Sensex drops 297 points lower, Nifty ends at 11,234; Banking and financials drag

L&T Construction bags an EPC award in Mozambique

Construction arm of L&T has secured orders from prestigious clients for its Power Transmission & Distribution and Metallurgy & Material Handling businesses. Contracts awarded are Significant in terms of project classification,  i.e. valued across 1,000 to 2,500 cr.

 

Sensex pack gainers/losers

Top losers in the Sensex pack during early session included SBI, ICICI Bank, Tata Motors, Yes Bank, Tata Steel, Axis Bank, HDFC twins, M&M, Bajaj Finance and IndusInd Bank, shedding up to 2.66 per cent.

On the other hand, Bharti Airtel, RIL, Infosys, TCS and Sun Pharma advanced up to 5 per cent.

Rupee opened stronger

Rupee opens stronger at 70.95 per USD on Thursday as compared to Wednesday's close of 71.07 per Amercian dollar.

The rupee appreciated 5 paise against its previous close to trade at 71.02 in early session.

On Wednesday, the INR cut most of its early losses and closed marginally down by 5 paise on account of China's proposal to buy extra US goods to alleviate trade tensions between the two countries. This reinforced hopes of a partial US-China trade deal.

Rupee trims losses on US-China trade deal hope; closes 5 paise down at 71.07
 

Global Market Update

Elsewhere in Asia, bourses in Shanghai, Hong Kong and Tokyo were trading on a positive note in early trade amid hopes of a trade deal between the US and China as they hold the next round of trade negotiations on October 10. Exchanges in Seoul were trading in the red.

Stocks on Wall Street ended on a positive note on Wednesday.

Brent Crude nears $58/bbl

Brent futures, the global oil benchmark, fell 0.17 per cent to USD 58.22 per barrel. 

FII/ DII

Foreign institutional investors (FIIs) remained net sellers in the capital market, pulling out Rs 485.24 crore on Wednesday, while domestic institutional investors bought shares worth Rs 956.26 crore, data available with stock exchange showed. 

RBI rejects Indiabulls-LVB merger

The Reserve Bank on Wednesday rejected non-banking lender Indiabulls Housing Finance's (IBHF) proposal to merge with the capital starved private sector lender Lakhsmi Vilas Bank (LVB).

"The Reserve Bank has informed us that the application for voluntary amalgamation of IBHF and Indiabulls Commercial Credit with LVB cannot be approved," LVB informed the exchanges.

In a similar exchange filing, IBHF said it has also been informed by the RBI about the same and added that the decision ends the uncertainty of the past five months.

Lakshmi Vilas Bank share price hit its lower circuit today , while share price of Indiabulls Housing Finance fell over 12% by 1015 IST on Thursday.

Lakshmi Vilas Bank share hits fresh 52-week low, Indiabulls Housing Finance falls over 6% after RBI rejects proposed merger
 

Last Closing

Benchmark indices ennded the Wednesday session on a bullish note, backed by positive domestic as well as global cues.

In the previous session, the BSE barometer surged 645.97 points or 1.72 per cent to end at 38,177.95, while the Nifty zoomed 186.90 points or 1.68 per cent to 11,313.30.

Sectorally, except for IT scrips, all the other indices ended on a bullish note, with over 3.4% gain registered in banking and PSU banking indices and over 2% advance recorded in realty financial services. Metal indices gained over 1% in pharma and auto stocks.

5 reasons why Sensex rallied over 600 points today

Major events scheduled for today

International cues

- U.S.-China trade talks have begun in Washington on Thursday and Friday between Chinese Vice Premier Liu He and U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

-Chinese President Xi Jinping will visit India from October 11 to 12 to take part in the 2nd informal summit with PM Modi during which they are expected to hold comprehensive talks on a host of issues concerning the bilateral relations and exchange views on regional and international issues.

Domestic cues:

-Expiry Day: Weekly Bank Nifty and Bank Nifty expiry today,

- Q2 results: TCS and IndusInd Bank will be announced today.


 

Bank of Maharashtra hits all time low

Bank of Maharashtra share price hit its all-time low in early trade today after banking regulator Reserve Bank of India (RBI) rejected proposal of the state-run lender to settle its accumulated losses of Rs 7,360.29 crore against the balance lying in its share premium account and revenue reserve account.

Bank of Maharashtra share price fell to its all time low of Rs 10.34 compared to the previous close of Rs 10.80 on the BSE. The public sector bank stock has lost 5% in last four days. The midcap stock has lost 5% during last one year and fallen 29.68% since the beginning of this year.

Bank of Maharashtra share hits all-time low after RBI rejects lender's proposal for setting off Rs 7,360-cr loss

Telecom shares up

Reliance Jio has announced that customers will have to recharge IUC top-up as well as pay a fee of 6 paise per minute for calling consumers on another company's network.

Although calling from Jio to Jio network will be free, but for calling on any other network, users will have to pay 6 paise per minute. Until now, only data had to be recharged and calling and SMS services were available free of cost .

Post this announcement, the share of Jio's rival telecom companies were trading higher. Shares of Vodafone Idea weere trading 6% higher , while Airtel shares were 4% higher. Additionally, there was tremendous action seen in 'Telecom Provider sector' that gained by 4.51% intraday.

Torrent Pharma receives USFDA warning letter for Gujarat facility

 
Torrent Pharma slipped nearly 7% in the ear;y trading hours of Thursday as the pharmaceutical gainst informed the bourses that it has received a warning letter from USFDA for its Indrad facility in Gujarat.

"Company has today received a warning letter dated 08-Oct-19 from the USFDA for its Indrad facility in Gujarat," the BSE filing read.

Against the last close of Rs 1666.15, the Torrent Pharma stock opened 5.17% lower today, with a gap-down chart pattern and later slipped 6.69% to the day's low of Rs 1554.65. Torrent Pharma stock has underperformed the 'Pharma sector' by 1.44% post the development.

DHFL hits 52-week low

Dewan Housing Finance Corporation (DHFL) shares fell over 9% to a fresh 52-week low of Rs 23.65 on Thursday's trading session, after media reports suggested that Edelweiss Asset Management has approached the Bombay High Court to recover its dues amounting to Rs 70 crore from the housing lender.

The suit comes after Reliance Nippon Life Asset Management approached the courts on September 26 against DHFL to recover dues worth Rs 478cr.

In a BSE filing, the Edelweiss said, "It is hereby clarified that, our subsidiary, Edelweiss Asset Management Limited, (which has various schemes of mutual funds) has approached the Mumbai High Court for recovery of Principal and Interest dues from DI-IFL, in line with action taken by other peers in the industry".

Tata motors dips 4%

The share price of Tata Motors fell almost 4% after the automobile manufacturer informed the exchanges that the group's global wholesale amounting to 89,912 units went down by 27% in September 2019 as compared to the same period last year.

The filing added that is global wholesale for all the commercial vehicles stood at 28,524 units, at a decline of 45% compared to the period during last year. Company's all passenger vehicles wholesale globally stood at 61,388 units which recorded a de-growth of 14% compared to September 2018. 
 

Closing Bell

Share Market Update: Equity markets closed majorly bearish on Thursday, with benchmark indices BSE Sensex and NSE Nifty ending 0.70% lower each by the closing bell. While BSE S&P Sensex ended 297 points at 37,880 mark, NSE Nifty50 fell 78 points to close at 11,234 level. Sectorally, all the indices except energy and infra closed in bearish territory, with over 2.50% decline registered in banking and financial stocks, followed by 1.5% fall each recorded in media, metal and auto scrips

Market Wrap: Experts opinion

Quoting on the Thursday's equity market viewpoint, Vinod Nair, Head of Research at Geojit Financial Services said,"Market failed to hold its last day gains at the start of the Q2 results. Banks underperformed due to concern over slippage and on-going crisis in the sector. The preview analysis of Q2 result is muted due to no real increase in demand and prices, this may impact the performance during the month."

Commenting on Nifty's movement today, Rohit Singre, Senior Technical Analyst, LKP Securities said,"It seems we may see some consolidation move in nifty going forward in the range narrow range of 11070-11400 zone, overall strength will come if index managed to breach 11400 zone decisively."

Ruchit Jain, Equity Technical Analyst, Angel Broking commented," Post the sharp up move seen in yesterday’s session, the indices retraced some of the gains today.Banking index which had seen a sharp up move of about 1000 points in the previous session corrected sharply by about 800 points today."

Market Update

Share Market LIVE: After yesterday's rally, equity benchmark indices Sensex and Nifty opened on a weak note on account of domestic cues and global cues. In Global cues, markets are trading bearish amid heated up US-China tensions trade war tensions and domestically, equity markets are expected to remain volatile ahead of weekly Nifty , Bank Nifty expiry and the kick start of earnings season from today.