Sensex Today: Sensex ends 470 points lower, Nifty at 10,704 mark; YES Bank falls over 15%

Opening Bell

Sensex Today: Equity indices on Thursday started on a negative note with Sensex falling to 36,400 mark and Nifty down below 10,00 level. Currently BSE S&P Sensex is trading 180 points lower at 36,405 level, and NSE Nifty50 trades 55 pooints lower at 10,785 mark.

On the sectoral front, except FMCG, all the other indices trade on a bearish note, with over 1% fall in media stocks, namely Zee Entertainment Enterprises Limited and Eros International Media Limited, each declining over 2%.

 

Global Markets: Fed Cuts interest rate

The U.S. Federal Reserve cut interest rates again on Wednesday to help sustain a record-long economic expansion but signalled a higher bar to further reductions in borrowing costs, eliciting a fast and sharp rebuke from President Donald Trump.

Describing the U.S. economic outlook as “favourable,” Fed Chair Jerome Powell said the rate cut was designed “to provide insurance against ongoing risks” including weak global growth and resurgent trade tensions.

“If the economy does turn down, then a more extensive sequence of rate cuts could be appropriate,” Powell said in a news conference after the Fed announced it had lowered its benchmark overnight lending rate by a quarter of a percentage point to a range of 1.75% to 2.00%. It was the second Fed rate cut this year.

(Reuters)

Gainers and Losers on Thursday early trade

Top gainers on Thursday's trading session on the BSE include Reliance Infrastructure, Godrej Consumer, VST Industries, DHFL, National Aluminium, while top losers in the early trading session included CG Power, Manpasand Beverages, YES Bank, Coffee Day Enterprises and PC Jeweller.

Top gainers on Thursday's trading session on the NSE include namely Bharti Airtel, Tata Motors, Grasim Indsutries, HDFC Bank and HDFC, while top losers in the early trading session included YES Bank, Zee Entertainment Enterprises Limited, ICICI Bank, Tata Steel and State Bank of India

 

Sebi fines IL&FS Rs 10 lakh for disclosure lapses

The market regulator Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs 10 lakhs on Infrastructure Leasing & Financial Services(IL&FS) for non-disclosure of price sensitive information to stock exchanges.

As per the regulator's filing, IL&FS did not disclose to stock exchange the decision of its board dated July 21,2018 for raising equity capital by way of rights issue and the decision of its board dated August 29,2018 with respect to specific asset disinvestment plan to reduce the overall debt by Rs 30,000 crore.

The filing stated that listed companies are obligated to inform the market regualtor on various segments such as bearing on the performance or operation of the listed entity, price sensitive information or any action that will affect payment of interest or dividend of non convertible preference shares or redemption of non convertible debt securities or redeemable preference shares.

Brent Crude edges lower

Oil prices edged lower after Saudi Arabia said it would quickly restore full production following last week’s attack on its facilities and as U.S. crude stockpiles unexpectedly increased. U.S. crude oil futures settled down 2.07% at $58.11 per barrel, while Brent crude oil futures settled at $63.60 per barrel, a 1.47% decline.

 

Global Market Update

Asian stocks mostly in green. Nikkei Index gained over 1% ahead of Bank of Japan meeting. Hong Kong and South Korea Index are trading flat. Hong Kong shares shed 0.96%, but Japan’s Nikkei rose 1.01%. Although, later Asian shares turned lower on Thursday after the U.S. Federal Reserve cut interest rates as expected but signalled a higher bar to further policy easings. On the Singaporean Exchange, SGX Nifty wa trading in red, down 23 points at 10,833.

US stocks closed mostly higher after Fed cuts rates but casts doubt on future stimulus. On the Wall Street, Dow Jones Industrial Average rose 36.28 points, or 0.13%, to 27,147.08, the S&P 500 index gained 1.03 points, or 0.03%, to 3,006.73, and the Nasdaq Composite dropped 8.62 points, or 0.11%, to 8,177.39. 

Gold price declines

Spot gold reversed early gains after the Fed released its statement. Spot gold XAU= dropped 0.6% to $1,492.81 an ounce.

Key events

Key events outline for today, that investors are likely anticipating on Thurday are:

1. FM To Review PSU Banks’ merger preparedness

2. Tata Motors likely to announced launch Electric Vehicle today, 

3. Nifty and Bank Nifty weekly expiry,

4. Bank of Japan and Bank of England interest rate decision today.

Bharti Airtel top gainer on NSE on debt reduction reports

Bharti Airtel turned top gainer on NSE in the early trading hours with a trend reversal recorded in the stock from bearish to bullish momentum after the media reports suggested that that Bharti Airtel is likely to reduce its debt by 50% from Rs 1.6 lakh crore to Rs 80,00 0cr in 2020.

 

Zee Entertainment declines over 3%

Shares of  Zee Entertainment Enterprises (ZEE)  fell the most in Nifty media index, with intraday low recorded at Rs 322, declining 3.7% after media reported said that the Delhi High Court has asked Essel group Chairman Subhas Chandra not to sell its unpledged shares in Zee Entertainment till next month in an ongoing dispute over IndiaBulls Housing Finance over default in repayment of loans worth Rs 200 crore.

“Considering the totality of circumstances at this stage and to balance and protect the rights of the parties, I feel that it would be appropriate to pass an order restraining the respondent (Subhash Chandra) from creating any third party rights, selling, encumbering, alienating, transferring or disposing of in any manner whatsoever any of the assets/properties mentioned by the respondent in the affidavit which has been filed,” the order stated.
 

RITES gains 2%

Shares of RITES gained 2% in early trade on September 19 after the company bagged a major export order from Sri Lanka.

RITES announced to the exchanges on Thursday's trading session that the PSU major has now signed the contract for supply of two additional fully air-conditioned Diesel Multiple Unit train sets, for Rs 160 crore with the Ministry of Transport and Civil Aviation, Government of Sri Lanka, on 17th September, 2019.

"RITES has just completed supply of six sets of DMU coaches to Sri Lanka with State-of-the-art features and amenities, under a previous contract. The supply under the new contract will be done in FY 2020-21" the filing read.

Reacting to the filing on the order awarded, the share of RITES were trading 2.04% higher at Rs 240 on BSE, agains the last closing of Rs 235.20.

Rupee trades lower

The Indian rupee opened 24 paise down at 71.36 against the American currency on Thursday after the US Federal Reserve cut its benchmark interest rate.

At the interbank foreign exchange the domestic currency witnessed heavy volatility in early trade. The rupee opened at 71.36 per US dollar then touched a high of 71.15 and a low of 71.37.

On Wednesday, rupee had settled for the day at 71.24 against the US dollar.

Later the domestic unit pared some losses and was trading at 71.23 against the dollar.

FII/DII

Net investment of equity and debt reported by foreign portfolio investors (FPIs) remained bearish with net selling logged at Rs 959.09 crore from Indian equities while domestic institutional investors (DIIs) bought Rs 780.45 crore on Wednesday.

Market update

Sensex Today: Benchmark indices are trading majorly negative on Thursday, with Sensex falling to 36,151 mark and Nifty down below 10,710 level. Currently BSE S&P Sensex is trading 400 points lower at 36,165 level, and NSE Nifty50 trades 123 pooints lower at 10,717 mark.

Sector update

Sensex Today: Sectorally, all the industry indices currently trade in the red, with major fall registered in Media, declining 4% lower, followed by 2% decline recorded in metal stocks and over 1.5% decline booked in pharma, realty and PSU and private banking indices.

U.S. FDA issues warning Letter to Lupin Global, shares fall over 3%

Lupin Global announced today that the pharma firm has received a warning letter from the U.S. FDA for its Mandideep (Unit-1) facility.

" This is subsequent to an earlier intimation received from the U.S. FDA in March 2019 wherein the agency had classified its inspection conducted at the said facility in December 2018 as "Official Action Indicated" (0AI)," the filing read.

The company has howver, said the letter won't have any impact on supplies or revenue from Mandideep Unit-I

Reacting to the news, the stock price of the pharma giant reduced to Rs 733.85 intraday after registering a fall of 3.38% on BSE.

Vodafone shares rise 16% as co still top telecom operator

Shares of Vodafone Idea Ltd surged over 16%, as the telecom giant continued its reign as the country's largest telecom operator in July, according to latest Telecom Regulatory Authority of India (TRAI) data.

The latest subscriber data, released by TRAI, showed Vodafone Idea leading with 38 crore subscribers, followed by Reliance Jio with 33.98 crore, and Airtel with 32.85 crore users.

Reacting to the news, the share price of Vodafone Idea advanced 16.4% to traded at Rs 5.66, against the last closing of Rs 4.86 on BSE.

Global Update

According to mamrket participants, global investor sentiment turned cautious after the US Federal Reserve cut its benchmark interest rate by 25 basis points, but dimmed hopes for further rate cuts as it took a cautious approach to further reductions in borrowing costs.

 

IDBI Bank approves preferential issue to LIC, GOI; shares decline 3%

Shares of IDBI Bank fell 3 percent intraday on Thurday's trading session after the company approved proposal for preferential issue of capital to Government of India and Life Insurance Corporation of India.

"Board of Directors of IDBI Bank, at its meeting held on September 19, 2019, has approved the proposal for Preferential Issue of Capital to Government of India and Life Insurance Corporation of India aggregating upto Rs 4,557 crore and Rs 4743 crore respectively" the filing read.

Reacting to the regulatory filing submitted, the share price of IDBI Bank opened at the previous closing value of Rs 28.80 on the BSE and later, declined 3% to touch the intraday low of Rs 26.95

SRF declines 2.25%

Share price of SRF declined 2.25% and touched an intraday low of Rs 2675.6 on BSE, after the wholly owned subsidiary of the company announced that it has decided on closure of operations of the Technical Textiles Business of SRF Industries (Thailand) Ltd.

"Board of Directors of SRF Industries (Thailand) Ltd. (a material wholly owned subsidiary of the Company) had today decided to close the operations of its Technical Textiles Business operating out of Rayong, Thailand as its was becoming economically unviable to continue running the plant, " the filing read.

The SRF board has therefore decided to close the operations of Technical Textiles Business — Rayong and dispose off the assets of the business as per Board of Directors's decisions.