X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2019 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Indian Indices Witness Huge Selling, Faltering Economic Growth, and Top Cues in Focus Today
Mon, 24 Jun Pre-Open | Monish Vora, TM Team

On Monday, India share markets witnessed selling pressure and ended their trading day deep in the red. Auto stocks, telecom stocks and energy stocks witnessed most of the selling pressure.

At the closing bell on Monday, the BSE Sensex stood lower by 407 points (down 1%) and the NSE Nifty closed down by 108 points (down 0.9%).

The BSE Mid Cap index ended down 0.4%, while the BSE Small Cap index ended up 0.1%.

Top Stocks in Focus Today

From the IT sector, Mindtree share price will be in focus today as the board of the company approved the appointment of Larsen & Toubro's (L&T) nominees as directors. In an exchange filing, the IT firm said its board had approved induction of five new directors into the company's board, which will come for shareholders' approval in its next annual general meeting on July 16.

In March, L&T had initiated a hostile takeover bid on Mindtree when it entered into a deal to buy Cafe Coffee Day owner V G Siddhartha's 20.3% stake.

As per the reports, the combination of the two companies will help create an entity with a higher turnover of close to Rs 120 billion, closer to larger rivals such as Wipro and TCS.

From the banking sector, market participants will be tracking Yes Bank share price as the stock witnessed huge selling pressure last week after credit agency Moody's put the company under review for a downgrade.

From the pharma sector, Aurobindo Pharma share price will be in focus today as the company has received a warning letter from the USFDA. The company in a BSE filing made last week said that it has received a warning letter dated June 20, 2019, from USFDA relating to Unit XI, API manufacturing facility situated at Srikakulam district in Andhra Pradesh.

--- Advertisement ---
The New India Is Here…This Book Reveals How to Potentially Profit From it!

The Secrets Identifying  10X StocksThe New India is already here. We see change happening all around us every single day.

Sadly, most people don't know the full story, and are hence missing out on a once-in-a-lifetime opportunity.

That's the reason our Co-Head of Research, Tanushree Banerjee, decided to write a book on this transformation. And to show people how to potentially profit BIG from it.

And for a limited time, you could get a copy of this book worth Rs 1,950 virtually FREE.

Nearly 2,000 copies of it have been claimed already. So don't delay.

Click here to find out how to get this book virtually FREE…
------------------------------

Economic Activity Losing Traction: Shaktikanta Das

In the news from the macroeconomic space, Reserve Bank of India (RBI) governor Shaktikanta Das said that the Indian economy has been clearly losing traction and needs a decisive monetary policy to promote growth.

In the minutes of the June meeting released on Thursday last week, with inflation in India well within the monetary policy committee's (MPC) mandated target, it was noted that is crucial to give higher importance to faltering economic growth.

The MPC in June cut its key interest rate by 25 basis points, a third straight cut since the start of 2019, while also changing its stance to "accommodative," after data showed the economy growing at its slowest in more than four years.

As per the minutes, Asia's third largest economy grew at a slower-than-expected 5.8% in the last quarter, far below the pace needed to generate jobs for the millions of young Indians entering the labour market each month.

Members broadly suggested that inflation is expected to stay within the MPC's mandated medium-term target of 4% despite the upside risks.

Concerns of an uptick in inflation from a sustained rise in food prices, uncertainties related to the monsoon and volatility in international crude oil prices remain and will be monitored, most members said.

Though the minutes suggested that the committee may be open to more rate cuts, not all may be in favour if the budget, to be presented on 5th July, is expansionary.

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

Recent Developments in the Automobiles Sector...

Tata Motors share price will be in focus today. The stock of the company witnessed selling pressure last week after rating agency Moody's downgraded the stock.

Moody's Investors Service downgraded Tata Motors' corporate family rating (CFR) and senior unsecured instruments rating, citing sustained deterioration in the company's credit profile mainly on account of its British arm Jaguar Land Rover's weak performances.

Moody's also said the outlook on Tata Motors remains negative. Tata Motor's corporate family rating and the company's senior unsecured instruments rating have been downgraded to Ba3 from Ba2, the rating agency said in a statement.

In other news, Maruti Suzuki announced that Dzire is now compliant with "AIS-145 Safety Norms" (both Petrol and Diesel).

The company said this will result in a price increase in all variants of Dzire.

Speaking of automobiles sector, according to a report by the Federation of Automobile Dealers' Associations (FADA), retail auto sales in May that fell 7.5% from a year ago show that the overall consumer sentiment is poor. Latest data shows that production cuts will continue as retail demand continues to falter.

After the growth in January, auto sales growth has declined every month. Rating agency CRISIL share price pegs FY20 growth at 3% for passenger vehicles (PVs) and two-wheelers and 6-8% for commercial vehicles (CVs).

Note that, passenger sales fell 20.5% in May 2019 compared to May 2018. This follows a 17.1% year on year decline in April as well.

The decline in May was the worst seen since 2001.

Here's what Tanushree Banerjee wrote about it in one of the recent editions of The 5 Minute WrapUp...

  • Multiple factors have affected the auto sector of late.

    The liquidity crisis faced by NBFCs, regulatory changes leading to increased costs, new emission norms... they have all taken their toll.

    Also, this sector is ripe for disruption with electric vehicles and ride sharing applications.

    Maruti, India's largest car maker announced it would stop making diesel cars from April next year.

    The coming one year will be a real test for India's auto companies.

    It will also tell us if this slowdown is temporary or if there has been a structural change in the sector.

    There is one thing I know for sure, dear reader. Only the ones adapting their business models to the rapidly changing environment will survive and thrive.

Crude Oil and OPEC Meet

Crude oil witnessed buying interest last week. Gains were seen on the back of tensions in the Middle East after Iran shot down a US military drone.

Also, hopes of a drop in US interest rates by the Fed that may stimulate global growth fueled the momentum.

Market participants will be closely tracking crude oil prices in the coming weeks ahead of the OPEC meet.

The members of the Organization of the Petroleum Exporting Countries (OPEC) have agreed to meet on July 1, followed by a meeting with non-OPEC allies on July 2 where they will discuss whether to extend a deal on cutting 1.2 million barrels per day of oil production that runs out this month.

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

To know more about commodity and currency markets and which are the best counters to trade in this space, you can read one of Vijay Bhambwani's recent articles: Why Do I Recommend Trading Only Nickel, Crude oil, Gold, Copper, and USDINR?

And 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

Equitymaster requests your view! Post a comment on "Indian Indices Witness Huge Selling, Faltering Economic Growth, and Top Cues in Focus Today". Click here!

  

Stock Market Updates

Sensex Ends 228 Points Higher; Metal and Energy Stocks Witness Buying (Today's Market)

Aug 23, 2019 Closing

While the BSE Sensex closed higher by 228 points, NSE Nifty closed higher by 88 points.

INFO EDGE Plunges by 5%; BSE IT Index Up 1.1% (Today's Market)

Aug 23, 2019 03:26 PM

INFO EDGE share price has plunged by 5% and its current market price is Rs 2,019. The BSE IT is up by 1.1%. The top gainers in the BSE IT Index are TATA ELXSI (up 7.2%) and ORACLE FINANCIAL (up 4.2%). The top losers are INFO EDGE (down 5.4%) and PERSISTENT SYSTEMS (down 5.3%).

ESCORTS LIMITED Surges by 5%; BSE AUTO Index Up 1.5% (Today's Market)

Aug 23, 2019 03:20 PM

ESCORTS LIMITED share price has surged by 5% and its current market price is Rs 454. The BSE AUTO is up by 1.5%. The top gainers in the BSE AUTO Index is ESCORTS LIMITED (up 5.2%). The top losers is EICHER MOTOR (down 1.1%).

CASTROL INDIA Surges by 5%; BSE OIL & GAS Index Up 3.4% (Today's Market)

Aug 23, 2019 03:16 PM

CASTROL INDIA share price has surged by 5% and its current market price is Rs 120. The BSE OIL & GAS is up by 3.4%. The top gainers in the BSE OIL & GAS Index are CASTROL INDIA (up 5.1%) and BPCL (up 5.2%). The top losers [TOPLOSERS].

GE POWER INDIA LTD Surges by 11%; BSE CAPITAL GOODS Index Down 0.3% (Today's Market)

Aug 23, 2019 03:14 PM

GE POWER INDIA LTD share price has surged by 11% and its current market price is Rs 822. The BSE CAPITAL GOODS is down by 0.3%. The top gainers in the BSE CAPITAL GOODS Index is GE POWER INDIA LTD (up 10.7%). The top losers are ELGI EQUIPMENTS (down 0.1%) and THERMAX (down 0.2%).

VODAFONE IDEA Surges by 10%; BSE 500 Index Up 0.9% (Today's Market)

Aug 23, 2019 02:26 PM

VODAFONE IDEA share price has surged by 10% and its current market price is Rs 6. The BSE 500 is up by 0.9%. The top gainers in the BSE 500 Index are VODAFONE IDEA (up 10.1%) and STERLITE TECH. (up 13.3%). The top losers are PAGE INDUSTRIES and GSK CONSUMER (down 0.1%).

View More Indian Share Market News

Most Popular

This 60-Year Old Smallcap Company Could Be Our Next Recommendation(The 5 Minute Wrapup)

Aug 12, 2019

My experience at the recent AGM of this smallcap company which has financials of any FMCG major.

Interest Rates Are Low. Buy Solid Dividend Stocks Instead(The 5 Minute Wrapup)

Aug 13, 2019

The dividends paid by these stocks are helpful when interest rates are falling.

Smallcaps that Will Outperform in the Market Rebound(Profit Hunter)

Aug 12, 2019

Only These Smallcaps Will Give Historic Returns in the Future.

My Top 3 Dividend Stocks to Buy Now(Profit Hunter)

Aug 19, 2019

As markets continue to rattle amid earning season, upcoming elections, volatile crude price and US China trade war, it's a great idea to add some stability to your portfolio by adding dividend stocks.

Chandrayaan 2 Heads to the Moon and It's Good News for These Stocks(The 5 Minute Wrapup)

Aug 14, 2019

Why investors should take note of India's advantage as a low cost satellite launcher...

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2019
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Aug 23, 2019 (Close)

MARKET STATS