Sensex Falls 760 Points, Wiping Out 2018 Gains – MasterMind Update

The Benchmark indices BSE Sensex and NSE’s Nifty 50 closed over 2% lower on Thursday amid a selloff in global markets. In opening trade, both the indices fell over 3%, with the Sensex plunging 1,037 points to 33,723.53 and the Nifty 50 falling 321 points to 10,138.60. Shares of IT, finance and metal sectors were worst hit. Losses were, however, capped as shares of oil companies such as Reliance Industries, HPCL and Indian Oil gained after oil prices fell nearly 2%. The rupee also rebounded from its fresh all-time low after crude oil prices and the US dollar fell.

“The sell-off has turned out to be broad based across the industries and categories. However, investors can keep the shopping-list ready as high quality companies with strong fundamentals tend to bottom-out ahead of Nifty. The top priority for investors should be preservation of capital and confidence, ” said Jagannadham Thunuguntla, SVP and head of research (wealth), Centrum Broking Ltd.

In global markets, the biggest stock slump since February rolled from the US through Europe and Asia on Thursday, reported Bloomberg, with benchmarks from Tokyo to London slumping as fresh fears for global trade added fuel to a recent selloff. The worst of the declines were in Asia, where China’s Shanghai Composite gauge tumbled more than 5% intra-day. By comparison, European losses were more contained; the Stoxx Europe 600 Index and Britain’s FTSE 100 both slipped less than 2%. Oil prices slumped to two-week lows as global stock markets fell. Here are the highlights from the markets:

Closing bell: Sensex, Nifty fall over 2%
The BSE Sensex closed 759.74 points, or 2.19%, down at 34,001.15, while the Nifty 50 ended 225.45 points, or 2.16%, lower at 10,460.10. In opening trade, the Sensex plunged 1,037 points to 33,723.53 and the Nifty 50 slumped 321 points to 10,138.60.
The BSE mid and small cap indices were down 2.34% and 1.41%, respectively. All the BSE sectoral indices, barring energy and oil and gas, declined with IT, realty and metal losing over 3%. The oil and gas index was up 2.88%.
Yes Bank, ONGC, Hindustan Unilever, HPCL, GAIL and IOC were among the top gainers, while SBI, Tata Steel, Vedanta, Indiabulls Housing Finance and Bajaj Finance were among the major losers.

TCS shares down 3% ahead of Q2 results
TCS shares traded 3.11% lower at Rs 1,979.50 per share on BSE ahead of the company’s September-quarter results announcement. TCS is estimated to post a sequential dollar revenue growth of 3.3% in the July-September period.

Sensex, Nifty trim losses, down over 1%
The BSE Sensex traded 590.11 points, or 1.70%, lower at 34,170.78, while the Nifty 50 fell 175.20 points, or 1.67%, to 10,284.90. In early trade, the Sensex plunged 1,037 points to 33,723.53 and the Nifty 50 slumped 321 points to 10,138.60.
The BSE MidCap and SmallCap declined 1.64% and 1.15%, respectively. All the sectoral indices on BSE, except energy and oil and gas, traded lower with realty, IT, teck, basic materials, metal, finance, auto and bankex falling between 2% and 2.98%. Oil and gas jumped 3.32% and energy was up 1.44%.
ONGC, Yes Bank, Reliance and HPCL were among the top gainers, whereas SBI, Tata Steel, Indiabulls Housing Finance and Infosys were among the major losers.

Rupee recovers from record low as oil prices fall
The rupee rebounded from its fresh all-time low on Thursday after crude oil prices and the US dollar fell. At 2.11pm, the rupee was trading at 74.16 a dollar, up 0.08% from its Wednesday’s close of 74.22. In the morning trade, the rupee opened at 74.31 and touched a fresh low of 74.46 a dollar, tracking sell-off in the global markets. The 10-year gilt yield stood at 8.01% from its previous close of 8.031%.

Oil price extend losses as other markets fall
Oil prices fell to two-week lows on Thursday as it extended big losses from the previous session amid a rout in global stock markets, with prices also hit by an industry report showing U.S. crude inventories rose more than expected. Supply worries also eased as Hurricane Michael likely spared oil assets from significant damage as it smashed into Florida, even as it caused at least one death, injuries and widespread destruction.
Brent crude futures were down $1.32, or 1.6 percent, at $81.77 a barrel by 0543 GMT. They earlier touched their lowest since Sept. 27 at $81.35, after closing 2.2 percent lower on Wednesday.
U.S. West Texas Intermediate (WTI) crude futures were down by $1.10, or 1.5 percent, at $72.07, having fallen to their lowest since Sept. 28. They dropped 2.4 percent in the previous session.

Falling oil prices will help Indian markets, says Equinomics Research
Founder of Equinomics Research and Advisory, G Chokkalingam, said oil prices are down around 5% from recent highs and this will benefit Indian markets. He is optimistic about a recovery in the Indian markets after global markets settle down. The Indian markets had fallen sharply even before the current global equity rout and the oil price fall will provide a cushion to the Indian markets on the downside, he added.Falling oil prices will help Indian markets, says Equinomics Research
G Chokkalingam, founder of Equinomics Research and Advisory, said oil prices are down around 5% from recent highs and this will benefit Indian markets. He is optimistic about a recovery in the Indian markets after global markets settle down. The Indian markets had fallen sharply even before the current global equity rout and the oil price fall will provide a cushion to the Indian markets on the downside, he added.

Stock market crash erodes over Rs 3 lakh crore from investor wealth
As the BSE benchmark index plummeted over 1,000 points during the morning trade Thursday, investor wealth got eroded by over Rs 3 lakh crore. The BSE benchmark Sensex Thursday crashed over 1,000 points to slip below the key 34,000-mark in early trade, tracking a global sell-off. Led by the sharp carnage in equities, the market capitalisation of BSE-listed companies slumped Rs 3,05,625.87 crore to Rs 1,35,59,695.82 crore in late morning trade.

European stock markets slide around 1.5% at open
The Europe’s main stock markets slid by around 1.5 percent at the start of trading on Thursday following heavier falls across Asia and on Wall Street. London’s benchmark FTSE 100 index slumped 1.4 percent to 7,049.31 points compared with Wednesday’s closing level. In the eurozone, Frankfurt’s DAX 30 dropped 1.3 percent to 11,558.98 points and the Paris CAC 40 shed 1.5 percent to 5,128.22 points.