Sensex ends over 450 points lower, Nifty gives up 11,450 as weak rupee weighs

10 Sep 2018

Market at Close: Weak rupee and macro concerns are likely to have weighed on the market on September 10, 2018. The day was largely dominated by the bears, with the benchmarks seeing selling right from the first minute. Along with it, rupee’s weakness ahead added to its woes. The Nifty gave up 11,450-mark

Traders rushed to dump stocks in segments such as automobiles, banks, FMCG, pharmaceuticals, and metals, among others. In the broader markets, selling in midcaps also added to the woes of the bulls. The Nifty Midcap was down 2 percent.

At the close of market hours, the Sensex ended lower by 467.65 points or 1.22% at 37922.17, while the Nifty fell 151.00 points or 1.30% at 11438.10. The market breadth is narrow as 1,056 shares advanced, against a decline of 1,670 shares, while 181 shares were unchanged.

Axis Bank, Wipro, and HCL Technologies were the top gainers, while Sun Pharma, Vedanta, Bajaj Finance and Indiabulls Housing lost the most.

Camlin Fine board to consider FCCBs allotment to IFC: On June 28, 2018 the securities issue and allotment committee passes resolution to raise funds upto USD 15 million through issuance of foreign currency convertible bonds to International Finance Corporation (IFC).

A meeting of the committee is scheduled to be held on or after September 14, 2018 to consider the allotment of FCCBs to IFC and matters related thereto.

Rupee Outlook: "We are looking at the new low for rupee at around 73.20 to the dollar. We expect this weakness to continue as so far there has not been any intervention from RBI," Gaurang Somaiya, Currency Analyst at Motilal Oswal Securities told Moneycontrol.

Considering US-China trade war tensions and the consistent fall in emerging market currencies, the correction is not only restricted to currency but also to equity and other markets, he said, adding the stability in currency market is possible only due to any change in policy from the government and RBI.

He feels the rupee may stabilise around 70-70.50 to the dollar in next 3-6 months if above factors stabilise including crude oil prices.

Buzzing: Shares of Cyient gained 2 percent as company acquired 86 percent stake in subsidiary company Cyient KK, Japan.

Cyient Australia Pty, a wholly owned subsidiary of the company has acquired 86 percent stake in Cyient KK, Japan, which is another wholly owned subsidiary of the company.

Subsequently, the stake of the company in Cyient KK, Japan is 14 percent. This transaction does not materially impact the consolidated financials of the company.

Rupee Update: The rupee weakened further to hit a fresh record low of 72.58 against the US dollar, down 1.1 percent (81 paise).

?"The US non-farm payroll data being better than expected is making the market expect two more interest rate hikes by the US Federal Reserve. One could happen in September and one in December meet. The RBI is nearly non-existent (in its intervention in the currency market) and hence there is speculative buying happening in the market," Rushabh Maru, Research Analyst at Anand Rathi Shares and Stock Brokers told Moneycontrol.

Market Update: Equity benchmarks have continued to trade in the red, with the Sensex falling over 250 points, while the Nifty fell over half a percent.

The Sensex is down 260.68 points or 0.68% at 38129.14, and the Nifty down 83.60 points or 0.72% at 11505.50. The market breadth is negative as 1,027 shares advanced, against a decline of 1,289 shares, while 148 shares were unchanged.

A sharp fall in the Indian rupee is adding to the weakness on Indian market. The currency fell to a record low of 72.49 per US dollar. Analysts that Moneycontrol spoke to attribute this fall to selloff in emerging markets as well as dollar demand among importers as well.

Axis Bank, Adani Ports, Lupin and HCL Tech were the top gainers, while Kotak Mahindra Bank, IndusInd Bank, UltraTech Cement and Bajaj Finserv have lost the most.

Rupee outlook: “The rupee is getting clobbered along with other currencies in the emerging markets pack. High oil prices is affecting the currency idiosyncratically, which is an added factor. Overall, it is the selloff in EM currencies in Argentina, China, South Africa and Brazil, among others that is driving the selloff. Additionally, a combination of intensifying trade wars and strong US economic data supporting interest rate hikes is also leading to the selloff,” Anindya Banerjee, Deputy Vice President, Currency Derivatives, at Kotak Securities told Moneycontrol.

Further, supply vacuum of the dollar is also adding to the woes and leading to speculative moves. “Exporters had hedged their positions when the rupee was trading below 69 per dollar, while importers were grossly unhedged. So, the demand is now coming in from importers, while exporters are looking to cancel it,” he further explained.

Buzzing: Shares of RITES added 5 percent as company secured additional work from Ministry of Railways.

The company secured an additional work of Rs 294.67 crore from Ministry of Railways for doubling of Dharmavaram Penukunda rail lines (41.5 Kms) in South Western Railways.

Earlier, company was awarded doubling work for 90.2 Kms of Dharmavaram Penukunda rail lines in South Central Railways for a cost of Rs 666.38 crore from Ministry of Railways.

Market Update: A sharp selloff in the Indian rupee has dragged equity benchmarks on this Monday morning. The Sensex is down over 200 points, while the Nifty is testing 11,500-mark as well. The Indian currency has seen a steep fall of 59 paise to 72.34 per US dollar. Apart from that, weakness in automobiles, banks and energy names are weighing on indices.

Midcaps, too, are trading in the red, down 0.25 percent on the Nifty Midcap index. Shares of Axis Bank jumped 5 percent after a successor to Shikha Sharma was announced, while Tata Motors fell 2 percent after its total JLR sales took a hit.

At 10:00 hrs IST, the Sensex is down 235.99 points or 0.61% at 38153.83, while the Nifty is down 77.20 points or 0.67% at 11511.90. The market breadth is narrow as 949 shares advanced, against a decline of 915 shares, while 97 shares were unchanged.

Tata Motors falls 2%: Shares of Tata Motors fell 2 percent on Monday morning as investors reacted to a fall in its Jaguar Land Rover (JLR) sales for August.

The stock touched an intraday high of Rs 276.30 and an intraday low of Rs 272.00.

JLR reported a fall of 4.9 percent (year-on-year) in its August sales at 36,629 units. The company’s retail sales were up 7.7 percent at 11,802 units on a YoY basis.

Retail sales were up in the UK (64.9%), overseas markets (20.2%) and North America (2.5%), with Europe slightly below last year (3.1%), waiting for last WLTP certifications.

“The China market remains unsettled following tariff changes and trade tensions (down 38.1%), although the reduction in duty from 25% to 15% is expected to be beneficial over the full year,” the company wrote in an exchange filing.

Axis Bank jumps 5%: Shares of Axis Bank jumped 5 percent on Monday morning after the lender announced that Amitabh Chaudhry of HDFC Life will take over as chief executive officer (CEO) and managing director (MD).

The stock touched an intraday high of Rs 675.00 and an intraday low of Rs 644.00.

Chaudhry, who is replacing Shikha Sharma, will begin his new role on January 1, 2019 for a three-year term. Chaudhry is currently the Managing Director of HDFC Life.

Market opens: It’s a red start to the truncated week, with the Sensex shedding over 100 points, while the Nifty fell below 11,600.

Tepid global market movements along with a weakness in the Indian currency are likely to have weighted on the market. The Indian currency opened at another record low of 72.18 per US dollar, continuing its bearish move in the past few sessions.

The Sensex is down 116.02 points or 0.30% at 38273.80, while the Nifty is lower by 25.90 points or 0.22% at 11563.20. The market breadth is narrow as 460 shares advanced, against a decline of 440 shares, while 65 shares were unchanged.

Shares of Axis Bank and Infosys are the top gainers, while Sun Pharma, Kotak Mahindra Bank, and Indiabulls Housing have lost the most. Axis Bank’s shares are higher after it announced a successor to Shikha Sharma. Sun Pharma, meanwhile, is down on reports of fresh inspection by US FDA at its Mohali unit.

Market at pre-open: Equity benchmarks have started on a flat note in the pre-opening session.

At 09:02 hrs IST, the Sensex is up 38.75 points or 0.10% at 38428.57, while the Nifty is up 31.20 points or 0.27% at 11620.30.

The Indian rupee has opened at a fresh record low of 72.18 per US dollar, maintaining its downtrend from the past few session. A strengthening dollar is seen as one of the reasons for the weakness in currency.