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The government can step in for a brief period to mend investor sentiment,. That’s according to UR Bhat, director at Dalton Capital Advisors.
“The general expectation is that the government will announce some stimulus package as there is so many opinions collected from various market participants,” said UR Bhat in an interview with BloombergQuint.
Here are the other highlights from the conversation:
Indian equity benchmarks extended their declines for the third day in a row led by losses in Yes Bank slipping to a six-year low.
The S&P BSE Sensex fell as much as 1.48 percent to 36,512.73 and the NSE Nifty 50 declined as much as 1.53 percent to 10,751.40. The broader markets represented by the NSE Nifty 500 Index fell 1.58 percent.
“The market is getting impatient with regards to the prospects of a stimulus package from the government and the comments made by some government officials have dimmed hopes,” said Vivek Ranjan Mishra, head (Fundamental Research) at Karvy Stock Broking, in an emailed statement. However, Misra expects the economy to stabilise in September quarter and recover in the second half.
The market breadth was tilted in favour of sellers. About 1,462 stocks declined and 334 shares advanced on National Stock Exchange.
Nine out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Realty Index’s 6.25 percent fall. On the flipside, the NSE Nifty IT Index was the top sectoral gainer, up 0.47 percent.
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Shares of the consumer staples company rose 3.9 percent, the most since December 2018, to Rs 2,477 each.
The company options tripled its 20-day average to 3,608 contracts, while put options rose 50 percent to 1,313 contracts.
This comes as its rival Parle Products said it may be forced to lay off up to 10,000 workers over the next one year due to slowdown in demand coupled with impact of high Goods and Service Tax rate on low-priced products meant for common man.
Shares of the country’s largest power generator extended losses for the third day after it fell 2.4 percent intraday to Rs 115.05 each.
Government accepted company’s request for surrendering coal block in Odisha. The mine was allotted for developing 1,320 MW Bilhaur thermal power plant at Uttar Pradesh, the company said in a statement adding, it’s now is being developed as a solar plant. Moreover, it has signed a power purchase agreement with the state government.
The relative strength index on the stock was below 30, indicating it may be oversold.
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Shares of the specialty pharma company declined 2.8 percent intraday to a two-week low of Rs 89.05 apiece.
The company’s Virginia plant received two minor observations after U.S. Food and Drug Administration completed its inspection, according to an exchange notification.
The drugmaker’s annual general meeting is scheduled on Aug. 29. The insiders hold 42 percent stake and cut their holdings by 4.6 percent in the last six months, Bloomberg data showed.
“Investors are waiting for government to announce to some measures similar to SEBI relaxing (Foreign Portfolio Investors) norms on Wednesday,” said AK Prabhakar, research head at IDBI Capital, in an interview to BloombergQuint. However, a “major” correction from current levels is not expected from current levels, he said, adding that it was the right time to invest in quality stocks.
Prabhakar picked life insurance players, Reliance Industries, ICICI Bank and Axis Bank as his preferred bets for investing with a long-term time horizon.
Indian equity benchmarks extended their declines for the third day in a row led by losses in Yes Bank and Indiabulls Housing.
The S&P BSE Sensex fell as much as 0.62 percent to 36,832 and the NSE Nifty 50 declined as much as 0.73 percent to 10,839.10. The broader markets represented by the NSE Nifty 500 Index fell 1 percent.
“Investors are waiting for government to announce to some measures similar to SEBI relaxing (Foreign Portfolio Investors) norms on Wednesday,” said AK Prabhakar, research head at IDBI Capital, in an interview to BloombergQuint. However, a “major” correction from current levels is not expected from current levels, he said, adding that it was the right time to invest in quality stocks.
Prabhakar picked life insurance players, Reliance Industries, ICICI Bank and Axis Bank as his preferred bets for investing with a long-term time horizon.
The market breadth was tilted in favour of sellers. About 1,353 stocks declined and 330 shares advanced on National Stock Exchange.
Ten out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Realty Index’s 5.9 percent fall. On the flipside, the NSE Nifty FMCG Index was the only sectoral gainer, up 0.93 percent.
Shares of the electrical equipment maker was locked in the lower circuit after it slumped 10 to Rs 10.70 each.
Over 97 lakh shares changed hands in five bunched trades, according to Bloomberg data. Buyers and sellers were not known immediately.
The stock declined 82 percent in the past 12 months compared to a 3.6 percent fall in the Sensex.
Earlier this week, a probe by a legal firm revealed that the Gautam Thapar-founded Avantha Group flagship understated its liabilities and advances made to related and unrelated parties, among other financial irregularities.
Shares of the engineering conglomerate snapped its two-day fall and rose 1.3 percent to Rs 1,327.45 each.
The company said a consortium including L&T Hydrocarbon Engineering bagged a ‘Large’ Engineering, Procurement, Construction and Installation order from Saudi Aramco, in an exchange filing. L&T classifies contracts worth Rs 2,500-5,000 crore as ‘Large’.
The stock traded 19 times its 20-day average for this time of the day, Bloomberg data showed.
Shares of the non-banking lender declined as much as 7.6 percent, its biggest intraday slide since September last year. to Rs 428.35 each.
Around 6.7 percent or 3.4 crore shares changed hands in seven block deals, according to Bloomberg data. Buyers and sellers were not known immediately.
Bloomberg earlier reported an undisclosed institutional shareholder of the company has sought to raise between $200-211 million through an offering of about 3.37 crore shares, according to terms for the deal obtained by Bloomberg. The offering will be at priced between Rs 425.15-449.50 per share, the report added.
Indian equity indices extended their decline for the third day in a row after declines in Tata Steel and private banks.
The S&P BSE Sensex fell as much as 0.33 percent to 36,943.66 and the NSE Nifty 50 declined as much as 0.37 percent to 10,880. The broader markets represented by the NSE Nifty 500 Index fell 0.47 percent.
The market breadth was tilted in favour of sellers. About 1,008 stocks declined and 457 shares advanced on National Stock Exchange.
Ten out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Metal Index’s 1.31 percent fall. On the flipside, the NSE Nifty FMCG Index was the only sectoral gainer, up 0.38 percent.
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