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Market reaction: Sensex sheds 433 points as growth concerns mount
Posted on 5th October 2019
The Sensex on Friday lost over 433 points, after the Reserve Bank of India (RBI) sharply lowered GDP growth estimates for the current fiscal to 6.1% from 6.9%. The market believes the latest round of rate cuts may not be enough to revive demand. Investor wealth of Rs 1.42 lakh crore was wiped out on Friday, taking the five-day erosion to Rs 5.3 lakh crore. With Friday’s fall, the benchmark index has extended its fall for the fifth day and erased almost half the gains that it made since the corporate tax cut announcement. Sunil Sharma, chief investment officer, Sanctum Wealth Management, said the corporate tax cut will flow to corporate bottom lines, but will not necessarily revive the economy.

“The measures announced have been critical in supporting the markets and improving confidence, but consumption stimulus is critical, alongside monetary transmission,” Sharma said. Bank stocks bore the brunt of Friday’s sell-off on worries over anemic demand even after a sl-ew of steps to pull the economy out of a six-year low growth.

The Bank Nifty slumped 760.40 points in intra-day trade before settling at 27,731.85 points, down 682.25 points or 2.4%. The gauge for bank stocks has come off nearly 8% in the last five sessions and is just 3.6% away from its September 20 level.

While the Sensex slid 433.56 points, or 1.14%, to close the session at 37,673.31 points, the broader Nifty50 lost 139.25 points to settle at 11,174.75. Four banks — HDFC Bank, ICICI Bank, Kotak Mahindra Bank and Axis Bank — among them contributed about a third of Sensex’s fall on Friday.

After buying $954.65 million worth of shares in September, foreign portfolio investors (FPIs) resumed selling, and have pared domestic exposure to the tune of $469.4 million so far this month. On the flipside, domestic institutional investors bought shares worth $418.4 million during the same period.

The Nifty Mid Cap and Small Cap also lost over 5% in the last five sessions, taking their six-moth losses to 13.9% and 18.2% respectively. Motilal Oswal, managing director, Motilal Oswal Financial Services, said, “Today’s rate cut by 25 bps to 5.15% is a very good level of indicative rates. The issue is, transmission of these rates in the system. RBI has been asking banking system to offer loans at a level that reflects the benchmark cut, but the system is reluctant to pass on, due to risk aversion. It is a dichotomy that the one needs money does not get it and the one who is offered does not need it!”

“Equity markets are cautious and watchful about the earnings season which at this juncture looks less enthusiastic. There is a possibility that equity markets will trade cautious and range bound. In medium to long term, I see good investment opportunity in equities,” added Oswal.

The market breadth, indicating the overall health of the market, was tilted towards the losers over the last one-and-a-half years. On Friday, 1,121 stocks declined on NSE, compared with 657 stocks advancing, and 350 stocks remaining unchanged. On the BSE, 1,636 stocks ended in the red against 976 stocks closing higher.The negative sentiment rubbed off on most sectoral indices on Friday. Of the 19 sectoral indices compiled BSE, all barring BSE IT and BSE Teck ended the day in red with BSE Bankex losing nearly 2.5%.

Related Companies: Bombay Stock Exchange - BSE   National Stock Exchange of India Ltd (NSE)    

Other Latest News
'Be more careful in future': SC closes contempt plea against Rahul Gandhi over 'chowkidar chor hai' remark
Posted on 14th November 2019
In a relief for Rahul Gandhi, the Supreme Court on Thursday closed a contempt plea filed by BJP MP Meenakshi Lekhi against the former Congress chief for wrongly attributing to the court his "chowkidar chor hai' slogan against Prime Minister Narendra Modi in the Rafale case.

The Supreme Court said, "Mr Rahul Gandhi needs to be more careful in future," for attributing to the court his remarks.

Schools shut today, tomorrow as air quality deteriorates in Delhi
Posted on 14th November 2019
The schools in the national capital will be closed on Thursday and Friday, the Delhi government announced on Wednesday.

The city’s air quality reached the higher end of the ‘severe’ category on Wednesday, even as the Centre’s Task Force, meant to advise on implementing the Graded Response Action Plan, recommended that schools be shut and industrial activities be curbed till November 15.

VST Industries hits new peak after Radhakishan Damani buys shares
Posted on 14th November 2019
Shares of VST Industries jumped up to 7.5 per cent to hit a new high of Rs 4,600 apiece on the BSE on Thursday, a day after Radhakishan Damani bought 2,70,000 shares at Rs 4,259.99 apiece on the BSE, according to bulk deal data. The data also showed HDFC Mutual Fund sold 273,706 shares at Rs 4,260 apiece.

At 10:53 am, the stock was trading at Rs 4,573.70, up nearly 7 per cent. In comparison, the S&P BSE Sensex was trading flat at 40,182 levels, up just 0.16 per cent.

Women's entry at Sabarimala: Supreme Court refers matter to larger bench
Posted on 14th November 2019
A five-judge bench of the Supreme Court on Thursday referred to a larger bench pleas seeking a review of its 2018 ruling that allowed menstruating women from entering the Sabarimala temple in Kerala.

Chief Justice Ranjan Gogoi, Justice A M Khanwilkar and Indu Malhotra said a larger bench will hear if the court can decide matter of religious practice. Justices R F Nariman and DY Chandrachud gave dissenting opinion.

'No inquiry needed': SC dismisses review petitions against its previous order on Rafale deal
Posted on 14th November 2019
The Supreme Court on Thursday dismissed Rafale review petitions against its December 14, 2018 judgement, after it was found to be without any merit.

The Supreme Court was due to deliver the verdict on the review petitions against its earlier judgment dismissing any corruption in the deal to purchase 36 Rafale fighter jets from a French company.

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