one or two days once this demand is out of the market,” Rushabh Maru, Research Analyst at Anand Rathi Shares and Stock Brokers told Moneycontrol. For the very short term, he expects support to be around 70.20/USD and resistance around 70.75/USD.
At the close of market hours, the Sensex closed 173.70 points or 0.45% lower at 38722.93, while the Nifty fell 46.60 points or 0.40% at 11691.90. The market breadth is negative as 1,275 shares advanced, 1,415 shares declined, while 172 shares were unchanged.
ONGC, SBI, Bajaj Finance and UPL are the top gainers, while Coal India, RIL and Power Grid have lost the most. 
Promoter increased stake in company: Shares of Indiabulls Real Estate rose 9 percent as company promoters increased their stake in the company.
The company's promoters have increased their stake from 36.9 percent in the quarter ended March 2018 to 38.6 percent in the quarter ended June 2018.
At 14:21 hrs Indiabulls Real Estate was quoting at Rs 152.45, up Rs 9.80, or 6.87 percent on the BSE.
Buzzing: Shares of Cadila Healthcare fell 2.5 percent after US health regulator has issued five observations after inspection of its subsidiary Liva Pharmaceuticals' injectables manufacturing facility.
"This was a product specific pre-approval inspection. It concluded with 5 observations. Liva will respond to United States Food and Drug Administration (USFDA) within 15 days. It may be noted that at present Liva does not export any products to the US market," Cadila Healthcare said in a filing to BSE.
The injectables facility is located at Vadodara.
USFDA conducted the inspection from August 20-28. Liva is a 100 percent subsidiary of Cadila Healthcare. 
Market Update: Consolidation has continued on the market throughout the morning and the noon session as well. The Nifty is managing to hold 11,700, while the Sensex is down around one-tenth of a percent. 
The Sensex is down 42.73 points or 0.11% at 38853.90, while the Nifty is down 17.00 points or 0.14% at 11721.50. The market breadth is narrow as 1,232 shares advanced, against a decline of 1,210 shares, while 150 shares were unchanged.
Losses in IT, infrastructure, energy, and FMCG names are being offset by metals, PSU banks, and automobiles.  The midcap index has maintained its outperformance over benchmarks, up around 1 percent. 
ONGC, State Bank of India, and UPL are the top gainers, while Coal India and IndusInd Bank have lost the most.  
Physical delivery of derivatives to attract same STT as cash: The tax incidence on the settlement of derivative contracts by taking physical delivery of securities is set to increase tenfold when compared to those who settle in cash, according to a report in The Economic Times. The Bombay High Court was apprised by the Central Bureau of Direct Taxes (CBDT) that physical settlement in the equity and derivatives segments will attract the same securities transaction tax.
The delivery of shares worth Rs 1 crore will now be taxed Rs 10,000 as opposed to Rs 1,000 previously.
A two-member bench comprising of Justice MS Karnik and BR Gavai had sought an explanation from the taxman following a petition filed by members of the National Stock Exchange (NSE). The ambiguity over the tax liability on securities transactions came to the fore after the exchange moved 46 stocks in the futures and options segment to the compulsory delivery category.
This change was made applicable since July. The market regulator also passed an order whereby equity derivatives were ordered to shift to physical settlement in a staggered manner.   
Partnership: Glenmark Pharmaceuticals Europe has entered into a strategic, exclusive licensing agreement for marketing generic Tiotropium Bromide dry powder inhaler, used in the treatment of chronic obstructive pulmonary disease, in Western Europe.
Glenmark Pharmaceuticals EVP & Business Head of Europe and Latin America Achin Gupta said, respiratory is a core area of focus for Glenmark and this deal shows our commitment to increase product offerings within this segment.
"There is significant opportunity in the inhalers market and we believe that this deal will give further impetus to Glenmark's growth in Europe," he added.
Expert on rupee: “The weakness could be on the back of month-end demand (for dollars) from oil companies. As such, all other factors are supportive of the currency. It could see appreciation after one or two days once this demand is out of the market,” Rushabh Maru, Research Analyst at Anand Rathi Shares and Stock Brokers told Moneycontrol. For the very short term, he expects support to be around 70.20/USD and resistance around 70.75/USD.
Market Update: Equity benchmarks have continued to trade flat, amid a weak rupee. The Indian currency managed to hit an all-time low of 70.4012 to the US dollar on the back of renewed demand for dollars as well as oil price hike too.  
Banks are back in the green, while there has been a sharp uptick in metals as well. The Nifty Metal index is up over 2 percent. The Nifty PSU bank index is also higher by 1.5 percent. Meanwhile, strength in midcaps has continued, with the index up around 1 percent. 
The Sensex is up 11.14 points or 0.03% at 38907.77, while the Nifty is down 2.50 points or 0.02% at 11736.00. The market breadth is positive as 1,279 shares advanced, against a decline of 935 shares, while 138 shares are unchanged.
Vedanta, State Bank of India, and UPL are the top gainers, while Coal India, IndusInd Bank, and HCL Tech have lost the most. 
Rupee hits all-time low: The Indian rupee has hit a fresh record low of 70.4012 to the US dollar.
The currency had a weak start to the day as well, falling 22 paise to 70.32 against the US dollar, hurt by fresh demand for the American currency from importers.
Traders said besides fresh demand of the US currency from importers, dollar's strength against some currencies overseas weighed on the domestic unit.
Yesterday, the local currency had bounced back in a tepid fashion from the record closing low, gaining 6 paise to end at 70.10 against the US currency.
Experts also told CNBC-TV18 that increased demand for oil as well as in the defence space is putting pressure on the currency.
Market Update: Following days of rally in the market, benchmarks have taken a pause on Wednesday morning. The Sensex and Nifty are trading flat, with the latter managing to hold 11,700-mark. The Bank Nifty is trading flat, but PSU bank index is higher by around half a percent. 
Weakness in IT and FMCG is being offset by metals and pharma. Midcaps have had a strong start, outperforming the benchmarks. The Nifty Midcap index is up almost a percent. 
Among shares, State Bank of India is up almost a percent on the back of its plan to sell stake in NSE. Meanwhile, Jet Airways is up over a percent after it received 300 million dollar liquidity support from banks.  
The Sensex is up 0.55 points or 0.00% at 38897.18, while the Nifty is down 6.00 points or 0.05% at 11732.50. The market breadth is positive as 1,046 shares advanced, against a decline of 626 shares, while 98 shares were unchanged.
SBI gains on stake sale in NSE: Shares of State Bank of India (SBI) gained 1 percent in the opening trade on Wednesday as company received approval to initiate sale of up to 3.9% of bank's stake in NSE.
"The appropriate authority has accorded approval to explore and initiate the process of divestment upto 3.8958 percent of stake of SBI in National Stock Exchange of lndia through secondary sale," as per company release.
The share touched its 52-week high Rs 351.50 and 52-week low Rs 232 on 26 October, 2017 and 27 April, 2018, respectively.   
Jet Airways continues to soar:Shares of Jet Airways rose 3 percent on Wednesday morning as investors cheered the ‘liquidity support’ of USD 300 million that the firm received.
The stock touched an intraday high of Rs 302.70 and an intraday low of Rs 296.00.
The airline announced that it got USD 300 million in the form of advance lease incentives and borrowings from domestic banks, news agency PTI reported.
The company got a liquidity support of USD 300 million towards lease incentives and bank borrowings, Jet Airways deputy chief executive and chief financial officer Amit Agarwal today said in an analysts call.
Market opens: After days of positive openings, it is a flat start for equity benchmarks on this Wednesday morning, with the Nifty managing to hold 11,700-mark. 
The Sensex is down 11.77 points or 0.03% at 38884.86, while the Nifty is lower by 10.70 points or 0.09% at 11727.80. The market breadth is positive as 518 shares advanced, 310 shares declined, while 59 shares were unchanged.
Banks are trading mixed, as the Bank Nifty is trading lower by one-fifth of a percent, while the PSU bank index is up over half a percent. Metals have further extended their gains from previous sessions. IT and pharma are witnessing some cooling off. Among broader markets, midcaps are higher by 0.25 percent.  
Vedanta, State Bank of India, and GAIL are the top gainers, while Axis Bank, Coal India, and Lupin are the top losers. 
Market at pre-open: The pre-opening rates indicate flat to positive start for the market with Nifty trading above 11,760, while Sensex crosses 30,000 level.
At 09:03 hrs IST, the Sensex is up 112.57 points or 0.29% at 39009.20, and the Nifty up 22.30 points or 0.19% at 11760.80.
BPCL, SBI, YEs Bank, JSW Steel and Adani Enterprises are among the major gainers on Indices, while Lupin trading down in pre-opening trade.