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Indian shares dropped like nine pins after a combination of weak Chinese export data and talks of an U.S. Federal Reserve rate hike coming “relatively soon” spooked investors.
The S&P BSE Sensex declined 1.5 percent to 27,643 while the NSE Nifty too fell 1.5 percent to close at 8,673. The 50-share index briefly slipped below the 8,550-mark – a critical support area watched by technical analysts.
If Nifty breaks 8,500 tomorrow morning, we can see levels of 8,000 and if it holds on to 8,500, it will continue to consolidate between the range of 8,500-8,750.”Jay Thakkar, senior technical analyst at Sharekhan told BloombergQuint in a telephonic conversation.
The market breadth was firmly skewed in favour of the sellers at 1,206 declines, 295 advances and 44 stocks remaining unchanged.
Unwarranted exuberance is getting punished time and again, said Ajay Srivastava, managing director of Dimensions Consulting. Public sector banks led the fall today after indecisiveness on debt recast has cast a cloud on hopes surrounding the pace of banks’ recovery.
The Bank Nifty closed below the 19000-mark first time since August 12 of this year. Barring the S&P BSE IT index, all other 18 sectoral gauges closed lower.
Also Read: Warning On Losses Sends J&K Bank’s Stock Hurtling
While today’s fall might seem steep, Srivastava said, the market continued to show signs of inherent strength. “We are relatively insulated from any external shocks at the moment. Of course, there will be knee-jerk reactions from time-to-time but that would be limited to just that,” he told BloombergQuint in a telephonic interview.
Overall, he advises investors to “stick to good quality names”.
Shares of the midcap IT firm rose as much as 13.8 percent to Rs 552 after it reported a 31 percent sequential jump in second quarter net profit. A Bloomberg poll of analyst had estimated a net profit of Rs 87.1 crore for the quarter.
It clocked a net profit of Rs 97.2 crore for quarter-ended September, compared to Rs 74 crore previous quarter. Net sales came in at Rs 913 crore versus Rs 834 crore, quarter-on-quarter.
Indian shares extended their fall following weak trade European equities as an unexpected decline in Chinese exports stoked worries about the health of the global economy.
Concerns about corporate earnings and speculation of tighter U.S. monetary policy have also weighed on equities, with the Nifty Bank index falling below the 19,000-mark for the first time since August 12 of this year.
All 19 sectoral gauges on the BSE are seeing selling pressure, with the S&P BSE Realty index leading the list of losers, while S&P BSE IT index dropped the least.
The S&P BSE Sensex fell as much as 1.6 percent to 27,635 while the NSE Nifty dropped 1.6 percent to 8,566. This it steepest fall for the indices since September 29, when the Nifty made a low of 8,558 after the Indian Army announced that it had carried out surgical strikes beyond the LoC.
The market breadth was firmly in favour of the sellers at 1,344 declines, 260 advances and 271 stocks remaining unchanged.
Indian shares extended their fall following weak trade European equities as an unexpected decline in Chinese exports stoked worries about the health of the global economy.
Concerns about corporate earnings and speculation of tighter U.S. monetary policy have also weighed on equities, with the Nifty Bank index falling below the 19,000-mark for the first time since August 12 of this year.
All 19 sectoral gauges on the BSE are seeing selling pressure, with the S&P BSE Realty index leading the list of losers, while S&P BSE IT index dropped the least.
The S&P BSE Sensex fell as much as 1.6 percent to 27,635 while the NSE Nifty dropped 1.6 percent to 8,566. This it steepest fall for the indices since September 29, when the Nifty made a low of 8,558 after the Indian Army announced that it had carried out surgical strikes beyond the LoC.
The market breadth was firmly in favour of the sellers at 1,344 declines, 260 advances and 271 stocks remaining unchanged.
Sentiment indicators for Indian equity markets are approaching the “sell zone”, according to Morgan Stanley.
Sentiment indicators for Indian equity markets are approaching the “sell zone”: @MorganStanley https://t.co/cxHm3Q9uLj pic.twitter.com/ySkFzwCaZD
— BloombergQuint (@BloombergQuint) October 13, 2016
Shares of the FMCG firm dropped 1.6 percent to Rs 861, extending its losing streak to day three.
According to its parent Unilever, market conditions in India were weaker in July to September period. As a result, it said volume growth and rural demand in the country was under pressure.
Shares of the FMCG firm dropped 1.6 percent to Rs 861, extending its losing streak to day three.
According to its parent Unilever, market conditions in India were weaker in July to September period. As a result, it said volume growth and rural demand in the country was under pressure.
“Rs 864 is not a good level to enter the stock. The stock can see further downside towards levels of Rs 770. Once it gets to that level, we will take a fresh call on it.”Jay Thakkar, senior technical analyst at Sharekhan said.
Urjit Patel echoes his predecessor Raghuram Rajan. Warns of spillover effects from unconventional monetary policies in developed nations. pic.twitter.com/Mh5seTTI3P
— BloombergQuint (@BloombergQuint) October 13, 2016
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Shares of the sanitary ware manufacturer reversed losses and jumped as much as 1.6 percent to Rs 2,718 to a new 52-week high after beating street estimates with its second quarter results. The stock had fallen 3.2 percent in early trade.
It clocked a net profit of Rs 25.14 crore for quarter-ended September, compared to Rs 17.88 crore same period last year. This was higher than the Rs 23.24 crore estimated by analysts polled by Bloomberg.
Net sales came in at Rs 261 crore for the three-month period, an increase of 12.5 percent from last year.
Shares of public sector banks Bank of India Ltd. and Bank of Baroda Ltd. fell well over 3 percent each after a Reuters report suggested that the government is considering merging the two banks once the cleaning up process of bad loans is completed.
The allure of value investing will soon fail...says @KrishnaMemani of @OppFunds
— BloombergQuint (@BloombergQuint) October 13, 2016
Read | https://t.co/nmjPa8yFL1 pic.twitter.com/LZPs9uIpyt
Shares of the home finance firm jumped as much as 4.1 percent to Rs 370. The stock has risen seven out of the last eight trading session.
Gruh Finance reported a 20 percent YoY rise in net profit at Rs 61.98 crore for quarter-ended September. Total revenue from operations grew 17.8 percent YoY to Rs 367 crore for the quarter under review against Rs 312 crore in the corresponding quarter of previous fiscal.
According to Bloomberg data, around 2.62 million shares changed hands in two block deals on the BSE today.
A sharp decline in profitability and mounting losses could wipe out the revenue reserves of some PSU banks and hamper their near-term ability to pay interest on the bonds issued to meet Basel III norms, Crisil Ratings said on Wednesday.
As many as 14 PSBs have Rs 22,600 crore of additional Tier 1 (AT1) bonds outstanding, it said.
Read the full report HERE
A sharp decline in profitability and mounting losses could wipe out the revenue reserves of some PSU banks and hamper their near-term ability to pay interest on the bonds issued to meet Basel III norms, Crisil Ratings said on Wednesday.
As many as 14 PSBs have Rs 22,600 crore of additional Tier 1 (AT1) bonds outstanding, it said.
Read the full report HERE
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Shares of the drug maker gained as much as 3.1 percent to Rs 599 after the U.S. United States Food and Drug Administration gave its clean chit to the pharmaceutical major’s Indore plant.
Shares of the drug maker gained as much as 3.1 percent to Rs 599 after the U.S. United States Food and Drug Administration gave its clean chit to the pharmaceutical major’s Indore plant.
Cipla remains the top pick for Credit Suisse. The brokerage has an 'outperform’ rating on the stock with a price target of Rs 675.
Full report HERE
Shares of the country’s second largest software services firm rose as much as 2.7 percent, the most since August 30, ahead of its second quarter earnings.
Infosys Ltd. expects growth to bounce back from last quarter’s disappointing showing but warned that the IT services industry will take a short-term hit from Britain’s decision to depart the European Union. (More details HERE)
Infosys shareholders should brace themselves for volatility. https://t.co/Ak21Ei9n1b pic.twitter.com/Xt2SDffZOr
— BloombergQuint (@BloombergQuint) October 13, 2016
Pacific Investment Management Co., which runs the world’s biggest actively managed bond fund, says it’s time to reduce risk.
“We continue to stress more defensive themes in portfolio construction,” Scott Mather, chief investment officer for core strategies at the Newport Beach, California-based company, wrote in an e-mail. Pimco is “focused on selective opportunities in mortgages, inflation-linked bonds, and select credit markets,” he wrote.
More details HERE
Also Read: Amundi Rues Bond Caps as Ashmore Says Modi Missing a Trick
Indian shares fell most since September 29 after the minutes of the Fed meeting of last month showed several officials saying a rate hike was needed “relatively soon”.
The S&P BSE Sensex dropped as much as 0.9 percent to 27,815 while the NSE Nifty too fell 0.9 percent to 8,626. The market breadth was firmly in favour of the sellers with 1,031 declines, 391 advances and 419 stocks remaining unchanged.
Indian shares fell most since September 29 after the minutes of the Fed meeting of last month showed several officials saying a rate hike was needed “relatively soon”.
The S&P BSE Sensex dropped as much as 0.9 percent to 27,815 while the NSE Nifty too fell 0.9 percent to 8,626. The market breadth was firmly in favour of the sellers with 1,031 declines, 391 advances and 419 stocks remaining unchanged.
Movers & Shakers: Tata Consultancy Services, Cipla, Mahindra & Mahindra And More
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Must Read: Curtailed Client Spending To Bear Down On Indian IT Earnings
All you need to know about @MyIndusIndBank earnings in 30 seconds... https://t.co/0MD21b8XLx pic.twitter.com/SNoD9KrLqz
— BloombergQuint (@BloombergQuint) October 12, 2016
The allure of value investing will soon fail...says @KrishnaMemani of @OppFunds
— BloombergQuint (@BloombergQuint) October 13, 2016
Read | https://t.co/nmjPa8yFL1 pic.twitter.com/LZPs9uIpyt
Fierce rivals Toyota and Suzuki are exploring a partnership. https://t.co/1KjeAPyeuM
— BloombergQuint (@BloombergQuint) October 13, 2016
Cabinet meeting tomorrow morning
— Frank Noronha (@DG_PIB) October 12, 2016
Citigroup just upped its odds of a @HillaryClinton victory
— BloombergQuint (@BloombergQuint) October 12, 2016
Read | https://t.co/m8Djd95NQy pic.twitter.com/LEtFnaTSI4
Good Morning!
The Nifty Futures on the Singapore Exchange, an early indicator of Nifty’s performance in India, dropped 0.3 percent to 8,678.
Hong Kong shares slumped with U.S. stock futures and the yen reversed a decline against the dollar as data showing Chinese exports unexpectedly dropped spurred concern about the outlook for the global economy.
The trade report halted gains in the Bloomberg Dollar Spot index, which had advanced to a seven-month high after minutes of the Federal Reserve’s last meeting reinforced the case for an interest-rate increase in 2016.
The U.S. Federal Reserve has a zombie problem says @kocherlakota009
— BloombergQuint (@BloombergQuint) October 12, 2016
Read | https://t.co/SUZIOrUk2U pic.twitter.com/FzOrRf2jqI
Bets for a Fed rate hike by December climbed six percentage points to 68 percent compared to last week, according to futures rates tracked by Bloomberg.
U.S stocks closed mixed on Wednesday, with the Dow Jones Industrial Average and the S&P 500 Index gaining 0.1 percent each, while the Nasdaq Composite Index closed in the red.
Fed minutes indicate 2016 rate hike likely. Dollar rises, while yen and oil slip. https://t.co/lkulV9l4yo pic.twitter.com/0rtp2Xwqx0
— BloombergQuint (@BloombergQuint) October 13, 2016
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