16
Monday
September 2019
12:08 PM IST
News Headlines
Sourabh wins Vietnam Open Super 100 title        England close in on Ashes-levelling win after Broad double        Air India posts Rs 4,600 cr operating loss in 2018-19; aims operating profit this fiscal        SBI to move RBI to offer fixed-floating rate home-loans: Chairman        Hong Kong returns to violence with tear gas and Molotovs        36 people missing after boat sinks in Congo river: DRC police        Underfire PM calls up Hulk, claims 'huge' Brexit progress        Dearth of quality people in north India: Labour minister on unemployment        Will implement NRC in Haryana, says Khattar        One nation-one language will never be a reality: Jairam Ramesh        21 Indians killed in 2,050 ceasefire violations by Pak this year: MEA        We need to take advantage of India's inexperienced pace attack: Klusener        India's contrasting training camps at World Championships        Inflation under control, clear signs of revival in factory output: FM        China to lift punitive tariffs on US soybeans, pork        Former PM Cameron 'sorry' for Brexit divisions        Pakistani cleric Tahirul Qadri quits politics, resigns from party        Afghan government says elections first, peace deal after        My govt committed to the welfare of peasants & also to promote industry: Mamata        Amend Constitution to ensure use of Indian languages in SC, high courts: Paswan        
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Business News
Indian equities subdued; banking, IT stocks top drag
 
Mumbai, Sep 5 (PTI) Indian equities gave up early gains to settle lower on Thursday due to sell-offs mainly in banking stocks after the Reserve Bank directed banks to link interest rates on all new loans with external benchmarks.

Losses on the indices, however, were restricted by emergence of buying in stocks of somewhat relieved auto sector after Union Transport Minister Nitin Gadkari assured the crisis-hit industry of all possible support.

After rising over 174 points in early session, the 30-share Sensex failed to sustain the momentum and gave up all gains to end 80.32 points, or 0.22 per cent, lower at 36,644.42. It hit an intra-day high of 36,898.99 and low of 36,541.88.

The broader Nifty, on the other hand, ended 3.25 points, or 0.03 per cent, higher at 10,847.90.

Banking and IT stocks were mainly responsible for bringing the benchmark indices -- Sensex and Nifty -- under pressure. A significant rise in the rupee value was the reason behind the selling in shares of export-oriented IT companies.

Top laggards in the Sensex pack included HDFC, ICICI Bank, TCS, HCL Tech, Kotak Bank, Asian Paints, TechM and HUL, dropping up to 2.67 per cent.

On the other hand, Tata Motors, ONGC, Yes Bank, NTPC, Maruti, M&M, Vedanta, Tata Steel and Bajaj Auto rallied up to 7.81 per cent.

Sectorally, BSE oil and gas, metal, auto, utilities, power, industrials, healthcare and energy indices rose up to 2.47 per cent.

While BSE realty, finance and banking indices fell up to 1.77 per cent.

Broader BSE midcap and smallcap indices outperformed benchmarks, rising up to 0.72 per cent.

"The Reserve Bank has made it mandatory for banks to link their new floating rate for home, auto and MSME loans to an external benchmark from October 1 so that the borrowers can enjoy lower rate of interest. However, that triggered a sell-off in bank stocks, especially in private banks, which closed in the negative," Shrikant S Chouhan, Senior Vice President (Equity Technical Research), said.

Boosting market sentiments, Gadkari assured the crisis-hit auto sector of all possible support, including taking up the demand of GST reduction with Finance Minister Nirmala Sitharaman.

He also stated that the government had no intention to ban petrol and diesel vehicles, clearing the air after rumours were doing the round that the move to push e-mobility will result in end of the road for traditional petrol and diesel vehicles.

Market opened in green following positive global cues from Asian markets as withdrawal of a controversial extradition bill in Hong Kong and on the back of news that the US and China had agreed to meet in early October for another round of trade negotiations, Narendra Solanki, Head Fundamental Research (Investment Services) - AVP Equity Research, Anand Rathi Shares & Stock Brokers, said.

However, the global positive cues failed to sustain momentum by noon as domestic sentiments turned pessimistic following a cut in GDP growth estimates by Crisil, he said, adding that the market seemed lacking direction by end of day's trade as it awaits some more policy announcements from the government.

Stating that the slowdown as deeper and more broad-based than suspected, domestic rating agency Crisil on Wednesday cut its GDP forecast for FY20 to 6.3 per cent from 6.9 per cent earlier.

Elsewhere in Asia, Hang Seng gave up all its gains to end a tad lower, while Shanghai Composite Index, Nikkei and Kospi settled up to 2.12 per cent higher.

Exchanges in Europe were also trading on a mixed note their respective early sessions.

The Indian rupee appreciated by 28 paise to trade at 71.84 per US dollar.

Foreign investors continued with their equity selling spree by pulling out Rs 561.17 crore on Thursday.

Global oil benchmark Brent crude rose 0.23 per cent to 60.84 per barrel (intra-day).


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SBI to move RBI to offer fixed-floating rate home-loans: Chairman
Inflation under control, clear signs of revival in factory output: FM
China to lift punitive tariffs on US soybeans, pork
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Retail inflation inches up to 10-month high of 3.21 pc in August
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India's domestic market for computer services to grow faster than exports: UN report
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KERALA NEWS
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candidate selection for Pala by-election is an internal matter of KC(M): Chandy
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INTERNATIONAL NEWS
Hong Kong returns to violence with tear gas and Molotovs
 Hong Kong: Hong Kong riot police fired tear gas and water cannons at hardcore pro-democracy proteste
36 people missing after boat sinks in Congo river: DRC police
Underfire PM calls up Hulk, claims 'huge' Brexit progress
Former PM Cameron 'sorry' for Brexit divisions
NATIONAL NEWS
Dearth of quality people in north India: Labour minister on unemployment
 Lucknow: Union labour minister Santosh Kumar Gangwar has said there was no dearth of employment oppo
Will implement NRC in Haryana, says Khattar
One nation-one language will never be a reality: Jairam Ramesh
My govt committed to the welfare of peasants & also to promote industry: Mamata
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