After Market: Key Sensex movers; 97 stocks turn bearish; BEL takes a knock
Selling was seen across sectors, with telecom, consumer durables, FMCG and energy being worst hit.
Selling was seen across sectors, with telecom, consumer durables, FMCG and energy being worst hit. However, select metals, auto, pharma and IT counters managed to hold up, restricting the fall in the benchmark indices.
Sensex plunged 384 points in intraday trade, but recovered later, eventually settling 139.61 points, or 0.37 per cent, lower at 38,018. In the 30-share index, 16 stocks settled with gains.
Nifty finished with a loss of 43.35 points, or 0.38 per cent, at 11,476. Among the 50 stocks in the index, 25 settled in the green and 25 in the red. The overall market breadth remained heavily negative, as 1,041 stocks advanced compared with 1,719 declines.
Broader BSE Midcap and Smallcap indices underperformed Sensex, falling 0.61 per cent and 0.52 per cent, respectively.
Let’s walk you through key highlights of Wednesday’s trade:
Who moved my Sensex
Hindustan Unilever (HUL) (down 2.45 per cent), Kotak Mahindra Bank (1.68 per cent), Bharti Airtel (1.36 per cent), Reliance Industries (RIL) (down 1.33 per cent) and Hero MotoCorp (down 1.03 per cent) were the top five losers in the Sensex pack. On the other hand, YES Bank (up 2.93 per cent), Vedanta (2.27 per cent), Adani Ports (1.53 per cent), Wipro (1.44 per cent) and Sun Pharma (1.41 per cent) gained. In terms of index contribution, RIL, HUL, HDFC, Kotak Mahindra Bank and Infosys proved the top drag on Sensex.
Global Stocks extend fall
Major global markets fell on Wednesday, extending the losing streak to fourth consecutive day on lingering trade-war worries and an indecisive fate of the North American Free Trade Agreement (NAFTA). Strengthening US dollar also caught investors’ attention amid a sell-off in global stocks. A looming deadline in the US-China trade conflict kept the dollar near two-week highs on Wednesday, inflicting fresh losses on emerging markets and sending world stocks lower for the fourth day in a row, Reuters reported. US and Canada will resume their talks on Wednesday on revamping NAFTA norms amid speculation that Canada will stick to its stand. Any standoff between the two economies may not augur well to global markets.
Rupee extends fall
Rupee’s fall has become a norm it seems. The Indian currency touched a fresh record low of 71.965 against the US dollar. This year so far, the rupee is down over 10 per cent, only to emerge the worst performing currency in Asia. Rising crude oil prices, turmoil in emerging markets and strengthening dollar are the main reasons behind the plight of the rupee.
India’s services PMI
India’s services sector activity grew at a slower pace in August, compared with July's 21-month high on account of a decline in business orders. The seasonally adjusted Nikkei India Services Business Activity Index fell from July's peak of 54.2 to 51.5 in August owing to weakest growth in new work in three months, PTI reported. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.
Stocks that fell over 10 per cent
Mirroring the sombre mood of the market, Tinna Trade (down 19.95 per cent), GCM Capital Advisors (down 18.18 per cent), Vivanta Industries (down 15.57 per cent), BEL (down 13.34 per cent) and Rathi Graphic Technologies (down 13.28 per cent) plunged up to 20 per cent on BSE. BEL plunged after a report emerged that the Ministry of Defence may reduce margins (at PBT level) from 12.5 per cent to 7.5 per cent for projects given to all defence public sector undertakings (DPSUs) on a nomination basis. Though the management of BEL mentioned that its existing order book of Rs 500 billion will not be impacted, this is a structural negative for BEL and all Defense PSUs, ET reported.
52-week highs and lows
As many as 107 stocks, including HPCL, BPCL, BEL, Idea Cellular, Tata Communications, Unitech and InterGlobe Aviation (IndiGo) hit 52-week lows on NSE.
However, 20 stocks, including Tech Mahindra, Alembic Pharmaceuticals, Cantabil Retail India and Electrosteel Steels, hit 52-week highs on NSE.
Bearish crossovers for 97 stocks on NSE
Momentum indicator moving average convergence divergence, or MACD, on Wednesday signalled bearish crossovers on 97 counters on NSE. Among the stocks were Ashok Leyland, SAIL, Jet Airways, DHFL, Bharti Infratel and Can Fin Homes.
However, 18 stocks, including Muthoot Finance, CARE Ratings, and Tera Software, showed bullish crossovers on NSE, signalling a rise in the stock.