Market HIGHLIGHTS: Sensex ends in red for 2nd day; Nifty below 11,300; RIL jumps 2.7%, SBI, Axis Bank fall

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Updated: September 9, 2020 4:30:40 pm

Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity benchmarks Sensex and Nifty ended in the negative territory for the second straight day on Wednesday

Share Market Today, Share Market LiveAmong sectoral indices, Nifty Auto, Nifty Media, Nifty Metal and Nifty Pharma settled with gains

Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market benchmarks BSE Sensex and Nifty 50 settled into the red for the second consecutive session on Wednesday, dragged by bank stocks. The 30-share Sensex ended 171 points or 0.45 per cent down at 38,194, while the broader Nifty 50 index finished 39 points or 0.35 per cent down at 11,278. However, losses were capped by Reliance Industries shares which jumped 2.57 per cent on closing. Top Sensex gainer was Tata Steel which ended at Rs 419.80 apiece, up 3.67 per cent, followed by RIL, Sun Pharma, Bharti Airtel, Asian Paints, Nestle India and Maruti Suzuki. On the flip side, State Bank of India shares fell the most, becoming the top Sensex laggard. Bajaj Finserv, Axis Bank, ONGC, ITC, Bajaj Finance, ICICI Bank, Kotak Mahindra Bank and HDFC Bank were among top index losers. Among sectoral indices, Nifty Auto, Nifty Media, Nifty Metal and Nifty Pharma settled with gains. While Nifty PSU Bank index declined 2.87 per cent.

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Highlights

    16:02 (IST)09 Sep 2020
    IRCTC’s Offer For Sale soon; but is there still value in this monopoly play while Covid hits travel

    Indian Railways Catering and Tourism Corporation (IRCTC) was one of the most celebrated IPO on the stock exchanges prior the sell off that shook the markets in March. The stock was listed at a price of Rs 664, a massive 101% premium to the issue price of Rs 320 per share. Further the stock went on to touch a high of Rs 1,994, which translates to over 520% gains from the issue price. Now the stock trades at Rs 1,334 per share but investors could soon get a discounted entry into the stock with the government planning an Offer For Sale (OFS) soon. However, the question remains if IRCTC stock is still attractive?

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    15:40 (IST)09 Sep 2020
    Markets end in negative, RIL shares gain

    On a day when the Bulls had nothing going for them with GDP Forecast, Geo-Political Issues and Underperformance of PSU stocks playing against them, we witnessed a spirited comeback in late afternoon trade. Select Pivotals led by Reliance took the lead ably supported by several stocks across sectors despite the hiccups seen in several cash market stocks: S Ranganathan, Head of Research at LKP Securities

    15:38 (IST)09 Sep 2020
    Closing bell: Sensex sheds 170 pts, Nifty ends below 11,300

    BSE Sensex ends 171 points or 0.45 per cent down at 38,194, while the broader Nifty 50 index finished 39 points or 0.35 per cent down at 11,278 on Wednesday.

    15:20 (IST)09 Sep 2020
    Markets will eye data from American Petroleum Institute inventory data tonight and US EIA tomorrow

    International oil rebounded in the Wednesday afternoon trade reversing losses from Tuesday’s losses amid short-covering. However, a rebound in COVID-19 cases in some countries undermined hopes for a steady recovery in global demand. Markets will look ahead to data from American Petroleum Institute inventory data tonight and U.S. EIA tomorrow. Domestic prices also recovered this Wednesday afternoon trade, tracking a recovery in the overseas prices. Technically, MCX Crude Oil September trading near 100-Days Moving Average at 2740 levels below which will continue sideways to Bearish momentum in the coming sessions. Resistance is at 2790-2850. Support is at 2675-261: Sriram Iyer, Senior Research Analyst at Reliance Securities

    15:09 (IST)09 Sep 2020
    Route Mobile IPO subscribed 60% so far today

    Route Mobile IPO, a cloud communications service provider, opened for public subscription today has subscribed 60 per cent so far in the day, with bids received for 37 lakh shares from non-institutional investors and retail individual investors on BSE. Non-institutional investors placed bids for 1.6 lakh shares while retail investors bid for 35 lakh shares.

    14:46 (IST)09 Sep 2020
    Gold the ‘currency of last resort’: Right time to hike gold allocation; these factors may fuel prices

    Crisis periods drive investor sentiments to an extreme risk-off bringing safe-haven assets into focus. Gold is one of the premium stores of value, even at times, better than the reserve currency USD. CY19 saw gold rallying as the US-China trade war led to a weak global economy. This forced central banks to open the liquidity tap which acted as a big booster to gold prices. As India too witnessed an economic slowdown, gold outperformed the risk asset class of Equity in CY19.

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    14:33 (IST)09 Sep 2020
    Happiest Minds IPO subscribed 73 times

    IPO of Happiest Minds Technologies has been susbcribed 72.87 times so far on the last day of the bidding. NIIs have subscribed their quota 182 times while retail investors subscribed their porting 58 times. QIBs have so far susbcribed their quota 22.75 times.

    14:24 (IST)09 Sep 2020
    Sensex falls 430 points, Nifty slips below 11,200; check what led to share market sell-off today

    Weighed down by weak global cues, escalation in India-China border tensions, news of a rebound in COVID-19 cases, headline indices fell nearly per cent today. In intraday deals, the 30-share BSE Sensex tumbled 430 points, slipping below the crucial 38,000-mark to trade at 37,935. Broader Nifty 50 index breached the psychological level of 11,200 on the downside. State Bank of India (SBI) was the worst-performing stock, down more than 5 per cent.

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    14:16 (IST)09 Sep 2020
    Nifty consistently witnessing pressure on the higher side

    Nifty consistently witnessing pressure on the higher side. Global cues are weakening post more than a couple of percentage fall in the US market. Whereas, technology stocks in the US see profit booking. Though, European markets are trading positively. Every rally towards 11350-11400 will witness a selloff. Technically speaking, Nifty is in lower low and lower high chart formation. On, lower side 11200 is last hope for Bulls: Vishal Wagh, Head of Research, Bonanza Portfolio Ltd

    13:49 (IST)09 Sep 2020
    Uncertainty will continue to push USD-INR spot higher

    The optimism over coronavirus vaccine seems to have halted, also the ongoing border skirmish between Indo-China is leading to risk aversion. Going ahead, this uncertainty will continue to push USDINR spot higher. However, the rally can be limited only by corporate dollar inflows. The focus will be on Reliance stake sales. In USDINR spot 74 remains as a strong resistance, only consistent trading above that will open doors for 74.50 zone. While 73.35 will act as strong support: Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services

    13:46 (IST)09 Sep 2020
    Investors pull out money from mutual funds; nearly Rs 4,000 cr withdrawn from equity MFs in August

    Mutual funds, for the first time this fiscal year, witnessed net outflows from both open and close-ended schemes, taking the net outflow to Rs 14,533 crore in the month of August, data from the Association of Mutual Funds in India (AMFI) showed. In the previous month, mutual funds recorded net inflows of Rs 89,812 crore. August was also the month when investors pulled out Rs 3,999 crore from equity oriented schemes, considerably more than the Rs 2,480 crore that were pulled out from such schemes in the previous month. Despite this, data showed that average Asset Under Management (AUM) for the month of August climbed 2% to Rs 27.78 lakh crore.

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    13:43 (IST)09 Sep 2020
    Views on AMFI Data August 2020

    Over the last two or three months, Investors have continued to book profits from equity mutual funds. At the same time, it is encouraging to see that about 4.65 lacs of new folios were added in August indicating sustained retail interest in mutual funds. While the SIP amount has dropped very nominally, once again there is a net addition of about 3.43 lac SIP folios. It also appears that some investors have taken a tactical asset allocation call by moving from equity to low duration or ultra short term funds with the objective of re-entering equity funds at lower levels in the event of a correction in the markets: G Pradeepkumar CEO Union AMC 

    13:27 (IST)09 Sep 2020
    With markets down again, is it the right time to invest mutual funds?

    When markets are down and volatile it's suitable to accumulate great mutual funds schemes through SIP mode. Lumpsum should be avoided and staggered in 12 to 18 months. Investors should, however, be very careful in selecting good quality schemes diversified equity schemes. In MultiCaps- UTI Equity and Canara Diversified equity can be considered. In Large-cap go for Axis Bluechip. Parag Parikh long term can be considered in Multi cap if Us exposure is required: Omkeshwar Singh, Head of RankMF, Samco Securities

    13:17 (IST)09 Sep 2020
    Markets witness sharp sell-off due to tech rout in US, weak global cues

    Markets witness a sharp sell-off today during the early trading session on the back of Tech Rout in the US and weak global cues. SBI, ONGC and Bajaj Finserve lead the losers list, with Nifty down 0.8%, to trade at 11,200 levels, primarily driven by weakness in financials. Bank Nifty is down over 2%, clearly indicating the concerns in the banking and financial space. However, Nifty technically has strong support around 11000-11050 zone, whereas resistance is seen around 11450-11500 in the short-term: Aamar Deo Singh, Head Advisory at Angel Broking

    13:15 (IST)09 Sep 2020
    Reasons behind the fall in markets are technical in nature

    The reasons behind the fall in the markets are technical in nature as of now. The markets had got overstretched on certain technical indicators; what we are seeing right now is nothing but reversion to the mean. Even if the NIFTY corrects and tests the 50-DMA which is presently at 11137, it will not be any form of structural damage to the markets. Only slip below 11130 will be a technically negative point and can invite incremental weakness in the markets. On the upside, the double top resistance at 11430 is a major overhead resistance: Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst, Gemstone Equity Research & Advisory Services

    13:10 (IST)09 Sep 2020
    Net outflows in debt oriented funds at Rs 3,907 crore in August

    In debt oriented schemes, outflows were seen in overnight funds where investors pulled out Rs 10,298 crore and Liquid funds saw Rs 15,814 crore in outflows. Both these funds had seen net inflows in the previous month. AMFI Chief Executive N.S. Venkatesh, said that the outflows in these two funds could have stemmed from the urgency for money at the end of the month by corporates. Medium duration fund, Dynamic Bond Fund,a dn Corporate Bond Fund saw net inflows. Credit Risk Funds and Gilt Funds saw net outflows. 

    13:08 (IST)09 Sep 2020
    Investment by Silver Lake in RVVL, a step in the right direction?

    "We believe that the acquisition of future retail business by Reliance Industries Ltd. and investment by Silver Lake in RVVL are steps in the right direction. We expect the company to attract further investments in the retail business from other investors which will help consolidate its dominant position in the retail business. We remain positive on Reliance industries Ltd. and expect that the digital and the retail business will be the future growth drivers for the company. Further investments in the retail business and scaling up of Jio Mart business will be key triggers for the company in the near future. Listing of the digital and retail business over the next few years would also lead to significant value unlocking for shareholders in the long run. We continue to maintain our buy rating on reliance Industries with a target of 2,366," said Jyoti Roy  - DVP- Equity Strategist, Angel Broking.

    12:39 (IST)09 Sep 2020
    What's behind Sensex' 400 points fall today?

    Liquidity is driving the market's globally hence major indices are more dependent on the same. However, stock-specific investment opportunities are still there. Looking at the earnings and the pace of recovery and expectations build up at least in indices. Risk reward equation is currently tilted more on risk side as far as the upside is concerned. Looking outside of indices, there are still opportunities in stock specific strategies: Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares and Stock Brokers.

    12:26 (IST)09 Sep 2020
    Brokerage view on Route Mobile IPO

    At the upper price band of Rs.350, RML is available at a P/E of 28.8x and when we annualize Q1FY21 numbers we arrive at a P/E of 18.5x for FY21E on a post issue basis. Given that there is no listed peer to compare, and based on stable financial performance and niche business model, we assign a subscribe rating on this IPO. The company uses a prepaid business model where the client pays upfront helping in the reduced overall working capital cycle: Geojit Financial Services

    12:22 (IST)09 Sep 2020
    Analyst's view on AstraZeneca Covid 19 vaccine

    AstraZeneca Covid 19 vaccine put on HOLD - A vaccine in development by the British-Swedish company AstraZeneca and the University of Oxford a frontrunner in the race for a covid-19 vaccine. Vaccine is in phase 3 trials and Halted global trails of the vaccine to investigate an inflammatory syndrome called transverse myelitis in one volunteer. Standard review triggered a pause to vaccination to allow review of safety data. This is negative news for AstraZeneca and for global markets: Yash Gupta, Equity Research Associate, Angel Broking Ltd

    12:18 (IST)09 Sep 2020
    Sensex slips below 38,000; Nifty breaches 11,200 on downside

    The 30-share Sensex was down over 400 points or 1.11 per cent at 37,958, slipping below the crucial 38,000 level. While now the Nifty 50 breached has breached 11,200-mark as well on the downside.

    Check live Sensex, Nifty levels

    12:07 (IST)09 Sep 2020
    Bank loans again under bad debt threat, but big companies not to blame this time; risk shifts here

    While lenders in India continue to face risks around asset quality, Moody’s Investors Service today said that corporate loans are not the worst placed this time. Banks continue to be under the spotlight amid the economic contraction aided by the coronavirus pandemic. However, unlike the previous credit cycle where loans to corporate borrowers were resulting in non-performing assets (NPA), Moody’s says retail and SME credit is likely to be worse this time. Banks have so far offered a 6-month moratorium to borrowers across the country and now a restructuring of select loans is in the offing.

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    11:55 (IST)09 Sep 2020
    ONGC top Sensex loser, share price falls 5%; oil stocks tumble as Saudi Arabia cuts crude price

    Oil and gas stocks plunged up to 5 per cent after crude oil prices tumbled following a cut by Saudi Arabia in October selling prices. Also, coronavirus cases rebounded in many countries in the world which could sap fuel demand. The S&P BSE Oil & Gas index fell nearly 2 per cent to 12,634 levels. The top index loser was oil exploration and distribution firm Oil and Natural Gas Corporation (ONGC), which fell nearly 5 per cent to Rs 70.90 apiece.

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    11:48 (IST)09 Sep 2020
    Route Mobile IPO subscribed 0.24 times

    Route Mobile's IPO saw good rush of retail investors susbcribing their quota 0.47 times. The issue was susbcribed 0.24 times in less than two hours. 

    11:45 (IST)09 Sep 2020
    Indices still trade in red, Sensex plunges 300 points

    BSE Sensex was down 302 points or 0.80 per cent at 38,063, while the broader Nifty 50 index was ruling at 11,226, down 0.80 per cent or 93 points.

    Check live Sensex, Nifty levels

    11:42 (IST)09 Sep 2020
    Buy Gujarat Gas - Motilal Oswal

    Gujarat Gas (GUJGA) has taken a price cut of INR2.5/scm on PNG Industrial at Morbi, as per our interaction with the company. Therefore, gas price realization now stands at INR24.5/scm, bringing the economies of gas at par with the current low LPG prices. Once gas is included under GST, consumers will be able to take input tax credits, thus, lowering their gas feedstock cost. GUJGA will be able to take tax credit on opex and capex. Capex plans for FY21 stands at INR6-7b v/s INR5.8b in FY20 (GUJGA plans to fund capex through internal accruals only). Gujarat Gas is trading at 17.7x FY22E EPS of INR16.4 and 10.1x FY22E EV/EBITDA. We value GUJGA at 22x FY22E. With target price of INR360/share, we reiterate Buy on the stock.

    11:39 (IST)09 Sep 2020
    Mukesh Ambani lines up more investors for Reliance Retail after Silver Lake; KKR may put in $1 billion

    KKR & Co. is in advanced talks to invest at least $1 billion in the retail business of Indian billionaire Mukesh Ambani, according to people familiar with the matter, in what could be another U.S. investment in the unit following Silver Lake’s deal. KKR is in discussions for a stake in Reliance Retail Ventures Ltd., a unit of the largest retailer in India, said the people, who asked not to be identified because the information isn’t public. The private equity firm could invest as much as $1.5 billion and an announcement could come as soon as this month, one of the people said.

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    11:14 (IST)09 Sep 2020
    Not all emerging markets offer opportunities: Fitch raises ratings for China; India predictions cut

    Emerging markets were given a fresh set of growth forecasts from Fitch Ratings this week, further underscoring how the coronavirus pandemic is splitting developing nations up between opportunities and risks.

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    11:00 (IST)09 Sep 2020
    Funding challenges for NBFCs could mount again

    The funding challenges for NBFCs could mount again (especially for smaller NBFCs), on the back of Covid-19, leading to tighter liquidity concerns. The liquidity covers of NBFCs will be dependent on collections and the ability to raise resources during these challenging times. However, amidst this tough time banks have been lending more to them increasing their overall exposure to NBFCs: CARE Ratings

    10:51 (IST)09 Sep 2020
    Fears of an escalation in border tensions led to a sell-off in Indian equities, debt and rupee

    Stricter lockdown measures could be reinstated in UK to deal with the surge in cases. There are also concerns over the new internal market bill violating the Northern Ireland Protocol of the Withdrawal Agreement Bill and jeopardizing the ongoing trade negotiations between the EU and UK. These concerns have caused led to a sell-off in the Cable. The Sterling was the worst-performing major currencies. It broke below the psychological 1.30 mark. Warning shots fired at the LAC spooked investors onshore. Fears of an escalation in border tensions led to a sell-off in Indian equities, debt and the Rupee: Abhishek Goenka, Founder and CEO, IFA Global

    10:48 (IST)09 Sep 2020
    Top BSE Sensex gainers at this hour

    Top BSE Sensex gainers are Asian Paints, L&T, Reliance Industries, Nestle India, IndusInd Bank, UltraTech Cement, Sun Pharma, Bharti Airtel and Power Grid Corporation of India

    10:46 (IST)09 Sep 2020
    Dr. Reddy's Laboratories shares up 0.5%

    Dr. Reddy's Laboratories launched Remdesivir, under a brand name Redyx, in India. It also launched over-the-counter Diclofenac Sodium Topical Gel 1%, the store brand version of Voltaren Arthritis Pain in the US market.

    10:34 (IST)09 Sep 2020
    ICICI Bank, HDFC Bank, Axis Bank push Sensex lower; check what’s weighing on investor sentiment

    Adding to the losses from the previous session, BSE Sensex and Nifty 50 plunged nearly one per cent on Wednesday, following a heavy sell-off in US markets lead by technology stocks. At 10 AM, the 30-share Sensex was trading 267 points or 0.70 per cent down at 38,097, while the NSE’s Nifty breached 11,250 level too on the downside and was ruling at 11,235. In the overnight trade, Tesla stocks suffered their biggest daily percentage drop of 20 per cent.

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    10:21 (IST)09 Sep 2020
    Saudi Arabia trims OSP for Asia for October on falling oil demand

    Oil prices plunged after top crude exporter, Saudi Arabia, trimmed the Official Selling Price (OSP) to Asia for the month of October’20 considering the falling demand. Moreover, the recent recovery in oil prices boosted U.S. companies to ramp up drilling of new supplies which further weighed on the Crude prices. OPEC & its allies are scheduled to meet on 17th September to review the oil market scenario. For today traders can go for sell in Crude oil at 2700 levels, with the stop loss of 2760 levels and for the target of 2600 levels: Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking Ltd

    10:15 (IST)09 Sep 2020
    Rupee opens weak against US dollar

    The Indian rupee opened weak at 73.68 per US dollar on Wednesday, as compared to the previous close of 73.60 against the US dollar.

    10:10 (IST)09 Sep 2020
    Reliance Retail gets US investor; Silver Lake to invest Rs 7,500 cr in Mukesh Ambani’s retail biz

    Mukesh Ambani’s Reliance Retail has got another push with the company announcing that Silver Lake will invest Rs 7,500 crore in RIL’s arm. The deal values Reliance Retail at Rs 4.21 lakh crore. Silver Lake’s investment will translate into a 1.75% equity stake in Reliance Retail Ventures Ltd on a fully diluted basis. Silver Lake’s investment is the second billion dollar investment by the company in a Reliance Industries subsidiary after its $1.35 billion investment in Jio Platforms announced earlier this year.

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    10:05 (IST)09 Sep 2020
    Brokerage view on Route Mobile IPO

    At the higher end of the price band, the issue is valued at 29x FY20 P/E (fully diluted), which is comparable to mid-sized IT firms (no listed peers available). We recommend Subscribe to the IPO given RML’s strong presence in niche CPaaS market with high entry barrier and healthy financials. Further given the small offer size and presence in niche IT space, one may get listing gains too: Motilal Oswal Financial Services

    09:59 (IST)09 Sep 2020
    Gold may remain choppy but buying might re-emerge at lower levels

    COMEX gold trades lower near $1937/oz after a 0.5% gain yesterday. Gold fell as low as $1911.7/oz in intraday trade yesterday but bounced back to end higher. Mixed factors have led to directionless trade in gold and this may continue in the near term. Gold may remain choppy but buying might re-emerge at lower levels amid increasing global uncertainty and also as Fed’s dovish stance may limit upside in US dollar: Ravindra Rao, VP- Head Commodity Research at Kotak Securities

    09:58 (IST)09 Sep 2020
    RIL shares trade in green post Silver Lake investment announcement

    Reliance Industries share price gained nearly one per cent in trade at Rs 2,139 apiece on BSE after the oil to telecom conglomerate announed Rs 7,500 crore investment from Silver Lake.

    Check prices: Reliance Industries

    09:54 (IST)09 Sep 2020
    The short term trend in Nifty50 turns bearish

    The Nifty has opened in the red but is still holding 11200. We are very close to a crucial level - if 11200 breaks, the short term trend turns bearish and we could slide 300-400 points to test 10800-10900. If we get past 11450, we might turn into positive territory. Until either of the two levels are not crossed, we will remain range-bound: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments

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