Sensex dips 146 points, Nifty ends below 11,000 as no-trust motion moved against PM Modi
Benchmark Sensex is trading near its record high, however, the broader market has not been participating in the rally witnessed in last few weeks. Notably, according to a UBS Securities report, of all listed stocks, 60 per cent are down at least 20 per cent so far this year! Sensex is up 7 per cent on a year to date basis. In contrast, the BSE Midcap index is down 15 per cent YTD. On the Nifty, the top 10 largest stocks by market cap have outperformed the Nifty Index in 2018. The rally was mostly driven by Reliance Industries, Tata Consultancy Services (TCS), Infosys, HDFC Bank and HDFC.
HDFC Bank and HDFC share prices hit their respective record highs on Wednesday after HDFC Bank said it has raised Rs 8,500 crore by issuing over 3.9 crore shares on preferential basis to its parent HDFC.
HDFC Bank added 1.94 per cent to touch its lifetime high of Rs 2219.05, while HDFC gained 1.7 per cent to hit its fresh high of Rs 2023.90 on the BSE. The rally came even as Sensex slipped 100 points in the noon trade after the opposition parties tabled a no-confidence motion against Prime Minister Narendra Modi-led BJP government.
After scaling a record high of 36,747.87 in early trade, the benchmark BSE Sensex fell nearly 200 points in afternoon trade after a no-confidence motion against the Modi government was moved in the Lok Sabha today.
Speaker Sumitra Mahajan said she would announce the date for a debate on it in "2-3 days".
The BSE 30-share barometer, after hitting a new peak of 36,747.87 points in early trade, dropped by 199.04 points, or 0.54 per cent, to 36,320.92 with metal, realty, power, auto and banking stocks falling up to 2.69 per cent.
The gauge had gained 227.91 points to hit a new high of of 36,747.87 (intra-day), surpassing its previous record of 36,740.07 reached on July 13.
Rallis India Limited: A Tata Enterprise and a leading player in the Indian crop protection industry announced its financial results for the quarter ended June 30, 2018. Its consolidated revenues came at Rs 573 crores, which was a growth of 30 per cent over previous year sales net of excise. Its consolidated net profit stood at Rs 54 crore, which means an increase of about 20 per cent.
Monsoon sessions begins day
The much-waited monsoon session of Parliament, the last of the 16th Lok Sabha, begins later today as minitsters will meet for an 18-day-long session. Investors will keep an eye on the proceedings for any major policy moves as the BJP and the Opposition prepare themselves for the next Lok Sabha elections due in less than 10 months.
IDBI Bank: The board of IDBI Bank decided to seek the government's decision on LIC's proposal to acquire up to 51 per cent stake in the debt ridden bank. The board meeting took place a day after insurance behemoth LIC got approval of its board to increase its stake in the bank up to 51 per cent.
11,000 and 27,000 are deciding level on Nifty and BankNifty. Small trade range on Nifty stands at 10975-11075, while the bigger range lies between 10,925-11,125. In the case of BankNifty, the small trade range lies between 26,900-27,150 and the bigger range stands at 26,800-27,250. Strong support zone on Nifty and BankNifty lies between 10,925-10,950 and 26,650-26,900 respectively. However, Anil Singhvi suggests traders to reduce their buying positions if Nifty and BankNifty close below 10,935 and 26,650.
Markets on Tuesday
Benchmark BSE Sensex today rebounded by over 196 points to close at 36,519.96 while NSE Nifty settled above the 11,000 level as oil, metal and PSU stocks rallied after a sharp drop in global crude oil prices. Sentiment got a boost after global crude oil prices dropped by over 4 per cent yesterday owing to oversupply fears, helping the rupee to strengthen against the dollar, brokers said. Besides, reports that the finance ministry is likely to infuse about Rs 10,000 crore within a few days in some state-owned lenders including PNB, Corporation Bank and Central Bank of India, to help them meet regulatory capital requirement too accelerated the buying pace, they added.