Nifty Erases 2019 Gains As Oil Concerns Spook Investors
A telephone handset sits on a desk on the trading floor. (Photographer: Jason Alden/Bloomberg)

Nifty Erases 2019 Gains As Oil Concerns Spook Investors

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Closing Bell: Sensex, Nifty Extend Declines On Oil Concerns

Indian equity indices declined for the second-straight session after geopolitical tensions surrounding Saudi Arabian oil supplies triggered a selloff.

The S&P BSE Sensex ended 1.73 percent lower at 36,481.09 and the NSE Nifty 50 fell 1.69 percent to 10,817.60—wiping out this year’s gains. The broader markets represented by the NSE Nifty 500 Index closed 1.72 percent lower.

“There is also a possibility of a flare up due to retaliatory actions by U.S. or Saudi Arabia resulting in further instability and correction in the markets,” said Sudip Bandopadhyay, group chairman, Inditrade Capital, in an interview with BloombergQuint. However, the supply concerns will be temporarily contained by release of U.S. stockpile reserves, he added.

The attack and consequent fear seen in the oil prices does put a big question mark on India’s economic stability.
Sudip Bandhopadhyay, Group Chairman, Inditrade Capital

On the technical front, Nifty may touch 10,300 “at least once” before the September’s monthly expiry. That’s according to Jai Bala, technical analyst, cashthechaos.com. "We may be done with selling for the day but not for the next few days," said Bala in an interview to BloombergQuint. One can make use of the 10,600 or 10,700 puts which are available at cheap levels, he said.

The market breadth was tilted in favour of sellers. About 1,264 shares declined and 517 stocks advanced on National Stock Exchange.

All 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Auto Index’s 3.83 percent fall.

Nifty Erases 2019 Gains As Oil Concerns Spook Investors
Nifty Erases 2019 Gains As Oil Concerns Spook Investors

Bayer CropScience Falls After Merger With Monsanto India

Shares of Bayer CropScience declined as much as 3.4 percent to Rs 3,180 apiece.

On Monday, German chemical and pharma maker Bayer AG said it has completed the integration of Monsanto's India business with itself.

The National Company Law Tribunal had last week approved the merger of Monsanto India Ltd. with Bayer CropScience. Monsanto India shareholders will now get two equity shares of Bayer CropScience for every three shares they hold in the company.

Monsanto India’s shares fell 2.3 percent intraday Rs 2,092.65 apiece.

Nifty May Touch 10,300 Levels Before Month-End, Says Jai Bala

Nifty may touch 10,300 “at least once” before the September’s monthly expiry. That’s according to Jai Bala, technical analyst, cashthechaos.com.

"We may be done with selling for the day but not for the next few days," said Bala in an interview to BloombergQuint. One can make use of the 10,600 or 10,700 put options which are available at cheap levels, he said.

Attack On Saudi Oil Facilities Have Spooked Markets, Says Inditrade Capital

Geopolitical sensitivities connected to oil supply due to Saudi-Iran tensions does not “augur well” for Indian capital markets. That’s according to Sudip Bandhopadhyay, group chairman, Inditrade Capital.

“There is also a possibility of a flare up due to retaliatory actions by U.S. or Saudi Arabia resulting in further instability and correction in the markets,” said Bandopadhyay in an interview with BloombergQuint. However, the supply concerns will be temporarily contained by release of U.S. stockpile reserves, he added.

The attack and consequent fear seen in the oil prices does put a big question mark on India’s economic stability.
Sudip Bandhopadhyay, Group Chairman, Inditrade Capital

Markets Check: Sensex Drops Over 500 Points; Nifty Below 10,900

Indian equity benchmarks were trading at day’s low dragged down by losses in auto manufacturers.

The S&P BSE Sensex fell as much as 1.33 percent to 36,636.80 and the NSE Nifty 50 fell as much as 01.30 percent to 10.862.40. The broader markets represented by the NSE Nifty 500 Index fell as much as 1.17 percent.

Corporate earnings for India Inc. “may not be more than 5 percent” for the current financial year on account of liquidity issues and macro concerns. That’s according to Avinash Gorakshakar, head of research at Joindre Capital. Investors are anticipating stability in Saudi-Iran oil tensions, he said.

Also, on the foreign institution investors still indulging in sell-offs will compound the liquidity problem in the financial system.
Avinash Gorakshakar, Head Of Research, Joindre Capital.

The market breadth was tilted in favour of sellers. About 1,157 shares declined and 569 stocks advanced on National Stock Exchange.

All 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty PSU Bank Index’s 2.22 percent fall.

Nifty Erases 2019 Gains As Oil Concerns Spook Investors

Earnings Growth May Take A Hit For FY20, Says Joindre Capital

Corporate earnings for India Inc. “may not be more than 5 percent” for the current financial year on account of liquidity issues and macro concerns. That’s according to Avinash Gorakshakar, head of research at Joindre Capital.

Investors are anticipating stability in Saudi-Iran oil tensions and a rate cut from FOMC meet. “Also, on the foreign institution investors still indulging in sell-offs will compound the liquidity problem in the financial system,” he said in an interview to BloombergQuint.

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