NEW DELHI: Domestic equity benchmarks Sensex and Nifty extended losses to a second session in a row on Thursday, on sustained selling in bank, financial and auto stocks, as investors’ risk appetite remained subdued amid expiry of September series futures & options contracts.
The Sensex opened in the green and traded with gains for some time before giving up the gains amid weak global cues and a fresh slide in the rupee against the US dollar.
A rise in global crude oil price, rupee’s weakness and listless trading in peer markets in the wake of US Fed’s rate hike also hit sentiment back home.
Most emerging market stocks and currencies fell on Thursday after US Fed hiked policy rates by 25 basis points and signalled another rate hike in December. The US central bank foresees three more rate hikes next year and one in 2020, Reuters reported.
Equity barometer Sensex suffered a loss of 218 points, or 0.60 per cent, to settle at 36,324, with 17 stocks ending in the red and 13 in the green. NSE’s Nifty50 finished 76 points, or 0.69 per cent, lower at 10,977, with 19 stocks gaining and 31 losing.
Let’s walk you through the highlights of Thursday’s session:
300 stocks at 52-week lows on NSE
As many as 310 stocks, including Tata Motors, Vodafone Idea, Hudco, APL Apollo Tubes, IndiGo, Jet Airways (India) and JMT Auto, Karur Vysya Bank, Bank of Maharashtra and Punjab & Sind Bank hit 52-week lows on NSE. Meanwhile, Monnet Ispat & Energy, Deepak Nitrite, Gangotri Textiles, Prakash Steelage and Ruchi Infrastructure featured among the 10 stocks that touched their 52-week highs on NSE.
Sensex movers and shakers
YES Bank (down 9.14 per cent), Maruti (down 3.68 per cent), Tata Motors (down 3.32 per cent), Axis Bank (down 2.79 per cent) and ONGC (down 2.49 per cent) finished the day as top losers in the Sensex pack. TCS (up 2.16 per cent), Coal India (up 1.39 per cent), Asian Paints (up 0.97 per cent), PowerGrid (up 0.93 per cent) and Infosys (up 0.88 per cent) were among the top gainers.
Crude oil on the boil
Tight supply ahead of US sanctions on Iran kept the oil market boiling. A Reuters report said crude oil prices rose nearly 1 per cent on Thursday, driven by the prospect of a shortfall in global supplies once US sanctions against major crude exporter Iran come into force in five weeks. Opec did not indicate any plan to increase output at its meeting last Sunday, which is causing oil prices spiral up.
Rupee sees seesaw trade
Rupee swung between gains and losses. The government attempts to stem the fall in the rupee and keep current account deficit in check have not helped so far. The government on Wednesday raised import duty on a range of items including air-conditioners, refrigerators, washing machines, footwear, jewellery, furniture fittings and tableware besides imposing it on aviation turbine fuel to try and boost the health of the rupee and keep CAD within the target range. At the time of writing of this report, the rupee traded 4 paise higher at 72.57.
Midcaps, smallcaps bled
BSE Midcap and Smallcap indices cracked 2.19 per cent and 1.97 per cent, respectively. Edelweiss Financial Services (down 10.35 per cent), Reliance Capital (down 7.94 per cent), PNB Housing Finance (down 7.29 per cent), IIFL Holdings (down 7.05 per cent), Max Financial Services (down 6.37 per cent) and Voltas (down 6.28 per cent) were the top losers in the Midcap index. In the BSE Smallcap index, Adlabs Entertainment (down 20 per cent), SREI Infrastructure Finance (down 17 per cent), OM Metals Infraprojects (down 10.80 per cent), Thangamayil Jewellery (down 10.68 per cent), Indiabulls Real Estate (down 10.36 per cent) and GOCL Corporation (down 9.25 per cent) led the losers.
YES Bank slipped further
Shares of YES Bank plunged 9.14 per cent to close at Rs 203.20 on BSE. The stock has been under pressure of late amid uncertainty over its next CEO after RBI has cut short Rana Kapoor’s tenure to January 31, 2019. The bank’s board has requested RBI for a extension for Kapoor and formed a five-member panel to find a successor to the founder CEO. The scrip had gained 1.84 per cent on Wednesday after four consecutive sessions of drubbings.
Aviation stocks in free fall
Shares of Jet Airways (down 5.42 per cent), Global Vectra Helicorp (down 5 per cent), SpiceJet (down 1.80 per cent), IndiGo (down 1.27 per cent) and TAAL Enterprises (down 0.58 per cent) suffered losses after the government imposed customs duty on aviation turbine fuel (ATF).
Tyre stocks skidded
Most tyre stocks closed the session with losses after the government raised import duty on radial car tyres. Shares of Balkrishna Industries (down 5.15 per cent), Ceat (down 4.87 per cent), Phillips Carbon (down 4.44 per cent), Apollo Tyres (down 2.87 per cent), MRF (down 2.79 per cent), Govind Rubber (down 1.77 per cent), Oriental Carbon & Chemicals (down 1.65 per cent), Krypton Industries (down 1.63 per cent) and TVS Srichakra (down 1.07 per cent) settled with losses. However, J K Tyre & Industries (up 0.79 per cent) logged marginal gains.
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