Share Market Highlights: Sensex ends 839 points lower, Nifty at 11,387; Bajaj Finserv, Sun Pharma top losers

Sensex, Nifty Highlights on August 31: Sensex and Nifty erased morning gains and ended 2.2% lower on Monday amid fresh flare-up on the border tensions between the India and China. Indian Army said Chinese troops violated the previous consensus arrived at during military and diplomatic engagements during the ongoing standoff in Eastern Ladakh on August 29 and 30. Erasing gains after six sessions of straight gains, Sensex ended 839 points lower at 38,628, while Nifty lost 260 points to 11,387. Sensex lost 1,372 points from day's high of 40,010 today due to panic selling on fresh round of border tensions with China. Market sentiment was also weak amid rising cases of coronavirus and bleak economic data that kept gains checked in global equities. On the macro front, investors also awaited release of estimates of gross domestic product (GDP) for the first quarter of this fiscal. On Friday, Sensex ended 353 points higher at 39,467 and Nifty ended 96 points higher at 11,655. During the week, Sensex and Nifty rose 1,032 points (2.69%) and 275 points (2.42%), respectively.

Here's a look at the updates of the market action on BSE and NSE today

3. 54 PM: Market at close

Sensex and Nifty erased morning gains and ended 2.2% weak on Monday amid fresh flare-up on the border tensions between the India and China. Indian Army said Chinese troops violated the previous consensus arrived at during military and diplomatic engagements during the ongoing standoff in Eastern Ladakh on August 29 and 30. Erasing gains after six sessions of straight gains, Sensex ended 839 points lower at 38,628, while Nifty lost 260 points to 11,387.

3. 48 PM: Expert outlook

Commenting on markets closing today -Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said," We broke the levels of 11500 due to a sharp fall in the Nifty. Today's low has become an imperative level which will decide the short term direction of this market. If we break 11300 on a closing basis, the markets might turn negative in the short - medium term scenario. In order to resume the uptrend, we need to get past 11600. The next few sessions are going to be a test of discipline, skill and patience. Traders are cautioned not to jump into a trade without weighing the risks associated with the trade. We could see sharp movements."

3. 31PM: HDFC Bank Q1 update

Expressing views on HDFC Bank's Q1 results, LKP Securities in its note said," Despite reporting a mixed trend on assets quality and moderate operating performance in 1QFY21, the best in class franchise, comfortable liquidity position and adequate coverage place the bank in a sweet spot. The bank used algorithm to declare fresh slippages (Slippages ratio of 1.2%, which is higher than the expectation) along with moratorium book of 9% (lowest among peers). During the quarter it reported sequentially higher provisioning expenses (Rs38.9bn v/s Rs37.8bn in 4QFY20). The contingent provision stood 1.1% of loan book, while we expect ~1% of book may come under stress (restructure + slippages) from MORAT. The potential stress is adequately covered. Thus we recommend BUY."

3. 22 PM:Wockhardt Q1 result

Expressing views on 1QFY21 results of Wockhardt, Yash Gupta, Equity Research Associate, Angel Broking said,"Wockhardt Ltd consolidated revenue from operations for Q1FY21 stood at Rs 652 crores, down by 24.4% YoY from Rs 863 crores in Q1FY20. Company has sold its domestic business to Dr.Reddy's laboratories for Rs 1483 crores and reported exceptional profit of Rs 1328 crores.Overall the company posted a weak set of numbers for the quarter."

3. 11 PM: Reliance Group acquisition quote

Commenting on Reliance Retail Ventures  bacquiring the Retail & wholesale business and the logistics & warehousing business from the Future Group, Jyoti Roy, DVP- Equity Strategist, Angel Broking  said," We believe that this acquisition by Reliance Industries Ltd. will help the company further consolidate its position in the retail business and make it the undisputed leader in the retail space. We remain positive on Reliance industries Ltd. and have a buy rating on the stock with a target of Rs. 2,366."

3.00 PM: Gold outlook

As per Geojit Financial, as long as prices stay above $1880, expect positive bias is intact in the counter. Howev-er, it required to break the resistance point of $1976 to continue rallies for the day. For MCX Gold Oct, resistnace is at 52120 support is placed at 49960.

2.55PM: Oil prices today

Oil price continued to move higher as US producers shut most output in the Gulf of Mexicao ahead of Hurricane Laura. Brent crude futures, the global oil benchmark, rose 0.61 per cent to USD 46.09 per barrel.

2. 41 PM: Market falls further

Sensex and Nifty fell over 2.4% today after Indian Army said it had foiled an attempt by Chinese troops to change the status quo on the border in a fresh flare-up between the two countries. While Sensex plunged 982 points to 38,434, Nifty lost 260 points to 11,366.

2. 38 PM: Global markets today

Asian markets were trading mixed taking cues from movements in US markets overnight. Wall Street markets closed higher as investors cheered the progress in trade talks between US and China. Also data showed 36% rise in sales of newly built homes in US last month. European markets traded lower today giving up previous gains as investors focused on US-China trade talks and economic data.

2.22 PM: Market deep in red

Investors lost Rs 4 lakh crore on BSE today, as the market reversed trend and fell majorly in red. Amid on fresh reports of rising border tension with China, Sensex slipped 693 points to 38,773 and Nifty loses 228 points to 11,418. Of 30 Sensex stocks, 28 were trading in the red. ONGC and TCS were the only gainers.  Sun Pharma, ICICI Bank, Kotak Bank and Bajaj Finserv were the top Sensex losers falling up to 6%.

2. 12PM: India- China border tensions

On August 29 late night, 150-200 Chinese soldiers' movement noticed trying to change the status quo. China was setting up more camps along the Southern bank, where the clash took place. Indian Army had picked up movements and were able to thwart the Chinese advancements, say Army sources.

China Foreign Ministry, on border dispute with India, says Chinese border troops never cross the Line of Actual Control, and that the two sides in communication regarding conditions on the ground.

As per India Today, four new camp positions have mushroomed at the Pangong Tso lake area. Earlier, there was only one at the Finger 4 area. A brigade commander level flag meeting is in progress at Chushul to resolve issues.

2.04 PM: Nifty outlook

As per Geojit Financials, negative divergence seen in daily charts is yet to manifest in shorter periodicities, and towards this end, the upsides continue to be in play aiming 11,800. There is a clear slow down that is evolving, but another range expansion is likely to play out in the next few days, which makes it important to continue having the downside marker placed near 11,400.

1: 53 PM:  Market update

Sensex slipped 693 points to 38,773 and Nifty loses 228 points to 11,418 on fresh reports of rising border tension with China.  

1. 44 PM : Global data

Investors will focus on macro news, including PMI data, which is due across the globe, alongside the US's non-farm payrolls report on Friday.

1. 30 PM: US-China trade tensions

The ongoing geo-political tension between US-China will have impact of stock markets globally. The relationship between the world's leading economies has further deteriorated in recent few weeks amid build-up of forces by both sides in the South China Sea and Taiwan Strait.

1. 28 PM: Adani Ports share rises 4%

Share price of Adani Ports and Special Economic Zone gained over 5% today after  promoters of the firm pledged 206.09 lakh shares in favour of Credit Suisse AG to raise Rs 430 crore for a group company.

The stock has gained 4.71% in the last 2 days. The stock opened with a gain of 2.03% at Rs 366 today. It touched an intra day high of Rs 378.45, a gain of 5.24%.  Adani Ports & SEZ stock is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages

Adani Ports share rises 4% after firm raises Rs 430 crore via sale of promoter stake

1. 12 PM: Rising India-China border tension

The Chinese troops violated the previous consensus arrived at during military and diplomatic engagements during the ongoing standoff in Eastern Ladakh on August 29 and 30. The People's Liberation Army (PLA) and carried out provocative military movements to change the status quo. Indian troops pre-empted this PLA activity on the Southern Bank of Pangong Tso Lake, undertook measures to strengthen our positions and thwart Chinese intentions to unilaterally change facts on the ground.

1.03 PM: Real estate sector update

Speaking on outlook for real estate sector, Amit Jain, Managing Director, Mahagun Group said, "The pandemic has made developers rethink and rework upon the possibilities real estate sector can offer its investors and end-users. Business plans have become more sustainable and flexible. While the demand for better homes always remains in the market, the present times do require government's aid and push to translate this demand into sales. This will have a rippling effect on several medium and small enterprises associated with the realty sector, for better."

12. 58 PM: Rupee surges 14 paise to 73.25

Indian rupee, the local currency appreciated 14 paise to 73.25 against the US currency on Monday's opening deals, tracking weak US dollar and sustained foreign fund inflows into the domestic equity market. Heavy buying in domestic equities, and strong Asian currencies also aided the positive trend in the local unit. The rupee had surged 43 paise to close at 73.39 to the US dollar on Friday, its best closing level in nearly six months.

Rupee surges 14 paise to 73.25 amid weak dollar, foreign fund inflows

12.41 PM: Future Retail share price gains 5%

Future Retail share price hit upper circuit of 20% today after Reliance Industries Ltd (RIL) announced the acquisition of the retail, wholesale, logistics and warehousing businesses of the Future Group for Rs 24,713 crore through its subsidiary, Reliance Retail Ventures. Reacting to the development, share price of Future Retail opened 20% higher at Rs 162.30 against previous close of Rs 135.25 on BSE. The stock has gained 36.62% in the last 3 days. The share fell to intra day low of Rs 152. At 12:17 pm, the stock was trading 19.85% or 26.85 higher at Rs 162.10 on BSE.

Future Retail shares surge 20% after Reliance Industries buys Future Group's assets

12.20 PM: Market turns red

Sensex and Nifty erased from early gains and fell to bearish territory on Monday, amid rising cases of coronavirus that kept gains checked in equities. Erasing gains after six consecutive gains, Sensex traded 140 points lower at 39,326 and Nifty was falling 74 points to 11,573.

12. 09 PM: Coronavirus toll

Worldwide, there were 253 lakh confirmed cases and 8.50 lakh deaths from COVID-19 outbreak. Meanwhile, India reported 78,512 new COVID-19 infections, taking the death toll to 64,617 and total coronavirus cases to 36.21 lakh as of Monday.

11. 44 AM: Top gainers and losers

IndusInd Bank followed by HDFC Bank, Axis Bank, ONGC, Tech Mahindra, ICICI Bank and Bajaj Finserv were among the top gainers on Sensex pack. On the other hand, Bharti Airtel, Sun Pharma and Bajaj Auto were the laggards.

11. 35 AM: Gold prices today

In the international spot market, spot gold was up 0.3% at $1,969.98 per ounce, after hitting $1,976, its highest since August 19. While Comex gold gained 0.14% at $1,967 per ounce, US gold futures rose 0.2% to $1,978.70. Silver jumped 1.6% to $27.94 per ounce.

24-carat gold prices in the national capital traded at Rs 54,560 per 10 gram. Price of 24-carat gold stood at Rs 53,600 per 10 gram in Chennai. In Mumbai, the rate for 24-Carat gold stood at Rs 51,470 as per Good Returns website.

Gold price rises for 2nd session; silver rates at Rs 70,000

11. 20 AM: Market erases gains

Sensex and Nifty erased from early gains and traded marginally higher on Monday,  amid positive global equities as rising cases of coronavirus kept gains checked. Extending gains for the seventh consecutive session, Sensex traded 29 points higher at 39,497 and Nifty was rising 40 points to 11,687.

11. 12 AM: Future Group shares rise up to 20%

Future Group shares rose in early trade today after Mukesh Ambani-led Reliance Industries (RIL) said it would acquire the retail & wholesale business and the logistics & warehousing business from the Future Group on a slump sale basis for Rs 24,713 crore.

While Future Enterprises share hit upper circuit of Rs 21.20, a rise of 5%, Future Retail share price opened 20% higher at Rs 162.30 on BSE. On the other hand, Reliance Industries share was trading 1.32% higher at Rs 2,143 against previous close of Rs 2115.60 on BSE.

Future Group shares rise up to 20% after Reliance Industries buys retail business

11.07 M: Gold and silver MCX

On the Multi-Commodity Exchange, Gold October Futures rose by Rs 215 at Rs 51,671, after hitting an intraday high of Rs 51,744 against the previous close of Rs 50,540 per 10 gm. MCX gold futures currently trade almost Rs 4,447 lower than the lifetime high of Rs 56,191 per 10 gm, hit on August 7.

On MCX, the yellow metal has risen 41.5% to life-time high since the beginning of the year amid concerns over rising coronavirus cases around the globe. Bullion that was trading at Rs 39,000 on December 31, 2019, recently hit a lifetime high of Rs 56,191 per 10 gm on August 7, 2020.

10. 56 AM: Sovereign Gold Bond (SGB)

Subscription for the sixth tranche of the Sovereign Gold Bond (SGB) Scheme will begin from Monday, August 31. The issue price for Sovereign Gold Bond (SGB) 2020-210-Series VI is Rs  5,117 per gram of gold. However, investors, who will apply online or make payments via digital mode will get a discount of Rs 50 per gram less than the nominal value. Therefore, the issue price has been fixed at Rs 5,067 per gram for such investors.

Sovereign gold bonds to open for subscription from August 31; here's what you need to know

10. 36 AM: Gold prices today

Gold and silver gained back previous session losses after the US Federal reserve Chairman's remarks on monetary policy, while weakening dollar also supported the price sentiments. Both precious metals gained more than 1.50 percent in international market. MCX precious metals too showed a similar move by tracking global prices. US Federal Reserve's announcement of change in policy framework and new approach to inflation raised expectation that the central bank would keep interest rates ultra-low to support the economy as long as its needed.

10. 28 AM: Stocks to watch today on August 31

Adani Ports, Future Enterprises, RIL, ICICI Prudential, Indiabulls Ventures among others are the top stocks to watch out for in Monday's trading session.

Stocks in news: Adani Ports, Future Enterprises, RIL, ICICI Prudential, Indiabulls Ventures

10.14 AM: Market update

Sensex and Nifty traded on a bullish note on Monday, extending last week's gains amid positive global equities. Extending gains for the seventh consecutive session, Sensex traded 271 points higher at 39,739 and Nifty was rising 84 points to 11,732.

9. 52 AM: GDP data for June quarter

On the macro front, the National Statistical Office is scheduled to release its estimates of gross domestic product (GDP) for the first quarter of this fiscal on 31 August 2020. The unanimous prediction by experts is that the year-on-year contraction in GDP growth could be anywhere between 16 and 25 per cent.

"We expect the manufacturing GVA to contract by 40-45 per cent in Q1 FY2021," Aditi Nayar Principal Economist, ICRA Ltd says. ICRA expects a sharp contraction in the GVA of construction of around 45 per cent, and a contraction of 50-55 per cent in the GVA of trade, hotels, transport, communication and services related to broadcasting in the (Q1) quarter. 

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9. 44 AM: Global markets

On Wall Street, stocks closed modestly higher Friday, on upbeat corporate results. Tracking gains, Asian equities stocks notched a 29-month high today, amid healthy data     for China's industrial firms.

9.34 AM:  Nifty technical

As per RSL Research, NSE-NIFTY continued its rising trend for straight second week in a row. In the last week, NSE-NIFTY gained in all trading sessions and reported gain of 2.4%. On Friday, the index jumped to fresh six month high and regained 11,600 mark. Due to further rise in the index, its key technical indicators on the near-term timeframe chart turned in favour of bulls. As mentioned earlier, our bullish view will remain intact provided the index stays firm above its make-or-break level 11,450. We believe the index has potential to test 11,802 mark. On the lower side, the index will initially find support at 11,339 level and then at 11,111 mark, which coincides with its 20-day EMA and recent swing low, respectively.

As for the day, support is placed at around 11,601 and then at 11,547 levels, while resistance is observed at 11,698 and then at 11,740 levels.

9. 20 AM: Opening session

Sensex and Nifty opened majorly bullish on Monday, extending last week's gains amid positive global equities.Sensex traded 470 points higher at 39,948 and Nifty was rising 126 points to 11,774. 

9. 10 AM: FII action

Foreign portfolio investors (FPIs) bought shares worth Rs 1,004.11 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 543.56 crore in the Indian equity market on 28 August, provisional data showed.

Strong foreign fund inflows may fuel rally in the share markets. As per NSDL, foreign portfolio investors (FPI) net investments into equity, was around Rs 45,000 crore in August, which makes it one of the best months for net inflows, as the excess liquidity in global markets found its way to emerging markets like India. They invested Rs 3,301 crore in July and Rs 24,053 crore in June on net basis.

9.00 AM: India's Manufacturing and Services PMI

Traders will keep an eye on India's Manufacturing PMI for August which is scheduled to be released on September 1, which will give signal whether a COVID-19 economic rebound is sustainable. Services PMI will be released on September 2. The IHS Markit India Manufacturing PMI contracted for fourth straight month in July to 46 from 47.2 in the previous month as businesses remained closed amid coronavirus lockdown extensions.

8. 50 AM: Nifty outlook

Expressing views on the outlook of week-ahead, Vinod Nair, Head of Research at Geojit Financial Services said, "The economic data coming out indicates a slow recovery in progress for the Indian economy and as such the GDP data due out next week, is expected to be a non-event, barring any surprise deviation. The market is expected to continue the momentum."

8. 45 AM: Rupee outlook

Commenting on rupee, Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking said, "Some kind of rupee appreciation was largely due, given the weakness in the dollar index and a risk-on sentiment globally as the economic activity is gradually picking up. Once the rupee broke above its crucial 74.50 mark, the RBI has not stepped in aggressively and allowed the rupee to appreciate probably because it has sufficient reserves, and aggressive intervention at this stage may not lead to significant value addition, given the extent of inflows. Moreover, we think the RBI did not want the market to be complacent for quite some time, and hence chose to loosen its grip on the rupee for the time being."

On its technicals, she added, "We are expecting the rupee to test levels of 72.80 in the immediate near term if this scenario persists. The RBI would probably look to intervene in the forwards market for the time being"

8. 40 AM: Closing on Friday

On Friday, extending gains for the sixth consecutive session, Sensex ended 353 points higher at 39,467 and Nifty ended 96 points higher at 11,655. During the week, Sensex and Nifty rose 1,032 points (2.69%) and 275 points (2.42%), respectively.

Sensex, Nifty close higher for 6th straight session, end 2.5% up this week

8. 35 AM: Rupee

On the currency front, the rupee ended at 73.39 per dollar, as against Thursday's close of 73.84. The local unit has risen 1.9% this week, its biggest weekly rise against the dollar since the week ended December 21, 2018.

8. 30 AM: Earnings today

JK Cement, Morepen Laboratories, Arvind, Bharat Dynamics, Prakash Industries, GNFC, BF Utilities, BPL, 8K Miles Software Services, Dredging Corporation of India, GMDC, Indosolar,  Mukand, NHPC, Prakash Industries, Pricol, Prozone Intu Properties, Shree Renuka Sugars, Sadbhav Infrastructure Project, Spandana Sphoorty Financial, Speciality Restaurants, Tera Software, Technocraft Industries among others will report April-0 June quarter earnings today.