Share Market Today: Indian stock markets (Sensex and Nifty) ended in negative territory on Monday following the rout in the global financial market due to record weakness in Turkish lira with Indian rupee falling more than 100 paise to a fresh all-time low against US dollar. The headline indices Sensex and Nifty shed 0.59% and 0.65%, respectively, tracking the Asian equity markets which settled on a negative footing with Japanese Nikkei tumbling 2%.
Indian shares traded in red in late afternoon deals on Monday following the weakness in global equity markets with Indian rupee losing as much as 91 paise to hit a new all-time low against US dollar. The domestic stock markets recovered partially from day’s bottom in early afternoon deals but hovered in negative territory while the rupee continued shuttled near its all-time lows against US dollar at the interbank foreign exchange market.
Indian stocks started in negative territory with BSE Sensex tumbling 310 points and NSE Nifty tripping below 11,350 while Indian rupee slipped to a fresh record low against US dollar. The Indian rupee on Monday fell more than 1% against the US dollar to an all-new record low at the interbank foreign exchange market. The rupee made an all-time low at 69.6150 apiece US dollar, the Bloomberg data showed. Almost all the components of Sensex and Nifty traded in red with blue-chips HDFC Bank, HDFC, Reliance Industries, SBI, ICICI Bank leading the index losses.
Asia share markets skidded and the euro hit one-year lows on Monday as a renewed rout in the Turkish lira infected the South African rand and drove demand for safe harbours, including the US dollar, Swiss franc and yen, Reuters said in a report.
The rupee logged one of the biggest fall in the exchange rate vs US dollar on Monday. The rupee plunged as much as 106 paise against the US dollar to hit a new all-time low 69.8950 per unit US dollar at the interbank foreign exchange market, the Bloomberg data showed.
Global stock prices sank Monday as Turkey’s financial turmoil fueled fears of contagion in other emerging markets, AP said in a report. Germany’s DAX declined 0.5% to 12,358.17, London’s FTSE 100 retreated 0.5% to 7,630.63, France’s CAC 40 lost 0.1% to 5,406.76, the report added.
Indian equity markets ended in deep red following the global rout on the back of Turkish lira decline to all-time lows. The Indian rupee too got hammered as investors seemed to have moved towards safe-haven currencies due to which the strength was seen in US dollar and Japanese yen. BSE Sensex closed at 37,644.9, down 224.33 points or 0.59% while NSE Nifty concluded at 11,355.75, down 73.75 points or 0.65%.
The euro slid to a fresh 13-month low and emerging market currencies slumped further on Monday, while the yen surged to a six-week high as the fallout from the Turkish lira’s crash pushed more investors into safe-haven currencies, a Reuters report said. As investors dumped riskier assets in Asian trading and into the European open, the Swiss franc jumped to within a whisker of a one-year high against the euro, the report added.
The rupee extended losses in the afternoon deals and hit a fresh all-time low against US dollar. The rupee touched a new record low of 69.7137 per unit US dollar, the Bloomberg data showed. With a rate of 69.7137 apiece US dollar, the rupee was trading 88 paise or 1.28% lower than Friday’s closing of 68.8350.
The US-based credit rating agency Fitch Ratings’ today said that its outlook on Indian banks is likely to remain negative. ‘Fitch Ratings outlook on the Indian banks sector is likely to remain negative until the banks address their weak core capital positions against mounting bad debt and poor financial performance,’ Fitch Ratings said in a report.
‘The capital position of state banks is most at risk, with the core capital ratios of 11 of India’s 21 state banks below the 8% common equity Tier 1 (CET1) regulatory minimum that comes into place at financial year-end March 2019 (FYE19),” the report added.
The Anil Dhirubhai Ambani Group’s telecom company RCom (Reliance Communications) has reinstated bank guarantees worth Rs 774 crore with the Department of Telecommunications (DoT). “RCom and its subsidiary Reliance Telecom Limited have today reinstated bank guarantees aggregating Rs 774 crore with the Department of Telecommunications (DoT), four weeks ahead of the last date of September 10, 2018 as granted by…Telecom Disputes Settlement and Appellate Tribunal (TDSAT),” Reliance Communications said in a statement.
Shares of RCom were trading up 7.39% Rs 20.93 on BSE.
Crude oil prices dipped on Monday as rising trade tensions and economic woes in emerging markets dented the outlook for fuel demand growth, but U.S. sanctions against Iran still pointed towards tighter supply, a Reuters report said. Front-month Brent crude oil futures were at $72.57 per barrel at 0702 GMT, down 24 cents, or 0.3%, from their last close while US West Texas Intermediate (WTI) crude futures were at $67.43 a barrel, down 20 cents, or 0.3%, from their last settlement, the report added.
The domestic stock markets recouped the morning session losses but were still hovering in negative territory on Monday. BSE Sensex was trading at 37,745.92, down 123.31 points or 0.33% while NSE Nifty was trading at 11,392.3, 37.2 points or 0.33%. Shares of GAIL (up 4.26%), Cipla (up 1.93%), Grasim (up 1.92%), Coal India (up 1.89%), Tech Mahindra (up 1.52%), Sun Pharma (up 1.44%), HCL Tech (up 1.22%), Infosys (up 1.16%) and Bharti Airtel (up 1.14%) were the lead gainers while shares of Bajaj Finance (down 1.08%), ONGC (down 1.33%), HDFC (down 1.38%), HDFC Bank (down 1.39%), Yes Bank (down 1.44%), Bharti Infratel (down 1.57%), IOC (down 1.59%), Eicher Motors (down 1.94%), HPCL (down 2.1%), BPCL (down 2.23%), SBI (down 2.36%), Indiabulls Housing Finance (down 2.38%) and Vedanta (down 3.29%) were the top losers.
Japan’s Nikkei tumbled 2% to a five-week low on Monday as a sell-off in emerging market currencies spooked stock investors, with the safe-haven yen’s appreciation hurting sentiment and dragging down the broader market, Reuters said in a report. The Nikkei share average dropped 440.65 points to 21,857.43, the lowest close since July 6, it added.
Turkey’s lira pulled back from an overnight record low of 7.24 to the dollar on Monday after the central bank pledged to provide liquidity and cut lira and foreign currency reserve requirements for Turkish banks, Reuters reported. The central bank said it cut the lira’s reserve requirement ratio, a cash buffer held by banks, by 250 basis points for all maturity brackets and lowered reserve requirement ratios for non-core FX liabilities by 400 basis points for maturities up to three years, it added.
As the benchmark Sensex and broader Nifty have touched a day’s bottom of 37559.26 and 11,340.3, a Reuters report suggests that Sensex and Nifty may find a support at 37,335.41 and 11,273.95, respectively. Wave patterns of both indexes suggest they have completed wave 3 of a five-wave uptrend and are in the corrective wave 4, the report added.
Shares of India largest bank by asset size and country’s second-largest bank by stock market value State Bank of India (SBI) dipped more than 3% on Monday following the first Q1 FY19 earnings reaction. SBI on Friday reported a net loss of Rs 4,876 crore for the Apr-Jun period. The stock of SBI fell as much as 3.84% to a day’s low of Rs 293.75 on BSE today was one of the biggest negative point contributors among the top heavyweights of Sensex and Nifty.
Emerging market currencies suffered a renewed bout of selling on Monday while Asian shares were a sea of red amid a deepening crisis for Turkey’s lira, which plunged to all-time lows on concerns over a rift with the United States, a Reuters report said. Investors fear the lira’s sell-off could have a ripple effect in global financial markets with the euro, the South African rand and Mexico’s peso already dented by Turkey’s crisis, the report added
Vakrangee shares dived nearly 18% after the company in its board meeting held on Friday recommended a dividend of Rs 0.251 per equity shares of Re 1. The stock of Vakrangee shed 17.8% to a day’s bottom of Rs 51.5 on BSE today.
The Indian rupee on Monday touched an all-time low of 69.62 per dollar in early trade on concerns about Turkey contagion spilling over to other emerging market currencies, Reuters reported.
Turkey’s lira slumped for a fourth day to a new record low, with the selloff spreading to other emerging-market currencies, after the country’s president showed no signs of backing down in a standoff with the US, a Bloomberg report said.
Sensex Live: The benchmark Sensex was trading down 0.69% at 37,606.62 after falling 310 points to a day’s bottom of 37,559.26. Shares of HDFC Bank, Reliance Industries, HDFC, SBI, ICICI Bank, Vedanta and Yes Bank were the biggest negative point contributors to the index. These seven shares wiped out about 236 points out of BSE Sensex.
The rupee tumbled to a fresh record low against US dollar in the wee hours of dealing on Monday. The rupee made an all-time low at 69.6150, down 78 paise or 1.13% per unit US dollar, Bloomberg data showed.
The Turkish lira traded at 6.97 to the dollar in Istanbul after plunging to 7.24 in Asian trade, easing back from the record low after Finance Minister Berat Albayrak said Turkey would start implementing an economic action plan on Monday morning, Reuters said in a report. The lira has lost some 46% of its value against the US currency this year, largely over worries about President Tayyip Erdogan’s influence over the economy, his repeated calls for lower interest rates and worsening ties with the United States, the report added.
Asian stock prices sank on Monday as Turkey’s financial turmoil fueled fears contagion might spread to other emerging markets, an Associated Press report said. The Shanghai Composite Index lost 1.7% to 2,746.90 and Tokyo’s Nikkei 225 retreated 1.9% to 21,885.45, Hong Kong’s Hang Seng shed 1.8% to 27,850.55 and Seoul’s Kospi retreated 1.6% to 2,249.65, the report added.
The S&P BSE Sensex declined nearly 300 points in the morning session after opening in negative zone with shares of HDFC Bank, Reliance Industries, HDFC, SBI, ICICI Bank being the major negative points contributors to the index. BSE Sensex fell 293.28 points to hit a day’s bottom of 37,575.95 while NSE Nifty touched a day’s low at 11,340.6, down 88.9 points.
Indian equity markets started in negative territory on Monday with BSE Sensex tumbling over 175 points and NSE Nifty falling well below the 11,400-mark. The benchmark Sensex opened at 37,693.19, down 176.04 or 0.46% while NSE Nifty opened at 11,369.6, down 59.9 or 0.52%.
The Indian rupee crashed more than 1% in the beginning deals on Monday to a new all-time low against the US dollar. The rupee made a fresh all-time low at 69.6087 per unit US dollar, the Bloomberg data showed. The domestic currency started at 69.4850 vs USD and quickly extended losses.
The early indicator of NSE Nifty 50, SGX Nifty Futures fell below 11,400-mark in the morning session on Singapore Exchange on Monday. The barometer was trading down 0.57% at 11,366 after touching a day’s high and low of 11,398.5 and 11,359, respectively.