Sensex ends 536 points lower, Nifty gives up 11,000; financials weigh big

CNBC

Market at Close: It’s a day that completely belonged to the bears, with the Sensex ending over 500 points lower. More importantly, the Nifty gave up 11,000-mark and closed below this key psychological level. 

Selloff was largely seen among financials space, particularly non-banking financial companies (NBFCs), which weighed big on the indices. Investors seem to be concerned about liquidity issues at companies in this space, particularly in the housing finance companies (HFCs). The likes of HDFC and Indiabulls Housing Finance were trading lower. 
Additionally, macros too made investors wary as crude prices touched USD 80 per barrel-mark. An effect was seen on oil marketing companies (OMCs) as well as aviation companies. Weaker rupee also added to the Street’s woes, with the currency trading around 72.64 per US dollar. This boosted IT stocks though, with Infosys, TCS, Wipro and HCL Tech, among others, gaining big. 
There was selling across majority of sectors, with deep cuts seen among banks, auto, FMCG, metals and pharmaceuticals. 
At the close of market hours, the Sensex closed down 536.58 points or 1.46% at 36305.02, while the Nifty was down 175.70 points or 1.58% at 10967.40. The market breadth is negative as 543 shares advanced, against a decline of 2,092 shares, while 161 shares were unchanged. 
TCS and Coal India were the top gainers, while HDFC, M&M, Eicher Motors and Indiabulls Housing lost the most. 
EUROPE UPDATE
The US-China trade war bit again on Monday, denting European stock markets after tariffs from the world’s biggest economies came into force and China canceled planned talks, triggering new fears of a protracted, costly trade dispute, news agency Reuters reported.
Europe's STOXX 600 fell 0.1 percent with Germany's trade-sensitive DAX. GDAXI down 0.3 percent. Autos and mining sectors, among the most dependent on smooth global trade, fell the furthest, down 0.8 to 0.9 percent.
The leading euro zone stocks index .STOXX50E fell 0.3 percent, breaking its longest winning streak since 1997.
Dealmaking drove the greatest moves across sectors, with Europe’s biggest pay-TV group Sky (SKYB.L) soaring after Comcast’s offer won an auction for the company.
PSU BANKS SEE A SELLOFF
Among the PSU banks, Punjab National Bank, Andhra Bank and IDBI Bank are down over 3 percent each. These are followed by Bank of Baroda, State Bank of India and Syndicate Bank.
Technical analyst Ashwani Gujral of ashwanigujral.com has recommended a sell on Bank of Baroda with a stop loss of Rs 114, target of Rs 105 and a sell also on Punjab National Bank with a stop loss of Rs 75, target of Rs 64. Also, Sudarshan Sukhani of s2analytics.com has a sell on Bank of India with stop loss at Rs 88 and target of Rs 83.5.
MARKET OUTLOOK
IIFL believes that panic in NBFC stocks has not settled completely. "We see concerns over short-term liquidity in commercial papers raised by NBFCs," analysts at the firm wrote in their report. It believes investors will probably wait and watch for a clear picture to emerge. 
GOLD UPDATE
Gold prices rose by Rs 75 to Rs 30,890 per 10 grams in futures trade Monday as speculators raised bets even as the precious metal weakened overseas.
At the Multi Commodity Exchange, gold for delivery in December was trading higher by Rs 75, or 0.24 per cent, to Rs 30,890 per 10 grams in a business turnover of 326 lots.
The yellow metal for delivery in October too gained Rs 62, or 0.20 per cent, to Rs 30,644 per 10 grams in 797 lots.
NICKEL FUTURES UPDATE
Nickel prices softened by 1.01 percent to Rs 949.80 per kg in futures trade Monday as participants cut down their holdings following low demand from consuming industries at spot market.
At the Multi Commodity Exchange, nickel for delivery in October fell by Rs 9.70, or 1.01 percent, to Rs 949.80 per kg in a business turnover of 83 lots.
On similar lines, the metal for delivery in September moved down by Rs 9.50, or 1 percent, to Rs 944.90 per kg in 1,088 lots.
CASTOR FUTURES UPDATE
Castor seed prices were down by Rs 12 to Rs 4,746 per quintal in futures trade Monday as traders trimmed positions in tune with subdued trend at the spot markets.
At the National Commodity and Derivatives Exchange, castor seed for October drifted down by Rs 12, or 0.25 per cent, to Rs 4,746 per quintal, with an open interest of 1,39,490 lots.
AVIATION DATA
According to reports on CNBC-TV18, the domestic air passenger traffic growth has dipped to 17.2 percent against 20.8 percent month on month. Jet Airways reported passenger load factor (PLF) of 82 percent against 83.9 percent in the previous month. 
Meanwhile, Spicejet’s PLF was reported at 93.6 percent. IndiGo reported PLFs of 82.8 percent, a fall from 88.7 percent seen during the previous month. 
The channel also reported market share data for aviation companies. 
Air India: 12.7 percent against 12.4 percent in the previous month. 
IndiGo: 41.9 percent against 42.1 percent in the previous month.
SpiceJet: 12.4 percent against 12. 3 percent in the previous month.
Jet Airways: 13.8 percent against 13.6 percent in the previous month.
GoAir: Unchanged at 8.9 percent. 
MARKET OUTLOOK
Dipan Mehta, member of BSE and NSE told CNBC-TV18 that investors could stay out in the current market scenario as a bottom needs to be waited for. “Few quality NBFC names such as Bajaj Finance, Cholamandalam, and HDFC etc are at attractive levels. Once things settle down, you can expect these stocks to return compounded returns over the time,” he told the channel. 
Market Update: Weak trades have continued on the market, with the Sensex shedding 400 points. The Nifty has breached 11,000-mark as well. 
At 12:21 hrs IST, the Sensex is down 432.17 points or 1.17% at 36409.43, while the Nifty is down 146.80 points or 1.32% at 10996.30. The market breadth is negative as 391 shares advanced, against a decline of 2002 shares, while 121 shares were unchanged.
Automobiles, banks, metals, pharma, and FMCG are all trading lower. Among the broader markets, the Nifty Midcap index is down 3 percent. Meanwhile, a weak rupee has boosted IT stocks. 
NHPC moves SC against Delhi HC order on arbitral award
The National Hydroelectric Power Corporation (NHPC) has moved the Supreme Court against the order of a larger bench of the Delhi High Court refusing to interfere with an earlier decision asking it to pay 75 percent of an arbitral award granted in favour of a construction company.
NHPC has challenged the September 13 order of a division bench of the high court which had dismissed its appeal against the single judge bench order asking it to either pay the arbitral amount to Hindustan Construction Company Limited or deposit Rs 40 crore, 75 percent of the money, with the registry of the high court.
Brent Crude above $80 a barrel
Crude oil prices increased sharply as US markets tightened just weeks ahead of Washington's plan to impose new sanctions against Iran with will be effective from November. In addition, the expectations of major traders and banks that prices could rise over $90 per barrel in coming months also supported.
Brent crude futures were at $80.29 per barrel, up by 1.89 percent from their last close and US West Texas Intermediate (WTI) crude futures rose by 1.81 percent to $72.06 a barrel at the time of writing this article.
IPO Opens For Subscription
State-ownded ship building company Garden Reach Shipbuilders and Engineers has opened its Rs 345-crore initial public offering for subscription.
The price band is fixed at Rs 115-118 per share for the issue which will close on September 26 This would be third IPO from government in current financial year 2018-19 after IRCON International and RITES.
The public issue consists offer for sale of 2,92,10,760 equity shares by Government of India. Retail investors and employees will receive shares at a discount of Rs 5 per share on final offer price.
Garden Reach is a shipbuilding company in India under the administrative control of the MoD and primarily adhere to the shipbuilding requirements of the Indian Navy and the Indian Coast Guard.
DHFL reiterates no default on bond payments: Housing finance major, DHFL, in a media statement, reiterated that the company has neither defaulted on any bonds or repayment of its financial obligations, nor has there been any instance of delay on any repayment of any liability. 
“On September 21, 2018, DHFL fulfilled its commitment of repaying commercial papers worth Rs 575 crore and as per schedule and terms, is repaying Rs 400 crore on September 24, 2018,” representatives of the firm said in a statement. 
DHFL has also received re-affirmation of credit ratings from CARE and ICRA.  The credit rating for DHFL’s short and long term borrowings including Fixed Deposits has been reaffirmed as CARE AAA (Outlook:  Stable) and CARE AAA (FD); Stable (Triple AAA, Outlook: Stable) and ICRA A1+, indicating a very strong degree of safety regarding timely payment of the Company’s financial obligations.
“The reiteration by CARE and ICRA on the high degree of safety of DHFL’s bonds and the organisation’s total commitment to its financial obligations, come at a very critical time. Over the past three decades, DHFL has been playing an increasingly transformative role in nation building by expanding home ownership and financial inclusion, transforming the lives of millions of Indian in the LMI and EWS segments,” Kapil Wadhawan, Chairman and Managing Director, DHFL said in the statement. 
Market Update: Benchmarks are off their low points, with the Sensex trading lower by around 150 points. The Nifty is hovering around 11,100-mark.  
Among sectors, banks, automobiles, and pharmaceuticals have taken a hit, while metals and IT names are the big gainers. The Nifty Midcap index is down over a percent.  
At 10:24 hrs IST, the Sensex is down 142.55 points or 0.39% at 36699.05, while the Nifty is down 57.20 points or 0.51% at 11085.90. The market breadth is negative as 518 shares advanced, against a decline of 1,554 shares, while 111 shares were unchanged.
Market Update: Equity benchmarks have extended their losses, with the Nifty trading below 11,100. The Sensex is down over 200 points. 
At 09:54 hrs IST, the Sensex is down 201.43 points or 0.55% at 36640.17, while the Nifty is down 68.60 points or 0.62% at 11074.50. The market breadth is negative as 523 shares advanced, against a decline of 1,319 shares, while 96 shares were unchanged.
Shares of Infosys, Vedanta, and ONGC are the top gainers, while Maruti Suzuki, M&M, Bajaj Finance and Indiabulls Housing have lost the most. 
Buzzing stock: Shares of  Usha Martin jumped about 8 percent at open after the company signed an agreement with Tata Steel.
Tata Steel on Saturday said it will acquire Usha Martin's steel unit, but did not specify the deal amount.
Shares of Usha Martin closed in on 52-week high of Rs 36.40. But the stock cooled off soon after.
Market opens: Equity benchmarks have turned negative after witnessing a mildly higher start. The Nifty is hovering around 11,100, while the Sensex is down around 50 points lower. 
The Sensex is down 50.16 points or 0.14% at 36791.44, while the Nifty is down 18.30 points or 0.16% at 11124.80. The market breadth is negative as 465 shares advanced, against a decline of 554 shares, while 70 shares were unchanged.
ONGC, Infosys, Cipla and Tech Mahindra are the top gainers, while Yes Bank, Maruti, and Bajaj Finance are the top losers. 
Oil marketing companies are taking a hit on the back of higher crude oil prices. It is also having a resultant impact on aviation stocks. 
Market at pre-open: Pre-opening trends indicate a flat start to the market on this Monday morning. The Nifty is hovering around 11,100, while the Sensex is around 36,850-mark. 
The Sensex is up 9.68 points or 0.03% at 36851.28, and the Nifty up 7.20 points or 0.06% at 11150.30.
The rupee has also opened at 72.47 per US dollar.