Sensex Today: Sensex tanks 503 points, Nifty ends at 11,440 mark ahead of F&O expiry

Global Market Update

Asian stocks fell on Wednesday after U.S. lawmakers called for an impeachment inquiry into President Donald Trump, increasing the prospects of prolonged political uncertainty in the world’s largest economy.

The dramatic move by House of Representatives Democrats compounded investors’ anxieties with confidence already shaken by new worries about U.S.-China trade negotiations.

Chinese shares slumped and oil futures extended declines after Trump harshly criticized Beijing’s trade practices in a speech at the United Nations, damping hopes for a resolution to the U.S.-China trade war.

U.S. stock futures,, rose 0.06% in Asia on Wednesday, but the mild gains are unlikely to improve sentiment for Asian shares.

Chinese shares fell 0.79% while shares in Hong Kong skidded by 1.23%.

(Reuters)

Oil prices fall for the second straight session

Oil prices fell for a second day on Wednesday on worries about falling fuel demand after U.S. President Donald Trump’s comments doused optimism over China-U.S. trade talks and reignited concerns on global economic growth.

U.S. crude dipped 0.75% to $56.86 a barrel. Brent crude fell 0.86% to $62.55 per barrel.

FII/DII

Net investment of equity and debt reported by foreign portfolio investors (FPIs) remained bearish with net selling logged at Rs 828.49 from Indian equities while domestic institutional investors (DIIs) bought Rs 472.81 crore on Tuesday.

 

IRCTC IPO Details

IPO - Indian Railway Catering & Tourism Corporation Ltd (IRCTC)

Opens: 30 Sep, Monday
Closes: 3 Oct, Thursday
 
Price Band: Rs 315-320/share
Discount (Retail & Employees): Rs 10 on offer price
Bid Lot: 40 Equity Shares & in multiple thereafter

Shares offered: 2,01,60,000
Employee Reservation: 1,60,000
Issue Size: Approx. Rs 645 cr at upper Band

Allocation: QIB: 50%, HNI: 15%, Retail: 35%

IRCTC may launch IPO on September 30

SEBI bans Morepen Lab from capital mkts for 1-yr

Regulator Sebi on Tuesday barred Morepen Laboratories from the capital market for one year for making misleading disclosure about the issuance of global depository receipts (GDRs).

Reacting to the news, shares of Morepen Labs slumped over 17% to the intraday low of Rs 18, against the previous close of Rs 21.75.

Additionally, the company issued a clarification, saying that the said matter was pertaining to the year 2003 which has been finally settled by the SEBI today.

"There is no impact on the existing securities listed with the Stock Exchanges as well as no financial implications on the business operation of the Company, of the said order," the filing added.

In regards to the ongoing preferential issue of fully convertible warrants (to be converted within 18 months), the filing said," Company is seeking guidance regarding implication of the SEBI's order and process to be followed to complete the said preferential issue of warrants".

Morepen Laboratories stock falls 17% after SEBI order

Market viewpoint

Sensex Today: According to traders, domestic equities opened on a weak note tracking negative news from global markets. Meanwhile, domestic investor sentiment was also weighed down after the Asian Development Bank on Wednesday sharply cut India's growth forecast to 6.5 per cent for the current fiscal.

Rupee opens lower

On the currency front, the rupee, depreciated 7 paise against its previous close to 71.08 in early session.
Forex traders said weak opening in domestic equities and unabated foreign fund outflows also weighed on the domestic currency.

At the Interbank Foreign Exchange, the rupee opened at 71.10 then fell to 71.12 against the US dollar, showing a decline of 11 paise over its previous closing.

The Indian rupee on Tuesday had closed at 71.01 against the US dollar.

Rupee vs Dollar: Rupee slips 11 paise to 71.12 against USD amid unabated foreign fund outflows

 

Zee Entertainment Enterprises rises over 5%

Zee Entertainment stock price rose over 5% within the first hour of trade after Essel Group on Wednesday announced and confirmed that its lenders have unanimously agreed to extend the timeline for standstill agreement, enabling the group to optimize the value output from the sale of its assets.

"As per the official communication issued on September, 20 2019, the Group was in a steady and progressive dialogue with all the lenders. The mentioned extension of the timeline was requested purely in the interest deriving the true value of the precious assets of the group.

The lenders have extended complete support to the Group and its promoters, recognising the intrinsic value of the assets and the overall asset divestment process are undertaken. The Group remains confident on further divestments including its non-media assets," Essel Group spokesperson said on Wednesday.

Reacting to the news, Zee stock price opened 3.5% higher at Rs 289.30 on BSE and later rose 5.01% to the intraday high of Rs 293.30, against the last closing price of Rs 279.30 on BSE.

Zee Entertainment climbs 5% as lenders extend timeline for Essel Group
 

Sensex pack losers/gainers

Top laggards in the Sensex pack in early trade included Tata Motors, SBI, HDFC twins, Vedanta, Tata Steel, Kotak Bank, Axis Bank, Maruti, Infosys, ITC and ICICI Bank, shedding up to 3 per cent.

On the other hand, PowerGrid, RIL, NTPC, TCS, HCL Tech, Tech Mahindra and Bharti Airtel rose up to 2 per cent.

Sectoral Update

On the sectoral front, except IT, all the indices are trading in red, with highest decline registerd in PSU Bank, falling over 2.5%, followed by 1.7 % decline in financial services and banking sector.

 

Maurti reduces price of select models by Rs 5,000

Maruti Suzuki India Limited has decided to reduce the price of select models by Rs 5,000 (on ex-showroom price).

"Maruti Suzuki India Limited, today announced to proactively and voluntarily share
the benefits of corporate tax reduction with its customers, welcoming the Government’s initiative to revive the demand in automobile industry, company said in a BSE filing.

These popular models include all variants of Alto 800, Alto K10, Swift Diesel, Celerio, Baleno Diesel, Ignis, Dzire Diesel, Tour S Diesel, Vitara Brezza and S-Cross. As per the filing, the new prices will be applicable from 25th September 2019, across the country.

Share price of Maruti declined 3.2% intraday to the dya's low of Rs 6782.70, against the closing price of Rs 7009.65 on BSE.

SBI branches to remain open this week as bank strike deferred

State Bank of India (SBI) has informed stock exchanges that bank unions have decided to postpone the strike.

The union proposed strike from September 26-27 was deferred, following a meeting with finance secretary Rajiv Kumar.

"Furtherto our letter no. CC/S&B/SA/682 dated 16.0g.2019 on the captioned matter, we inform that the proposed strike has been deferred. This is for your information and appropriate dissemination," SBI said in a BSE filing.

 SBI stock was top loser on SBE in the early trades. Share price of SBI has fallen 4.53% intraday to the day's low of Rs 288.75, against the last lcosing of Rs 302.45.



 

Market Update

Sensex has sunk over 350 points in early session and Nifty below 11,500 on Wednesday, dragged by losses in banking, financial and auto stocks amid negative global cues and foreign fund outflow.

 

Kaveri Seeds shares jump over 5% as board approves buyback

The stock price of Kaveri Seeds surged 5.20% on both the exchanges on Wednesday, after the board of directors of the company approved buyback shares. The announcement was made after market hours yesterday, 24 September 2019.

"We hereby inform that the Board of Directors of the Company, at its meeting held today i.e., September 24, 2019 have considered and approved the proposal for buyback of fully paid up Equity Shares of face value of Rs 2 each , not exceeding 28,00,000 equity shares, representing 4.44% of the total number of equity shares in the paid-up equity share capital of the company for an aggregate amount not exceeding Rs 196 cr only," the company said in a regulatory filing.

"The Buyback Offer Size represents 20.01% and 20.74% of the aggtegate of the fully paid-upequity capital and free reserves," the filing added.  The buyback price is set at Rs 700 per share. As per the filing, the promoters intend to participate in the proposed share buyback.

Kaveri Seeds shares jump over 5% after board approves buyback plan

Southern Petrochemicals Industries Corporation urgently shutdowns its plants

Southern Petrochemicals Industries Corporations Plants informed the exchanges that comapny has shut down its plant due to urgent need to replace a critical equipment (Urea Reactor) and to attend to essential shut down and maintenance jobs. The duration of shutdown is expected to be thirty days.

 

Lupin appoints Jon Stelzmiller to head US specialty business

Pharma major Lupin Limited (Lupin) announced on September 25, the appointment of Jon Jon Stelzmiller as the President of its US specialty business.

"Jon's extensive experience in the pharmaceutical industry, particularly in women's health segment in the US, will be a great asset for Lupin as we build our specialty business," Lupin CEO Vinita Gupta said.
 

Closing Bell: Sensex, Nifty drop over 1% a day ahead of F&O expiry

Equity indices fell over 1% a day ahead of F&O expiry, dragged by losses in banking and auto stocks amid negative global cues and foreign fund outflow.

While Sensex closed 503 points lower at 38,593, Nifty ended the day's trade at 11,440 mark, declining by 148 points.

On the sectoral front, except energy and IT, all other indices ended lower, with major declines recorded in banks, auto, metal, pharma, infra and FMCG.

 

Market viewpoint : Expert opinion

Commenting on the Wednesday's equity market trend, Vinod Nair, Head of Research, Geojit Financial Services Ltd said," Political uproar in U.S to impeach president Trump led to selloff in global market, seems a short-term reaction. While fresh NPA issues, weak Sept auto sales and monthly expiry prompted investors to book profit post the sharp upside since the last Friday. Bond yields are inching higher anticipating fiscal tightness, while government is planning higher divestment to ease the situation."

 

Currency market viewpoint : Expert opinion

Commenting on the currency market, Rahul Gupta, Currency Research Head, Emkay Global Financial Services Limited said," Indian rupee is flat as there are no major triggers in the market. The political unrest in the US, middle-east tensions and no update over US China trade deal has been keeping rupee under pressure. We expect USD/INR to move towards 71.50 in the next coming days. The only trigger is RBI policy, so ahead of that we expect USD/INR spot to trade in 70.70-71.50.”


 

Last Close

Equity indices closed little changed onTuesday's volatile tarding session. Sensex ended 7 points higher at 39,097 level and Nifty closed 12 points lower at 11,558 mark. As per traders, equity markets witnessed profit booking and consolidatation after two days of massive rally and ended flat.

Sensex Today: Indices end flat as market witnesses profit-booking post 2 days of rally

 

Yesterday, market took a breather after two days of massive rally, ending flat as investors booked profits. Nifty slipped marginally by 12 points to close at 11588 while Bank Nifty nosedived over 1% (383) points. #MOMarketUpdates

— Motilal Oswal Financial Services Ltd (@MotilalOswalLtd) September 25, 2019