Sensex, Nifty Log Worst Single-Day Loss In 2 Months
India's stock benchmarks closed lower for the second consecutive session. The S&P Sensex & NSE Nifty 50 incurred the worst single-day loss in two months, dragged largely by metal and banking stocks, amid weak global cues.
The Sensex fell 0.89% to 58,490.93, with the 30-stock index shedding 524.96 points in the session. The Nifty 50 declined 1.07% to 17,396.90. Housing Development Finance Corp. contributed the most to the index decline, decreasing 2.9%. Tata Steel Ltd. had the largest drop, falling 9.6%. Today, 41 of 50 shares fell, while 9 rose.
The broader indices underperformed larger peers with the S&P BSE MidCap and S&P BSE SmallCap shedding nearly 2%. Barring S&P BSE FMCG, all the other18 sectoral indices compiled by the BSE Ltd. declined, with S&P BSE Metal index falling nearly 7%.
The market breadth was skewed in favour of bears. About 1,036 stocks advanced, 2,338 declined and 133 remained unchanged.
"Domestic equities fell sharply today mainly on weak global cues as mounting concerns from default of Chinese real estate giant Evergrande weighed on investors’ sentiments. Defaults of Evergrande sent a shock wave across global equities as possible collapse of Evergrande can lead to cascading impact on financial institutions and corporate. Additionally, it can lead to high cost of borrowing for corporate, which does not augur well for growth of global economy. Therefore, today we saw a massive correction in metals and financials", Binod Modi, Head Strategy at Reliance Securities, wrote in a note.
Videocon Lenders Seek to Review The Company's Sale To Billionaire Agarwal
A panel of lenders to Videocon Industries Ltd. has requested an Indian court to allow it to reconsider the approval for the sale of the bankrupt firm to Billionaire Anil Agarwal’s Twin Star Technologies Ltd.
The panel of lenders, led by the nation’s largest bank State Bank of India, has filed an affidavit detailing its stand in the National Company Law Appellate Tribunal, Solicitor General Tushar Mehta said during a hearing.
Twin Star has “serious objection to change of stance by the committee of creditors,” said the company’s lawyer Harish Salve.
The tribunal adjourned the case for hearing on Sept. 27, giving time to Twin Star to file a written statement.
All The Constituents Of NSE Nifty Pharma Index Decline
Metal Stocks Decline Further; S&P BSE Metal Down 6%
Jindal Steel & Power Slips The Most In 18 Weeks
Shares of Jindal Steel & Power Ltd. shed over 9% to Rs 351.7 apiece; lower than any close since March 31.
Trading volume was 79% above the 20-day average for this time of the day.
Jindal Steel trades at 4.8 times its estimated earnings per share for the coming yeaer.
Analysts have 23 ‘buy’, two ‘hold’ and one ‘sell’ recommendations on the stock.
Share price crossed below the 200-day simple moving average in Monday’s session, indicating potential downward price momentum.