The market capitalisation of BSE-listed companies plunged to Rs 144.13 lakh crore today from Rs 145.33 lakh crore recorded in the previous session.
The S&P BSE Sensex plunged over 300 points on Wednesday after China has announced new tariffs on 106 US products, which include soybeans, cars, and whiskey.
After two successive days of buying, bears clawed back on D-Street and pushed benchmark indices below key support levels. The domestic equity market wiped off Rs 1.2 lakh crore in investor wealth on Wednesday.
The market capitalisation of BSE-listed companies plunged to Rs 144.13 lakh crore today from Rs 145.33 lakh crore recorded in the previous session.
China on Wednesday issued a $50 billion list of US goods including soybeans and aircraft targeted for possible retaliation in an escalating technology dispute with Washington that companies worry could set back the global economic recovery, said an AP report.
Apart from global overhang, expectations remain muted for the RBI policy announcement scheduled on Thursday, with no rate change largely anticipated. Sectorally banks underperformed in trade today, giving away most of the gains accumulated over the previous two sessions.
The Nifty Bank index lost nearly 400 points while the Nifty50 slipped more than 100 points as all sectoral indices are in the red barring Auto. Banks remain under pressure with Nifty bank slipping 400 points. Financials drag Nifty by over 50 percent.
Only 8 Nifty stocks closed in the green; Tata Motors and Eicher top gainers. Market breadth slipped in favour of declines. The advance-decline ratio at 3:4.
The Dow Jones futures are down 2 percent, indicating negative opening on Wall Street later today.
The Nifty50 has wiped out most of the gains made in the last two trading sessions post today’s fall. The index closed 116 points lower or 1.14 percent at 10,128.40.
The S&P BSE Sensex closed above its crucial psychological support level of 33000 after breaching in a trade earlier today. The index closed 351 points lower or 1.05 percent at 33,019.
On the sectoral front, the S&P BSE Metal index lost nearly 3 percent, followed by BSE Consumer Durable which saw a fall of 2.5 percent, and Capital Goods index which fell nearly 2 percent.
The fall in the S&P BSE Sensex was led by losses in HDFC Bank, HDFC, L&T, Infosys, and Kotak Mahindra Bank. On the other hand, Tata Motors rose 3.4 percent, followed by Tata Motors DVR which gained 2.6 percent.
Stocks in news:
Mishra Dhatu Nigam share price opened lower at Rs 87 on the National Stock Exchange, down 3.3 percent compared to the issue price of Rs 90. The stock price closed 3.4 percent higher at Rs90.
ICICI Securities shares slump 17% on market debut:
Shares of the brokerage and investment banking arm of ICICI Bank Ltd were listed at Rs431.10, down 17.09 percent from its issue price of Rs520. ICICI Securities closed 14.4 percent lower at Rs445 on the BSE.
ICICI Bank: ICICI Bank Ltd shares fell 1.1% to Rs268.45. The Income Tax Department has issued a notice to Deepak Kochhar, husband of ICICI Bank MD and CEO Chanda Kochhar, in connection with its tax evasion probe in the Videocon bank loan case, said a report.
Tata Motors Ltd: Tata Motors Ltd rallied 3.6 percent on Wednesday after Jaguar Land Rover reported 83 percent jump in sales in the last fiscal, and plans to bring 10 new products in India in 2018-19.
JLR India completed 2017-18 with a total sales of 4,609 units against 2,514 units in the previous fiscal. Jaguar Land Rover US reversed the declining trend for the past three months.
Sharika Enterprises share price rallied 20 percent in trade as it has received a letter of intent for designing, supplying, installation and commissioning of solar street lighting systems worth Rs. 40.33 crore (approximately) from one of the State Government’s renewable energy agency. The stock closed 15% higher at Rs56.70.
Akzo Nobel India scrip price rallied 7.3 percent ahead of a board meeting to consider a share buyback. “A meeting of the board of directors of the company scheduled to be held on April 06, 2018, to consider a proposal to buy back its own shares,” the paint company said in its filing.
Zensar Technologies Ltd: Zensar Technologies share price gained nearly 5 percent after receiving a four-year, multi-million dollar contract from the City of San Diego for network services.
Eicher Motors: Eicher Motors Ltd shares jumped 3.1% to Rs28,944 after the announcement that Royal Enfield will invest Rs800 crore in FY19 as capital expenditure (capex) and is starting work on the second phase of its Vallam Vadagal plant in Tamil Nadu.
In other News:
The first bi-monthly monetary policy review for FY19 is to be announced by the RBI on April 5. According to CARE Ratings, the RBI is likely to maintain an unchanged stance on policy rates.
Global Update:
European markets were lower, as elevated concerns of a tit-for-tat trade war between the world’s biggest economies overshadowed a bounce on Wall Street. Germany’s DAX was down 1.3 percent while France’s CAC and Britain’s FTSE were down around half a percent, at the time of writing this article.
Asian stocks closed mixed amid new China-US trade developments. Hang Seng slipped 2.2 percent and Kospi was down 1.4 percent. China’s Shanghai Composite fell 0.15 percent while Japan’s Nikkei gained 0.13 percent and Australia’s ASX 200 rose 0.17 percent.
Oil prices slipped on expectations for a build-up in US crude inventories. US WTI crude futures were at USD 62.40 a barrel, down 1.75 percent, from their previous settlement. Brent crude futures dipped to USD 67.01 per barrel, down 1.63 percent.
