Sensex, Nifty Rebound Short-Lived As Slowdown Concerns Reclaim Focus
A Broker looks at a graph depicting the change in sterling on the trading floor at ETX Capital, a broker of contracts-for-difference, in London, U.K. (Photographer: Jason Alden/Bloomberg)

Sensex, Nifty Rebound Short-Lived As Slowdown Concerns Reclaim Focus

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Closing Bell: Sensex, Nifty Resume Declines After Three-Day Breather

Indian benchmark indices snapped their three-day rally and ended lower as slowdown concerns were back in the spotlight.

The S&P BSE Sensex traded 0.50 percent lower at 37,451.84 and the NSE Nifty 50 fell 0.53 percent to 11,046.10. The broader markets represented by the NSE Nifty 500 Index fell 1.02 percent.

"The sentiment has changed since Friday but the underlying fundamentals and earnings [concerns] haven't changed to a large extent," said Rusmik Oza, senior vice president and head of fundamental research at Kotak Securities. Nifty may be rangebound between 10,600 and 11,500 in the near term on weak corporate earnings and more industries slipping into the slowdown net, he told BloombergQuint in an interview.

The market breadth was tilted in favour of sellers. About 1,108 stocks declined and 674 shares advanced on National Stock Exchange.

Eight of the 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Metal Index’s 3.36 percent decline. Nifty Realty Index was the top sectoral gainer, up 2.38 percent.

Sensex, Nifty Rebound Short-Lived As Slowdown Concerns Reclaim Focus

Block Deal Alert: Tata Power

Shares of the Tata group company reversed day’s losses and traded nearly 1 percent higher at Rs 55.85 each.

Around 10 lakh shares changed hands on National Stock Exchange. The buyers and sellers were not known immediately.

The stock traded 45 percent below the Bloomberg one-year target price.

Markets Check: Sensex Drops Over 300 Points; Nifty Hovers Around 11,000-Mark

Indian benchmark indices traded lower in the final hour led by declines in Yes Bank and Indiabulls Housing Finance.

The S&P BSE Sensex traded 0.90 percent lower at 37,303.76 and the NSE Nifty 50 fell 0.91 percent to 11,001.80 as of 2:45 p.m. The broader markets represented by the NSE Nifty 500 Index fell 0.96 percent.

"The sentiment has changed since Friday but the underlying fundamentals and earnings (concerns) haven't changed to a large extent," said Rusmik Oza, senior vice president and head of fundamental research at Kotak Securities. Nifty may be rangebound between 10,600 and 11,500 in the near term on weak corporate earnings and more industries slipping into the slowdown net, he said, in an interview to BloombergQuint.

The market breadth was tilted in favour of sellers. About 1,170 stocks declined and 599 shares advanced on National Stock Exchange.

Nine of the 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Metal Index’s 3.50 percent decline. Nifty Realty Index was the top sectoral gainer, up 1.45 percent.

RBL Bank Declines The Most Since Listing

Shares of the private lender declined as much as 14.8 percent, the biggest intraday slide since its listing in August 2016, to Rs 304 each.

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

RBL Bank responded to an Economic Times report on employees selling the private lender’s shares. The filing said:

  • Employee holding in the Bank is 3.46 crore shares as on Aug 3.
  • Transactions in company's shares by employees is a routine activity.
  • Employee stock options exercise and sale of shares for July 2019 is in line with the past.
  • No Management Committee member including Key Managerial Personal sold shares on July 30 or till date.
Sensex, Nifty Rebound Short-Lived As Slowdown Concerns Reclaim Focus

Yes Bank Extends Fall After Moody's Downgrade

Shares of the private lender fell close to 10 percent to Rs 58.10 apiece.

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.

Sensex, Nifty Rebound Short-Lived As Slowdown Concerns Reclaim Focus

Also read: Yes Bank’s Stake Sale To Private Equity Funds Hits Information Roadblock

Godfrey Phillips Jumps On Merger Plans Of Stakeholder

Shares of the cigarette maker rose as much as 9.2 percent to a fourth-month high of Rs 1,097.80 apiece.

More than 10 years after splitting their operations, the world’s two largest tobacco companies, Philip Morris International Inc. and Altria Group Inc., are in advanced talks about reuniting in a blockbuster deal that would be the largest since AT&T Inc.’s bid for Time Warner in 2016.

Philip Morris owns 25.1 percent stake in the Mumbai-based company, according to Bloomberg data. The stock traded 14 times its estimated earnings per share for the coming year.

Also read: Altria and Philip Morris Consider Reuniting to Face Post-Cigarette Future

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