Men look up at an electronic ticker board that indicates stock figures at the Bombay Stock Exchange (BSE) in Mumbai. Photographer: Dhiraj Singh/Bloomberg.

Sensex, Nifty Decline Most In Two-Weeks Dragged By Profit Booking In Autos, Banks

Closing Bell

Indian shares declines most in two-weeks after investors choose to book profits in banks and auto companies from record levels.

The S&P BSE Sensex dropped 0.8 percent to 28,797; while the NSE Nifty lost nearly 1 percent to 8,866, biggest decline since August 10. The market breadth was skewed in favour of the bears at 1,032 declines, 571 advances and 255 stocks remaining unchanged.

“The bias still remains positive. We have seen some short covering in the last two days or so, by investors who felt left out,” Ashu Madan, COO of Religare Securities told BloombergQuint in a phone interview.

The S&P BSE Oil & Gas index (+0.9 percent) was the best performing sectoral gauge; while S&P BSE Metal (-1.7%), FMCG (-1.7%), Auto (-1.4%) and Bank (-1%) indexes dropped the most.

Madan expects the Nifty to remain in an 8,800 to 9,050 range for the next few days heading into a truncated week. Investors will also watch for some the latest consumer price inflation and index of industrial production figures for direction.

Motherson Sumi May Price $300m Share Sale at Lower End

Shares of the auto ancillary rose around 1 percent, making one of the only two advancing stocks on the S&P BSE Auto index.

The company is planning to price its QIP issue at Rs 317 a share, which is at the low end of the marketed range, reports Bloomberg News citing people with knowledge of the matter.

The issue has been subscribed nearly 1.5 times so far, they told Bloomberg News.

The Nifty IT index rebounds after two-day drubbing, making it the only advancing sectoral gauge on the NSE, led by Mindtree (+1.6%), HCL Tech (+1.1%) and TCS (+0.7%).

Opening Bell

Indian shares declined as investors weighed prospects for further monetary easing in Europe and possibility of interest rate hike by the U.S. Fed.

The S&P BSE Sensex dropped 0.4 percent to 28,911; while the NSE Nifty lost 0.4 percent as well to 8,900. The decline on the 50-share index was led by Yes Bank, which extended its losing streak for a third day.

Market Movers: Bharti Infratel, Yes Bank, Motherson Sumi and More

Stocks To Watch

  • YES Bank: Defers $1 billion share sale after stock plunges
  • ICICI Bank: ICICI Prudential Life IPO to open on September 19 and close on September 21, 2016.

*Price band set at Rs 300-334 per share.

  • Zensar Technologies: Signs multi-million dollar development deal with AVIS Fleet in South Africa.
  • Motherson Sumi: Begins $250 million share sale, offered between Rs 317-327.95 per share.
  • Reliance Communication: Brookfield may buy majority stake of 75-80 percent in Reliance Infratel. (Economic Times)
  • Vedanta: Merger with Cairn India gets LIC backing. (Mint)
  • Just Dial: Gets in-principle nod from RBI to launch pre-paid wallet to provide payment solutions to its users. (PTI)

For a complete list of stocks to watch, click HERE

Earnings to Watch

  • Gujarat Gas
  • Gujarat State Petronet
  • Jaiprakash Associates
  • Lanco Infratech
  • KSK Energy Ventures
  • Timken India
  • Titagarh Wagons

Talking Points

  • Bad loan cleanup faith tested by first India capital dollar bond
  • Near normal monsoon boosts reservoirs levels 17%
  • India hasn’t yet decided on ratifying Paris climate accord
  • Itau raises raw-sugar price forecast, cites India, Thai risks
  • India to hold London road shows for discovered small fields
  • RBI accepts Rs 10,000 crore of bonds at OMO auction
  • Normal rain seen in India’s east, northeast regions, says IMD
  • Global funds buy Rs 111 crore of local stocks; domestic funds sell Rs 587 crore yesterday: Provisional data

Data to Watch

  • 5:30pm: July industrial output YoY; estimate 1.9 percent (prior 2.1 percent)
  • This Month: Q2 BoP current account balance, estimate $2.60 billion (Prior -$0.30 billion)

Good Morning!

The Nifty futures on the Singapore Exchange, an early indicator of the Nifty performance in India, declined 0.3 percent to 8,958.

U.S. shares retreated from record high on Thursday, dragged lower by Apple after its latest iPhone failed to impress Wall Street, but gains in energy shares limited the decline.

Crude surged more than 6 percent this week following an unexpected drop in U.S. stockpiles.

In U.S. economic data, the number of people filing for unemployment benefits unexpectedly dropped to seven-week low, prompting an increase in odds of the Fed raising rates at its September meeting. The bets on a rate hike in September is now at 28 percent, according to Fed fund futures tracked by Bloomberg.

Asian stocks fell the most in a month and regional bonds joined a global debt selloff this morning as investors weighed prospects for further monetary easing in Europe and Japan.

The European Central Bank refrained from expanding its quantitative-easing program and left its key interest rates unchanged.

With six months to go until the scheduled end of its QE program, the ECB needs to balance increasing concerns about asset scarcity with signs that the region’s recovery is losing momentum. The central bank has missed its target of keeping inflation just under two percent for over three years and doesn’t foresee reaching it before late 2018.

Also Read: Sensex, Nifty Headed For All-Time Highs; Pharma May Outperform: Expert

Stay Updated With Stock Market News on BloombergQuint