Sensex tanks 433 pts, Nifty ends below 11,200; Kotak Bank, Zee Ent slip 3-5%

 

Sanjeev Zarbade, VP PCG – Research at Kotak Securities 

“Major global equity markets sold off during the current week on fears of economic weakness after the US ISM manufacturing purchasing managers’ index declined to 47.8 in September, the lowest since June 2009. There were also fears of trade protectionism as US put fresh tariffs on products from EU.”

“The BSE-30 Index declined 3 percent in the current week. Equity markets saw some correction as investors got cautious about declining asset quality in the banking sector, risk of weakening of demand after tepid data prints on auto sales, GST collections and core sector. RBI delivered 25 bps rate cut on Friday which however failed to live upto investor expectations and markets sell-off intensified post the announcement. Yes Bank, IndusInd Bank  and State Bank of India  were the top losers in the BSE-30 Index, while ITC, Mahindra & Mahindra  and Reliance Industries were the top gainers.”

“On the economy front, CAD/GDP for 1QFY20 was at 2 percent, from 0.7 percent in 4QFY19. FPIs bought equities worth USD 1.2 billion over the past five trading sessions while DIIs bought USD 288 million worth of equities.”

–>

Sanjeev Zarbade, VP PCG – Research at Kotak Securities 

“Major global equity markets sold off during the current week on fears of economic weakness after the US ISM manufacturing purchasing managers’ index declined to 47.8 in September, the lowest since June 2009. There were also fears of trade protectionism as US put fresh tariffs on products from EU.”

“The BSE-30 Index declined 3 percent in the current week. Equity markets saw some correction as investors got cautious about declining asset quality in the banking sector, risk of weakening of demand after tepid data prints on auto sales, GST collections and core sector. RBI delivered 25 bps rate cut on Friday which however failed to live upto investor expectations and markets sell-off intensified post the announcement. Yes Bank, IndusInd Bank  and State Bank of India  were the top losers in the BSE-30 Index, while ITC, Mahindra & Mahindra  and Reliance Industries were the top gainers.”

“On the economy front, CAD/GDP for 1QFY20 was at 2 percent, from 0.7 percent in 4QFY19. FPIs bought equities worth USD 1.2 billion over the past five trading sessions while DIIs bought USD 288 million worth of equities.”