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?  

Sensex Ends 560 Points Lower; Auto and Banking Stocks Witness Huge Selling
Fri, 19 Jul Closing | Monish Vora, TM Team

India share markets continued to witness selling pressure during closing hours and ended their day deep in the red.

At the closing bell, the BSE Sensex stood lower by 560 points (down 1.4%) and the NSE Nifty closed down by 90 points (down 1.5%).

The BSE Mid Cap index ended the day down 2%, while the BSE Small Cap index ended the day down 1.8%.

Sectoral indices ended on a negative note with stocks in the auto sector and banking sector witnessing most of the selling pressure.

Last Time: Watch the Re-Airing of our 'One Stock Crorepati' Mega Summit

The rupee was trading at 68.91 against the US$.

Asian stock markets finished on a positive note. As of the most recent closing prices, the Hang Seng was up by 1.1% and the Shanghai Composite was up by 0.79%. The Nikkei 225 was up 2%.

European markets were also trading on a positive note. The FTSE 100 was up by 0.19%. The DAX was trading up by 0.31%, while the CAC 40 was up by 0.17%.

Market participants were tracking RBL Bank share price, Bandhan Bank share price, and IndiGo share price as these companies announced their June quarter (Q1FY20) results today.

You can also read our recently released Q1FY20 results: Mindtree, Wipro, Yes Bank, Federal Bank, Colgate, Tata Elxsi.

In the news from global financial markets, John Williams, vice chairman of the Fed's rate-setting committee, made a case for aggressive interest rate cut. He said when rates and inflation are low, policymakers cannot afford to keep their powder dry and wait for potential economic problems to materialise.

Meanwhile, Fed Board of Governors Vice Chair Richard Clarida said policymakers might need to act early to stimulate the US economy as an insurance policy against rising risks.

Stock Alert: Our Top 5 Stocks to Buy Now

Moving on to the news from the macroeconomic space, Finance Minister Nirmala Sitharaman announced that foreign portfolio investors (FPIs) should consider the option of structuring themselves as companies rather than trusts to avoid paying the increased surcharge announced in Budget 2019.

She said that FPIs registered as trusts will have to pay the new tax surcharge.

The development ruled out hopes that the government may tweak relevant portions of the Finance Bill to ring-fence FPIs from the effects of the super-rich tax.

So far in July, FPIs have pulled out more than Rs 50 billion from the cash segment of the Indian equity markets.

From the banking sector, RBL Bank share price was in focus today as the private sector lender reported double-digit growth across key parameters in June quarter.

Profit during the quarter grew 41% year-on-year (YoY) to Rs 2.67 billion in Q1FY20. The growth here was driven by strong net interest income (NII), operating income, and other income.

Net interest income, the difference between interest earned and interest expended, increased 48% to Rs 8.17 billion YoY. Net interest margin stood at an all-time high of 4.3% and healthy loan growth at 35%.

Asset quality remained stable during the quarter as gross non-performing assets (NPAs) stood unchanged at 1.38% of gross advances and net NPA fell 0.65% against 0.69% on sequential basis.

Slippages, however, remained high at Rs 2.25 billion at the end of June quarter against Rs 2.06 billion in Q4FY19.

Provisions for bad loans increased 6.6% sequentially and 52% YoY to Rs 2.13 billion in the quarter ended June 2019.

As per the management commentary, there is some weakness going ahead due to tight liquidity concerns, which dented investors sentiment and resulted in a sharp fall in stock price.

Speaking of the banking sector, it was reported that the scheduled commercial banks (SCBs) credit growth moderated to 12% YoY compared with 12.7% growth in May 2019. The credit growth has improved from 10.9% at end June 2018.

Co-head of Research at Equitymaster, Tanushree Banerjee believes retail and corporate credit are expected to grow by multi-fold over the next few years.

Rising Credit Growth in India

Rising Credit Growth in India

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

  • One theme I strongly believe will play out over the next decade is the credit growth in India.

    The growth I foresee will be due to two reasons. Expanding GDP and credit penetration.

    Recent reforms like Jan Dhan, Mudra Yojna have helped Small and Medium Enterprises (SME's) and self-employed professionals to gain access to loans.

    Credit penetration is also expected to increase in this segment from current levels.

    Over the past few years, a lot of banks and NBFCs have started lending to this segment.

So, look out for strong well-established financial services players which will benefit the most from this trend.

In the news from commodity markets, crude oil was witnessing buying interest today. Oil prices rose by more than 1% today after the US Navy destroyed an Iranian drone in the Strait of Hormuz, a major chokepoint for global crude flows.

The above development again stoked tensions in the Middle East.

It was a volatile week for crude oil. The commodity saw losses during the past two sessions after official data showed US stockpiles of products like gasoline rose sharply last week.

--- Advertisement ---
Urgent: 'One Stock Crorepati' mega summit will re-air at 1 pm

Yesterday, we went LIVE with our 'One Stock Crorepati' MEGA Summit at 5 pm which thousands of people attended to learn about the 'Crorepati Stock' opportunity…

Now, we have decided to give our readers one last chance to learn about the 'Crorepati Stock' opportunity.

That is why we are re-airing the 'One Stock Crorepati' Summit at 1 PM today.

Here are the things you will get from the summit:

Details of a 'crorepati stock' that could potentially make you a lasting fortune
A '5-minute blueprint' to finding out potential multibaggers in the market
A Breakdown and analysis of how some people became Crorepatis from a single stock
And a lot more!

Remember: This event is could be a gamechanger for you and can save you years of frustration and failure to pick the right multibagger stock.

So, don't miss it for any reason.

Claim your free seat right away before we end the free registrations
------------------------------

As per the data, US domestic crude supplies fell for a fifth straight week. According to data released by the US Energy Information Administration (IEA), US crude inventory for the week ended July 12 fell 3.11 million barrels to 455.88 million barrels.

Meanwhile, volatility was also seen on the back of ongoing geopolitical tensions in the Middle East.

Iran this week said that a small oil products tanker missing in the Strait of Hormuz was in its territorial waters. This stoked fraught relations with Iran's neighbors and the West over threats to shipping in the key oil chokepoint.

How this all pans out remains to be seen. Meanwhile, we will keep you updated on all the developments from this space.

Speaking of crude oil, in the video below, Vijay Bhambwani explains how trading in crude oil is an evergreen strategy. As per him, trading in crude oil offers excellent opportunities in nearly all market conditions due to its unique standing within the world's economic and political systems.

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 "Sensex Ends 560 Points Lower; Auto and Banking Stocks Witness Huge Selling". 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