Investors Lose Nearly Rs 3 Lakh Crore As Sensex Clocks Worst Fall In 11 Months

Indian equity investors lost around Rs 2.8 lakh crore of wealth today, according to data available with Bombay Stock Exchange.

That came after Indian equity benchmark—S&P BSE Sensex clocked its worst fall since October 2018. The 31-share index closed 2.06 percent or 770 points lower at 36,562.91.

The NSE Nifty 50 closed 2.04 percent lower at 10,797.90. The broader markets represented by the NSE Nifty 500 Index ended 1.95 percent lower.

The benchmark Nifty 50 is likely to fall 10 percent over the next three months to 9,500-10,000 levels, according to Marcellus Investment Managers’ Founder Saurabh Mukherjea.

“We expect the market to correct further towards a ‘fair valuation’. However, that does not give a reason to sound alarm bells as there are still opportunities for investors to make money every month,” Mukherjea told BloombergQuint in an interaction.

The decline in the markets are due to the ‘structural’ issues in the macro environment, followed by the weak auto numbers, according to G Chokkalingam, founder of Equinomics Research & Advisory.

“The damage done to the broader markets is enormous and one cannot expect further correction from this level,” Chokkalingam told BloombergQuint in an interaction. He suggests investors to invest in a phased manner in the next two-to-three months and expects markets to improve in the next six months.

The market breadth was tilted in favour of sellers. About 1,199 stocks declined and 569 shares advanced on National Stock Exchange.

All the 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty PSU Bank Index’s 4.87 percent fall.

Shares of Multi Commodity Exchange fell as much as 12.8 percent, the most since October 2018, to Rs 852.35.

“The company is dealing with the anonymous whistle blower-complaint in a legal manner and will file a response to the market regulator— Securities and Exchange Board of India,” its Managing Director and Chief Executive Officer PS Reddy told BloombergQuint in an interaction.

Trading volume was more than five times its 20-day average, Bloomberg data showed.

Tanla Solutions

• Stock rose as much as 4.9 percent to Rs 52.70.
• The company plans to acquire automation platform company Gamooga Softtech for Rs 48.45 crore
• The board plans to raise capital via preferential issue on Sept. 5

Titagarh Wagons

• Stock rose as much as 5.7 percent to Rs 39.70.
• The company launched coastal research vessel for the government.

HDFC AMC

• Stock rose as much as 5.8 percent to Rs 2,699.
• Trading volume was double its 20-day average.

JK Tyre & Industries

• Stock rose as much as 7 percent to Rs 62.50.
• This after the pledge release of 20.71 percent equity for KKR Capital.

Indian equity benchmarks are set for their worst fall in nearly two months.

The S&P BSE Sensex fell over 700 points or 1.88 percent to 36,637 as of 3 p.m. and the NSE Nifty 50 fell 1.86 percent to 10,817.40. The broader markets represented by the NSE Nifty 500 Index fell 1.78 percent.

The market breadth was tilted in favour of sellers. About 1,216 stocks declined and 536 shares advanced on National Stock Exchange.

The government today increased the prices of ethanol by as much as 1.84 a litre.

Highlights from cabinet briefing:

• Government revises ethanol price for blending with gasoline, aims to save $1 billion oil import via ethanol blending.
• Government approves mechanism revision of ethanol prices for oil marketing companies.
• Centre to revise ethanol prices every year.
• Government to allow ethanol production from sugar syrup, cane.

Source: Bloomberg

Shares of IDBI Bank rose as much as 9.1 percent to Rs 29.25.

The government plans to infuse Rs 9,000 crore in IDBI Bank, Union Minister Prakash Javadekar said in a cabinet briefing today.

VST Industries

• Stock rose as much s 3.7 percent to Rs 3,539.
• Trading volume was 30 times its 20-day average.

United Bank of India

• Stock rose as much as 8.7 percent to Rs 11.25.
• Trading volume was 18 times its 20-day average.

Elgi Equipments

• Stock fell as much as 2.4 percent to Rs 240.60.
• Trading volume was more than eight times its 20-day average.

Indian equity benchmarks traded at day’s low led by the declines in HDFC Ltd. ICICI Bank Ltd. and Reliance Industries Ltd.

The S&P BSE Sensex fell 1.6 percent or 600 points to 36,736 a as of 2 p.m. and the NSE Nifty 50 fell 1.58 percent to 10,848.55. The broader markets represented by the NSE Nifty 500 Index fell 1.4 percent.

The market breadth was tilted in favour of sellers. About 1,182 stocks declined and 541 shares advanced on National Stock Exchange.

Shares of Infosys and Tata Consultancy Services Ltd. hit an all-time high at Rs 822.40 and Rs 2,296.20 respectively. The stocks were the best performers on Sensex and Nifty.

Indian equity benchmarks continued to trade lower led by the declines in HDFC Ltd. ICICI Bank Ltd. and Reliance Industries Ltd.

The S&P BSE Sensex fell 1.27 percent or 476 points to 36,855 a as of 1:10 p.m. and the NSE Nifty 50 fell 1.28 percent to 10,881.90.

The decline in the markets are due to the ‘structural’ issues in the macro environment, followed by the weak auto numbers, according to G Chokkalingam, founder of Equinomics Research & Advisory.

“The damage done to the broader markets is enormous and one cannot expect further correction from the current levels,” Chokkalingam told BloombergQuint in an interaction. He suggests investors to invest in a phased manner in the next two-to-three months and expects markets to improve in the next six months.

Indian equity benchmarks were trading near day’s low.

The S&P BSE Sensex fell 1.13 percent or 36,908.64 as of noon and the NSE Nifty 50 fell 1.16 percent to 10,895. The broader markets represented by the NSE Nifty 500 Index fell 1.07 percent.

Mahanagar Gas says:

• Mumbai CNG stations are facing low pipeline pressure
• Some CNG stations in Mumbai may not operate.

Source: Bloomberg

About 10.2 lakh shares of Ashok Leyland changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

Ten out of 11 sectoral gauges compiled by National Stock Exchange traded lower, led by the NSE Nifty PSU Bank Index’s 3.2 percent fall. On the flipside, the NSE Nifty IT Index was the top sectoral gainer, up 0.9 percent.

TVS Motor’s August sales declined over 15 percent to 290,455 units, according to its exchange notification. Shares of the company snapped its three-day fall and rose 1.5 percent intraday to Rs 358.10 after the announcement.

Key Sales Highlights (YoY)

• Two-wheeler sales fell 16.4 percent to 275,851 lakh units. Motorcycle sales fell nearly 17 percent to 109,393 units.
• Exports rose 6 percent to 69,702 units.
• Three-wheeler sales rose 11 percent to 14,604 units.

Ashok Leyland Ltd.’s domestic sales fell 50 percent to 8,296 units in August, according to its stock exchange filing.

Key Sales Highlights (YoY)

• Domestic medium and heavy commercial truck sales fell 70 percent to 3,336 units.
• Domestic medium and heavy commercial bus sales fell 3 percent to 1,249 units.
• Total domestic medium and heavy commercial vehicle sales declined 63 percent to 4,585 units.
• Domestic light commercial vehicle sales fell 12 percent to 3,711 units.

Sales Including Exports (YoY)

• Total medium and heavy commercial truck sales fell 70 percent to 3,550 units.
• Total medium and heavy commercial bus sales rose 25 percent to 1,799 units.
• Total medium and heavy commercial vehicle sales fell 59 percent to 5,349 units.
• Total light commercial vehicle sales fell 8 percent to 3,882 units.
• Total sales fell 47 percent to 9,231 units.

Shares of the truck and bus maker traded 2.7 percent lower at Rs 62.70 after the announcement. The stock had declined 4.1 percent intraday.

About 12.4 lakh shares of Yes Bank changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

The Indian rupee extended opening losses against the U.S. dollar. The home currency depreciated as much as 1.12 percent to 72.20 against the greenback.

Bajaj Auto Ltd. sold 3.9 lakh units in August, a fall of 11 percent from the year ago month, the Pune-based automaker said in a stock exchange filing.

Key Sales Highlights (YoY)

• Domestic motorcycles sales fell 21 percent to 1.73 lakh units.
• Motorcycles exports fell 5 percent to 1.25 lakh units.
• Total motorcycle sales fell 10 percent 3.25 lakh units.
• Domestic commercial vehicles sales declined 6 percent to 35,085 units.
• Commercial vehicles’ exports fell 20 percent to 29,641 units.
• Total commercial vehicle sales fell 13 percent to 64,726 units.
• Total domestic sales fell 19 percent to 2.08 lakh units.
• Total exports were flat at 1.81 lakh units.

Shares of Bajaj Auto fluctuated between gains and losses to trade little changed at Rs 2,787 after the announcement.

Indian equity benchmarks traded lower led by the fall in private lenders.

The S&P BSE Sensex fell 0.84 percent to 37,022 as of 10:07 a.m. and the NSE Nifty 50 fell 0.87 percent to 10,928. The broader markets represented by the NSE Nifty 500 Index fell 0.73 percent.

The yield on the 10-year benchmark fell as much as nine basis points to 6.46 percent. However, it recovered to trade nearly three basis points lower

Eicher Motors'

• Stock fell as much as 2.8 percent to Rs 15,800.
• Royal Enfield’s total sales fell 24 percent to 52,904 units.
• Exports rose 205 percent to 4,152 units.

Maruti Suzuki

• Stock fell as much as 1.9 percent to Rs 6,002.25
• Total sales fell 33 percent to 1,06,413 units.
• Domestic sales slumped 34 percent to 97061 units.
• Export sales were down 10.8 percent to 9,352 units.

Mahindra & Mahindra

• Stock fell as much as 3 percent to Rs 513.
• Total sales down 25 percent to 36,085 units.
• Domestic sales fell 26 percent to 33,564 units.
• Export sales slipped 15 percent to 2,521 units.

Hero MotoCorp

• Stock rose as much as 1.9 percent to Rs 2,619.95.
• Sales down nearly 21 percent to 5,43,406 units.

Tata Motors

• Stock fell as much as 4.7 percent to Rs 111.20.
• Commercial vehicle sales slumped 45 percent at 21,824 units.
• Passenger vehicle sales plummeted 58 percent to 7,316 units.

The NSE Nifty PSU Bank Index fell over 2 percent, led by the declines in Jammu & Kashmir Bank, Punjab National Bank and Indian Bank.

This after the government on Friday said that it would merge 10 public sector banks into four, bringing down the number of PSU banks to 12 from 21.

According to the plan:

• Punjab National Bank will take over Oriental Bank of Commerce and United Bank
• Canara Bank will take over Syndicate Bank
• Union Bank of India will take over Andhra Bank and Corporation Bank
• Indian Bank will be merged with Allahabad Bank

Here’s what analysts had to say about the PSU banks merger plans.

Shares of Oil and Natural Gas Corporation Ltd. fell as much as 2.9 percent to Rs 117,70.

This after a fire broke out in storm water drainage early morning today in Uran oil & gas processing plant.

ONGC fire services and crisis management team were immediately pressed into action, the company tweeted.

Indian equity benchmarks opened lower, led by the fall in HDFC Ltd. ICICI Bank Ltd. and HDFC Bank Ltd.

The S&P BSE Sensex fell as much as 0.9 percent or 336.84 points to 36,995.95 and the NSE Nifty 50 fell as much as 0.98 percent to 10,915.60.

The Market breadth was tilted in favour of sellers. About 970 stocks declined and 472 shares advanced on National Stock Exchange.

Ten out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty PSU Bank Index’s 2.6 percent fall. On the flipside, the NSE Nifty IT Index was the only sectoral gainer, up 0.76 percent.

September Futures

• Nifty Sep futures closed at 11,058.9, premium of 35.7 points versus 54 points.
• Nifty futures open interest down 0.5 percent, sheds 81,000 shares in open interest.
• Bank Nifty September futures closed at 27,520.9, premium of 93 points versus 130 points.
• Bank Nifty futures open interest down 4 percent, sheds 59,700 shares in open interest.

Options

• Nifty PCR at 1.37 versus 1.31 (across all series).

Nifty Weekly Expiry: Sept. 5

• Max open interest on call side at 11,100 (18.9 lakh shares).
• Max open interest on put side at 11,000 (22.1 lakh shares).
• open interest addition seen at 11,000P (+9.5 lakh shares), 10,900P (+8.9 lakh shares).

Nifty Monthly Expiry: Sept. 26

• Max open interest on call side at 11,700 (21 lakh shares).
• Max open interest on put side at 10,800 (25.8 lakh shares).

CG Power Q4 FY19 (YoY)

• Revenue down 13 percent to Rs 1,989 crore.
• Net loss at Rs 189 crore versus net loss of Rs 57 crore.
• Ebitda profit at Rs 142 crore versus Ebitda loss of Rs 36.5 crore.
• Margin at 7.1 percent versus -1.6 percent.
• Exceptional loss of Rs 153 crore in current quarter versus a gain of Rs 160 crore.

(Base quarter numbers have been restated)

Auditor SRBC & Co issued disclaimer of opinion following discovery of many unauthorised transactions.

The Indian rupee opened lower against the U.S. dollar. The home currency depreciated as much as 0.89 percent, the most in nearly a month, to 72.04 against the greenback.

Indian equity benchmarks are set to open lower.

The S&P BSE Sensex fell 0.24 percent to 37,244.68 during the pre-market trade and the NSE Nifty 50 fell 0.54 percent to 10,964.05.

• Essel Propack to move out of short term ASM Framework.
• Mishtann Foods, Birla Precision Technologies, Him Teknoforge to move out of ASM Framework.
• Zenlabs Ethica, Dixon Technologies, Shilpa Medicare to move into short term ASM Framework.
• HSIL price band revised to 20 percent.
• Essel Propack, R P P Infra Projects price band revised to 5 percent.

Eicher Motors' Royal Enfield

• Total fell 24 percent to 52,904 units.
• Exports rose 205 percent to 4,152 units.

Maruti Suzuki

• Total sales fell 33 percent to 1,06,413 units.
• Domestic sales slumped 34 percent to 97061 units.
• Export sales were down 10.8 percent to 9,352 units.

Mahindra & Mahindra

• Total sales down 25 percent to 36,085 units.
• Domestic sales fell 26 percent to 33,564 units.
• Export sales slipped 15 percent to 2,521 units.

Hero MotoCorp

• Sales down nearly 21 percent to 5,43,406 units.

Tata Motors

• Commercial vehicle sales slumped 45 percent at 21,824 units.
• Passenger vehicle sales plummeted 58 percent to 7,316 units.

Ten public sector banks to be merged into four entities.

• Merger 1: Punjab National Bank, Oriental Bank of India and United Bank of India.
• Merger 2: Canara Bank and Syndicate Bank.
• Merger 3: Union Bank, Andhra Bank and Corporation Bank.
• Merger 4: Indian Bank and Allahabad Bank.

Read more on Finance Minister Nirmala Sitharaman’s announcements. Here’s what analysts had to say about the PSU banks merger plans.

• DHFL approved the conversion of debt into equity shares. The conversion may happen wholly, or part of debt into shares or securities and increasing the authorised share capital. The company said that it will also seek additional credit facilities and will dispose wholly or a part of undertakings or assets of the company.
• GSK Pharma sold its Thane land parcel of 60 acres to Oberoi Realty for Rs 889.5 crore. The company said that it paid a sum of Rs 337.46 crore towards obtaining all required statutory and regulatory approvals.
• Coffee Day Enterprises: Board has chosen Ashok Kumar Malhotra from Central Bureau of Investigation to investigate the circumstances leading to statements made in the purported letter of the former Chairman late VG Siddhartha and to scrutinise the books of accounts of the Company and its subsidiaries. E&Y was chosen earlier for the afore-mentioned investigation, but they backed out due to a conflict of interest. Lenders like Kotak Mahindra Bank, Aditya Birla Money and IDBI invoked 2.45 percent pledge stake in the company, as pledge by promoter group Coffee Day Consolidations.
• Yes Bank: Board approved increasing authorised share capital from Rs 800 crore to Rs 1100 crore, fund raising via equity shares including preferential allotment and authorised the Managing Director and CEO to negotiate term sheets with prospective private investors. In terms of numbers the authorised capital has increased from 300 crore shares to 450 crore shares. These changes will be made effective consequent to the amendments to existing capital clause and subject to approval from shareholders and RBI.
• Aurobindo Pharma’s Netherlands arm has entered into an agreement with Shanghai LongJin Investment Company (China) and Sveva Capitals (Hong Kong) to establish a joint venture in China for development, manufacturing, marketing and sale of pharmaceutical products for China excluding Taiwan, Hong Kong and Macau.
• IL&FS Group has received a total of 14 binding orders from multiple bidders for 10 road assets. These road assets account for Rs 17,700 crore of total debt. (Bloomberg News)
• BSE to introduce weekly F&O contracts for 149 stocks in Equity Derivatives Segment with effect from Sept. 19.
• Alkem Laboratories received two Form 483 observations by U.S. Food and Drug Administration for its manufacturing facility in Daman.
• Sun Pharma’s NDA for Oral Rimet ER gets U.S. FDA approval. (Bloomberg News)
• Divi’s Laboratories received zero critical observations from HPRA (Ireland) and JAZMP (Slovenia) for Unit 2, Vishakhapatnam facility’s inspection.
• Power Grid Corporation declared successful bidder for two Transmission Projects.
• HDFC sold 6.74 crore shares of Gruh Finance at Rs 247.15 each aggregating to Rs 1,665.8 crore. Post this sale HDFC will not be required to sell any further shares of Gruh Finance as per RBI Directives.
• State Bank of India said it has raised up to Rs 3,105 crore by issuing bonds under the Basel-III regulations.
• IFB Industries to acquire Stamping Business and Motor Business from its arm IFB Automotive for Rs 45 crore.
• Brigade Enterprises: Board approved allotment of 6.8 crore shares in ratio of 1:2. The paid up capital has increased from Rs 136.2 crore to Rs 204.3 crore due to the aforesaid allotment.
• Neuland Laboratories received Establishment Inspection Report for its Hyderabad manufacturing facility by U.S. FDA.
• Jamna Auto Industries: ICRA downgraded long term ratings to ‘AA-’ from ‘AA’, with outlook remaining stable.
• Patel Engineering: Board to consider rights issue on Sept. 5
• Tanla Solutions has entered into a share purchase agreement to acquire 100 percent stake in automation platform company Gamooga Softtech for Rs 48.45 crore. The board plans to consider raising capital via preferential issue of shares on Sept. 5.
• L&T Infotech has completed the 100 percent acquisition of Lymbyc Solutions.
• BPCL to spend Rs 22,500 crore for expansion of Numaligarh refinery. The company sees petchem to contribute 10 percent volumes by 2024 versus 1 percent now. (Bloomberg News)
• IndiGo Chief Financial Officer Rohit Phillip quits, Aditya Pandey will take over the role.
• Oberoi Realty buys 60 acre land in Thane for Rs 889.5 crore.
• CG Power removed Chief Financial Officer VR Venkatesh after irregularities fraud. (ANI)
• Biocon said U.S. FDA issued Complete Response Letter for the New Drug Application for Insulin Glargine filed by partner Mylan. The commercialisation plans remain unchanged. U.S. FDA also completed surveillance (routine) Current Good Manufacturing Practice inspection of one of the company’s biologics drug product facilities in Bengaluru. The inspection concluded with four observations. The company said it is confident of addressing these observations in a timely manner.
• Asian Granito to appoint M/s RRS & Associates appointed as the statutory auditors of the co after M/s Manubhai & Shah LLP filed for resignation.
• Amber Enterprises extended the timeline for acquisition of remaining 51 percent in EVER Electronics by Oct. 31.
• L&T Construction awarded contract for Navi Mumbai International Airport project by GVK subsidiary.
• PTC India to raise up to Rs 500 crore.
• JSW Steel said that ICRA revises outlook on long term debt of the company to ‘Negative’ from ‘Stable’. The revision in the rating outlook takes into account the expected moderation in JSW Steel's profits and coverage indicators in 2019-20 following weakness in domestic as well as international steel prices, and a moderation in domestic demand.
• Shree Pushkar Chemicals to raise Rs 2.33 crore via preferential issue of shares to the promoter group. Issue prices for the same has been fixed at Rs 208.5 apiece (CMP: Rs 90.5 on NSE)
• BHEL approved proposal of strategic disinvestment in Neelanchal Ispat Nigam Ltd.
• Coal India August Production and Offtake: Production down 10.3 percent to 37.8 MT. Offtake down 10.4 percent to 40.5 MT.
• Titagarh Wagons launched the second coastal research vessel ahead of schedule Vessel for is National Institute of Ocean Technology.

• The Indian economy continued to slow down in the April-June quarter, as private consumption in the economy weakened further. Gross domestic product rose by 5 percent in the first quarter of 2019-20 compared to 5.8 percent in the previous quarter.
• The growth of eight core sectors improved marginally to 4.7 percent in March 2019 against 4.5 percent in the same month last year.
• The IHS Markit India Manufacturing Purchasing Managers' Index, fell to 51.4 in August, its lowest mark since May 2018, from 52.5 in July.

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded little changed at 10,947 as of 8:17 a.m.

Asian stocks mostly gained in thin trading as investors awaited to see if Chinese and American officials can schedule a planned meeting this month to continue trade talks.

Shares edged higher in Tokyo, Hong Kong and Seoul, and were little changed in Sydney and Shanghai. U.S. futures pared a drop.

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