Sensex Sheds Over 500 Points After Goldman Downgrade, Trade Woes Resurface
Closing Bell: Sensex Slumps Over 500 Points; Sun Pharma, HDFC Top Losers
Indian equity benchmarks snapped their best two-day rally of 2018 after Goldman Sachs Group downgraded Indian equities for the first time in more than four years citing elevated valuations and upcoming elections.
The S&P BSE Sensex fell 1.33 percent or 505 points to 37,585 and the NSE Nifty 50 Index slumped 1.2 percent or 137 points to 11,378.
The benchmarks opened lower and extended declines as financials and drugmakers plunged amid U.S. threat to expand tariffs on Chinese goods.
Nine of 11 sector gauges compiled by the National Stock Exchange ended lower led by the Nifty Financial Services Index's 1.7 percent drop. On the flipside, the Nifty Realty Index was top gainer, up 1.1 percent.
REC, DLF Among Fab Four Stocks Of The Day
- REC: The Delhi-based state-run financial assistance provider to state and central power utilities rose as much as 5.1 percent to Rs 116.25 after its net profit rose 36.5 percent to Rs 1,468.7 crore from Rs 1,076 crore.
- KEC International: The Mumbai-based power transmission company rose as much as 4.25 percent to Rs 306.50 after Macquarie maintained outperform on KEC International for target price of Rs 443. The brokerage in a report said it will be a beneficiary of 100 percent electrification of railways by FY22.
- DLF: The Delhi-based real estate developer rose as much as 2.4 percent to Rs 214.20 after a report suggested that the company is working towards making housing business debt free by March 2019.
- Avadh Sugar: The Kolkata-based sugar maker was locked in a 20 percent upper circuit at Rs 565.40 as sugar stocks extended rally to a third day.
MRPL Rises Most In Two Months On Heavy Volumes
Shares of the Mangalore-based oil refining company rose as much as 7.22 percent, the most since July 17, to Rs 79.40 on the back of heavy volumes.
Trading volume was more than triple its 20-day average for this of the day, data compiled by Bloomberg showed.
Market Update: Sensex, Nifty Plunge As Financials Fall
Indian equity benchmarks plunged weighed down by weakness in financial heavyweights such as HDFC twins, Axis Bank and State Bank of India.
The Sensex fell 1 percent or 380 points to 37,709 and the Nifty 50 Index tumbled 0.9 percent or 103 points to 11,412.
Seven of 11 sector gauges compiled by National Stock Exchange fell dragged by Nifty Financial Services Index's 1.5 percent drop. On the flipside, the Nifty Realty Index was top gainer, up 0.7 percent.
EID Parry, DCM Shriram Among Stocks Moving On Heavy Volumes
- Shree Renuka Sugars: The Mumbai-based sugar maker rose as much as 18.6 percent, the most in over three months, to Rs 17.55. Trading volume was 33.4 times its 20-day average.
- EID Parry: The Chennai-based agricultural chemicals maker rose as much as 8 percent to Rs 235.35. Trading volume was 30.3 times its 20-day average.
- DCM Shriram: The Delhi-based packaged food company rose as much as 5.85 percent to Rs 413.50. Trading volume was 13.3 times its 20-day average.
- Kiocl: The Bengaluru-based iron ore mining services provider rose as much as 14.22 percent to Rs 258.70. Trading volume was 10 times its 20-day average.