Sensex Today: Sensex ends 155 points lower, Nifty at 11,477 mark; Cipla hits 52-week low

Opening Session

Sensex Today: Equity benchmark indices continues Friday's bearish momentum on Monday's early traded, backed by subdued global cues. The Sensex is down 300 points or 0.31% at 38,513, and the Nifty down 90 points or 0.30% at 11,422. 

Sectoral Indices

Except FMCG, energy and IT, all the other indices currently trade in the red, with over 2% decline registered in metal and banking stocks, followed by over 1.5% fall recorded in pharma, financial services and realty.

 

Global Market Update

Asian markets like and Nikkei and Hong Kong Index declined half percent each, over news that U.S. administration plans to delist Chinese companies from U.S. stock exchanges. However, media news suggest that the US-China trade talk likely to be commence from 10th October. SGX Nifty down 9.50 pts at 11,575.50. China’s Shanghai stock index slipped 0.2%.

On the Wall Street, US Futures (Dow Jones) trades at 26904 up 108 pts or 0.40%.

Chinese share markets will trade only on Monday this week ahead of the country’s National Day holiday, which runs until Oct. 7





 

Brent crude rebounds marginally

Brent Crude fell to below $62/bbl and currently trades at a hike of 0.05% to $61 per barrel. Oil prices slightly after last week’s slide as positive China factory data eases demand concerns.

PSU Balmer Lawrie likely to miss revenue target

Diversified PSU Balmer Lawrie & Co is likely to miss the corporate plan revenue target for the current fiscal as it is expecting a "flat growth" in turnover, a senior company official said.

Although the business verticals of the Mini Ratna, under the Ministry of Petroleum and Natural Gas, are "immune to the current slowdown" of the economy, some strategic business units such as logistics and industrial packaging (IP) have been marginally affected due to the downturn, Balmer Lawrie CMD Prabal Basu told PTI.

RBI may go for another policy rate cut of 25 bps on Oct 4: report

The Reserve Bank of India might go for another rate cut on Friday, October 4. This cut of up to 25 bps will be the fifth in a row by the apex bank. The RBI Governor Shaktikanta Das-headed Monetary Policy Committee (MPC) will announce the fourth bi-monthly monetary policy for 2019-20 on Friday after its three-day meeting.

The apex bank is likely to announce the rate cut to complement government's measures like reducing corporate tax and promoting credit offtake to boost economic activity during the festive season amid a slowdown.
 

Rs 40,000 cr MSMEs due cleared: FM

Finance Minister Nirmala Sitharaman on Friday said various ministries have cleared Rs 40,000 crore out of Rs 60,000 crore due mainly to MSMEs for supply of goods and services, and the remaining amount not locked in litigation too will be paid by the first week of next month.

The government has also set October 15 as the deadline for central PSUs to clear overdue payments to vendors and exhorted them to front-load capital expenditure as it looks to lift economic growth from six-year low.

 

Lakshmi Vilas Bank share hits 5% lower circuit

Lakshmi Vilas Bank share price hit lower circuit of 5% today after banking regulator Reserve Bank of India (RBI) initiated prompt corrective action (PCA) against the private sector lender last week. Lakshmi Vilas Bank said it was placed under PCA on account of high net NPAs, insufficient capital to risk (Weighted) assets ratio (CRAR) and common equity tier 1 (CET 1) , negative RoA (return on assets) for two consecutive years and high leverage, base on the on-site inspection under the Risk-Based Supervision carried out for the year ended on March 31.

Lakshmi Vilas Bank share price has lost 9.62% in the last two days. On Friday too, the stock was stuck in the lower circuit of 5% at Rs 36.55 after its board members were booked in the loan fraud case.

The small cap share further plunged 4.92% to Rs 34.75, its fresh 52-week low, in trade today compared to the previous close of Rs 36.55.

Lakshmi Vilas Bank share hits 5% lower circuit after RBI initiates prompt corrective action against lender

IRCTC IPO opens today

IRCTC has hit the primary market today via a Rs 645-crore initial public offer (IPO). The IPO is the largest of all four entities offered by the Indian Railways after RITES, Rail Vikas Nigam and Ircon and has turned out to be most-watched share sale by prospective investors in recent times.

IRCTC IPO opens today: 10 things to know before subscribing to the share sale 

YES bank declines 13% intraday on annoucement of raising capital

Shares of YES Bank declined nearly 14% intraday on Monday, despite the private lendor announcing it has received acknowledgment from the Reserve Bank of India (RBI) to go ahead with the proposed increase in its authorized share capital.




"Further to our communication dated September 25, 2019 on the captioned subject, the Bank is
pleased to inform you that it has received acknowledgment from the Reserve Bank of India to
go ahead with the proposed increase in its authorized share capital," the exchange filing read.

The private lender will seek necessary shareholders' consent and proceed expeditiously with its capital raise, the filing added.

YES Bank stock has been highly volatile today with an intraday volatility of 11.41%

"The Bank shall now seek necessary shareholders' consent and proceed expeditiously with its capital raise," the filing said.

Indiabulls Housing Finance share price falls 38%

The share price of Indiabulls Housing Finance crashed nearly 38% intraday to hit a fresh 52-week low on Monday's trading session after Lakshmi Vilas Bank was placed under the Reserve Bank of India's prompt corrective action plan. This further places their prolonged merger in jeopardy.

With a gap-down chart pattern, IBHFL stock opened today with a loss of 6.79% to Rs 363, also its day's high. Later, IndiaBulls Housing Finance stock crashed 37.8% and touched an intraday low as well as a new 52-week low of Rs 240.10, against the last closing price of Rs 389.45 on the BSE. Therefore the IBHFL stock trades in a wide range of Rs 122.2 today. The share has fallen nearly 30% in the last 5 sessions.

In other news, Delhi High Court (HC) issued a notice in a plea for probe into financial irregularities by Indiabulls Housing Finance. Delhi HC has also sought a response from Centre and the RBI on the plea seeking a probe by a Special Investigation Team (SIT) into the alleged illegalities, siphoning of funds and violations committed by the promoters of Indiabulls Housing Finance Ltd (IBHFL).

 

Reliance Capital 12% lower

Reliance Capital announced on Septmber 28, that it has pledged on 11.53% shareholding in Reliance Nippon life Asset Management.

In a seperate filing, the company today announced that it has made interest and principal repayments of Rs 72.65 crore on Friday, September 27 and Monday, September 30 on a range of instruments including non-convertible debentures, term loans and inter corporate deposits.

In other news, Reliance Anil Dhirubhai Ambani Group's chairman Anil Ambani declared today thet Reliance Capital would no longer be in any lending business.

“As a part of transformation process, Reliance Capital has decided it will not be in any of the lending businesses,” Ambani told shareholders at the company’s annual general meeting (AGM) in Mumbai.

Shares of Reliance Capital has fallen over 13.57% to intraday low of Rs 24.2. With the openig bell, the stock also made a intarday high of Rs 28.65, rising 2.32% against its previous close.

Cipla hits 52-week low after USFDA inspection

Cipla share price has fallen 4.88% to hit fresh 52-week low of Rs 418 on the BSE, after Cipla's manufacturing facility in Goa was inspected by US FDA.

"United States Food and Drug Administration (USFDA) conducted a CGMP inspection at our Goa manufacturing facility from September 16-27,2019," company's filing sid.

The regulatory statement further said,"The inspection ended with 12 observations, none of which are related to data integrity. The company will respond to the agency within the stipulated timeline."

Market Wrap: expert opinion (Techincal)

Support level given of Nifty is between 11,400-11,200 and for Resistance is around 11,700-12,000 mark, as per Amit Shah, Technical Research Analyst with Indiabulls Ventures Ltd. Commenting on the market outlook today, Amit said," Nifty yet again bounced back sharply from our mentioned support of 11,400. Near term, traders should look to remain long on the index with a stop below 11,400. Till th8is support is protected on the downside expect the index to consolidate between 11,400-11,700 as mentioned earlier. Index is witnessing a phase of consolidation of its recent near-vertical up-move. Undertone continues to remain bullish overall. Above 11,700 index is likely to head towards 12,000 zone."

IRCTC IPO subscribed 60% on Day 1

 

The Rs 645-crore initial public offer (IPO) of IRCTC has done exceptionally well on bidding day 1, by receiving bids for 60% of the total issue by the afternoon session on September 30. Bids received amounts to 1.201 cr shares as of 1500 IST, out of 2.016 cr shares representing 60% of the total issue size, data available on the exchange bbourses showed.

The IRCTC IPO is the largest of all four entities offered by the Indian Railways after RITES, Rail Vikas Nigam and Ircon and has turned out to be most-watched share sale by prospective investors in recent times.

 

Market viewpoint: Expert Opinion

Commenting to today's market trend, Rohit Singre, Senior Technical Analyst at LKP Securities said,“Strong selling in banks, NBFC and metals dragged the indices down in Monday’s trade. Selling in Indiabulls Housing Finance further weighed on market sentiment as it may have good exposure with banks".


 

Expert comment on Monday's trade

Commeting to Monday's trading session Vinod Nair, Head of Research with Geojit Financial Services said,"Having factored the kneejerk benefit from corporate rate cut, market is consolidating based on setbacks in weakening financial & economic progress. We feel that 11,100 to 11,300 will be a strong support for Nifty50 in the near to medium-term, which can develop going forward based on sustainability of post festival demand."

 

Currency market viewpoint

Quoting on the currency market today, Rahul Gupta, Currency Research Head, Emkay Global Financial Services Limited commented,“During early trades, rupee surged to 8-week high of 70.36, however, the gains got capped by RBI intervention. Also, globally risk appetite has plunged US-China trade concerns continue to linger. There is a possibility that US may curb investments in China. Thus, as we near Oct 10, any developments on US-China trade front will keep rupee under pressure.  

He added,"Technically, the RSI indicator is showing USD/INR to be in an over sold zone, so we expect prices to move towards 71.50 in the coming days. This week we have RBI policy and ahead of that rupee will remain on edge, we expect RBI to cut rates by 25 bps.”

Closing session

Sensex Today: Equity benchmark indices Sensex and Nifty closed on bearish grounds on Monday, backed by subdued global cues. The Sensex ended 155 points lower at 38,667 level and the Nifty closed 35 points lower at 11,477.

Sectorally, while gains in FMCG, IT, CPSE, energy and infra indices helped capping losses, banking, media and financial services deagged the broader indices further down.





 

Last Close

On Friday's session, equity benchmark BSE Sensex and NSE Nifty fell 0.45 % each amid heavy selling pressure in metal, pharma and realty stocks.

Tracking weak cues from global market, Sensex ended the day's trade at 38,822, declining 167 point by the closing session, while Nifty50 ended 58 points lower at 11,512.Yes Bank,  Infosys and NTPC were among the top losers in the BSE-30 Index, while IndusInd Bank, Bajaj Finance and ICICI Bank  were the top gainers.

Sensex Today: Sensex ends 167 points lower, Nifty at 11,512 mark, Indiabulls group stocks under pressure