Market continues downward march; Yes Bank, BPCL shine

Indian equities closed in the red for the fourth session in a row on October 3, as investors await the outcome of the country’s central bank’s policy meet.

The Reserve Bank of India’s monetary policy committee (MPC) meeting is underway and the central bank will announce the policy rates on October 4.

Global markets too were under pressure as United States said it would slap tariffs on European goods, stoking fresh fears about the global economic slowdown.

The 30-share Sensex index closed 199 points, or 0.52 percent, down at 38,106.87, with 20 stocks in the red.

Vedanta, Tata Steel, IndusInd Bank, HDFC Bank and Kotak Mahindra Bank were the top losers in the Sensex kitty, while Yes Bank, Tata Motors, ITC, HCL Technologies and Power Grid were among the top gainers.

Nifty pack settled 46 points, or 0.40 percent, lower at 11,314. Among the 50 stocks in the index 31 suffered losses.

Broader BSE Midcap and Smallcap indices outperformed Sensex, finishing 0.30 percent and 0.38 percent down, respectively.

Among the sectoral indices, BSE Metal fell 3 percent, emerging as the top loser, followed by Basic Materials (down 1.78 percent) and Telecom (down 1.48 percent).

On the other hand, BSE Oil & Gas (up 1.85 percent) and Realty (up 1.14 percent) logged healthy gains.

As many as 254 stocks, including IndusInd Bank, UCO Bank, Oriental Bank of Commerce, Lupin, Glenmark Pharmaceuticals, Indiabulls Real Estate and Edelweiss Financial Services, hit their 52-week lows on BSE.

In the last four sessions, investors have lost Rs 3.85 lakh crore as the overall market capitalisation of BSE-listed firms dropped to Rs 1,44,60,517.42 crore from Rs 1,48,45,854.70 crore on September 26.

Top news of the day:

There will be many more structural reforms by the government in the coming days to push the economy to a high growth trajectory, Niti Aayog CEO Amitabh Kant said on October 3.

With a strong policy-driven government at the Centre, favourable conditions exist in India to achieve the target of $ 5 trillion economy by 2024, a top government official said.

Former Union minister P Chidambaram will continue to remain in Tihar jail till October 17 as a Delhi court on Thursday extended his judicial custody in the INX Media corruption case, PTI reported.

As many as 125 million people may die immediately if India and Pakistan engaged in a nuclear war, and plunge the world into a “nuclear winter” that could lead to global climate catastrophe, according to a study.

Stocks in news:

Marking their biggest single-day gain, shares of private lender Yes Bank surged 32.97 percent to Rs 42.55 on BSE on October 3. The stock added Rs 3,000 crore to its market capitalisation today. Promoter Rana Kapoor and his group entities have sold 2.16 percent stake in the lender, which brought down their stake in the bank to 4.72 percent.

Extending their winning run into the third consecutive session, shares of Bharat Petroleum Corporation (BPCL) jumped 7.66 percent to Rs 531.90, buoyed by reports that the government may sell its stake in the company.

Falling for the fourth successive session, shares of private lender IndusInd Bank ended 2.94 percent lower at Rs 1,256.60 on concerns over its exposure to stressed accounts.

Shares of Coal India slipped 3.84 percent to Rs 186.65 after one of its largest open-pit mines was flooded, which would halt production for at least a month.

Shares of Zee Entertainment Enterprises (ZEEL) surged 7.92 percent to Rs 251.40 after the company said that the lenders had agreed to give it another six months to repay debt.

Global update:

European shares steadied on October 3 after logging their worst day since last December on the slapping of US tariffs on a raft of European exports, with a bounce for Airbus and luxury goods makers pushing main indexes back into the black, reported Reuters.

Among the Asian peers, Japan’s Nikkei ended 2.01 percent down at 21,341.74. China’s Shanghai Composite Index was closed for the national day.

Technical view on the market:

“Till the market is above 11,247 on Nifty and 37,930 on Sensex, there would be ample chances for the market to pull recent losses by hitting the level of 11,500-11,550. However, below 11,247, Nifty could further fall to the level of 11,180. Investors should look at buying strong companies in tranches between 11,250 and 11,170,” said Shrikant Chouhan, Senior Vice-President – Equity Technical Research at Kotak Securities.Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.