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 Continue Downtrend; Sensex Ends 48 Points Lower
Tue, 23 Jul Closing | Monish Vora, TM Team

After opening the day on a flat note, share markets in India witnessed selling pressure during closing hours and ended marginally lower.

Sectoral indices ended on a mixed note with finance stocks and automobile stocks witnessing maximum selling pressure, while FMCG stocks and power stocks witnessed buying interest.

At the closing bell, the BSE Sensex stood lower by 48 points and the NSE Nifty closed down by 15 points. The BSE Mid Cap index ended the day down 0.6%, while the BSE Small Cap index ended the day up by 0.4%.

Asian stock markets finished on a positive note. As of the most recent closing prices, the Hang Seng was up 0.3% and the Shanghai Composite was up by 0.5%. The Nikkei 225 was up 1%.

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

Speaking of share markets in general, there's been a heavy sell-off in the Indian stock markets following the Union Budget 2019. Since the Budget announcement, investor wealth worth Rs 8.8 lakh crore has been wiped out.

The biggest sellers in the ongoing correction are foreign investors.

Why are foreign investors dumping Indian stocks?

Ankit Shah answers this question in one of the latest edition of The 5 Minute WrapUp. Here's an excerpt of what he wrote...

  • One of the main reasons is the higher tax burden on the super-rich in the form of additional surcharge.

    All individuals and association of persons (AOPs) come under the purvey of this additional surcharge.

    Why does this bother foreign investors?

    Here's the thing - several foreign portfolio investors (FPIs) are structured as AOPs, limited liability partnerships and trusts.

    As such, if they earn over Rs 2 crore a year, they will be subjected to the higher tax surcharge.

    So, for a foreign investor earning between Rs 2 crore and Rs 5 crore, the effective tax rate goes up from 35.88% to 39%. And those earning more than Rs 5 crore income in India, the tax rate goes up from 35.88% to 42.74%.

    FPI were hoping that the Finance Minister would relax the tax burden for them. But Nirmala Sitharaman stayed her ground and rejected the pleas. Here's what she suggested them to do instead: 'FPIs should consider the option of structuring themselves as companies rather than trusts to avoid paying the increased surcharge announced in Budget 2019.'

FPIs have been on a selling spree in the latest month. Have a look at the chart below that shows the net monthly flows of foreign investors in the Indian stock markets:

Foreign Investors Turn Net Sellers After Five Months of Buying

Foreign Investors Turn Net Sellers After Five Months of Buying

In the month of July, foreign investors have so far sold off equities worth Rs 7,143 crore.

It's certainly not a small amount. But one must also see the sell-off in the larger context - foreign investors have been net buyers of Indian equities in 2019.

Stock Alert: Our Top 5 Stocks to Buy Now

Since the start of the year, their net investment in Indian equities is worth Rs 71,937 crore. They have been net buyers in five out of seven months.

So, the ongoing sell-off should not be seen as foreign investors exiting India for good. They will come back when the valuations get more attractive to compensate for the higher tax burden.

So, look out for the stocks that will rise fast when the tide of the market turns up.

In news from the banking sector, market participants were tracking Yes Bank share price. Shares of the private lender declined over 3% in early trade today after promoter Rana Kapoor pledged 100 million shares, accounting for 4.31% of the total share capital.

As per an article in The Economic Times, the shares were pledged as security to the holders of debentures issued by Morgan Credits (MCPL), a promoter group entity. Morgan Credits itself pledged 70.2 million shares of Yes Bank.

The two promoters pledged a total of 7.34% holdings in favour of Milestone Trustship Services, the debenture trustee, for the benefit of the holders of debentures issued by MCPL.

As of June 30, 2019, Rana Kapoor held 4.31% stake, while Madhu Kapoor held 7.56%. Morgan Credits, Yes Capital (India) and Mags Finvest - all promoter group entities - held 3.03%, 3.26% and 1.61% stake, respectively.

Reportedly, Rana Kapoor pledged his shares as a security for his daughters' ventures. Kapoor said his daughters' firm had unsecured borrowings and he offered his own shares as security.

Note that last week, the lender reported a 91% drop in Q1FY20 on account of higher provisioning and lower other income.

Asset quality deteriorated, with gross non-performing assets (NPAs) as a percentage of total loans rising to 5% as against 3.2% in the previous quarter.

--- 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
------------------------------

The bank saw an addition of fresh bad loans worth Rs 62.3 billion in the quarter, even as it upgraded or recovered Rs 16.8 billion and wrote off bad loans worth Rs 3.4 billion.

To know more, you can read Yes Bank's Q1FY20 Result analysis on our website.

Moving on to news from the IT sector, Mastek share price slipped 10% intra-day after the company reported 7.8% increase in its consolidated net profit at Rs 242.2 million for the June 2019 quarter from Rs 224.6 million in the year-ago period.

Revenue from operations during the quarter grew 1.4% to Rs 2475.4 million as compared to Rs 2440.4 million in June 2018 quarter.

Company's management said the reported quarter numbers were lower than expected, due to Brexit uncertainty. The company's core UK market generates around 75% of global revenue.

The company added 9 new clients in June quarter and its total client count was at 154.

To know more, you can read Mastek's latest result analysis on our website.

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 Continue Downtrend; Sensex Ends 48 Points Lower". 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