Sensex gives away over 500 points; all details here

In two days trading session, Sensex has given away nearly 976 points.

While M&M and Asian Paints ended up 0.26% each at Rs 940.45 and Rs 1295.85 per piece. Reuters

The Indian markets continued to trade on negative note for second consecutive day. Today, the loss of Sensex and Nifty 50 was much higher compared to previous day. Investors pulled their money at extreme levels so much so that the Nifty 50 ended up giving away 150.60 points or 1.32% at 11,287.50. On the other hand, Sensex saw its worst nightmare as it plunged by a whopping 509.04 points or 1.34% to 37,413.13-mark. In two days trading session, Sensex has given away nearly 976 points.

VK Sharma, Head Private Client Group & Capital Market Strategy at HDFC Securities said, "Weak Asian markets marred the sentiments. Rupee touched the all-time low of 72.88 during today’s session. As we have been pointing out - steep valuation continue to plague FMCG stocks. FMCG index continue to weaken and lost 2.4% today. Private sector banks also were under pressure as rising bond yields will result into large market to market losses in bond portfolios.”

There were a number of factors that were involved in pulling Sensex down to such a level. Let’s see what they are.

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Gainers

There were barely any gainers on Sensex index. Coal India emerged as top gainer by ending at Rs 282.80 per piece up 0.95%, followed by NTPC at Rs 169.55 per piece up 0.36% and Infosys at Rs 734.25 per piece up 0.31%.

While M&M and Asian Paints ended up 0.26% each at Rs 940.45 and Rs 1295.85 per piece.

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Losers

The line of losers on Sensex was massive with Tata Steel taking top spot by tumbling 3.6% ending at Rs 592.30 per piece. This was followed by PowerGrid at Rs 186.85 per piece down by 3.21%, Hero Motocorp at Rs 3,178 per piece below 3.06%, Tata Motors at Rs 267.20 per piece lower by 3.03%, ITC at Rs 297.25 per piece down 2.92% and Bharti Airtel at Rs 379.85 per piece down by 2.18%.

Other losers were - Yes Bank at Rs 316.70 per piece (2.18%), HDFC Bank at Rs 2000.20 per piece (2.07%), ICICI Bank at Rs 326.60 per piece (1.94%), Adani Ports at Rs 364.70 per piece (1.90%), TCS at Rs 2045.95 per piece (1.69%), Vedanta at Rs 219.40 per piece (1.66%) and Maruti Suzuki at Rs 8512.85 per piece (1.56%).

Companies like Kotak Mahindra Bank, Reliance Industries, Sun Pharma, Bajaj Auto, Hindustan Unilever, HDFC and SBI also plunged in the range of 0.95% to 1.54%.

Sectors

Sectors which saw decline in today’s trading session were FMCG, healthcare, auto, banking, consumer durables, metal and oil & gas.

Starting with S&P BSE Consumer Durables who was worst hit by investors, as the index finished at 20,144.04 down by 510.74 points or 2.47%. This was followed by S&P BSE Bankex which completed at 30,264.07 down by 428.64 points or 1.40%. Third in line would be S&P BSE Auto which slipped by 368.54 points or 1.52% at 23,903.70. After, auto stocks it was S&P BSE FMCG which plunged by 269.42 points or 2.25% at 11,716.14

S&P BSE Healthcare meanwhile dropped by 245.75 points or 1.59% at 15,811.36, whereas S&P BSE Metal slipped by 228.54 points or 1.66% at 13,572.43.

S&P Oil & Gas also tumbled by 172.10 points or 1.17% finishing at 14,560.96.

Rupee

According to Reuters report, the rupee hit a life-time low yet again on Tuesday amid strong dollar demand from foreign banks, but the currency pared some of its losses later in the day following a Reserve Bank of India (RBI) intervention, dealers said.

On Tuesday, the rupee weakened to a record low of 72.75 against dollar. However, recovered some of its losses to close at 72.7075 after the RBI likely sold dollars in the market to stem the weakness.

Global markets

As per Reuters, world stocks slipped back towards three-week lows on Tuesday, on ongoing concerns over the trade dispute between Washington and Beijing, while the pound hovered near a five-week high on hopes of a UK-EU deal over Brexit.

Reportedly, MSCI's index of global equities inched lower on the day, after European shares joined Asian bourses in the red as markets awaited action from U.S. President Donald Trump after the expiry of a deadline for public comment on additional tariffs on Chinese goods.

Outlooks ahead

Sharma says, "We continue to remain cautious on the markets. Depreciating rupee, weak global cues, high energy prices are affecting the sentiments on the street."

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