Market Highlights: Sensex dives on closing, ends down by 345 points, Nifty at 10,700; RIL, Infosys top drags

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Updated: July 8, 2020 4:33:39 pm

Share Market News Today | Sensex, Nifty, Share Prices Highlights: Sensex, Nifty gave up all gains to dive 345 points on closing. Wednesday's trading session was marred by volatility as India VIX gained 4%.

Share Market Today, Share Market LiveSGX Nifty was up 30 points on Wednesday morning hinting at a positive start for Sensex and Nifty.

Share Market News Today | Sensex, Nifty, Share Prices Highlights: Domestic equity markets opened in the positive territory on Wednesday but a volatile session saw Sensex and Nifty give up all gains and dive into the red. S&P BSE Sensex ended down 345 points or 0.94% at 36,329 points, while the 50-stock Nifty gave up the 10,700 mark. With this, benchmark indices gave up their 5-day winning streak. IndusInd Bank was the biggest gainer among Sensex constituents, jumping 5%, followed by a 1.8% surge in State Bank of India and a 1.4% jump in HUL. On the other side in the negative territory, Bajaj Finance slipped 4.4% and Asian Paints dropped 3%. 22 of the 30 Sensex stocks were in the red. Among sectoral indices, Nifty Realty was down 1.95% along with Nifty Auto. Nifty IT, Nifty media, Nifty Private Bank, and Nifty Bank were all in the red. Nifty PSU Bank index was up 2.34% followed by Nifty Pharma, Nifty FMCG, and the Nifty Metal.

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Highlights

    16:33 (IST)08 Jul 2020
    Sensex, Nifty give up five-day gaining streak as volatility surged; here’s what moved stock markets

    Giving up their 5-day winning spree, domestic benchmark indices ended in the negative territory on Wednesday. S&P BSE Sensex ended down 345 points or 0.94% at 36,329 points, while the 50-stock Nifty closed just above 10,700. Senesex, Nifty were in for a volatile session as the benchmark indices danced between gains and losses for most part of the day. “Index formed a negative candle after forming a gravestone doji which hints more weakness if the Nifty continued to trade below 10675 zone. Immediate support for nifty is coming near 10630-10560 zone and resistance is formed near 10770-10830 zone, it is still recommended to book profit on every rise,” said Rohit Singre, Senior Technical Analyst at LKP Securities.

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    16:01 (IST)08 Jul 2020
    Book profit on every rise

    Index closed a day at on negative note after five consecutive positive closing also index formed negative candle after forming a grave stone doji which hints more weakness if nifty continued to trade below 10675 zone. Immediate support for nifty is coming near 10630-10560 zone and resistance is formed near 10770-10830 zone, it is still recommended to book profit on every rise. Nifty bank closed a day at 22585 with loss of 43 points, support for nifty bank is coming near 22200-22000 zone and resistance is coming near 22850-23000 zone: Rohit Singre, Senior Technical Analyst at LKP Securities

    15:56 (IST)08 Jul 2020
    Investors need to maintain a stock-specific view on the market

    Benchmark indices continued its volatile moves and ended with losses. Losses were led by Auto and IT indices. European markets also opened lower. Markets were volatile as virus infections continued to mount and uncertainty increased regarding economic recovery. Volatility is expected to continue and investors need to maintain a stock-specific view on the market: Vinod Nair, Head of Research at Geojit Financial Services

    15:55 (IST)08 Jul 2020
    We will not resume the uptrend unless we cross 10850

    The market touched a low of 10676 which is around the lower end of the range of 10650 but ended up closing above 10700. If we break 10650, we could slide another 100 points to test 10500-10550. On the upside, we will not resume the uptrend unless we cross 10850: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

    15:54 (IST)08 Jul 2020
    Top consumer sector shares that may beat coronavirus woes, even as pandemic hits consumption

    Amid uncertainty led by COVID-19 disruption, closures in metro towns, rise in unemployment and salary cuts across the country weakened consumer sentiments, which dented consumption in FY21. Even though initial trends displayed a surge in demand for household and packaged food, as the majority of people were working from home, analysts say that the consumer demand is now shifting to health and wellness products.

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    15:38 (IST)08 Jul 2020
    Rupee market believes that the recent large periodic FDI flows may have already materialized

    Rupee market believes that the recent large periodic FDI flows may have already materialized while importer and state-run banks buying lead to weakness in the rupee in the last three days. Spot USDINR has resistance at 75.60, the 50 days moving average and support at 74.50. Asian currencies traded with thin volumes. HK market is on focus today. There are talks of US administration to undermine the HK peg to us dollar, it will limit the HK bank access to the dollar. Brexit talks restarted today, market report says the EU is ready for a compromise over fishing rights. The pound is little higher from overnight close, however, the momentum will depend on the official statements. Action in the pound and euro will decide the trend for dollar index in next few days: Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities

    15:12 (IST)08 Jul 2020
    Nestle India to focus on its ‘strengths’; chocolates, milk, coffee, other core items may expand

    Maggi and Munch-maker Nestle India will focus on its milk, coffee, chocolates and other core categories as the company anticipates further opportunities in these segments. In fact, the Indian arm of Swiss FMCG major Nestle will explore growth and expansion in categories such as food and nutrition, beverages, confectionery etc.

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    14:45 (IST)08 Jul 2020
    Coronavirus and geopolitical fears will keep risk sentiments under check

    The USD/INR spot has been respecting the 75.05 resistance as traders are hopeful about additional government and central bank stimulus from major economies. However, until then in the absence of major economic data, the coronavirus and geopolitical fears will keep risk sentiments under check. The US-China trade tiff is escalating with Trump considering to ban TikTok app as retribution against China for coronavirus pandemic. If the immediate resistance of 75.05/75.10 breaks then we can see a rally towards 75.50, with crucial support being 74.50: Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services

    14:04 (IST)08 Jul 2020
    Brokerage view on Cummins

    We downgrade Cummins to Sell with lower TP of INR330 (from INR360) as we lower our target multiple to 15x from 16x earlier. We acknowledge that despite macro headwinds, the company has done a commendable job in FCF conversion, resulting in a strong balance sheet. Rental and dividend incomes have enabled the company to significantly increase dividend payouts over the years, owing to which it has one of the best payout ratios in the Capital Goods sector. However, the lack of growth drivers is yet to be fully factored in the valuations, in our view: Motilal Oswal Financial Services

    13:49 (IST)08 Jul 2020
    India VIX jumps over 3%

    Volatility surged on Wednesday as domestic equity benchmark indices danced between gains and losses. India VIX was over 3% during the day at 26.3 levels.

    13:47 (IST)08 Jul 2020
    Covid-19 drug Remdesivir: Drug regulator raises concern over black marketing, over pricing

    Coronavirus Remdesivir: Raising concern over the issue of black marketing and over pricing of Remdesivir drug, the Central Drugs Standard Control Organisation (CDSCO) has asked all states to ensure that the drug which is being used in the treatment of Coronavirus patients is not sold above its MRP. A letter was written by the Central Drugs Controller General to the respective states’ Drug controllers in this regard on Tuesday. The letter was written by CDSCO after drug manufacturer M/S Local Circles sent a letter to CDSCO highlighting its concerns over the issue of black marketing and over pricing of the drug.

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    13:35 (IST)08 Jul 2020
    Yes Bank share price jumps to over four times; stock rises 2% today on FPO fundraising

    Yes Bank share price gained 2 per cent to Rs 26.25 apiece on BSE after falling 5.5 per cent in early morning deals, a day after the private lender board approved the fundraising plan. In comparison, S&P BSE Sensex was trading flat. Yes Bank in an exchange filing said that its capital raising committee of the Board of Directors has approved raising funds by way of a further public offering.

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    12:52 (IST)08 Jul 2020
    Last resort: Here's how RBI may fund govt's need for more money, with fiscal deficit at 7%

    India’s government is running out of options to fund its budget and may soon have to knock on the central bank’s door once again for support. The administration can get the Reserve Bank of India to buy sovereign bonds directly or boost dividends to help supplement revenue, which has been hit by an economy-crippling lockdown to contain the virus’s spread. The government is facing a budget deficit of as high as 7% of gross domestic product, the widest in more than two decades, according to some estimates.

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    12:34 (IST)08 Jul 2020
    Bajaj Finance - strong performance on fees and deposits

    BAF delivered another year of stellar performance in FY20. Given the current liquidity risks, the company focused on long-term borrowings and increased liquidity on the balance sheet (14% of borrowings). It also nearly doubled its public deposit base with tenure of most deposits at over 3 years. While we expect some slowdown in fee income traction for FY21, the long-term story remains intact. Pressure on fees is likely to be compensated by sharp reduction in operating expenses in our view. The lower moratorium rate in June as compared to April is a key positive – hence, we reduced our credit cost estimates by 50/25bp to 3.9/3.1% for FY21/FY22. In our recent note, we have increased our EPS estimates by ~15%. Maintain Neutral with a TP of INR3,000 (4.2x FY22E BV).

    ~ Motilal Oswal

    12:01 (IST)08 Jul 2020
    Titan’s jewellery sales recovery better than expected; Rakesh Jhunjhunwala’s favourite stock falls 1%

    After reporting numbers that were above expectations in the March quarter, Titan Company has said that recovery in the jewellery segment has been better than expected in the month of May and June despite suffering a complete loss in the month of April. In its quarterly update, Titan said that revenues in the last two months were slightly below 20% and 70% when compared to the corresponding months of the previous year. Titan informed the bourses that the company started opening stores on May 6 and so far has re-opened 83% of its stores. Titan is often touted as ace investor Rakesh Jhunjhunwala’s favourite stock. The scrip was trading down 1% to trade at Rs 1,009 per share.

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    11:48 (IST)08 Jul 2020
    Agri Inputs - Growth sustains despite COVID-19 disruption

    Q4FY20 reflected the resilience of the agri-input industry in an environment wherein other sectors struggled against covid-19-induced disruption. Aided by a strong rabi season, domestic agri-input players beat our estimates with aggregate revenue growth of 23% YoY amid some deferment of sales to Q1FY21 as the lockdown impacted dispatches. Logistical hurdles tapered the growth momentum of export-oriented companies as well with PI’s CSM business reporting 8% YoY growth, while Rallis grew 2% YoY. We remain positive on the agri space at large. UPL (‘BUY’), Coromandel International (‘BUY’) and Dhanuka (‘BUY’) remain our top picks. In our latest Edelweiss Agri and Specialty Chemicals conference attended by ten leading players, their management executives shared an encouraging outlook for rural growth.~ Edelweiss

    11:24 (IST)08 Jul 2020
    Maruti Suzuki share price falls over 1.5% as car production plunges to less than half

    Shares of Maruti Suzuki India (MSIL) fell over 1.5 per cent to hit day’s low of Rs 6,156 apiece on BSE, a day after the company informed that its total productions declined nearly 55 per cent to 50,742 units in June 2020 from 1,11,917 units produced in the corresponding period of the preceding year. Maruti Suzuki stock price has rallied 53 per cent from March lows of Rs 4,002 apiece, with market capitalisation at nearly Rs 1.86 lakh crore.

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    11:14 (IST)08 Jul 2020
    Cement sector update by JM Financials

    India’s cement companies (14 listed companies) reported consolidated volume decline of 13% YoY in 4QFY20 and 3% YoY in FY20, as sales momentum gained in Jan-Feb was offset by 9 days of lost sales in March due to lockdown. However, EBITDA/t fared better with an 18% growth, as 2% sequential improvement in realisations (price hikes, reversal of dealer discounts) and benign commodity prices more than offset the adverse impact of unfavourable operating leverage. In 1QFY21, plants are operating at 55-75% utilisation, on pent up demand from rural and infra segment and channel filling, while pricing discipline continues to keep realisations upbeat (+6% QoQ). Going forward, we factor in 10% decline in volumes in FY21 (35-40% decline in 1Q, followed by flat volumes for balance 9M), as we expect the industry to witness demand headwinds from labour shortage, slowdown in government capex and liquidity issues in real estate. Most companies have prioritised cash conservation in view of demand uncertainty by reducing dealer financing and deferring the planned expansion. We are reducing the target valuation discount from 20-25% earlier to 0-10% currently as price hikes taken in 1Q are expected to restrict contraction in EBITDA/t to some extent. We downgrade ACC to HOLD (constrained growth and poor RoC at peak utilisations) and Ramco to SELL (levered balance sheet and cash flow concerns due to capex), while we remain positive selectively on Shree Cement (cost leader and improving RoCs due to better mix, premiumisation) and JK Cement (improving RoCs as operations ramp up).

    11:02 (IST)08 Jul 2020
    Derivatives View ~ ICICI Securities

    Post a flat opening, in the early hours, energy stocks witnessed selling pressure while the Nifty made a low of 10690. However, a late recovery in BFSI along with outperformance in midcap & auto stocks helped the market to recover intraday losses. Finally, it ended at 10799, with a marginal gain of 0.33%. Nifty futures ended at a discount of 32 points with a fall in IVs by 0.5%. The major Put base is at 10500 strike with almost 33 lakh shares while the major Call base is at the 11000 strike with almost 33 lakh shares.

    ~ ICICI Securities

    10:38 (IST)08 Jul 2020
    Rupee is likely to trade in 74.70-75.10 range intraday

    The RBI continued to buy USD and pay forwards, crushing shorts in trade yesterday. We could see similar price action today as well. There is not much on the data front. Price action is likely to largely flow driven. Rupee is likely to trade a 74.70-75.10 range intraday. Nationalized banks may continue to intervene to smoothen volatility. FPIs are utilizing 40% of their limit in Gsecs in general category and 37% of their limit in corporate bonds EIA crude inventory data due today: Abhishek Goenka, Founder and CEO, IFA Global

    10:33 (IST)08 Jul 2020
    Sensex, Nifty erase opening gains to trade flat; here's what is moving Dalal Street today

    Wednesday’s trading session saw Sensex, Nifty comfortably climb up in the initial minutes only to be taken aback by the rising volatility that saw the indices give up all gains and trade flat. After the initial hour of trading Sensex was up 84 points or 0.23% at 36,728 points, while the 50-stock Nifty was above the 10,800 mark. Domestic indices now on a 5-day gaining streak, sitting at levels last seen in the initial weeks of March when the mark sell-off was just beginning.

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    10:22 (IST)08 Jul 2020
    Rupee opens lower

    Rupee opened 5 paise lower at 74.98 level against US dollar in Wednesday's trade. Rupee closed at 74.94 against US dollar yesterday

    10:20 (IST)08 Jul 2020
    Jump in dollar demand shall bring in rupee near 75.20-30 levels in near term

    In the last two trading sessions, nationalised banks had been quite active in buying dollars, possibly on behalf of RBI. It will be important to see how aggressive and persistent RBI’s intervention in rupee is for the next few sessions. Overall, a jump in dollar demand shall bring in rupee near 75.20-30 levels in the near term, yet any sharp depreciation in the shall be capped as Chinese Yuan is strengthened from 7.08 to 7.02 in the last 6 trading sessions: Amit Pabari, managing director, CR Forex Advisors

    09:50 (IST)08 Jul 2020
    Ujjivan Small Finance Bank shares jump

    Shares of Ujjivan Small Finance Bank surged 13% during the initial hours of Wednesday's trading session to trade at Rs 43 per share. The stock had closed at Rs 37 apiece the previous day. The stock has gained 30% in two days.

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    09:38 (IST)08 Jul 2020
    Bank stocks shine on Sensex

    IndusInd bank surged over 5% making it the biggest Sensex gainer, followed State bank of India that up over 2.5%. The HDFC twins were not shying away, gaining close to 1% each in early trades on Wednesday morning.

    09:12 (IST)08 Jul 2020
    MCX gold opens with downtick on Wednesday

    MCX gold opened with a downtick on Wednesday morning after it shoots up sharply in the previous session. COMEX gold steadied near a more than eight-year high, as worries over surging COVID-19 cases and hopes of more stimulus measures from the U.S. Fed lifted demand for the safe-haven metal.  In the absence of any major economic data, we believe investment demand will support the yellow metal: Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Shares and Stock Brokers

    09:02 (IST)08 Jul 2020
    Nifty set to open on a flattish note

    Nifty set to open on a flattish note as global markets are a mixed bag. If Nifty sustains above 10823 then it may progress toward 10900-11000 levels. On the other hand, If it breaks yesterdays low of 10689 then downside will be seen till 10610. For the day, it seem that one should concentrate on short term trading with strict stop loss. Any carry forward position should be to hedge effectively: Vishal Wagh, Head of Research, Bonanza Portfolio Ltd

    09:01 (IST)08 Jul 2020
    Stocks in focus: RIL, Yes Bank, Titan, ICICI Bank, Suzlon Energy to remain on investors’ watchlist

    Market participants will track global markets, coronavirus related newsflow, geopolitical tensions, rupee trajectory and oil movement. Besides, investors will also keep tabs on rising COVID-19 cases.

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    08:58 (IST)08 Jul 2020
    Modi’s Rs 21 lakh crore stimulus package may be working as riskier bond sales jump to 15-Month high

    Signs are emerging that India’s $277 billion (Rs 21 lakh crore) stimulus is helping reopen the bond market to smaller borrowers and easing the nation’s credit crunch. Issuance of local-currency corporate notes graded A+ and lower rose to a 15-month high of 51.7 billion rupees ($683 million) in June. Such offerings had plunged in April and May as the coronavirus pandemic and the world’s largest lockdown to contain it battered investor demand for risky assets in India.

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    08:23 (IST)08 Jul 2020
    Sensex, Nifty may see flat-to-positive opening; these factors to steer markets today

    Domestic equity market benchmarks BSE Sensex and Nifty 50 traded higher for the fifth consecutive session in Tuesday’s volatile trade. Sensex was up 0.51 per cent or 187.24 points to close at 36,674.52. The 50-share index Nifty ended the day up 36 points or 0.33 per cent to close at 10,799.65. Investors will keep a close watch on the situation of coronavirus and development on its vaccine, economic development activities, crude oil prices, relation between India-China and US-China.

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    08:15 (IST)08 Jul 2020
    L&T Finance arm closes $100-million external commercial borrowing from Asian Infrastructure Investment Bank

    L&T Infrastructure Finance Company, a subsidiary of L&T Finance, has bagged a $100-million external commercial borrowing (ECB) loan from Asian Infrastructure Investment Bank (AIIB). The company has received the first tranche of $50 million, of the total $100 million ECB, it said in a release. The loan proceeds will be used to on-lend to large and mid-scale wind and solar power infrastructure projects in India.

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    08:14 (IST)08 Jul 2020
    Mukesh Ambani’s Reliance is taking oil and gas weightage higher in Nifty

    India’s stock markets have been led by financial stocks, especially banks, for the last one decade. The weightage of financial stocks in the Nifty has fallen to 34.38% in June against 41.98% in December 2019. The Nifty has risen 39.38% from its March 23-lows but, Nifty bank has only risen 29.16%. While financials have come under pressure, shares of consumer companies and Reliance Industries (RIL) continue to shine. RIL has jumped 107.65% from its respective March lows, and is trading above its January-levels, taking the weight of oil & gas sector higher on the benchmarks.

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    08:13 (IST)08 Jul 2020
    Markets factoring in positive macro-economic data?

    Market is factoring in positive macro-economic data, strong rural economy and optimism over potential Covid vaccine emerging soon. Rural economy has seen lesser damage from the COVID pandemic, led by robust rural income, strong start to monsoons, robust Kharif sowings, and sharp hike in allocation to MGNREGA. Further hopes have now shifted to potential FY22E earnings recovery. However Nifty is trading at 21x one year forward P/E (premium to its long period average of 19x) and is not looking as attractive as it did in Mar’20. Hence despite the near term momentum, we would be more cautious/defensive in our approach going ahead. ~ Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services

    08:10 (IST)08 Jul 2020
    First cheque received by Mukesh Ambani's Reliance Industries as Facebook's Rs 43,574 investment rolls in

    Jio Platforms, the parent firm Reliance Jio, has received Rs 43,574 crore investment from Facebook for a 9.99 per cent stake in the company, Reliance Industries said in regulatory filing on Tuesday. The deal between Jio Platforms and Facebook was announced on April 22. Facebook picked 9.99 per cent stake in Jio Platforms at an enterprise value of Rs 4.62 lakh crore.

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