Nifty Ends At Six-Month Low; Sensex Drops Over 550 Points
The Bombay Stock Exchange (BSE) building, background right, looms over a no-entry street sign in Mumbai, India. (Photographer: Vivek Prakash/Bloomberg)

Nifty Ends At Six-Month Low; Sensex Drops Over 550 Points

Latest First
  • Oldest First

Closing Bell: Nifty Ends At Six-Month Low; Sensex Drops 550 Points

Indian equity benchmarks declined for the third-straight session driven by losses in private lenders led by Yes Bank. The Nifty slipped to a six-month low as investors anticipated stimulus to support businesses currently facing a slowdown.

The S&P BSE Sensex fell as much as 1.59 percent to 36,472.93 and the NSE Nifty 50 declined as much as 1.62 percent to 10,741.35. The broader markets represented by the NSE Nifty 500 Index fell 1.64 percent.

“The market is getting impatient with regards to the prospects of a stimulus package from the government and the comments made by some government officials have dimmed hopes,” said Vivek Ranjan Mishra, head (Fundamental Research) at Karvy Stock Broking, in an emailed statement. However, Misra expects the economy to stabilise in September quarter and recover in the second half.

Agreed, UR Bhat, director at Dalton Capital Advisors, adding that positive news was necessary come to ensure a directional change in the markets. “The general expectation is that the government will announce some stimulus package as there are so many opinions collected from various market participants,” he said in an interview to BloombergQuint.

The market breadth was tilted in favour of sellers. About 1,433 stocks declined and 368 shares advanced on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Realty Index’s 6.73 percent fall. On the flipside, the NSE Nifty IT Index was the top sectoral gainer, up 0.23 percent.

Nifty Ends At Six-Month Low; Sensex Drops Over 550 Points

Positive News Flow Necessary To Change Market Sentiments, Says Dalton's Bhat

The government can step in for a brief period to mend investor sentiment,. That’s according to UR Bhat, director at Dalton Capital Advisors.

“The general expectation is that the government will announce some stimulus package as there is so many opinions collected from various market participants,” said UR Bhat in an interview with BloombergQuint.

Here are the other highlights from the conversation:

  • No big turnaround expected in September-quarter earnings.
  • Earnings has been very disappointing and global concerns such as trade war, Brexit have fueled woes.
  • The non-banking and financial companies crisis continues to pester.
  • Financial sector is battling with pile up of bad loans and resolutions under NCLT are not fast enough.
  • Only the government can step in and support for a brief period to change market sentiment as there is no positive from anywhere.

Yes Bank Hits Six-Year Low

Shares of the private lender slumped over 18 percent to Rs 53.20 each, its lowest price in since September 2013.

The trading volume was over three times the 20-day average for this time of the day, according to Bloomberg data. The relative strength index was below 30, indicating the stock may be oversold.

Recently, Yes Bank Ltd. invoked pledged shares of CG Power, acquiring 12.79 percent ownership in the company from the promoter Avantha Holdings Ltd.

CG Power hit the lower circuit for third day after a probe by a legal firm revealed that the Gautam Thapar-founded Avantha Group flagship understated its liabilities and advances made to related and unrelated parties.

Nifty Ends At Six-Month Low; Sensex Drops Over 550 Points

Markets Check: Sensex Drops Over 500 Points; Nifty Below 10,800

Indian equity benchmarks extended their declines for the third day in a row led by losses in Yes Bank slipping to a six-year low.

The S&P BSE Sensex fell as much as 1.48 percent to 36,512.73 and the NSE Nifty 50 declined as much as 1.53 percent to 10,751.40. The broader markets represented by the NSE Nifty 500 Index fell 1.58 percent.

“The market is getting impatient with regards to the prospects of a stimulus package from the government and the comments made by some government officials have dimmed hopes,” said Vivek Ranjan Mishra, head (Fundamental Research) at Karvy Stock Broking, in an emailed statement. However, Misra expects the economy to stabilise in September quarter and recover in the second half.

The market breadth was tilted in favour of sellers. About 1,462 stocks declined and 334 shares advanced on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Realty Index’s 6.25 percent fall. On the flipside, the NSE Nifty IT Index was the top sectoral gainer, up 0.47 percent.

Oil Marketers Fall As Crude Prices Rise

Shares of the oil retailers declined as oil prices extended their gains for the fifth-straight day. Brent crude rose 0.6 percent to $60.65 per barrel.

  • Indian Oil fell 3.8 percent intraday to Rs 116.40 each.
  • BPCL slumped 5.3 percent to Rs 310.50 apiece.
  • HPCL declined 5.6 percent to Rs 225.50 each.
Nifty Ends At Six-Month Low; Sensex Drops Over 550 Points

NDTV Falls As Interim CEO Quits

Shares of the media company extended decline for the third day after it fell nearly 6.2 percent to Rs 34 each.

The company’s interim Chief Executive Officer Suparna Singh stepped down, according to an exchange filing.

The Central Bureau of Investigation, on Wednesday, booked New Delhi Television Ltd. promoters Prannoy Roy and Radhika Roy and others for allegedly violating India’s foreign direct investment rules in a 2007-09 deal. The allegation has been denied by the media firm.

Also read: CBI Books NDTV’s Prannoy Roy, Radhika Roy For Alleged Violation Of FDI Norms

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.