Mumbai, Sep 17: A sea of red took over D-Street on Monday as selloff in majority of sectors ensured that complete control was handed over to the bears. The Nifty managed to give up 11,400, while the Sensex tanked over 500 points lower.
Investors turned wary of escalating trade war tensions between US and China as the former threatened another round of import tariffs on USD 200 billion worth of Chinese goods. This rattled the Asian markets, which had a weak handover on India as well.
Along with it, there was selling pressure visible in the Indian rupee as well, which opened a percent lower. The currency fell over a percent at 72.69 per US. Market voices believe that the government’s steps announced over the weekend to contain the rupee’s fall were inadequate and that led to the downward move as well.
There was all-round selling among all sectors, with maximum pain visible among pharmaceuticals, banks, automobile and metal names. IT stocks were the biggest gainers as investors cashed in on depreciating rupee.
As such, the start to the week’s trading was a negative one, as Sensex declining over 200 points in the opening minutes. Subsequently, the selloff intensified through the day and the last hour saw pressure among all sectoral indices, barring IT. Technology stocks were the sore gainers as a weak rupee boosted the sector.
At the close of market hours, the Sensex was down 505.13 points or 1.33% at 37585.51, while the Nifty was lower by 137.40 points or 1.19% at 11377.80. The market breadth is negative as 1,272 shares advanced, against a decline of 1,448 shares, while 178 shares were unchanged.
TCS, Adani Ports, BPCL and HPCL were the top gainers, while Sun Pharma, Tata Motors, and Bajaj Finance have lost the most.
Stocks in news: Shares of Dynemic Products surged 20 percent after company received an environment clearance for its project in Bharuch. The company has received an environment clearance for its Unit III project located at Plot No. D-3/3/1, GIDC Estate, at Dahej in Bharuch.
Share price of Rural Electrification Corporation (REC) rose 1 percent after foreign research house Deutsche Bank has maintained buy rating on stock with a target of Rs 155 per share.
Shares of Redington fell 4.6 percent after company board approved buyback proposal of its equity shares. The board of directors of the company at its meeting held today approved buyback proposal for purchase of its own fully paid equity shares of Rs 2 each not exceeding 1,11,20,000 equity shares (being 2.78% of the total paid-up equity capital of the company).
Sugar stocks continued their upward momentum on Monday after Cabinet approved hike in ethanol price by up to 25 percent in the last week. Sugar stocks including Rana Sugar, Dhampur Sugar, Magad Sugar, Bajaj Hindusthan Sugar, Simbhaoli Sugar, Dwarikesh Sugar, Uttam Sugar and Avadh Sugar are locked at 20 percent upper circuit.
Shares of jewellery maker Titan Company dropped 2.1 percent and hit an intraday low of 816.80 after a media report suggested that import duty on gold could be increased.
Markets in Asia were negative as investors were rattled by fresh dangers of additional tariffs on USD 200 billion worth of goods. The Kospi recovered slightly from its earlier losses.