Sensex Remains Rangebound; HDFC AMC & Reliance Nippon Tumble Over 8%

Wed, 19 Sep 12:30 pm

   Previous Close   

   Pre-Open   

   09:30 am   

   0   

Stock markets in India are trading in a range with positive bias in the afternoon session amid firm cues in the Asian markets and a recovery in rupee. Gains are largely seen in metal stocks and energy stocks.

The BSE Sensex is trading up by 66 points and the NSE Nifty is trading up by 26 points. Meanwhile, the BSE Mid Cap index and the BSE Small Cap index are trading down by 0.5% & 0.1% respectively.

In the latest development, shares of asset management companies slumped on fears of the impact on their revenue and profitability after the markets regulator reduced the total expense ratio. HDFC AMC and Reliance Nippon AMC were trading at their lowest levels since their trading debut.

The regulator on Tuesday capped the total expense ratio for equity-oriented mutual fund schemes (close-ended and interval schemes) at 1.25% and for other schemes at 1%. The cap for fund of funds will be 2.25% for equity-oriented schemes and 2% for other schemes.

Oil & gas stocks are trading on a mixed note with ONGC & GAIL being among the top gainers. As per an article in a leading financial daily, ONGC Videsh Ltd, the overseas investment arm of Oil and Natural Gas Corp (ONGC) is planning to exit Kazakhstan's Satpayev block after it could not find commercially exploitable oil.

OVL had in April 2011 bought 25% of Satpayev oil block. It paid US$13 million as a signing amount to Kazakhstan and an additional US$80 million as a one-time assignment fee to JSC NC KazMunaiGas (KMG), the national oil company of Central Asian nation.

Satpayev was OVL's entry into hydrocarbon-rich Kazakhstan. But its exploration campaign hasn't met with much success, the reports noted.

Reportedly, OVL drilled the committed two exploration wells on the block without any commercial hydrocarbon success.

The company had sent almost US$300 million (about Rs 17.3 billion) on the block so far.

With its exit from Satpayev block, OVL would now have stakes in 40 projects in 19 countries like Vietnam, Myanmar, Russia, Syria, Egypt, Libya, Nigeria, Sudan, Brazil, Colombia, Venezuela and Cuba.

At the time of writing, ONGC share price was trading up by 2.3%.

To know more about the company, you can access to ONGC's Q1FY19 result analysis and ONGC's Stock Analysis on our website.

Moving on to the news from the currencies space. The rupee strengthened marginally against the US dollar today tracking mixed Asian market. In the early trade today, the rupee was trading at 72.78 to a dollar, up 0.23% from its Tuesday's close of 72.97. The home currency opened at 72.70 per dollar.

The US decision to impose 10% tariffs on US$200 billion of Chinese goods from 24 September saw Beijing retaliate with tariffs on US$60 billion of US imports. US President Donald Trump is expected to carry out his threat of further tariffs on about US$267 billion of Chinese imports.

On Tuesday, the rupee touched an all-time low of 72.97 to a dollar.

The 10-year gilt yield stood at 8.127% on Wednesday, below its previous close of 8.14%. Bond yields and prices move in opposite directions.

The rupee has weakened 12.2% in 2018, while foreign investors have sold US$771.3 million and US$6.5 billion in the equity and debt markets, respectively.

Since January, the Sensex has gained 9.5%.

Asian currencies were trading mixed. The Indonesian rupiah was down 0.32% and the South Korean won 0.1%. The Taiwan dollar was up 0.08% and the Thai Baht 0.07%.

The dollar index, which measures the US currency's strength against major currencies, was trading at 94.635, down 0.01% from its previous close of 94.64.

Talking about currency wars and the falling rupee, Kunal Thanvi, editor of Smart Money Secrets did a small exercise to understand the impact of the weak rupee on the markets.

Should You Be Worried About the Rising Dollar?

India is a net importer. This means if the rupee is weak, the cost of imports increases and value of the export decreases - resulting in a widening current account deficit.

A high current account deficit also impacts the government's spending power.

Also, companies which import raw material witness pressure on their margins and profitably. Here's an excerpt of what Kunal wrote in the recent edition of The 5 Minute WrapUp:

• "So, this looks quite negative on the face of it. So, it's not surprising that markets get volatile when the currency depreciates.
  
  Look at Indian rupee against the dollar from 1990. It has deprecated at a compounded annual rate of 5%.
  
  Yes, the dollar has been on a winning streak from the beginning.
  
  And despite that... the BSE Sensex has returned 14% compounded annually since 1990.
  
  Thus, the falling rupee can bring volatility to the market in the short-term. But in the long-term, our market should be fine.
  
  This is exactly what I keep in mind when picking stocks for Smart Money Secrets subscribers. I cut out the noise of short-term disruptions and look at the long-term picture beyond."

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