Market Wrap: Sensex ends below 39K, Nifty drops over 150 pts; Jet Airways top loser : Podcast: Business Today
Business Today

Market Wrap: Sensex ends below 39K, Nifty drops over 150 pts; Jet Airways top loser

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June 17, 2019

Benchmark indices Sensex and Nifty, fell over 1.25% each to close into bearish territory on Monday. The Sensex ended down by 491 points at 38,960, while Nifty fell down by 151 points to close at 11,672.

Overall 28 out of 30 stocks closed in the red on Sensex and 46 out of the 50 stocks were bearish on Nifty.

All the major indices ended down today, with Nifty metal, down almost 3% and Energy falling over 2%, followed by 1.7% fall each in Media and Auto indices. Least falling indices in today trade were FMCG, IT and Pvt bank stocks, each declining below 1%.

Earlier today, Sensex opened marginally higher by 62 points up at 39,514.36 against while Nifty started at 11,844 level, but fell to bearish territory in first few minutes of trade. Senses made a intraday low to 38,911.49, while Nifty touched day's low at 11,657.75.

As per market experts, on-going Sino-U.S. trade tensions and rising crude prices kept investors cautious.

In major stock news, Varun Beverages fell over 4% after the company's board recommended Bonus Issue, Piramal Enterprises sold entire stake in Shriram Transport Finance to third party investors. Reliance Infra posted net losses for quarterly and annual basis, on which, the auditors of the firm said  that they were unable to give an audit opinion on the annual results and raised questions about the company's ability to continue in business. Another major news was, Sebi barring NDTV promoters from securities market and managerial posts after which NDTV shares fell over 7%. Jet airways, the loser of Monday' s trade, fell over 16% today to Rs 68 and made a new 52-week low of Rs 66 on BSE.

Globally, Asian markets recovered as Hong Kong Index gained one percent and Nikkei and KOSPI Index bounced back into positive territory. Although as investors kept risk appetite in check, in between the on going political tensions in the Middle East and Hong Kong and the closely-watched Federal Reserve meeting, the stocks fell back to near one-week lows.

Both European stocks and U.S. equity futures led losses on Friday, but opened flat to marginally higher on Monday following a mixed session in Asia as a big week for central-bank policy gets underway.

The Federal Open Market Committee meeting next week is shaping up to be a pivotal one for Wall Street after policymakers raised expectations for a rate cut in recent weeks, especially after the Federal Reserve faced fresh demands by President Donald Trump for cutting interest rates.

Many investors had been looking toward the Group of 20 summit later this month for more definitive signs of the direction of trade talks between the United States and China.

India's fuel demand in May was unchanged from a year earlier, preliminary government data showed on Saturday,  indicating a continued slowdown in various sectors including industrial output. Several indicators - automobile sales, rail freight and domestic air traffic - indicate a slowdown in  domestic consumption. India has not yet released industrial output data for May.

On the currency front, Indian Rupee opened unchanged from Friday's close at 69.80 against the dollar at the interbank forex market and later fell further to 69.89, down 9 paise over its last close. Forex traders said rising crude oil prices, foreign fund outflows and heavy selling in domestic equities kept pressure on the Indian rupee.

Brent oil rose above $62/bbl at the early hours but dropped fell sharply before the last few minutes of closing bell. Brent crude, the global oil benchmark, was trading at $61.6/bbl, down by 0.66%.