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Finance Minister Arun Jaitley is briefing media on rising oil prices.
Key highlights of the briefing:
Shares of the Mumbai-based airline operator rose as much as 15.18 percent, the most in over three years, to Rs 204.10 on heavy volumes.
Trading volume was 1.5 times its 20-day average, according to data compiled by Bloomberg.
Indian equity benchmarks extended decline as bluechip stocks like Reliance Industries, HDFC Bank, TCS, Infosys and Kotak Mahindra Bank came under heavy selling pressure.
The S&P BSE Sensex slumped 2.54 percent or 912 points to 35,063 and the Nifty 50 Index plunged 2.65 percent or 288 points to 10,570.
With today's fall, the Nifty has almost wiped out entire gain of the current calendar year as it has corrected 9.3 percent from the record high on Aug. 28.
For the year, Nifty is just up 0.6 percent with stocks like Tata Motors, Bharti Airtel and HPCL down over 40 percent.
Chanda Kochhar Steps Down As ICICI Bank CEO
#BQStocks | Eicher falls close to 25% in the last 10-trading sessions.
— BloombergQuint (@BloombergQuint) October 4, 2018
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The current selloff in equity markets provide a 'tremendous' buying opportunity in several mid and small cap companies, Shyam Shekhar, chief ideator & founder of ithought told BloombergQuint.
I think the markets are throwing up tremendous buying opportunities in several companies in small and mid cap space which have clear earnings visibility. Some of these companies further benefit from a weaker rupee. It may be a good time to switch focus into these companies and scale up positions in high conviction ideas among them, Shekhar said.
FIIs are selling and they sell what’s saleable in the market. Their exit is driven by the threat of rupee depreciating further and to protect their portfolios from currency loss (MTM), they are taking out funds from Indian markets and paying of losses they have incurred in other markets.Deven Choksey, MD, KR Choksey Securities
Shares of the Mukesh Ambani-led company extended decline and slumped as much as 7.18 percent, the most in nearly two years, to Rs 1,119 on heavy trading volumes.
Trading volume was 4.4 times its 20-day average, according to data compiled by Bloomberg.
Over 9 lakh shares changed hands on the BSE compared with an average of 4.48 lakh shares traded daily in the past two weeks.
The current selloff can precipitate further, and markets can see increased volatility in the near term till elections, Mahesh Patil, CIO of Birla Sun Life AMC, which oversees Rs 2.49 lakh crore in assets, told BloombergQuint in an interview.
Key highlights of the conversation:
A two-judge Supreme Court panel headed by Rohinton F. Nariman ordered ArcelorMittal and VTB Capital-led consortium Numetal to clear their group bad debts before placing bids for control of indebted Essar Steel.
Source: Bloomberg
Indian equity benchmarks were reeling under selling pressure dragged down by heavyweights like Reliance Industries, TCS, HDFC twins, Infosys and ITC.
The Sensex slumped 1.7 percent or 603 points to 35,372 and the Nifty 50 Index tumbled 1.6 percent or 180 points to 10,677.
Sixteen of 19 sector gauges compiled by BSE were trading lower dragged by the S&P BSE Energy Index's 3.2 percent fall. On the flipside, the S&P BSE Capital Goods Index was top gainer, up 0.7 percent.
Buyers and sellers were not immediately known
Source: Bloomberg
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Shares of the Mumbai-based toll highway developer rose as much as 16 percent to Rs 37.20.
The company informed exchanges that it had made the interest payment due on Sept. 30 on non-convertible debenture.
Shares of the Anil Ambani-led company rose as much as 6.36 percent to Rs 12.55 after it was granted relief by telecom tribunal, after it stayed the demand of bank guarantee of Rs 2,900 crore by Department of Telecommunications.
The company said it will receive Rs 975 crore from the sale of spectrum, and the proceeds thereof will be used to pay Rs 550 crore to Ericsson and Rs 230 crore to RITL minority investors.
Shares of the commercial vehicle financer rose as much as 4.64 percent to Rs 1,128 after it informed exchanges that corporate guarantee worth Rs 650 crore (in NCDs) had been terminated.
Guarantees were issued by SVL Ltd. Consequently, the contingent liability of the company with respect to redemption/maturity of the said NCDs stands terminated.
Shares of the country's largest infrastructure construction company rose as much as 3.3 percent, in an otherwise weak session, to Rs 1,285 after its board approved share buyback proposal.
The company will buyback around 6.1 crore shares, representing 4.35 percent of the paid-up equity capital at a price of Rs 1,475 each, aggregating to a total consideration not exceeding Rs 9,000 crore. Oct. 15 has been set as the record date for the buyback.
Rupee is likely to stay under pressure as a stronger dollar and higher oil prices weighs on the sentiment.
The implied opening from forwards suggests spot rupee may start trading around 73.8758 having ended at 73.3425 on Wednesday and after falling as much as 73.4150, an all-time low for the pair.
In a bid to ease pressure on the currency, the central bank last evening tweaked overseas borrowing norms for oil companies. The RBI also waived off mandatory hedging requirements on the borrowings. The move is unlikely to be of much help given the tighter global conditions isn't seeing many companies go abroad to raise foreign currency.
In the bond market, the yield on benchmark 10-year bonds rose 12 basis points on Wednesday, the most since Sept. 10, to 8.11 percent.
Bonds are likely to come under pressure after U.S. Treasury yields jumped by most in more than a year with the 10-year rising to its highest level since 2011.
The RBI's MPC meets for a second day today and is likely to raise rates tomorrow by 25 basis points when it announces its rate decision. It will be the third straight rate hike by the RBI which will take the repo rate to 6.75 percent.
UBS
Credit Suisse
Goldman Sachs on Adani Ports
Edelweiss on SAIL
Deutsche Bank on Indian Metals
Nomura on Alunorte Shutdown
Deutsche Bank on City Gas Companies
(As reported on Oct. 3)
Here are some key events coming up this week:
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