Skip to main content

The benchmark S&P BSE Sensex today fell 651 points as the rupee once again breached the 68-mark to the dollar after a spate of negative news, including escalating tension in Syria. Investors were spooked as Russian media said two missile launches were detected from the central Mediterranean Sea. The report came amid concern about military action in Syria. Brokers said across-the-board selling was triggered by a report that Standard & Poor's had said chances of a credit rating downgrade for India were higher than for Indonesia. After JP Morgan, HSBC Global Research and Nomura, Goldman Sachs today cut India's growth forecast for this fiscal to 4 per cent from 6 per cent earlier and said it expects the rupee to touch 72 against the dollar in the next six months. The Sensex, which started above the 19,000 mark, fell to close at 18,234.66, a decline of 651.47 points or 3.45 per cent. The drop was the most since August 16, when it fell 769 points or 3.97 per cent. It was the first loss after four sessions of gains, during which it added 918.05 points. The series of negative news followed data on Friday that showed economic growth slowed to 4.4 per cent in April-June. Yesterday, the government said growth in eight infrastructure industries was 3.1 per cent in July, against 4.5 per cent a year earlier. An indicator of manufacturing sector activity in India contracted in August. The Nifty tumbled 209.30 points, or 3.77 per cent, to 5,341.45.


Hit by massive sell-off in the stock market, as many as 170 stocks touched their one-year low on the BSE today. Among stocks that hit their 52-week low include PNB, Tata Chemicals, IDBI Bank, City Union Bank, Corporation Bank, Federal Bank, Andhra Bank and Adani Enterprises. Axis Bank shares fell by 9.27 per cent. From the Sensex components, 28 ended the day in red, while only Coal India and Mahindra & Mahindra managed to make gains. Hero MotoCorp was the worst performer among the Sensex blue-chips, falling 6.58 per cent.
All the BSE 13 sectoral indices ended the day with losses, with banking index taking the biggest hit. Defying the weak markets, 44 stocks scaled their 52-week high. 


Popular posts from this blog


Telecom stocks today surged up to 8 per cent after the recent increase in Reliance Jio tariffs, which is largely seen as positive for the sector. Shares of Bharti Airtel jumped 4.99 per cent to close at Rs 497.50 on BSE. Bharti Airtel was the biggest gainer among the 30-share index components. The scrip of Idea Cellular soared 7.74 per cent to end at Rs 98.15 and Reliance Communications zoomed 7.60 per cent to Rs 17.70. Reliance Jio made its service dearer by about 15 per cent for its popular 84-day plan at Rs 459 from October 19, under which subscribers get 1GB 4G data at high speed per day. The company restructured its various schemes by reducing their validity period. The recent increase in Reliance Jio tariffs will increase its average revenue per user by up to 20 per cent and is a positive for the telecom sector, which is seeing a rapid consolidation, says a Philip Capital report. Established telecom sector players have seen huge reduction in their margins. Idea Cellular and Reli…


Sensex drops 244 pts
A late sell-off in auto, banking and IT shares pulled back the benchmark BSE Sensex from record high level to close down by 244 points, its biggest single loss in past one month, on the first trading day of 2018. Investors preferred to book profits at record highs amid concerns over fiscal slippages and rising crude oil prices and absence of cues from global markets which were closed for the New Year holiday. The benchmark Sensex touched a low of 33,766.15 before settling lower by 244.08 points, or 0.72 per cent, at 33,812.75. This is the biggest single-day fall since December 1 when the index had lost 316.41. The 30-share index had closed at an all-time high of 34,056.83 in the last session of 2017 on Friday. Also, the 50-share Nifty cracked below the 10,500-mark to hit a low of 10,423.10 before settling 95.15 points, or 0.90 per cent down at 10,435.55. Stocks opened on a weak note and remained range-bound for the better part of the day but an intense sell-off in…


UBS Cautious Note

Projecting zero returns from the Nifty, Swiss brokerage UBS has projected a 10 per cent cut in its index target at 10,500 for calendar 2018, even as it remains positive over the long-term. "Top-down, we forecast Nifty earnings growth will recover from 9 per cent in fiscal 2018 to 13 per cent in 2019, but driven largely by financials," the brokerage said in a report. "However, earnings growth is likely to disappoint against consensus forecast of 22 per cent growth for fiscal 2019, implying a 10 per cent cut," it added. Accordingly, the brokerage estimates "no returns from the Nifty in 2018" and has set the index target at 10,500 for this December. The report noted that a sharp earnings recovery, with continued robust macro stability appears priced in by the markets. "A sharp earnings recovery appears priced in. The markets are already close to our 2018 target, given optimistic fiscal 2019 consensus earnings expectations, which build …