Market Highlights: Bloodbath on D-Street as Sensex tanks 839 pts, Nifty at 11,387; RIL, banks drag indices

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Updated: August 31, 2020 4:38:40 pm

Share Market News Today | Sensex, Nifty, Share Prices Highlights: Sensex and Nifty nose-dived during Monday's trading session. M-cap of all BSE-listed firms tanked by Rs 6 lakh crore.

Share Market Today, Share Market LiveAll sectoral indices ended with losses on Monday.

Share Market News Today | Sensex, Nifty, Share Prices Highlights: Sensex and Nifty gave up their 6-day gaining spree on Monday as Dalal Street erased gains made in the previous nearly 10 days. S&P BSE Sensex ended 839 points or 2.13% lower at 38,628 points, while the 50-stock Nifty gave the 11,400 mark and closed at 11,387. Only ONGC and TCS were the two BSE Sensex Constituents that ended with gains. Financials that started the day’s trading session as the top gainers on Sensex ended deep in red. Volatility spiked yet again, jumping 27% to end above 23 levels after initially falling to 16 on Monday morning. All sectoral indices ended in the red with Nifty Media falling over 6%.

Today eyes will be glued on India’s Gross Domestic Product (GDP) data for the first quarter of the current fiscal year. The GDP data will reflect how India’s economy has fared amidst the coronavirus pandemic and the results lockdown. Economists at Morgan Stanley have pegged India’s GDP to contract by 19% during the quarter. Many experts from across the globe believe that India’s GDP in the current financial year will slip by over 5%, as a result of the economic slowdown that the pandemic has caused. In the previous quarter, India’s GDP grew by 3.1%.

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Highlights

    16:33 (IST)31 Aug 2020
    Sensex and Nifty give up six-day gaining spree; leaves investors poorer by nearly Rs 5.5 lakh crore

    It was bloodbath on Dalal Street on Monday as domestic benchmark indices tanked over 2% during the day's trading session. S&P BSE Sensex ended 839 points or 2.13% lower at 38,628 points, while the 50-stock Nifty gave the 11,400 mark and closed at 11,342. Analysts say that equity markets saw profit booking after six-consecutive trading sessions of gaining momentum. “The losses extended, following reports of increased tensions along the border with China. With increased geopolitical tensions, markets also traded uncertainty and this could impact the market behaviour in the coming days,” said Vinod Nair, Research Head, Geojit Financial Services.

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    15:47 (IST)31 Aug 2020
    Sensex and Nifty give up 6-day gaining streak

    Benchmark indices Sensex and Nifty nose-dived on Monday as the gave up their six day gaining spree. Sensex tanked 1,382 points from the day's high. 

    15:13 (IST)31 Aug 2020
    ONGC, TCS, HDFC Bank, and Infosys gain

    Only ONGC, TCS, HDFC Bank, and Infosys shares were trading with gains on Monday, just minutes before the closing bell. Sense was down 800 points.

    15:02 (IST)31 Aug 2020
    Mukesh Ambani and Kishore Biyani joining hands puts Radhakishan Damani’s DMart in a tight spot

    With Reliance Retail acquiring Future Group’s retail, wholesale, logistics and warehousing business, the Mukesh Ambani-led company has increased its share in India’s retail space. However, the move poses challenges for Radhakishan Damani’s Avenue Supermarts or DMart which was so far rapidly increasing its share of India's consumption pie in the absence of a strong competitor. With the large footprint that Reliance Retail now has, DMart becomes distant a second in a largely duopoly retail market. Shares of Avenue Supermarts tanked 4.6% on Monday while Future Retail jumped over 19% and Reliance Industries traded flat.

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    14:45 (IST)31 Aug 2020
    RIL-Future Group deal positive for all lenders

    This deal will provide relief to many banks as currently, future group loans are standard assets and the group has taken moratorium which ends on 31st August. Post end of moratorium it was tough for the future group pay its debt payment on time due to weak cash flow. However, this deal will definitely positive for all lenders. Many banks have given a loan to the future group, Bank of India has the highest exposure followed by Axis Bank, Bank of Baroda an SBI. We expect the bank's haircut would minimal owing to timely action taken by Kishore biryani, However, promoter level debt haircut will be key: Jaikishan Parmar, Sr. Equity Research Analyst, Angel Broking Ltd

    14:18 (IST)31 Aug 2020
    Top auto stocks to buy: Festive demand, unlock phase, easing supply chain to boost August sales

    Indian automobile sector set to witness further improvement in August over July following ease in the supply chain, strong rural and semi-urban markets sentiment and rise in preference for personal mobility. Passenger vehicles (PVs) clocked sales of 1, 82,779 units in July 2020, compared to 1, 90,115 units in July 2019. Two-wheeler sales came at 12, 81,354 units, against 15, 11,717 units, a decline of 15.24 per cent. SIAM in its statement said that the month of July was significantly better than the preceding months and it instilled some confidence into the industry.

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    14:11 (IST)31 Aug 2020
    IPCA Laboratories: High conviction idea of Motilal Oswal

    We expect earnings CAGR of 31% over FY20-22E supported by: a) 20% sales CAGR in International Generics and 22% in API, b) healthy outperformance by the DF segment, and c) 500bp margin expansion owing to a better product mix and operating leverage. Optically, FY22 earnings may look flat YoY. However, adjusted for HCQS, we expect healthy YoY growth in FY22 as well. We remain positive on IPCA on the back of: a) superior performance in the DF segment, b) the addition of new APIs as well as increased traction in existing API molecules, c) product launches under its own label in the UK, and d) increased backward integration to derive further benefit by improving manufacturing efficiency. Maintain Buy with TP of INR2,420 (25x12M forward earnings).

    12:43 (IST)31 Aug 2020
    JioFiber announces 30-day free trial for all customers

    JioFiber announced that it will give 30-day free trial to all customers joining from Septemeber 1. JioFiber came out with its Symmetric Speed plans where download and upload speed will be the same. Additionally, users of the top two plans of JioFiber will get 11 and 12 OTT application susbcription for free. 

    12:29 (IST)31 Aug 2020
    NMDC shares tank 8%, erase most gains made last week; should you buy, sell or hold?

    After gaining 12% during the previous week, the share price of NMDC tanked 8% on Monday to trade at Rs 99 per share. The jump in NMDC’s share price was on account of the mining major securing a board approval for the demerger of the NMDC Iron & Steel Plant, which analysts say will unlock value for investors. However, on diving deeper into the fundamentals surrounding the National Mineral Development Cooperation (NMDC), brokerage and research firms have been sounding the cautionary alarm bell. With the imposition of an interim premium of 22.5% on renewal of all mines, analysts say, could result in risk aversion from investors.

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    12:09 (IST)31 Aug 2020
    Future bright for RIL

    "Reliance Industries Ltd. has announced over the weekend that its subsidiary company Reliance Retail Ventures Limited (RRVL) will be acquiring the Retail & Wholesale Business and the Logistics & Warehousing Business from the Future Group as going concerns on a slump sale basis for total consideration of Rs. 24,713 crore. We believe that this acquisition by Reliance Industries Ltd. will help the company further consolidate its position in the retail business and make it the undisputed leader in the retail space. We remain positive on Reliance industries Ltd. and have a buy rating on the stock with a target of Rs. 2,366.”

    ~Jyoti Roy, DVP- Equity Strategist, Angel Broking Ltd

    11:29 (IST)31 Aug 2020
    Gautam Adani lands on Mumbai International Airport, to acquire GVK Group stake and debt

    After weeks of speculation, billionaire Gautam Adani on Monday announced that Adani Airports Holding Ltd will acquire GVK Group’s shareholding and control of Mumbai Airport. GVK Airport Development Ltd is the holding company through which GVK Group holds 50.50% equity stake in Mumbai International Airport Ltd (MIAL), which in turn holds 74% equity stake in Navi Mumbai International Airport Ltd. According to the agreement, Adani Airports will acquire the debt of GVK ADL from its airport lenders. Share price of Adani Enterprises was trading flat while GVK Power and Infrastructure was up 5%.

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    11:18 (IST)31 Aug 2020
    Sensex, Nifty trims gains

    Sensex slipped down from the day's high to trade just 48 points higher while the 50-stock Nifty gave up the 11,700 mark. 

    10:22 (IST)31 Aug 2020
    Gold sentiment will be positive due to weak greenback

    MCX gold appreciated as demand was boosted by a weaker dollar and the U.S. Fed Reserve's new policy framework suggested that interest rates would stay low for some time. Meanwhile, China's factory activity expanded at a slightly slower pace in August. Japan's factory output rose for a second straight month in July, while retail sales fell for a fifth straight month. The investment demand has been subdued for a while. In the absence of any major economic data in intraday, the sentiment will be positive due to weak greenback: Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Shares and Stock Brokers.

    10:19 (IST)31 Aug 2020
    How GVK-Adani deal will shape up?

    The terms of cooperation include: 1. Acquisition of debt by Adani from various GVK lenders including a Goldman Sachs led consortium and HDFC. 2. Release GVK of various obligations, securities and Corporate Guarantees given in respect of debt to be acquired by Adani. 3. The ability for Adani to convert the acquired debt to equity of GVKADL on mutually agreed terms, subject to obtaining necessary regulatory approvals. 4. Infusion of funds by Adani into Mumbai International Airport Limited to provide liquidity support. 5. Achieving Financial Closure of the Navi Mumbai International Airport project by Adani at the earliest in order to commence construction.

    10:19 (IST)31 Aug 2020
    RIL shares jump 2.6%, Future Retail zooms 20% on Reliance’s acquisition of Future Group businesses

    RIL share price today jumped 2.6 per cent to Rs 2,172 apiece on BSE after the oil-to-telecom conglomerate announced the acquisition of the retail & wholesale business, and the logistics & warehousing business from Future Group in a mega transaction for Rs 24,713 crore. On the other hand, Future Retail share price hit 20 per cent upper circuit at Rs 162.30 apiece on BSE, taking the company’s total market capitalisation to Rs 8,539 crore.

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    10:07 (IST)31 Aug 2020
    GVK signs an Agreement to cooperate with Adani in relation to Mumbai International Airport Limited

    GVK Power & Infrastructure Limited today announced that it, along with its subsidiaries, GVK Airport Developers Limited and GVK Airport Holdings Limited, have agreed to cooperate with Adani Airport Holdings Limited (“AAHL”), the flagship holding company of Adani Group for its airports business.

    10:03 (IST)31 Aug 2020
    Sensex, Nifty trade with gains; RIL shares up 1.5%, investors add Rs 1 lakh crore to their wealth

    Sensex and Nifty started this week’s trading session with gains following positive global cues that saw benchmark indices gain over 1% each. S&P BSE Sensex opened 470 points higher and even jumped over 500 points during the initial minutes of trade, but later scaled down. The 50-stock Nifty crossed the 11,750 mark. Volatility slipped as low as 16 levels on Monday morning. Analysts believe that the current upward trend is likely to continue in the near term helped by liquidity in global markets. Financials were again leading the gains on the stock exchanges.Read full story

    09:23 (IST)31 Aug 2020
    Sensex, Nifty begin Monday's trade with gains

    Sensex opened 470 points higher but withing minutes was seen surging higher as it jumped over 500 points. The 50-stock Nifty did not only breach the 11,700 mark but was just shy of 11,800. Finaicials surged.

    09:02 (IST)31 Aug 2020
    Stocks in focus: RIL, Future Retail, Nestle, GAIL, JK Cement, Jubilant FoodWorks, Shree Renuka Sugars

    A total of 115 companies including JK Cement, Shree Renuka Sugars, Sadbhav Infrastructure Project, Spandana Sphoorty Financial, among others are scheduled to announce their quarterly earnings today.

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    08:43 (IST)31 Aug 2020
    SIP vs lump sum mutual fund investment: Know which works best and when

    Systematic Investment Plan (SIP) is the investment of a fixed amount of money through time at equal intervals, adjusting the number of units as average stock prices fluctuate. When the stock prices are high, fewer units are bought and when the prices are low, more units are purchased. SIP is a favourable investment strategy if there is time-diversification and the market is not too high. Lump sum (LS) investment is putting a substantial sum of money at one go in a mutual fund or a stock. LS investment performs well in the early stages of a bull market.

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    08:39 (IST)31 Aug 2020
    Care Ratings GDP projections

    "Notwithstanding the fact that considerable uncertainty prevails regarding the quarterly economic performance, taking cognizance of the adverse impact of lockdown we are pegging the real GDP growth at (-) 20% YoY for Q1 FY21. Gross value added (GVA) is expected to have contracted by nearly 19.9% in Q1 FY21 led by broad based contraction across sectors barring agriculture and public expenditure. Low tax collections further weighed on the GDP dragging down the growth further," said CARE Ratings in a report.

    08:32 (IST)31 Aug 2020
    Chances of finding a white-knight for failing firms remote, surge in IBC cases unlikely, says IBBI Chief

    Even as a debate rages on the desirability of the suspension of insolvency proceedings for Covid-related default for up to a year, MS Sahoo, the chief of the insolvency regulator IBBI, defends the move, saying the likelihood of finding a “white knight” to rescue failing firms is remote at this time, when every company and every industry is under stress. In an interview to FE’s Banikinkar Pattanayak,Sahoo also explains why it’s important to have a special insolvency mechanism for MSMEs and why the country badly needs an institutionalised framework for the valuation profession. He also says work has started on a pre-pack insolvency mechanism. 

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    08:29 (IST)31 Aug 2020
    Sensex, Nifty stare at gap-up opening today; here’s what you should know before the opening bell

    Headline indices BSE Sensex and Nifty 50 are likely to open higher on Monday following the positive global cues. Market participants will continue to watch auto sales, GDP data, monsoon progress and newsflow related to COVID-19. Broader markets have been outperforming the equity benchmarks from the past few sessions. Analysts expect outperformance of midcaps over large caps to continue over the near term.

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    08:11 (IST)31 Aug 2020
    ICICI, Kotak Mahindra Bank lead six of 10 most valued firms to add over Rs 1 lakh cr in m-cap

    The market valuation of six of the top 10 most valued firms zoomed by Rs 1,06,523.84 crore last week, with ICICI Bank and Kotak Mahindra Bank leading the pack. During the last week, the BSE benchmark Sensex had gained 1,032.59 points or 2.68 per cent. Of these 10 most valued companies in terms of market capitalisation (m-cap), Reliance Industries Ltd (RIL), HDFC Bank, HDFC, Kotak Mahindra Bank, Bharti Airtel and ICICI Bank emerged as gainers. On the other hand, four firms Tata Consultancy Services (TCS), Hindustan Unilever Ltd (HUL), Infosys and ITC ended the week with losses. The market valuation of ICICI Bank jumped by Rs 26,620.32 crore to Rs 2,82,550.05 crore, becoming the biggest gainer.

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    08:09 (IST)31 Aug 2020
    Finance minister Nirmala Sitharaman to review stress in bank loans on September 3

    Finance minister Nirmala Sitharaman will meet top executives of banks and non-banking financial companies (NBFCs) on September 3 to review the implementation of the resolution framework for stress in bank loans, caused by the unprecedented Covid-19 pandemic. The meeting comes ahead of the expected announcement of the KV Kamath-led panel’s recommendations on eligibility parameters for the restructuring of loans to soften the blow to both borrowers and the lenders in the wake of the pandemic.

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    08:08 (IST)31 Aug 2020
    India's GDP in the past few quarter

    In the January March quarter, India's GDP grew 3.1%. In the quarter, prior to that, Gross Domestic Product of India gre at 4.1%. 

    08:05 (IST)31 Aug 2020
    NSO to release India's GDP data today

    The National Statical Office (NSO) will today be releasing India's GDP data for the April-June quarter. According to economists at various rating and research firms, India's Q1 GDP data will contract due the coronavirus pandemic and the resultant lockdown. "We estimate the economy contracted by 25.5% y/y in Q2 20 (April-June), with growth in government consumption unable to cushion a near washout in almost all other expenditure segments," said Barclays last week. On the other hand Morgan Stanley estimates that India's GDP may contract by 19.1%on-year basis in the quarter ending June reflecting the largest decline in output owing to the nationwide lockdown due to COVID-19.

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