Market LIVE: Sensex slips below 40,000-mark; SBI Cards IPO opens next week, should you invest?

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Updated:Feb 26, 2020 3:45:33 pm

Share Market News Today | Sensex, Nifty, Share Prices LIVE: S&P BSE Sensex ended 390 points or 0.97 per cent lower at 39.891, while the broader Nifty 50 index settled at 11,683, down 115 points or 0.97 per cent

Share Market Today, Share Market LiveSun Pharma was the top laggard, followed by Maruti, LT, Infosys and RIL. Conversely, SBI, HDFC Bank and HCL Tech were the Sensex gainers

Share Market News Today | Sensex, Nifty, Share Prices LIVE: Following the sell-off in the final hour of trading, domestic equity market benchmarks Sensex and Nifty ended nearly a per cent lower on Wednesday dragged by RIL, Infosys, ICICI Bank and HDFC. Sensex slipped below its crucial 40,000 mark while Nifty traded below psychological level of 11,700 in the last hour of today’s trade. S&P BSE Sensex ended 390 points or 0.97 per cent lower at 39.891, while the broader Nifty 50 index settled at 11,683, down 115 points or 0.97 per cent. At index level, as many as 27 out of 30 Sensex stocks were trading in red. Sun Pharma was the top laggard, down 3.67 per cent, followed by Maruti, LT, Infosys and RIL. Conversely, SBI was the top Sensex gainer with a growth of half a per cent, followed by HDFC Bank and HCL Tech. All the sectoral indices ended red today. Nifty Auto and Nifty Metal index were the top sectoral losers, down 2.15 per cent and 1.63 per cent respectively. Nifty FMCG index too ended lower dragged by Mc Dowell, Godrej Consumer Properties and ITC. In the broader market, the S&P BSE MidCap index dropped 215 points, or 1.4 per cent, and the S&P BSE SmallCap index was down 120 points, or 0.83 per cent.

With a strong backing in the form of State Bank of India, SBI Cards has strong financials and capabilities to cruise through risks with experienced management. SBI Bank has a 74 per cent shareholding in the company which will fall to 69 per cent after the IPO. The biggest lender in the country, SBI, is one of the biggest factors that has aided SBI Cards. “Nonetheless, its healthy financials, rising market share and first-mover advantage (first company to list from the credit card industry) are the key positives which could help the IPO garner good response from investors,” Ajit Mishra of Religare Broking said.

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Highlights

    15:33 (IST)26 Feb 2020
    Sensex, Nifty slip 1 per cent each

    S&P BSE Sensex was trading 390 points or 0.97 per cent lower at 39.891, while the broader Nifty 50 index was ruling at 11,683, down 115 points or 0.97 per cent.

    14:51 (IST)26 Feb 2020
    Within a year, PhonePe raises fifth funding round as digital payments space heats up

    Walmart-owned PhonePe has received a fresh investment of $60 million from its Singapore-based parent company PhonePe Private Limited earlier known as Flipkart Payments Private Limited, showed regulatory filings. This is the fifth round, within a span of 12 months, raised by the company from its parent entity. PhonePe had raised around $103 million in March last year followed by around $97 million investment in July, approximately $57 million in October, and around $81.7 billion in December last year. PhonePe competes with SoftBank-backed Paytm, Google Pay, Amazon Pay etc, in the hyper-competitive digital payments market in India.

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    14:33 (IST)26 Feb 2020
    Petrol, diesel may get cheaper soon; crude oil demand cools, and set to fall further

    Petrol and diesel prices in India may significantly fall in the coming days as the oil demand in the international market has touched a decade-low. The likelihood of petrol and diesel getting cheaper is even higher as the International Energy Agency (IEA) has predicted that the global crude oil demand may fall further. In the latest report of the IEA released yesterday, it has said that the agency sees demand rising by 825,000 bpd in 2020, although suffering an outright contraction of 435,000 bpd in the first quarter. “We certainly see the lowest oil demand growth in the last 10 years and we may need to revise it downwards,” IEA executive director Fatih Birol told Reuters at an energy conference in London.

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    14:08 (IST)26 Feb 2020
    India Cements share price jumps 41% in two days after Radhakishan Damani’s brother picks stake

    Gopikishan Damani purchased 85,22,428 shares in the company at a price of Rs 83. India Cements scrip jumped 20 per cent on Wednesday to trade at Rs 104.45 a piece.

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    13:44 (IST)26 Feb 2020
    Govt’s subordinate debt scheme for MSMEs a welcome move but success depends on due diligence process

    One of the major causes for low availability of bank finance to MSME sector is the high-risk perception of the banks in lending to MSMEs and consequent insistence on collaterals that are not easily available with these enterprises. Finance Minister Nirmala Sitharaman in Budget 2020 has proposed to launch a scheme for giving subordinate debt to MSMEs stressing on the working capital challenge faced by them. Subordinated debt (also known as a subordinated debenture) is an unsecured loan or bond that ranks below other more senior loans or securities with respect to claims on assets or earnings.

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    13:39 (IST)26 Feb 2020
    Moody's downgrades rating of HPCL-Mittal Energy Ltd

    Moody’s Investors Service has downgraded the corporate family rating of HPCL-Mittal Energy Ltd to Ba2 from Ba1, and changed its outlook on the rating to stable from negative. The rating was downgraded due to weak refining margins arising from a slump in fuel demand, it said in a statement. 

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    13:15 (IST)26 Feb 2020
    India may be far less urban than govt claim; World Bank study surprises with data on each state

    India’s official urbanisation rate for 2011 is 31.2 percent, however, the latest study by World Bank suggests that India could be even less urbanised than official figures imply. The urbanization rate emerging from the new study for India’s is 29.9 percent. “There are also significant differences between our predicted urbanisation rates and official figures at the state level,” said the World Bank. The estimate of the urban population falls short of the official estimate by roughly 15 lakh people in each of the states of Odisha, Gujarat, and Rajasthan. The gap is even bigger in Madhya Pradesh, where it reaches 39 lakh people, and especially in Tamil Nadu, where it approaches 66 lakh people.

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    12:44 (IST)26 Feb 2020
    Another quarter with below 5% GDP growth, or will RBI, govt measures pay-off?

    With leading economic indicators seeing no significant improvement, GDP growth for Q3FY20 is expected to be under 5 per cent, analysts said. Despite the government and RBI announcing a slew of measures to boost growth, the economy is seeing a limited impact, a report by CARE Ratings said. The GDP growth is expected to be at 4.5 per cent and GVA growth at 4.3 per cent in Q3FY20, the report added. The government is scheduled to release official GDP growth data for the December-ended quarter on February 28, 2020. The Indian economy grew at a 6-year low of 4.5 per cent in Q3FY20. According to a Reuters poll of economists, the GDP may be recorded at 4.7 percent in the last quarter of 2019.

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    12:31 (IST)26 Feb 2020
    We see some corrections in gold prices: Ajay Kedia, MD and research head, Kedia Advisory

    Gold prices trading lower since last two days giving back some of the Monday’s session’s safe-haven driven gains in a round of profit-taking. We see some corrections in gold prices as a recent rise in gold prices is only because of the coronavirus-related. Factors in 2019 are still active and should be key drivers for 2020 also as the collapsing real yields, globally, ETF buying, geopolitical tension and more to come which can send gold prices to 44000 levels also, Ajay Kedia, MD and research head, Kedia Advisory said.

    12:26 (IST)26 Feb 2020
    Bandhan Bank share price jumps 5% as RBI allows expansion, lifts this key ban

    Bandhan Bank share price rose as much as 4.8 per cent to hit an intraday high of Rs 423.25 apiece on BSE in Wednesday’s trade after the Reserve Bank of India (RBI) lifted the ban on opening of new branches by the bank, subject to some conditions. RBI has removed the restriction “considering the efforts made by the bank to comply with the said licensing condition”, the Kolkata-based bank said in a regulatory filing to stock exchanges. Bandhan Bank shares hit a 52-week low of Rs 402.20 apiece on BSE in the previous session. The share touched its 52-week high of Rs 650 on October 29, 2019.

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    12:14 (IST)26 Feb 2020
    Gold prices fall again today on stronger rupee, sell-off in global markets; silver rates slump

    Gold prices fell on Wednesday tracking losses in the domestic equity market amid a spike in coronavirus cases in China. Gold prices closed at Rs 43,540 per 10 grams, down Rs 954 on global sell-off in the previous session. However, gold is expected to trade higher today as correction in equity market and increase in coronavirus cases in China, Anuj Gupta, Deputy Vice President – Research, Angel Broking Ltd told Financial Express Online. On MCX, gold April futures were trading at Rs 42,619 per 10 grams, down Rs 169 or 0.39 per cent, while silver March futures were ruling Rs 447 or 0.94 per cent lower at Rs 47,120 per kg.

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    11:55 (IST)26 Feb 2020
    Rescinding of VAI status by USFDA does not augur well for Aurobindo Pharma, maintain 'hold' : ICICI Securities

    With 46 pending filings from Unit IV and four other plants still under USFDA scrutiny, the situation does not augur well for Aurobindo Pharma, says ICICI Securities. Putting a 'hold' call on the stock, the target price has been set at Rs 555 with a 9% upside.

    11:19 (IST)26 Feb 2020
    Lenders scared, business more so: Bankers must be protected from action against bona fide decisions that go wrong

    If the state of credit markets is any indication, this slowdown is going to drag on for a long, long time. At the peak of what is typically India’s busy season, the pace of loans given is hitting new lows; the growth in non-food credit in the second fortnight of January slipped to an over-three-year low of 7.08% year-on-year (y-o-y). Loan markets are languishing not because there is less liquidity—the surpluses are over Rs 2 lakh crore—but because there is no rush to borrow, and also because banks fear the money may not come back. That apprehension is not altogether unjustified because the environment is a highly risky one. But, there is also the big fear of being harassed by the authorities in the event that loans go bad.

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    11:02 (IST)26 Feb 2020
    Cipla share price falls 5% after warning letter from US Food and Drug Administration

    Cipla share price sank 5 per cent on Wednesday morning after the drug manufacturer was handed a warning letter by the United States Food and Drug Administrator (USFDA) for its Goa facility.  Analysts say,  prolonged supply disruptions from China will impact the industry growth over the next 2 quarters.

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    10:43 (IST)26 Feb 2020
    Nifty Auto top sectoral loser

    All the sectoral indices were trading lower. Nifty Auto index was down 1.30 per cent with Amara Raja Batteries, Motherson Sumi Systems and Ashok Leyland as top losers. While, Nifty Metal index was also trading over 1 per cent lower dragged down by Jindal Steel, Hindalco and Welspun Corp.

    10:36 (IST)26 Feb 2020
    RIL, HDFC twins, Infosys send Sensex 300 pts lower; check what’s keeping investors on edge

    Extending losses from last two sessions, domestic equity market benchmarks Sensex and Nifty made a weak start on Wednesday with Nifty testing 11,700 level. S&P BSE Sensex was trading 300 points or 0.74 per cent lower at 39.981, while the broader Nifty 50 index was ruling at 11,706, down 92 points or 0.78 per cent. In the broader market, the S&P BSE MidCap index slipped 56 points, or 0.37 per cent, and the S&P BSE SmallCap index was down 10 points.

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    10:15 (IST)26 Feb 2020
    Sensex, Nifty extend losses

    S&P BSE Sensex was trading 300 points or 0.74 per cent lower at 39.981, while the broader Nifty 50 index was ruling at 11,706, down 92 points or 0.78 per cent.

    09:57 (IST)26 Feb 2020
    AGR Dues: Tata Sons chairman N Chandrasekaran meets Telecom Minister Ravi Shankar Prasad

    At a time when the department of telecommunications (DoT) is preparing to issue notice to Tata Teleservices, seeking explanation regarding the assessment of dues, Tata Sons chairman N Chandrasekaran met telecom minister Ravi Shankar Prasad and secretary Anshu Prakash. Asked about the meeting, Chandrasekaran refused to comment. As per sources, DoT is not convinced by the self-assessment done by Tata Teleservices regarding the adjusted gross revenue (AGR) dues and that is why the company will be asked to explain. The company has deposited Rs 2,197 crore to the government, which it claims is the full and final amount. 

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    09:44 (IST)26 Feb 2020
    India Cements share price jump 14%

    India Cements shares surged 14 per cent to Rs 99.35 a share in Wednesday's trade after S Gopikishan Damani bought 85,22,428 shares of India Cements at an average price of Rs 82.70 apiece, BSE bulk deal data shows.

    09:39 (IST)26 Feb 2020
    Vodafone Idea shares trim losses

    Vodafone Idea share price jumps 1 per cent to Rs 3.99 apiece after falling 8% in the opening trade on Wednesday.

    09:36 (IST)26 Feb 2020
    All sectoral indices trade in red

    Barring Nifty FMCG index, all the sectoral indices were trading in red. Nifty IT index was the top sectoral loser, down 0.72 per cent weighed down by Wipro, Infosys and Just Dial. However, Nifty FMCG was trading higher led by gains in Nestle India, HUL and Dabur India.

    09:33 (IST)26 Feb 2020
    Top gainers and losers on S&P BSE Sensex

    At index level, as many as 25 out of 30 Sensex stocks were trading in red. Tata Steel was the top laggard, down 1.33 per cent, followed by Maruti, Infosys, RIL and Sun Pharma. On the flip side, Asian Paint was the top Sensex gainer with agrowth of 0.70 per cent, followed by HULNestle IndiaSBI and Hero MotoCorp.

    09:32 (IST)26 Feb 2020
    Sensex, Nifty open in negative territory

    S&P BSE Sensex was trading 242 points or 0.60 per cent lower at 40,039, while the broader Nifty 50 index was ruling at 11,706, down 92 points or 0.78 per cent.

    09:06 (IST)26 Feb 2020
    Rupee opens higher against US dollar on Wednesday

    The Indian rupee opened higher at 71.75 a dollar versus Tuesday's close of 71.88 a dollar

    08:50 (IST)26 Feb 2020
    Coronavirus concerns could remain in the limeligt: Vinod Nair, Head of Research at Geojit Financial Services

    "Markets steadied after a steep selloff yesterday as investors assessed the economic impact of coronavirus which has spread to other nations. Trump-Modi meet failed to provide any sentiment boost for the domestic market as there were no key deals . Virus concerns could remain in the limelight as any further supply disruption could hurt global economic growth in 2020," says Vinod Nair, Head of Research at Geojit Financial Services.

    08:39 (IST)26 Feb 2020
    SBI Cards IPO: Huge customer base, strong promoter backing; should you ‘subscribe’? Analysts explore

    With the announcement of SBI Cards and Payments Services’ initial public offer (IPO), streets are abuzz. SBI Cards, the second largest card issuer in the country with more than 18 per cent market share, will offer something different to the investors which makes it interesting, analysts say. With a strong backing in the form of State Bank of India, SBI Cards has strong financials and capabilities to cruise through risks with experienced management. Here’s what analysts say about the Rs 10,000 crore IPO.

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    08:39 (IST)26 Feb 2020
    Expiry related move will also cause near term volatility: Santosh Meena Senior Analyst TradingBells

    The Coronavirus has taken center stage in terms of major cues to dictate the direction of equity markets around the globe. It will continue to remain a dominant factor which will cause near term volatility. We are in expiry week where expiry related move will also cause near term volatility. Technically, Nifty has an immediate and critical support zone of 11750-11700 where 11684 is 200-DMA. If Nifty manages to hold its 200-DMA then we can expect a short-covering rally in coming days where 100-DMA of 11960 will be immediate support; above this we can expect further strength in the market but if Nifty surrenders its 200-DMA then selling pressure may get momentum for major downside where 11600/11500 will be immediate support levels, Santosh Meena Senior Analyst TradingBells says.

    08:14 (IST)26 Feb 2020
    FII and DII data

    On Tuesday, foreign institutional investors (FIIs) sold shares worth Rs 2,315.07 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 1,565.28 crore on a net basis, as per the data available on the NSE.

    08:14 (IST)26 Feb 2020
    Trends on SGX Nifty suggest negative opening for Sensex, Nifty

    Trends on SGX Nifty suggest a gap down opening for the Indian bourses, with a 94 points loss or 0.8 per cent. The Nifty futures were trading around 11,724-level on the Singaporean Exchange.

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