Sensex Today: Sensex ends 261 points lower, Nifty at 11,003 mark; Equitas Holdings, BPCL major losers

Sensex Today: Indian equity market opened lower on Monday, on account of 10% intraday rise in crude prices caused by the drone attack on two of Aramco’s facilities that nearly knocked out 50% of Saudi's oil production earlier during the weekend. From this attack, 6% of the world’s total oil supply has been impacted.

Reacting to the Aramco Attack that sent crude prices higher, Indian Rupee, the domestic currency, opened sharply lower at 71.62 against the dollar as compared to its previous closing of 70.91 per American dollar.

Rupee vs dollar: Indian currency opens 70 paise lower against dollar after global oil prices rise on attack on Saudi facility

 

Net investment of equity and debt reported by foreign portfolio investors (FPIs) remained bearish with net selling logged at Rs 405.45 crore from Indian equities while domestic institutional investors (DIIs) bought Rs 209.56 crore on Fiday.

 

Oil prices surged to six-month highs on Monday while Wall Street futures fell and safe-haven bets returned after weekend attacks on Saudi Arabia’s crude facilities knocked out more than 5% of global oil supply.

Oil prices surged more than 15% at the open on Sunday on worries over global supply and soaring tensions in the Middle East. State oil giant Saudi Aramco said the attack on Saturday had cut output by 5.7 million barrels per day.
(Reuters)

Bharat Electronics Limited (BEL) rose more than 4% to Rs 113.35 on BSE, against its previous closing price of Rs 108.70,after bagging a RS 5,357 cr project from the Indian Air Force(IAF MCC) for Akash Missile Systems.
 
The filing said,"The total value of the contract is Rs.5357.00 Crores (Rupees five thousand three hundred and fifty-seven crores only) and the delivery will be completed in 3(three) years. These systems will be commissioned at seven Air Force locations spread across Pan India.


 

Elsewhere in Asia, equity shares traded mostly lower while Japan markets are closed due to holiday. Shares in Hong Kong underperformed while equities in Australia and Shanghai were little changed. U.S. equity futures declined too.

Shares of Rain Industries Ltd was last trading lower by 5.63% to Rs.95.90 as compared to the previous close of Rs. 101.20 on BSE after the company submitted a fillng that the SC has denied on granting permission for import of raw material.

As per the filing the Hon'ble Court rejected the orders, quoting,"All these applications are dismissed."

"Let the Central Pollution Control Board and the Ministry of Environment and Forest finalize the standards and be pla&ed before this court, within six months from today." the filing further added.

 

Share prices of oil marketing firms were trading lower on Monday's trading session due to  the sudden surge in international oil prices, following an attack on Saudi Arabia’s oil facilities on September 14 that cut more than 5% of global oil supply. This reportedly knocked out 50% of Saudi's oil production earlier during the weekend.

Reacting to this, Indian equity market opened lower on Monday, with indices shredding 0.50% each. Nifty Energy index was trading lower by 1.24% or 184 points at 14,544.05, mere 9.9% higher from the 52-week low of Rs 13,104.

The biggest loser of the Indian oil marketing companies was Bharat Petroleum Corporation Limited (BPCL), that fell 5.36% to Rs 386.65, followed by Hindustan Petroleum Corporation Limited (HPCL), trading 5.22% lower at Rs 257 on NSE. While Indian Oil Corporation (IOC) registered a 2.4% decline to Rs 126.90, Reliance Industries fell 1.5% lower to trade at 1,206.35 on NSE.

BPCL, Indian Oil, HPCL share prices fall 4-5% as global oil prices zoom on Saudi refinery attack

The benchmark U.S. crude price jumped more than USD 5 per barrel as drones attacked two Saudi Arabian plants at the oil producer Saudi Aramco's Abqaiq facility, for which Yemeni rebels claimed responsibility.

After the drone attack on one of the world's biggest oil producers Saudi Aramco, global crude prices surge by almost 12 per cent which is the biggest surge since 1988, said Ashish Nanda EVP and Business Head - PCG, Commodities and Currency Business, Kotak Securities

"This is obviously not a good day if you are an oil importer," said Christ Weston of Pepperstone Group in a report.

Market recovered from initial losses to trade with minor decline, with Sensex trading121 points lower at 37,270 and Nifty 40 points lower at 11,036. Sectorally, the highest decline was registered in Nifty Energy, trading 1.5% lower, followed by nearly 0.50% fall recorded in Financial services and PSU Banking indices.

Wholesale price index (WPI) inflation data scheduled to be announced later in the day.

 

Shares of airline operators InterGlobe Aviation and SpiceJet fell up to 5% in Monday's trade stoked by a massive surge in global crude prices as drones attacked two Saudi Arabian refining facilities, as this may increase air turbine fuel (ATF) cost for domestic airlines. The spike in crude oil rates will affect the fiscal position of net energy importers like India, experts said.

 

Share price of Equitas Holdings tumbled over 16% on September 16 as the market regulator Securities and Exchange Board of India (SEBI) returned the company's draft scheme with regard to Equitas Small Finance Bank (ESFB) as it failed to meet SEBI 's regulatory provisions.

Equitas Holdings stock formed a gap-down chart pattern and opened at a loss of 5.2% to Rs 111, also its day's high and, later fell 17.46% to its day low of Rs 96.65, against the previous closing price of Rs 117 on BSE.

Overall 14.43 lakh shares and 243.89 lakhs share are exchanging hands over the counter  on BSE and NSE, both above the 5, 10 and 30-day average volume traded. The stock has traded in a wide range of Rs 14.35.

Equitas Holdings share price declines over 17% after draft scheme fails to meet SEBI guidelines

Shares of Housing Finance companies were trading higher on Monday, after FM Sitharaman announced announced Rs 20,000-crore fund for last-mile funding of stuck housing projects, reduction in interest rates on house-building advance and linking to 10-year government securities yields. Finance Minister Nirmala Sitharaman announced relief measures with a focus on reviving the housing and export sector.

Highest advance of 4% was registered in Akme Star Housing Finance Ltd followed by 3% rise in HUDCO, India Home Loans and Coral India Finance & Housing. While DHFL rose over 2% intraday, shares of PNB Housing, GIC Housing finance, Reliance Home and Indiabulls Housing gained marginally over 1% each.

Of the Rs 20,000-crore funding, the government will provide Rs 10,000 crore, while the rest will come from other financial institutions. It will provide the last mile funding for projects that are not non-performing assets (NPAs) and have not been referred to the National Company Law Tribunal (NCLT).


 

The official Wholesale Price Index for 'All Commodities' (Base: 2011-12=100) for the month of August, 2019 rose by 0.2% to 121.4 (provisional) from 121.2 (provisional) for the previous month.

The annual rate of inflation, based on monthly WPI for August 2019, remained unchanged at 1.08 compared to July 2019 and 4.62% during the corresponding month of the previous year.

Shares of Emami Paper Mills declined 5% intraday to Rs 81.7 on BSE as the company announced on September 13 it has surrendered its Gujarat Industrial Development Corporation (GIDC) plots.

The plots 119, 121 to 126, measuring 4,14,930.894 square meter, at Saykha Industrial Estate in Bharuch were allotted by GIDC and were meant for the company's greenfield expansion project.

Emami Paper said it had authorised severally executive director PS Patwari and president Bharat Agarwal to complete the formalities for the surrender.

Shares of Prabhat Dairy fell 10.47% intraday to Rs 71 after the board approved a voluntary delisting of the company's shares.

"The proposed Delisting Resolution has been placed before the shareholders as a result of the receipt of a letter dated September 4, 2019 from certain members of the promoter and promoter group namely, Mr. Sarangdhar Ramchandra Nirmal, Mr. Vivek Sarangdhar Nirmal, Madhyam Farming Solutions Private Limited and Nirmal Family Trust," the filing added who had, "expressed their intention to acquire 4,87,40,547 fully paid-up equity shares, representing 49.90% of the paid-up equity share capital of the company that is presently held by the public shareholders".

Additionally, the company has appointed Saffron Capital Advisors Private Limited as the merchant banker after taking note of the Delisting Proposal and fixed floor price per equity share at Rs 63.77, in accordance with regulations of the Delisting Regulations of SEBI.

"The Acquirers will proceed, at their discretion, to make an offer to the public shareholders of the Company and purchase the equity shares at the exit price in accordance with the Delisting Regulations", the filing further read.

The share price of SML Isuzu Ltd fell over 2% intraday after the company said in its latest filing that it has decided to observe Block Closure of Chassis Division for six days due to continued low demand in the automobile sector.

Reacting to the filing submitted on September 13, the share price of SML Isuzu Ltd formed a gap down chart pattern and fell 2.25% intraday to Rs 605, against its previous close of Rs 618.95 on BSE.

"We wish to inform you that due to continued low demand in the Automobile Sector, the Company has decided to observe Block Closure (Chassis Division) for 6 days from 16th September, 2019 to 21st September, 2019 at its manufacturing plant (located at Village Asron, Distt. Nawanshahr)", the regulatory filing stated. The filing further added that need-based production will continue in the Bus Body Division.

 

Sensex currently trades 250 points lower at 37,129 and Nifty trades 70 points lower at 11,003. Sectorally, while FMCG, media, metal, IT and pharma indices provided mild support to Nifty, banking, financial services, realty and auto indices drag index further down.


 

 Gold on Monday climbed Rs 460 to Rs 38,860 per 10 gram in the national capital on a weak rupee and higher oil prices, which led to investors opting for safe haven commodities, according to HDFC Securities.

In the bullion market here, gold prices for 24 Karat rose to Rs 38,860 per 10 gram from Saturday's closing price of Rs 38,400 per 10 gram, according to the data.

Silver also zoomed Rs 1,096 to Rs 47,957 per kilogram. In the previous trading, silver closed at Rs 46,861 per kilogram.