Share Market News Today | Sensex, Nifty, Share Prices Highlights: The benchmark equity indices closed the trading session on a lower note on August 05 on the back of a global sell-off. The BSE Sensex fell more than 2200 points or 2.73% to finish the day’s trading at 78,774. The NSE Nifty 50 closed 668 points or 2.70% lower closing the session at 24,050. The Bank Nifty closed the day 2.5% or 1,294 points lower at 50,056, testing the psychological level of 50,000. Similarly, the Nifty Midcap 100 closed more than 2100 points or 3.64% lower to 55,804
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The NSE Nifty 50 closed 2.70% lower at 24,050, while the BSE Sensex closed 2.73% lower at 78,774.
HUL, Britannia, Nestle India, HDFC Life Insurance, and Tata Consumer Products were the top gainers in the Nifty 50. While Tata Motors, ONGC, Adani Ports and SEZ, Tata Steel, and Hindalco were the major losers in the Nifty 50 on August 05.
“The global risks associated with the interest cost rise in Japan and an appreciating Yen has led to the unwinding of the carry trade. This will have implications for global equities and is likely to see a rub-off for Indian equities as well. Investors need to tone down return expectations and allocate towards equities over the next 9-12 months, hopefully reaping benefits over the next 3 to 5 years,” said Aniruddha Naha, CIO of Alternatives at PGIM India AMC.
“WTI crude oil prices fell over a per cent on Monday to trade at 8 week low of $72.36, on worries of global slowdown We expect sell-off in crude to continue as the recessionary fear from the US and economic slowdown in China will significantly affect the consumer and industrial demand of oil. WTI prices have lost 11% in the last month and hold just a 3.5% gain for the year so far. However crude oil prices are still supported by the renewed geo-political worries in the Middle East region, which could possibly escalate a full-blown war among nations. Oil also came under pressure after OPEC+ stuck to its plan to phase out voluntary production cuts from October, which means supplies will rise later this year. The 25-bps rate hike decision by the Bank of Japan has triggered a carry-over yen trade resulting in a massive global sell-off in risker assets,” said Mohammed Imran, Research Analyst at Sharekhan by BNP Paribas.
All constituents of Bank Nifty are in red. HDFC Bank, ICICI Bank, and SBI were the top draggers of the Bank Nifty.
Courtesy: NSE
Shares of Adani Wilmar rose over 4% to an intraday high of Rs 399 from its previous close of Rs 383.15 in the weak market. The company touched its 52-week high of Rs 410.50 on December 06, 2023. The upper band for the stock is placed at Rs 421.45.
CLSA has downgraded LIC Housing Finance to ‘hold’ with a target price of Rs 800. The company’s Q1 loan growth was in line with expectations, but margins were moderate. While gross NPLs remained steady, net slippage spiked. Credit costs were at their lowest in 14 quarters, driven by a reduction in provision coverage across stage 2 and stage 3 loans.
The calculated spread declined by 35 basis points QoQ due to lower interest income on NPL accounts, a metric disclosed by management for the first time. Loan growth remains muted in the mid-single digits, and a pickup in disbursement growth will take time to be reflected in AUM growth.
Ambuja Cement’s stock traded at Rs 640 on the NSE, down by 1.96%. On Saturday, the company announced an investment of approximately Rs 1,600 crore to establish a cement grinding unit at Warisaliganj in Bihar’s Nawada district.
Tata Steel, Steel Authority of India Ltd, NMDC, Hindalco Industries Ltd, Vedanta, Hindustan Copper, and Hindustan Zinc Ltd were prominent gainers among the metal stocks, yet the Nifty Metal Index declined. During intraday trades on Monday, the Nifty Metal Index fell to a low of 8,797.60, marking a 5.5% decline from the previous close of 9,314.55. Concerns over a global slowdown and heightened demand issues were key factors contributing to the decline in metal stocks.
The sell-off across Asian markets triggered a sharp crash in the Indian markets. Geo-political tension in West Asia coupled with weak jobs data in the US led to the Nifty 50 nosediving close to 24,000 level on Monday morning. The index has fallen over 3.5% from its all-time high of 25,078.30.
Similarly, the Sensex fell 3% as soon as it opened to 78,580.46, intra-day. “Mostly export-oriented packs are facing more pressure today like IT however defensives like pharma and FMCG are showing noticeable strength,” said Ajit Mishra, Senior Vice President of Research at Religare Broking.
Read More: Manic Monday: Stock markets crash – Here are 4 reasons for the sharp fall in Nifty, Sensex
Commenting on the Bank of Japan recently hiked interest rates Mr. Yashovardhan Khemka, Senior Manager – Research & Analytics at Abans Holdings said that this decision is leading to higher interest rates and lower liquidity in Japanese yen, resulting in gains in the currency as the interest rate differential between the Japanese yen and the US dollar narrows.
Khemka also added that the strengthening yen has increased the real borrowing cost for global investors, leading to the unwinding of positions by FPIs who have funded their investments by borrowing in Japanese yen. Amid a slowdown in US economic activity and declining inflation, the US Federal Reserve has indicated potential interest rate cuts. This is leading to a two-way risk in the markets. If the interest rate cuts from the US are further delayed, we might see a further slowdown in global economic activity.
The quota for retail investors received 2.58 times subscription, while the non-institutional investors’ segment was subscribed 76%. The portion for Qualified Institutional Buyers (QIBs) is yet to be booked, while the employee portion was subscribed 8.31 times.
VRL Logistics shares fell over 5% to an intraday low after the company reported a 60.6% decline in net profit, down to Rs 13.4 crore from Rs 34 crore year-on-year (YoY). Despite an 8% increase in revenue, rising to Rs 727.2 crore from Rs 674.2 crore YoY, the company’s EBITDA fell 15% to Rs 87 crore from Rs 102 crore YoY. Additionally, margins shrank to 12% from 15% YoY.
The Nifty Realty index fell another 5% in Monday’s trading session, marking its fourth consecutive day of declines. With this drop, the index has corrected 15% from its peak on June 18, 2024.
The Nifty 50 plummeted 824 points on Monday, falling below 24,000 for the first time since June 26, marking the largest intraday decline since June 4, when the Lok Sabha results fell short of exit poll predictions. The S&P BSE Sensex also tumbled 2,686 points to 78,295 points.
A red wave swept through global markets, extending Friday’s downturn as fears of a potential U.S. recession prompted investors to flee from risky assets, leading to a sharp sell-off in equities across both Western and Eastern markets.
Additionally, growing tensions in the Middle East have further dampened investor sentiment. Analysts are concerned that Israel’s ongoing conflict with Palestinians in Gaza, which began last October, could escalate into a wider conflict involving more nations.
Britannia Industries, Hindustan Unilever, and Nestle India are the top gainers on the NSE Nifty 5o index whereas the top laggards include ONGC, Adani Ports, Tata Motors, Tata Steel, and State Bank Of India.
The benchmark Indian equity indices, BSE Sensex and Nifty 50, both fell by approximately 3% on Monday. Concurrently, the Indian rupee declined to an all-time low amid concerns about a sharp slowdown in the United States, which likely spurred outflows from local equities during a global stocks sell-off.
The rupee hit a record low of 83.82 against the U.S. dollar, and as of 11:20 AM, it was last quoted at 83.8125, down about 0.1% from its previous close of 83.75 on Friday.
Shares of Indian railway public sector undertakings (PSUs) including IRFC, RVNL, and IRCON have experienced declines between 4% and 5% on Monday, mirroring the broader global market sell-off that has impacted Indian equities.
Indian railway stocks experienced a notable decline, reflecting a broader market sell-off driven by global trends. Rail Vikas Nigam fell by 4.68% to Rs 562.40, while IRFC dropped 4.06% to Rs 184.50.
Read More: Railway stocks sell-off: IRFC, RVNL, Railtel plunge as much as 5% each; What should be your strategy now
Commenting on today’s selloff V K Vijayakumar, Chief Investment, Strategist, Geojit Financial Services said that When valuations are high, unexpected triggers will cause sharp cuts. This is happening now with fears of recession in the US and geopolitical tensions in the Middle East.
V K Vijayakumar also added that investors should wait for the market to stabilise before jumping into fresh investments. Fairly valued largecaps and defensives like FMCG and Pharma can be bought once the market stabilises.
Shares of Hindustan Aeronautics Ltd. (HAL) are experiencing a decline, trading with losses exceeding 2.5% on Monday. This marks the fifth consecutive day of losses for the stock. At its lowest point of the day, HAL’s share price dropped more than 4%, reflecting broader negative trends in the global markets.
Despite a stock market crash driven by weak global cues, Suzlon Energy shares saw buying interest in the early morning session on Monday. The Suzlon share price opened lower at Rs 69.90 apiece on the NSE but quickly gained momentum, reaching an intraday high of Rs 71.64 apiece. This climb marked a new 52-week peak for the stock. However, Suzlon Energy shares were unable to maintain these higher levels and retracted due to profit-booking.
Shares of Indian IT services providers, including Infosys Ltd., TCS Ltd., and Wipro Ltd., were trading with losses of up to 5% on Monday. This decline is in line with the broader global market sell-off, which has also impacted Indian equities.
Infosys had hit a 52-week high of Rs 1,903 on July 29, 2024. The stock has since corrected 9% from those levels. Similarly, shares of TCS, which also reached a record high on July 29 at Rs 4,431, have corrected 7%. Shares of Wipro are down 17% from the 52-week high of Rs 579.90, which they scaled on July 19 this year.
Shares of Indian IT services providers, including Infosys Ltd., TCS Ltd., and Wipro Ltd., were trading with losses of up to 5% on Monday. This decline is in line with the broader global market sell-off, which has also impacted Indian equities.
Infosys had hit a 52-week high of Rs 1,903 on July 29, 2024. The stock has since corrected 9% from those levels. Similarly, shares of TCS, which also reached a record high on July 29 at Rs 4,431, have corrected 7%. Shares of Wipro are down 17% from the 52-week high of Rs 579.90, which they scaled on July 19 this year.
Commenting on India Vix surge Anand James, Chief Market Strategist, Geojit Financial Services said that VIX was not far from record low recently, which magnified the rate of rise today. In absolute terms, we are still way below the VIX seen around the election results.
James also added that that single day spikes in VIX are usually seen corrected quickly. For now, given the present VIX, the 50day SMA at 23860 seems enough to support Nifty, but VIX’s close beyond 27 could change all that.
Read More: Volatility Index jumps 50% as markets sell-off; VIX sees biggest surge since August 2015
US stock futures fell sharply on Sunday evening local time, following a severe sell-off last week that pushed the Nasdaq Composite into “Correction” territory. Dow Jones Industrial Average futures are down more than 400 points, while September futures for the Nasdaq 100 are trading with losses exceeding 4%. At last check, Nasdaq 100 futures have dropped nearly 700 points.
Shares of TIL rose 3.15% on the NSE to Rs 402.90, hitting a 52-week high of Rs 410.10 earlier in the day. The surge follows TIL’s announcement of a new partnership with Snorkel Europe Limited, making TIL the official sales and service partner for Snorkel in Northern and Eastern India, the Andaman and Nicobar Islands, Nepal, and Bhutan.
The Nifty 50 was down 725 points or 2.93% at 23,993, while the Sensex was down 2,424 points or 2.99% at 78,558.
Shares of Coal India fell over 5% to an intraday low of Rs 497.05 from its previous close of Rs 524.50. The fall in prices came even after receiving a dividend of Rs 44.43 crore from its subsidiary BCCL.
The stock of Suzlon Energy rose 0.4% to hit a new all-time high of Rs 71.64 from its previous close of Rs 71.35. However, the stock soon fell to an intraday low of Rs 68.03, a fall of 4.7%.
Shares of PCBL rose 3.6% to an all-time high of Rs 390.60 from its previous close of Rs 376.90 in the weak market. However, the stock fell on the back of profit booking. The upper band of the stock is placed at Rs 452.25.