Sensex, Nifty Fall For Third Day On Weak European Cues; Banks, Telcos, Drag; IT Bucks Trend
Indian shares advance as global markets rebound after the 1st U.S. presidential debate.
Closing Bell
Indian shares gave up on their intraday gains and closed lower after a selloff in European shares spooked investors.
The S&P BSE Sensex lost 0.2 percent to 28,223; while the NSE Nifty dropped 0.2 percent as well to 8,706. The 50-share index had dropped below the 8700-mark, a level watched closely by analysts, for a short period, but recovered quickly.
The market breadth was skewed in favour of the bears at 784 declines, 586 advances and 51 stocks remaining unchanged.
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Nifty ended down for third consecutive day making a long black/red candlestick on the charts while it manages to sustain the 8700-mark. The third red candlestick confirms the grip of bears in the intermediate trend though bulls managed to hold the 8700. It is crux point of current momentum as it is the midpoint of current trading orbit range in the broader indices. A close below will augur well for bears in coming trading session while if bulls managed to hold the 8700 levels then a pullback is not ruled out as it will turn out to be a double bottom formation. As per open interest data, shift of range is seen from 9000- 8700 to 8800 to 8600 which indicates a bearish undertone in coming sessions. A sell on rise strategy may augur well for traders and investors. Auto stocks and realty stocks shall be kept under scanner due to rate cut expectations on D-street.Mustafa Nadeem, CEO, Epic Research wrote in an email.
European Shares Selloff
European stocks fell for a third day, after an early advance faltered amid losses in banks and carmakers,
Lenders extended their lowest prices in more than a month, with Commerzbank AG down 3 percent after a report it plans to eliminate 9,000 jobs and suspend dividend payments.
Volkswagen AG slipped 3.4 percent after people familiar with the matter said the U.S. Justice Department is assessing how big a criminal fine it can extract from the German automaker over emissions-cheating without putting it out of business.
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Read Full report HERE
Telecom Stocks Top Worst Performer List
The BSE Telecom Index was the worst performer among the 19 sectoral gauges on the exchange, down 1.25 percent at the day’s low. Bharti Infratel, Bharti Airtel and Idea Cellular, which hit a fresh 52-week low, were some of the key laggards on the Nifty.
TCS Leads Tech Stocks Higher
Shares of technology stocks maintained steady gains on a weak rupee. TCS (up 1.31 percent) was the second best performing stock on the NSE Nifty (down 0.2 percent).
European Shares Snap 2-Day Losing Streak
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Max Financial Shareholders Approve Rs 850 Crore Non-Compete Fee to Singh
Shares of Max Financial Services retreated after its minority shareholders gave their nod to the payment of a non-compete fee of Rs 850 crore to Analjit Singh. The stock, which went up as much as 1.7 percent, gave up all its gains to trade little changed.
HDFC too, meanwhile, remained unchanged at Rs 1410 apiece on the NSE.
Narayana Hrudayalaya Jumps 15%
Shares of hospital chain operator rose as much as 15 percent to Rs 374, most since its January 6 debut. The stock is up around 20 percent in the last three trading sessions.
Market Movers: Capital First, IRB Infra, Lanco Infratech And More
Rupee Gains 11 Paise Against Dollar
The rupee firmed up by 11 paise to 66.50 against the dollar in early trade, maintaining its upward trend for the fourth straight day on sustained selling of the U.S. currency by exporters and banks amid a higher opening in the domestic equity market.
Forex dealers said weakness in the dollar against other currencies overseas supported the rupee. A higher opening in the domestic equity market gave the uptrend some momentum, they added.
Yesterday, the domestic unit ended higher by 4 paise against the dollar at 66.61.
(PTI)
Opening Bell
Indian shares snapped a two-day losing streak as global equity market recovered after the first U.S. presidential debate. Clinton, who the market seem to prefer, presented Trump as both unprepared for the debate and for the presidency.
The S&P BSE Sensex climbed as much as 0.5 percent to 28,432; while the NSE Nifty gained 0.5 percent as well to 8,768. The market breadth was encouraging at 1,065 advances, 373 declines and 412 stocks remaining unchanged.
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Stocks to Watch
- Reliance Industries: Reliance Jio makes operator-wise call drop data live.
- IRB Infrastructure: Bagged a Rs 2,100-crore six-laning project for 113.8 kilometers of the Udaipur to Rajasthan highway, from the NHAI.
- Lanco Infratech: To kick off $1 billion power assets sale
- Pfizer: Completes sale of 4 products to Piramal Enterprises
- Tata Steel: To consider selling NCDs on private placement basis
- Sintex Industries: Directors approved a rights issue of 7.7 crore fully paid equity shares of Re 1 face value for Rs 65 per share.
- 8K Miles Software Systems: Company to carry out stock split and bonus issue on October 13, 2016.
- ONGC: Central Government considering sale of 5 percent stake in the company (Financial Express)
For a complete list of stocks to watch, click HERE
IPO Watch
- HPL Electric IPO gets 8-times demand for shares offered (NSE)
Talking Points
- Kashmir to remain an integral part of India: Swaraj
- India forms panel to look into Indus River treaty: Official
- Pakistan to raise India plan to reexamine water treaty at United Nations
- India gives in principle nod to 3 greenfield airport projects
- FIPB approves 10 FDI proposals including Sharekhan’s plan
- BSE sets daily 10 percent limit on Adlabs, Capri Global, BPL
- Bharat Financial panel meeting to fix price for shares issue
- Global funds sell Rs 206 crore of local stocks; domestic funds sell Rs 113 crore rupees yesterday: Provisional data
- ADB keeps developing Asia 2016 GDP growth unchanged at 5.7 percent
- Wal-Mart seeks equity alliance with Flipkart to rival Amazon (Economic Times)
- Dassault Aviation sees more sales after India’s Jets deal (Financial Times)
- Samsung said to not sell Note 7 made until September 15 in India (Economic Times)
Good Morning!
The Nifty Futures on the Singapore Exchange, an early indicator of Nifty performance in India, recovered from earlier losses to trade little changed at 8,743.
Asian stocks trimmed losses and U.S. stock index futures rebounded as U.S. presidential hopefuls Donald Trump and Hillary Clinton sparred during their first debate. (Click here for a complete coverage)
On Monday, U.S. stocks slipped as worries about Germany’s Deutsche Bank weighed on the financial sector. U.S. crude prices declined 0.5 percent during Asian trading, paring some of Monday’s gains as hopes of deal to reduce production receded.