After opening the day flat share markets in India are trading on a volatile note and are presently trading below the dotted line. Sectoral indices are trading on a mixed note, with stocks in the energy sector and stocks in the PSU sector witnessing maximum buying interest.
The BSE Sensex is trading down by 35 points (down 0.1%) and the NSE Nifty is trading down by 30 points (down 0.3%). Meanwhile, the BSE Mid Cap index is trading down by 0.6%, while the BSE Small Cap index is trading down by 1%. The rupee is trading at 74.17 to the US$.
In news from stocks in the auto sector. Tata Motors share price among the top losers today after the company's subsidiary Jaguar Land Rover (JLR) reported a fall in sales.
JLR Rover reported a 12.3% decline in global sales, and announced shutdown of its West Midland plant for two weeks due weak global demand.
The company's sales in China declined by 46.2% during September compared to the same month last year as ongoing market uncertainty resulting from import duty changes and continued trade tensions held back consumer demand.
The Tata Motors share price fell as much as 14% in intraday trade to Rs 183-a level last seen in 2012.
Tata Motors has corrected significantly since the beginning of the year. But its not the only one. The average stock has crashed over 46% from its 52-week high.
Here's what Ankit Shah, Research Analyst and Editor of Insider wrote in a recent edition of The 5 Minute WrapUp:
While the recent market crash and the macro uncertainty is a big cause of worry for investors, it must be recalled that Indian stocks were driven to unsustainably expensive valuations on the back of a flood of domestic liquidity.
The ongoing market crash has brought down stock valuations to more reasonable levels. This may be a good time to scoop up great long-term investing opportunities.
Of course, this doesn't mean that stocks couldn't crash further if things get worse.
The correction could last longer.
But looking at the history of equity returns, I can tell you that this would be just a passing correction phase.
Despite all the volatility and periodic crashes, equities are still one of the most rewarding and safe asset classes over the long run.
Moving on to news from stocks in the banking sector. Yes Bank share price is in focus today after it was reported that the succession plan for the bank is already underway and will reach is logical conclusion.
Notably, Yes Bank needs to find a new CEO to replace the outgoing Promoter CEO Rana Kapoor as the Reserve Bank of India (RBI) refused to extend his tenure.
Earlier it was reported that the bank had appointed two former chairmen -- TS Vijayan of LIC and OP Bhatt of SBI to its search and selection committee to find the CEO's successor.
Notably, Yes Bank shares have plunged by nearly 50% from their 52-week highs after RBI's decision to cut short Rana Kapoor's tenure. On September 17, RBI curtailed the CEO's term to January 31, 2019 without citing any reason.
While the bank's board has initiated proceedings to find a new CEO it has also petitioned to the RBI to grant an extension to Rana Kapoor. The bank's board earlier said that it would ask the Reserve Bank of India (RBI) to grant an extension of eight months to managing director (MD) and chief executive Rana Kapoor.
The board will first seek an extension for Kapoor till 30 April for finalization of financial statements for the year to 31 March, and thereafter a further extension till 30 September for completing the annual general meeting process, it said in an exchange filing.
At the time of writing, Yes Bank share price was trading up by 4%.
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