Mumbai: BSE Sensex and NSE’s Nifty 50 declined over 1 percent on Monday to their lowest close in nearly four weeks as a depreciating rupee dampened investor sentiment amid negative cues from global markets. World stocks flirting with their longest run of declines since early 2016 on Monday, hit by rising anxiety about the US-China trade war and another interest rate increase by the Federal Reserve later this month. European shares defended its ground early on, but it was proving a struggle after a fresh sell-off by Chinese stocks pulled Asian and emerging-market equities to 14-month lows. Meanwhile, DIIs purchased shares worth Rs 942.45 crore on net basis on Friday, while FIIs bought equities worth Rs 37.56 crore, provisional data showed. Here are the highlights from the markets:
3.36 pm IST
Closing bell: Sensex, Nifty closes over 1% lower
BSE Sensex closed lower by 467.65 points, or 1.22%, to 37,922.17, while the Nifty 50 fell 151 points, or 1.30%, to close at 11,438.10. Both the benchmark indices marked their worst closing levels since 16 August.
BSE MidCap and SmallCap slumped 1.68% and 1.07%, respectively. Sixteen out of 19 sectoral indices on BSE lost over 1%. Auto, energy, FMCG, metal, oil and gas, realty and finance declined most. IT gained 0.02%.
Axis Bank, Wipro, HCL Tech, Yes Bank and TCS were among the top gainers, whereas Sun Pharma, Bajaj Finance, BPCL, Mahindra and Vedanta were among the major losers.
3.23 pm IST
Government worried about rupee drop, mulls tapping NRIs
India expressed concern about the rupee’s decline for the first time and said it’s considering a plan to tap its citizens overseas, according to a government official. The finance ministry and the Reserve Bank of India (RBI) are in touch and the central bank is intervening in the currency market when needed, the government official told reporters in New Delhi on Monday, asking not to be identified citing rules. The RBI has been selling dollars, albeit in a restrained manner, leading to a drop in India’s foreign exchange reserves to $400 billion from a record high of $426 billion in mid-April. Read more
3.05 pm IST
Gold prices surge Rs 200 today on local demand, solver follows
Gold prices surged Rs 200 to Rs 31,550 per 10 gram on Monday due to rising demand from local jewellers amid depreciating rupee, which makes gold imports costlier, reported PTI. In Delhi, gold rates of 99.9% and 99.5% purity bounced Rs 200 each to Rs 31,550 and Rs 31,400 per 10 gram, respectively. The metal had lost Rs 160 in the last two days. Sovereign however ruled flat at Rs 24,500 per piece of eight gram.
2.55 pm IST
Debt MFs see redemptions of Rs 6,800 crore in August
Debt mutual funds witnessed an outflow of over Rs 6,800 crore by investors in August as yields hardened due to concerns on weakness in the rupee and rising oil prices and their impact on inflation and current account deficit (CAD). In comparison, such funds saw inflows to the tune of Rs 9,810 crore in August last year, according to the latest update with Association of Mutual Funds in India (Amfi). Debt funds have seen net outflows in 4 out of 5 months in this fiscal so far. With this, total outflow has reached to a little over Rs 52,700 crore so far in the current financial year (April-August). PTI
2.40 pm IST
Seven emerging markets at risk of exchange rate crises: Nomura
Given that India runs a current account deficit, it remains vulnerable to bouts of global risk aversion, said Nomura adding that higher oil prices and portfolio outflows are its key external vulner…
2.22 pm IST
Tata Motors global wholesales up 14% in August
Tata Motors Ltd said global wholesales in August, including Jaguar Land Rover, rose 14% to 107,030 units. Global wholesales of all Tata Motors commercial vehicles and Tata Daewoo range rose 29% to 45,719 units. Global wholesales of all passenger vehicles in August were at 61,328 units, up 4 percent. Tata Motors shares traded 0.79% higher at Rs 279.70 per share.
2.15 pm IST
Oil prices rise as US drilling stalls, Iranian sanctions bite
Oil prices rose as US drilling stalled and as investors anticipated lower supply once new U.S. sanctions against Iran’s crude exports kick in from November. Benchmark Brent crude oil was up 90 cents a barrel, or almost 1.2 percent, at $77.73 by 1.40pm. US light crude was 65 cents higher at $68.40.
The number of rigs drilling for oil in the United States has stalled since May, reflecting increases in well productivity but also bottlenecks and infrastructure constraints. Outside the United States, Iranian crude oil exports are declining ahead of a November deadline for the implementation of new U.S. sanctions. Reuters
1.55 pm IST
Rupee pares losses after hitting record low of 72.67 a dollar
The rupee pared losses on Friday after a Bloomberg report said the government may take measures like raising funds from overseas Indians. At 1.29pm, the rupee was trading at 72.19 a dollar, down 0.62% from its Friday’s close of 71.74. It opened at 72.11 per dollar. “The government is worried on rupee fall and its actively working on reducing current account deficit. If needed, govt can think of ways to increase foreign direct investments, foreign inflows. Can take measures like deposit scheme for overseas Indians”, reported Bloomberg, quoting a government official. Read more
1.40 pm IST
SpiceJet to start dedicated air cargo services from 18 September
SpiceJet will launch its dedicated air cargo services from 18 September. The carrier, which is working on ambitious business plans, Monday said it would operate the cargo services under the brand name ‘SpiceXpress’ and has a detailed plan for domestic as well as international routes. SpiceJet will be the first schedule domestic airline to start dedicated air cargo services in India. A Boeing 737-700 plane has been inducted as the first freighter aircraft. Shares traded 0.44% down at Rs 79.75. Read more
1.20 pm IST
Shares of ILFS group companies fall
Shares of Infrastructure Leasing and Financial Services group fell around 13% after ratings agency ICRA cuts rating on the parent group’s Rs 5,225 crore NCDs to BB, “under watch for developing actions.” Shares of IL&FS Investment Managers falls as much as 15.7% to Rs 9.70, biggest daily percent loss since April 2009. IL&FS Transportation Networks crashed over 16% to a record low of Rs 25.25. IL&FS Engineering and Construction Co. declined as much as 10% to an all-time low of Rs 15.25. Reuters
1.07 pm IST
European stocks steady at open
Europe’s stock markets stabilised in opening trade on Monday, with London’s benchmark FTSE 100 index down 0.1 percent at 7,272.60 points. In the eurozone, Frankfurt’s DAX 30 also shed nearly 0.1 percent to 11,950.55 points, while the Paris CAC 40 was almost flat at 5,250.76 compared with Friday’s close. AFP
1.00 pm IST
Market Update: Sensex, Nifty extend losses
BSE Sensex traded lower by 409.03 points, or 1.07%, to 37,980.79, while the Nifty 50 fell 127.85 points, or 1.10%, to 11,461.25. BSE MidCap and SmallCap fell 1.29% and 0.82%, respectively.
All the sectoral indices on BSE, except IT and teck, declined with energy, oil and gas, FMCG and finance losing most. Infosys, Axis Bank, Wipro and TCS were among the top gainers, whereas Sun Pharma, Vedanta, IndusInd Bank and HDFC were among the major losers.
12.54 pm IST
Alembic Pharma board approves Rs 300 crore NCD issue
Alembic Pharmaceuticals Ltd said that its board has approved the issuance of unsecured listed non-convertible debentures of up to Rs 300 crores on private placement basis. Shares traded 1.36% lower at Rs 630.
12.30 pm IST
Rupee @72: When Goldilocks was mauled by a bear
Former RBI governor Y.V. Reddy had talked up the rupee during the 1997 Asian financial crisis. Governor Urjit Patel would do well to take a leaf out of Reddy’s book
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The Goldilocks period of calm for the Indian rupee in 2017 is now just a distant dream, with the currency plummeting 13% this year. https://www.livemint.com/Money/1cXpwo0NSCzsavZIkdbDxN/Rupee-72-When-Goldilocks-was-mauled-by-a-bear.html …
10:49 AM – Sep 10, 2018
Rupee @72: When Goldilocks was mauled by a bear
Former RBI governor Y.V. Reddy had talked up the rupee during the 1997 Asian financial crisis. Governor Urjit Patel would do well to take a leaf out of Reddy’s book
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12.17 pm IST
BASF India to phase out agency business
BASF India Ltd said that the company has decided to phase out the agency business following new rules framed by Organisation for Economic Cooperation and Development. Accordingly, the board has approved a proposal to replace the agency business of the company with the merchandise business model effective financial year 2019-20. BASF India shares traded 1.33% down at Rs 1900.
12.03 pm IST
Power Mech Projects gets Rs 247 crore orders, shares recover
Power Mech Projects Ltd shares recovered from day’s low of Rs 990 to trade at Rs 1,010, down 0.46% after the company said that it has received contracts worth Rs 247 crore.
11.43 am IST
IT stocks trade higher as rupee extends losses
Shares of IT companies gained today as the Indian rupee fell further to a fresh record low, with the Nifty IT Index rising 0.5% led by HCL Tech and Infosys. At 11.35am, the rupee was trading at 72.46 a dollar, down 1.01% from its Friday’s close of 71.74.
11.37 am IST
JSW Steel August steel production up 8%
JSW Steel Ltd reported Crude steel production at 14.48 lakh tonnes for August, up 8% from the same month last year. Shares traded 0.75 up at Rs 408.55, retreated from the day’s high of Rs 415.
11.30 am IST
A smug India VIX despite jitters in Sensex, Nifty
NSE’s Volatility Index (India VIX), or the fear gauge, rose by 10% in the last one week to 13.89.
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A smug India VIX despite jitters in Sensex, Nifty.
However, if earnings disappoint hereon, then it will be reflected in the VIX.https://www.livemint.com/Money/hkAN60kagilaaLA1pomD8M/A-smug-India-VIX-despite-jitters-in-Sensex-Nifty.html … @PallaviPengonda
9:57 AM – Sep 10, 2018
A smug India VIX despite jitters in Sensex, Nifty
There has been a truncated rally in a few stocks in the Nifty index, which is keeping the index up
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11.22 am IST
NCLT rejects Ajanta Pharma’s scheme of arrangement with Gabs Investments
Ajanta Pharma shares traded 0.54% lower at Rs 1263.40. The company said NCLT did not approve a proposed scheme of amalgamation and arrangement between Gabs Investments Pvt. Ltd and Ajanta Pharma Ltd and their respective shareholders.
11.12 am IST
Infosys announces partnership with Australian Open
Infosys shares rose 1.07% to Rs 741. The company said that it has entered into a strategic three-year technology partnership with the Australian Open.
11.00 am IST
August inflation seen easing below RBI’s mid-term target: Reuters poll
India’s inflation likely eased below the Reserve Bank of India’s (RBI) medium-term target in August on softer food prices, a Reuters poll showed, raising the probability the central bank will keep interest rates on hold at its next rate review. The poll of nearly 40 economists conducted from 4-7 September predicted retail inflation eased to 3.86 percent from July’s 4.17 percent, below the RBI’s 4 percent target for the first time this year. Inflation data is due to be published on 12 September at 5.30pm. Read more
10.40 am IST
As rupee bleeds, economic policy uncertainty rears its head again
India’s economic policy uncertainty index surged to the level of 80 in August. This is the highest seen, so far, in 2018
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As rupee bleeds, economic policy uncertainty rears its head again.
For investors in India, the 2019 Lok Sabha elections will also add to near-term economic policy uncertainty, writes @imharshaj
10:00 AM – Sep 10, 2018
As rupee bleeds, economic policy uncertainty rears its head again
India’s economic policy uncertainty index surged to the level of 80 in August. This is the highest seen, so far, in 2018
10.33 am IST
Tata Global Beverages shares jump 5% on restructuring
Shares of Tata Global Beverages Ltd gained as much as 5.5% to Rs 235.15, their biggest intraday percent gain in nearly 10 weeks. The company has restructured its international operations in order to unlock synergies for the business, optimize costs and streamline operations.
■ Erstwhile EMEA (UK, Europe, Middle East and Africa) and CAA (Canada, Australia, and Americas) units of TGB have been merged into a single unit called the International Business Division
■ In Russia, the company has restructured its operating model. It has divested its stake in plantations in Sri Lanka, and exited its joint venture business in China.
■ Identified back office processes in HR, Finance and Operations, and outsourced the management of these back office processes to Tata Consultancy Services (TCS). This will result in cost savings, increase business efficiency and build digital capability for the business.
10.30 am IST
Ether, bitcoin prices tumble as cryptocurrency selloff deepens
The cryptocurrency bear market plumbed a fresh 10-month low, led by a tumble in Bitcoin’s biggest rival. Ether slumped 8.1 percent from its level at 5 p.m. New York time on Friday, according to Bloomberg composite pricing. Bitcoin lost 2 percent, while the market capitalization of digital assets tracked by CoinMarketCap.com shrank to $196 billion, down about $640 billion from its January peak. Read more
10.22 am IST
Rupee hits fresh record low, bond prices at 4-year low
The rupee on Monday weakened further to hit a fresh record low against the US dollar while 10-year government bond prices hit near a fresh four-year low after India’s current account deficit widened to a four-quarter high due to rising crude oil prices. At 10.15am, the rupee was trading at 72.30 a dollar, down 0.79% from its Friday’s close of 71.74. It opened at 72.11 per dollar and touched a fresh low of 72.35 per dollar. The 10-year bond yield stood at 8.105%, from its previous close of 8.029%. So far this year, the rupee has weakened 11.5%, while foreign investors have sold $424.80 million and $6.25 billion in equity and debt markets, respectively. Read more
10.09 am IST
Market update: Sensex, Nifty extend losses
BSE Sensex traded lower by 282.57 points, or 0.74%, to 38,107.25, while the Nifty 50 fell 87.95 points, or 0.76%, to 11,501.15. BSE MidCap and SmallCap fell 0.34% and 0.04%, respectively.
All the sectoral indices on BSE, except IT and teck, declined with consumer durables, FMCG, oil and gas and power falling nearly up to 1%. Axis Bank, Wipro, Infosys and Lupin were among the top gainers, whereas Power Grid, Asian Paints, Kotak Bank and Vedanta were among the major losers.
9.57 am IST
NMDC shares gains on plans to explore Tungsten
NMDC shares rose 1% to Rs 120.30. The company has approached the Western Australian Government, seeking a license to explore Tungsten, a metal much in need for the Indian defence and aerospace sectors, reported PTI.
9.37 am IST
Glenmark Pharma shares rise 4%
Shares of Glenmark Pharmaceuticals Ltd rose as much as 4.14% to Rs 711.55 per share after the company said that unit Glenmark Arzneimittel GmbH has secured marketing authorization in Germany for Fluticasone/Salmeterol dry powder inhaler, a generic version of GlaxoSmithKline’s Seretide Accuhaler.
9.25 am IST
Axis Bank shares rise over 4% as RBI clears CEO appointment
Axis Bank shares rose as much as 4.22% to Rs 672.60 per share after the bank said it received the Reserve Bank of India’s approval to appoint Amitabh Chaudhry as the managing director and chief executive officer for a period of three years. Chaudhry’s term will be effective from 1 January 2019 up to 31 December 2021.
9.20 am IST
ICICI Bank shares down 2% over Sebi probe
Shares of ICICI Bank fell 2.10% to Rs 328 per share after PTI reported that Sebi may soon summon the bank’s on-leave CEO Chanda Kochhar and her husband Deepak Kochhar as part of an investigation into alleged regulatory lapses with regard to his business dealings.
9.15 am IST
Rupee falls further against dollar
The Indian rupee weakened further against the US dollar after India’s current account deficit widened to four quarter high due to higher crude oil prices. At 9.10am, the rupee was trading at 72.16 a dollar, down 0.58% from its Friday’s close of 71.74. It opened at 72.11 per dollar and touched a low of 72.18 per dollar. The 10-year bond yield stood at 8.074%, from its previous close of 8.029%. So far this year, the rupee has weakened 11.5%, while foreign investors have sold $424.80 million and $6.25 billion in equity and debt markets, respectively.
9.07 am IST
The curious effect of mutual fund SIPs on Sensex, Nifty
Monthly inflows from mutual fund SIPs have more than doubled in the past two years and now stand at ₹7,658 crore. This is despite the correction in the markets this year
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Monthly inflows from mutual fund SIPs have more than doubled in the past two years and now stand at ₹7,658 crore. This is despite the correction in the markets this year.
6:06 AM – Sep 10, 2018
The curious effect of mutual fund SIPs on Sensex, Nifty
Monthly inflows from mutual fund SIPs have more than doubled in the past two years and now stand at ₹7,658 crore. This is despite the correction in the markets this year
8.58 am IST
Commodity Corner: Gold rates edge lower, oil prices gain
Gold: Gold prices held on to a small loss from the previous session, as the dollar firmed amid expectations of a US Federal Reserve rate hike in September and fears of escalating trade tensions between US and China. Spot gold rate was down 0.1 percent at $1,194.61 at 7.55am, having fallen 0.4 percent in the previous session. US gold futures were almost flat at $1,200.30 an ounce. Gold rates have fallen over 8 percent this year.
Oil: Oil prices rose as US drilling for new production stalled and as the market eyed tighter conditions once Washington’s sanctions against Iran’s crude exports kick in from November. US WTI crude futures were at $67.96 per barrel at 7.30am, up 21 cents, or 0.3 percent, from their last settlement. Brent crude futures climbed 30 cents, or 0.4 percent, to $77.13 a barrel.
Metals: London copper slipped on Monday after U.S. President Donald Trump threatened to ratchet up trade sanctions on China, raising concerns about weaker demand growth for metals. London Metal Exchange copper fell by 0.7 percent to $5,890 a tonne, after closing mostly flat in the previous session. Zinc premiums jumped $10 to $190-$210 amid a shortfall of supply in China’s domestic market. Reuters
8.50 am IST
Currencies: Dollar steady as trade tensions keep markets on edge
The dollar held largely steady against a basket of major currencies thanks to strong US August jobs data and amid fears of a possible escalation in the China-US trade conflict. The dollar on Monday edged lower against the safe-haven Japanese yen and the Swiss franc, trading at 110.94 yen and $0.9693, respectively. The yen strengthened on positive GDP data. The dollar index, which measures the greenback against a basket of six currencies, was basically flat at 95.381, not far off a three-week high of 95.737 hit on Tuesday last week. Reuters
8.42 am IST
Opening bell: Cues to look out for before trading today
■ Asian stocks opened lower. Stocks dropped in morning trade as the US dollar climbed against major currencies, reports Reuters. Over the weekend, US stocks closed lower.
■ The Sebi may soon summon ICICI Bank Ltd’s on-leave CEO Chanda Kochhar and her husband Deepak Kochhar as part of an investigation into alleged regulatory lapses with regard to his business dealings, reports PTI.
■ Axis Bank on Saturday said it had received the Reserve Bank of India’s approval to appoint Amitabh Chaudhry as the managing director and chief executive officer for a period of three years. Chaudhry’s term will be effective from 1 January 2019 up to 31 December 2021.
■ The Reserve Bank of India (RBI) is likely to conduct an open market operation (OMO) purchase this week to infuse liquidity into the banking system, which is further going to tighten on account of advance tax payments, say bankers.
■ Petrol and diesel prices set new records on Sunday as they continued their upward march on fall in rupee and surge in global crude oil rates.
■ Infrastructure Leasing and Financial Services Ltd (IL&FS), the unlisted parent to a cluster of companies in various infrastructure verticals, failed to raise immediate funds from shareholders at a snap board meeting on Friday. Meanwhile, rating agency ICRA has effected a multi-notch rating downgrade for IL&FS, reports Business Standard.
■ Property developer RMZ is in negotiations to acquire 14-acre land of Larsen & Toubro (L&T) in Bengaluru, reports Business Standard.
■ Stepping up scouting activities for strategic minerals, NMDC Ltd has approached the Western Australian Government, seeking a license to explore Tungsten, a metal much in need for the Indian defence and aerospace sectors. R. Sree Ram/Mint
