Sensex, Nifty Extend Declines As Private Lenders Drag
Bombay Stock Exchange (BSE) signage is seen through foliage in Mumbai.(Photographer: Vivek Prakash/Bloomberg)

Sensex, Nifty Extend Declines As Private Lenders Drag

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Closing Bell: Sensex, Nifty Fall For Second Day

Indian benchmark indices fell for the second day as private banks failed to lend support.

The S&P BSE Sensex ended 1.02 percent lower at 37,068.93 and the NSE Nifty 50 fell 0.89 percent to 10948.30. The broader markets represented by the NSE Nifty 500 Index fell 0.72 percent.

The sell-off in emerging markets such as India is triggered by foreign investors who find them unattractive due to global woes such as Brexit and U.S. Federal Reserve’s policy statements. That’s according to Mahantesh Sabarad, head of retail research, SBI CAP Securities. “"I think it will take another quarter for foreign portfolio investors to return to Indian markets despite the measures taken by the government,” he said in an interview to BloombergQuint.

Agreed Ajit Mishra, vice president (Research) at Religare Broking, saying that global cues will continue to dictate the market trend in the absence of any major domestic event scheduled in the near term.

Indications are in the favour of further consolidation in Nifty thus traders should focus more on stocks selection and trade management.
said Ajit Mishra, vice president (Research), Religare Broking, in an email statement

The market breadth was tilted in favour of sellers. About 1,119 stocks declined and 662 shares advanced on National Stock Exchange.

Seven of the 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty PSU Bank Index’s 2.70 percent decline. Nifty Pharma Index was the top sectoral gainer, up 2.25 percent.

Sensex, Nifty Extend Declines As Private Lenders Drag

F&O Check: Nifty 11,000 Call Option Slumps 87%

Nifty’s 11,000 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the weekly contract which is set to expire today fell 87.41 percent to Rs 8.95. Over 23.47 lakh shares were added to the open interest which stood at over 46.16 lakh shares.

Global Overhang Making Indian Markets Unattractive, Says SBI CAPS

Global concerns in the form of U.S. Federal Reserve’s statements and Brexit are impacting emerging markets including India. That’s according to Mahantesh Sabarad, head of retail research, SBI CAP Securities.

"Foreign portfolio investors are having problems overall in terms of investing in emerging markets due to global concerns such as flip-flops of Fed's policy statements and uncertainty over Brexit," said Sabarad in an interview to BloombergQuint, adding that it may take a quarter for the foreign investors to “conclusively” return to the Indian markets.

Wockhardt Slumps After Rating Downgrade

Shares of the drugmaker declined 3.9 percent intraday to Rs 242.50 each, the lowest price since September 2010.

India Ratings and Research downgraded long term loan facilities to ‘IND BB+’ from ‘IND BBB-’, with outlook remaining ‘Negative’, according to an exchange filing. The downgrade was due to refinancing risks, R&D expenses and regulatory overhang, the filing said.

The relative strength index was below 30, indicating the stock may be oversold.

Yes Bank Extends Decline; Worst Performer On Nifty

Shares of the private lender slumped as much as 7.6 percent to Rs 55 each, making it the worst performer on Nifty Index.

On Wednesday, Credit rating firm Moody’s lowered the bank’s rating to Ba3 from Ba1, according to a statement. The firm gave a negative outlook citing risk of further deterioration in the bank’s solvency, funding or liquidity.

The stock declined 85 percent in the past 12 months compared to a 4 percent fall in the Sensex.

L&T Finance Swings After Plan To Sell Wealth Management Unit

Shares of the financial services company fluctuated between gains and losses to trade flat at Rs 94.45 each as of 1:20 p.m.

The company is planning to sell its wealth management business for Rs 230 crore to IIFL Wealth, according to an exchange filing. The definitive agreement to acquire 100 percent stake is subject to regulatory approvals, the filing added.

The stock traded at 40 percent below the Bloomberg consensus one-year target price.

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