Sensex Falls 400 Points on Weak Global Cues; Metal & Banking Stocks Drag

Mon, 21 Jun 09:30 am

   Previous Close   

   Pre-Open   

   SGX Nifty   

   12:30 pm   

   Closing   

Asian share markets tumbled today on growing expectations the Federal Reserve will begin lifting interest rates as early as next year as it looks to prevent the economic recovery from overheating.

The Hang Seng is trading down by 1.2% while the Nikkei plunged more than 3.8%. The Shanghai Composite is down 0.2%.

In US stock markets, Wall Street indices ended lower as traders warily eyed the Federal Reserve for hints of where monetary policy is headed.

The Dow Jones Industrial Average had its worst week since the week ended 30 October. The index fell 1.6%, or 533.4 points on Friday. For the week, it lost 3.5%.

The Nasdaq Composite lost 0.9%, or 131 points as large technology stocks also fell. For the week, it was down 0.3%.

Back home, Indian share markets have opened on a negative note, following the trend on SGX Nifty.

Market participants will track shares of Oil India, Info Edge, Bharat Dynamics, and VST Tillers Tractors as these companies are slated to post their quarterly numbers today.

The BSE Sensex is trading down by 367 points. Meanwhile, the NSE Nifty is trading lower by 112 points.

NTPC is among the top gainers today. M&M, on the other hand, is among the top losers today.

The BSE Mid Cap index has opened down by 0.9%. The BSE Small Cap index is trading lower by 0.8%.

All sectoral indices are trading on a negative note with stocks in the metal sector and banking sector witnessing most of the selling pressure.

Shares of CRISIL and Reliance Capital hit their 52-week high today.

The rupee is trading at 74.25 against the US$.

Gold prices are trading up by 0.4% at Rs 46,929 per 10 grams.

Bitcoin dropped over the weekend amid a focus on Chinese mine closures and potential regulatory scrutiny.

Speaking of stock markets, in his latest video for Fast Profits Daily, India's #1 trader Vijay Bhambwani explains why the words of the US Fed matter to global markets.

Tune in to the below video to find out more:

In news from the finance sector, PNB Housing Finance is among the top buzzing stocks today.

The capital markets regulator has directed PNB Housing Finance to halt its proposed Rs 40-bn share allotment to a clutch of companies led by the Carlyle Group.

The regulator has further directed the company to carry out the valuation process as per the relevant legal provisions.

Earlier, the extraordinary general meeting (EGM) of the firm was scheduled for 22 June to approve the issuance of shares to a consortium of investors led by the Carlyle Group.

The market regulator said the resolution regarding the deal was ultra-vires of the company's Articles of Association (AoA).

The above move by the market regulator came after a proxy advisory firm had highlighted that proposed preferential issue by PNB Housing Finance was against the interest of public shareholders, Punjab National Bank (PNB) shareholders and the government.

In a note to institutional investors, Stakeholders Empowerment Services (SES) had argued that a rights issue would have been a fairer and better option for raising capital. SES had recommended PNB Housing's public shareholders to vote against the resolution on preferential allotment.

In response to the halt, PNB Housing Finance has filed an appeal before Securities Appellate Tribunal with a consortium led by Carlyle.

Last month, PNB Housing's board had approved a preferential allotment of Rs 32 bn worth of shares and Rs 8 bn worth of warrants to Carlyle, Aditya Puri's family investment vehicle Salisbury Investments, General Atlantic and Alpha Investments at Rs 390 per share.

PNB Housing Finance share price has opened the day down by 5%.

Moving on to news from the energy sector, the commerce and industry ministry has floated a draft cabinet note seeking inter-ministerial views on a proposal to allow up to 100% foreign investment under automatic route in oil and gas PSUs, which have an 'in-principle' approval for disinvestment.

If approved, this move will facilitate privatisation of India's second biggest oil refiner Bharat Petroleum Corp (BPCL).

The government is privatising BPCL and is selling its entire 52.98% stake in the company.

Sources said that as per the draft note, a new clause would be added in the FDI policy under the petroleum and natural gas sector.

For BPCL privatisation, Vedanta had put in an expression of interest (EoI) for buying the government's 52.98% stake in the PSU.

The other two bidders are global funds, one of them being Apollo Global Management.

At present, only 49% FDI is permitted through automatic route in petroleum refining by the PSU, without any disinvestment or dilution of domestic equity in the existing PSUs.

It remains to be seen if the union cabinet approves the proposal.

We will keep you updated on the latest developments from this space. Stay tuned.

Speaking of public sector undertakings (PSU), have a look at the chart below which shows the performance of BSE PSU index compared to BSE Sensex over the past few years.

As can be seen from the chart above, over the last decade, Rs 100 invested in BSE-PSU index would have eroded to Rs 80, compared to almost 3x gains for the Sensex.

Here's what Richa Agarwal, lead Smallcap Analyst at Equitymaster, wrote about PSU stocks in a recent edition of Profit Hunter:

• However, it will be folly to paint all PSUs with the same brush. There are some exceptions in this space, which put their private peers to shame.
  
  In a recent editorial, I shared an opportunity in a PSU stock that is riding and enabling an irreversible megatrend - digitisation.

Richa's latest stock recommendation (subscription required) is a stock from this space. This smallcap PSU is leading the digitisation drive from the frontlines.

Richa believes it could be a perfect bet for these uncertain times. Hidden Treasure subscribers can read the recommendation here.

And if you're not a subscriber, here's where you can sign up.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Top Gainers TodayTop Gainers over 1-WeekTop Gainers over 1-MonthTop Gainers over 1-YearTop Gainers over 3-YrsTop Gainers over 5-YrsTop Losers TodayTop Losers over 1-WeekTop Losers over 1-MonthTop Losers over 1-YearTop Losers over 3-YrsTop Losers over 5-YrsOnly BuyersOnly SellersMost Active StocksMost Popular Stocks52 Week High Stocks52 Week Low Stocks

INDICESBSE (Rs 0 to 1)BSE (Rs 1 to 2)BSE (Rs 2 to 4)BSE (Rs 4 to 10)BSE (Rs 10 to 20)BSE (Above Rs 20)BSE - AllBSE-30BSE-100BSE-200BSE-500BSE AutoBSE BankexBSE Capital GoodsBSE Consumer DurablesBSE FMCGBSE HealthcareBSE ITBSE MetalBSE Oil & GasBSE PSUBSE TeckBSE RealtyBSE PowerBSE A GroupBSE B GroupBSE Mid-CapBSE Small-CapBSE Basic MaterialsBSE Consumer DiscretionaryBSE IndustrialsBSE UtilitiesBSE Sensex 50BSE Sensex Next 50BSE Bharat 22BSE 150 MidCapBSE 250 SmallCapBSE 250 LargeMidCapBSE 400 MidSmallCapBSE AllCapBSE LargeCapBSE SmallCap SelectBSE 100 LargeCap TMCBSE InfraBSE ManufacturingBSE CPSEBSE Private BankBSE Diversified FinancialsBSE MomentumBSE Low VolatilityBSE QualityBSE Enhanced ValueBSE Divident StabilityS&P BSE IPOBSE SMEIPOBSE 100 ESGBSE CarbonexBSE GreenexNSE (Rs 0 to 10)NSE (Rs 10 to 20)NSE (Above Rs 20)NSE - AllNSE-50NSE ITNSE Nifty Midcap 50NSE JR. NiftyNSE Bank NiftyNIFTY Next 50NIFTY 100NIFTY 200NIFTY 500NIFTY MidCap 100NIFTY SmallCap 250NIFTY SmallCap 50NIFTY SmallCap 100NIFTY LargeMidCap 250NIFTY MidSmallCap 400NIFTY AutoNIFTY Consumer DurablesNIFTY FinanceNIFTY FMCGNIFTY MediaNIFTY MetalNIFTY PharmaNIFTY Private BankNIFTY PSU BankNIFTY RealtyNIFTY Oil & GasNIFTY SME EmergeNIFTY CommoditiesNIFTY CPSENIFTY EnergyNIFTY India ConsumptionNIFTY InfraNIFTY MNCNIFTY PSENIFTY Serv SectorNIFTY100 Liquid 15NIFTY Midcap Liquid 15NIFTY Midcap 150 Quality 50NIFTY50 Equal WeightNIFTY100 Equal WeightNIFTY100 Low Volatility 30NIFTY100 Alpha 30NIFTY Alpha 50NIFTY Dividend Opportunities 50NIFTY High Beta 50NIFTY Low Volatility 50NIFTY200 Quality 30NIFTY 500 Value 50NIFTY 100 Quality 30SECTORSAgricultureAirlinesAluminiumAsset Management CompaniesAutomobilesAuto AncillariesBanks (Private)Banks (PSU)BankingCementChemicalsDefenceDiagnosticsDronesEngineeringElectric VehicleElectric Vehicle BatteryEnergy SourcesESGEthanolFertilizersFintechFMCGFoodGreen HydrogenHotelsInfrastructureInsuranceInvestment and FinanceInvITIT (Large)IT (Others)LogisticsMediaMetalMiningIndia's Big Tech StocksIndian PharmaMNC PharmaPSUPaintPaperPlasticPowerRating AgenciesReal EstateREITsRenewable EnergyRetailingSemiconductorShippingSteelSugarSupply ChainTelecomTextilesTravel Support Services

10 results 25 results 50 results 100 results All results

Indian Share Market Update: Top Gainers and Losers