Nifty Wipes Out 2018 Gains; Sensex Drops 350 Points

C.ement Shares Struggle After Supreme Court Stays CCI Penalty. Shares of cement makers continue to trade with a negative bias after the Supreme Court stayed Competition Commission of India’s Rs 6,300 crore penalty on cement companies for cartelisation.

ACC fell 2.74 percent
Ambuja Cements declined 1.66 percent
India Cements fell 0.6 percent
JK Cement dropped 1.14 percent
Ramco Cements declined 2.8 percent
UltraTech Cement fell 2.8 percent

Market Check: Sensex Drops 350 Points, Nifty Wipes Out 2018 Gains

Indian equity benchmarks extended decline dragged by oil & gas, FMCG and metal stocks. The S&P BSE Sensex fell 405 points to 34,765 and the NSE Nifty 50 Index dropped 151 points to 10,447.

With today’s decline Nifty has wiped out all its gain made in 2018. Till Aug. 28, India was among best performing Asian markets till end of August. However, rising crude oil and falling rupee have weighed on the overall market sentiment.

Steel Strips Wheels Rises On Winning Order From Opel Germany

Shares of the Chandigarh-based steel wheel rim maker recovered from low levels and rose as much as 1.5 percent to Rs 1,036 after it won euro 6 million order from Opel Germany.

The company won order for supplying 650,000-wheel rims over a period of six years starting October 2019, SSWL said in an exchange filing.

See Scope Of Further Downside In Market: Gautam Chhaochharia

The markets have corrected from very expensive valuation to less expensive valuation and there can be a further downside, Gautam Chhaochharia, ED & head of India research at UBS told BloombergQuint in an interview.

Key highlights of the conversation:

The rupee depreciation is earnings accretive
Liquidity environment has changed now
Do not justify trading at these valuation levels
The macro economic situation is a lot better than 2012-13
See scope for further downside in the market
Non-SIP part of the mutual funds has dried up
Have a neutral stance on metals and mining space, a full-blown trade war could be negative for commodities
Currency depreciation and rising local demand to be positives for Indian metal companies
Like selective NBFC companies and prefer retail driven private banks
Continue to remain underweight on the aviation sector
Don’t rule out a rate hike given the macro-economic backdrop

Dixon Technologies Rises On Starting Production Of LED TVs For Xiaomi

Shares of the Noida-based consumer electronic products maker rose as much as 3.7 percent to Rs 2,600 after it started production of Mi LED TVs for Xiaomi, the company said in an exchange filing. The TVs will be manufactured from its facility in Tirupati, Andhra Pradesh.

Titan Advances After Jewellery Business Picks Pace In Q2

Shares of the Bengaluru-based jewellery and watch retailer rose as much as 4 percent, the most in over two months, to Rs 808.40 after its jewellery business picked up pace in the September quarter and market share rose on the back of new launches, the company said in a quarterly update.

Meanwhile, HSBC has maintained its buy call on the stock for target price of Rs 1,050, indicating an upside of 31 percent from yesterday’s closing.