Sensex ends 750 points lower, PSU banks drag Nifty below 10,250

CNBC

Market at Close: A sell-off in global markets had its impact on the local market, as the Sensex closed over 700 points lower, while the Nifty ended just around 10,250-mark. 

Weakness was visible among banking names, particularly in PSU banks along with metals, automobiles, pharmaceuticals, and IT names. A recovery in rupee from record lows failed to make any impact. 
At the close of market hours, the Sensex closed down 759.74 points or 2.19% at 34001.15, while the Nifty ended lower by 225.40 points or 2.15% at 10234.70. The market breadth is negative as 824 shares advanced, against a decline of 1,736 shares, while 866 shares were unchanged.
Yes Bank, ONGC, HPCL and IOC were the top gainers, while State Bank of India, Tata Steel, Indiabulls Housing Finance and Bajaj Finserv lost the most.   
OMCs trade higher: Fuel retailers Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation shares were among biggest gainers on the Nifty50 after sharp decline in crude oil prices on Thursday.
HPCL rallied 19 percent on top of 5.6 percent upside in previous session, BPCL gained 7.4 percent (3 percent in previous session and IOC was up 8 percent (1.55 percent).
Oil prices traded around $86 a barrel few days back on supply concerns ahead of US' sanctions on Iranian oil effective from November, which fell to around $81 a barrel now.  
Market Check: Benchmark indices are trading under pressure in the final hour of trade with Nifty trading below 10,250 level.
The Sensex is down 767.88 points at 33993.01, while Nifty is down 228.80 points at 10231.30. About 730 shares have advanced, 1728 shares declined, and 962 shares are unchanged. 
All the sectoral indices are trading in red. Nifty PSU bank index down 5 percent, followed by pharma, metal and IT index down 3 percent, while auto is trading lower with 2.5 percent cut.
MARKET OUTLOOK
“Institutional Investors will be watching closely on quarterly financial results and taking calls on the future direction. It is expected, since equity market has corrected at good percentage, selective sectors would recover soon. We are anticipating the rural theme will continue do well. Anticipating the currency depreciation, we expect export oriented sectors like pharmaceuticals, information technology, agro chemicals, would do well going forward. Selective auto OEMs & auto ancillaries, FMCG would do well,” Saravana Kumar, Chief Investment Officer at LIC Mutual Fund said in a statement. 
Market Update: There has been a smart recovery in the market from its low points, with the Sensex trading over 450 points lower. The Nifty is back above 10,300-mark. 
State Bank of India, Tata Steel, and Indiabulls Housing were the top losers, while Yes Bank, ONGC and HPCL have gained the most. 
The Sensex is down 476.24 points or 1.37% at 34284.65, while the Nifty is lower by 141.30 points or 1.35% at 10318.80. The market breadth is negative as 765 shares advanced, against a decline of 1,535 shares, while 1109 shares were unchanged.  
RUPEE OUTLOOK
“The rupee continues to make a new record low as the global and domestic equities experienced steep sell-off. Continued FII outflows from debt and equity market is keeping sentiments bearish. Though the crude oil prices have eased overnight, it is a temporary. As US sanctions on Iran begin from November, crude oil prices might continue to rise in the international market. This may pressurize the rupee in coming sessions. Focus would now shift to India’s macroeconomic data which will give further direction to the rupee,” Rushabh Maru, Research Analyst at Anand Rathi Shares and Stock Brokers said in a statement.   
View on market fall: Dinesh Rohira, Founder and CEO at 5nance.com said, The Nifty index opened with huge gap-down on Thursday morning as it fell about 300 points weighed down by global selloff across the equity market worldwide. The Nifty index currently holds a strong support at 10100 levels which has been not breached so far despite a massive selloff in market.""
"This deep selloff offers a perfect opportunity especially for value investors to beckon on discount price with view of keeping it on long-term basis. The current fall in market is relatively lower than what happen in 2008 financial crisis, and doesn’t give a material reason to fear. As past data indicate, in 2008 the Nifty fell by about 51.84% on CY basis, but rebounded by 71.46% in next CY 2009. Similarly, in CY 2011 the Nifty witnessed a fall of 24.90% but in a successive CY 2012 it bounced back by 27.35%."
"The medium correction in equity market is healthy for a bull-market rally and investors should capitalized on this discount opportunity with systematic strategy", he added.  
Buzzing: Colgate Palmolive (India) share price gained 2.7 percent intraday Thursday after global brokerage firm CLSA upgraded the stock to Buy from Sell, citing attractive valuations.
The research house also raised target price on the stock to Rs 1,265 from Rs 1,120, implying potential upside of 20 percent.
Colgate has increased its growth focus and the promotion activity of the company is at best, it feels.
It believes the worst for the company seems to be over now as wholesale market is stabilising and competition peaked. Currently Colgate's valuations are at a discount to its most peers. CLSA expects current valuations to sustain as outlook improves.
Aurobindo Pharma gets USFDA approval: The company has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Azithromycin Oral Suspension 100 mg /5 mL and 200 mg/5 mL. Azithromycin oral suspension, a generic version of Pfizer Inc’s Zithromax oral suspension. 
The product will be launched in November 2018.  
View on market fall: ?Dheeraj Singh, Head of Investments- Taurus Asset Management Co said, “Indian stock markets have fallen sharply on Thursday. This is a continuation of the sharp fall we have witnessed in the stock prices over the last couple of weeks (except for one or two days of exception). 
"While most of the earlier fall could be attributed largely to domestic factors - be it the IL&FS effect and fears of contagion thereon, or the ever increasing fuel prices due to the combined effect of weakening rupee and rising global crude prices etc. – the reason for today’s fall is clearly global with the US markets falling sharply after President Trump’s acerbic comments against the Federal Reserve and the consequent sharp fall witnessed in all the major Asian markets today,"he added.
Additionally, two reports published on the eve of the annual IMF-World Bank meeting in Bali, Indonesia have also contributed to market jitters. An IMF report which predicts that the world economy will grow at a slower pace than what was expected earlier (3.7% vs the earlier  predicted 3.9%)  – led by the upcoming sanctions on Iran – and a World Bank report highlighting the risks of the extremely high debt levels (public and private) in the major economies of the world.
Incidentally, the global debt report published by the World Bank shows India in a significantly favourable light as compared to both advanced as well as emergent economies. Combined Public and Private Debt for India stood at 125% of annual GDP, while the corresponding figure for a country like China was twice as much at 250% of annual GDP," he further said.
Oil prices see a big fall: Reuters is reporting that oil extended its losses from the previous session as global stock markets suffered a rout, with crude prices also taking a hit from a weekly industry report showing U.S. crude inventories had risen more than expected.
Supply worries also eased as Hurricane Michael likely spared oil assets from significant damage as it smashed into Florida, even as it caused injuries and widespread destruction.
GRAPHITE STOCKS CONTINUE TO RALLY 
Amid weak trades, graphite stocks such as HEG and Graphite India have extended their gains from Wednesday. Bank of America Merrill Lynch had initiated coverage on the stock with a buy call. It saw a potential upside of around 100 percent. 
TOP FACTORS THAT ARE WEIGHING ON THE MARKET
Equity benchmarks have seen a sell-off on Thursday morning. Here are some factors that have played on the market.  
Sell-off in US markets: worst fall in 8 months
Overnight, US markets saw their worst decline in 8 months with rising Treasury yields and trade-related worries weakening risk appetite for equity investors.
Trump calls stock sell-off a correction:
US President Donald Trump said Wednesday’s stock market sell-off was a correction that was long awaited, and that the Federal Reserve, which has been raising interest rates, has gone “crazy”, said a Reuters report. “I think the Fed has gone crazy,” Trump said.
IMF raises doubt on global financial stability:
Risks to the global financial system have risen over the past six months and could increase sharply if pressures in emerging markets escalate or global trade relations deteriorate further, the International Monetary Fund said on Wednesday.
Market opens: It is a gap down opening on D-Street on Thurdsay as global sell-off weighed on Indian indices. The Nifty gave up 10,200 in the opening minutes.
The Sensex has tanked over 900 points, while the Nifty is down over 300 points.
The Sensex is down 927.62 points or 2.67% at 33833.27, while the Nifty is lower 300.20 points or 2.87% at 10159.90. The market breadth is negative as 56 shares advanced, against a decline of 338 shares, while 3,006 shares were unchanged.
Among sectors, there’s selloff across sectors, with maximum pain visible in metals, automobiles, banks, and pharmaceuticals, among others. The midcap index is down 4 percent.
Top losers on the Sensex and Nifty include Yes Bank, Vedanta, Indiabulls Housing and Bajaj Finance.
Crude Update: Oil prices fell to two-week lows on Thursday as they extended big losses from the previous session amid a rout in global stock markets, with oil also taking a hit from an industry report showing US crude inventories rose more than expected, reported Reuters.
Supply worries also eased as Hurricane Michael likely spared oil assets from significant damage as it smashed into Florida, even as it caused at least one death, injuries and widespread destruction.
Global currency update: The dollar was steady against a basket of currencies on Thursday after spooked investors drove US stocks to their worst fall in nearly eight months overnight.
The dollar index, a gauge of its value against six major currencies, fell 0.11 percent to 95.407 on Thursday, after hitting a high of 95.79 in the previous session.
The safe-haven yen strengthened to 112.25 against the dollar, its highest this month, taking heart from risk aversion in the wake of warnings from the IMF over global growth and financial stability.
Wall Street ends lower: Wall Street was hammered on Wednesday as investors dumped high-growth names such as technology and FAANG stocks, with rising Treasury yields and trade-related worries sapping their risk appetite.
The benchmark S&P 500 and the Dow Jones Industrial Average fell nearly 1.5 percent and at the day's low had retreated 3.7 percent and 3.6 percent, respectively, from their all-time highs. The Nasdaq's 2-percent drop pulled it 7.1 percent away from its high.
All three indexes hit records between Aug. 30 and Oct. 3, despite the escalating Sino-US trade dispute gnawing at confidence on corporate profit growth through most of the year.