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 260 Points Lower; Finance and Banking Stocks Witness Huge Selling
Fri, 22 May Closing | Monish Vora, TM Team

Indian share markets witnessed negative trading activity today and ended their trading session lower.

The Reserve Bank of India's (RBI) move to cut repo rate by 40 basis points (bps) failed to cheer markets.

Selling pressure was seen as RBI Governor Shaktikanta Das said the GDP growth in FY21 is expected to be in negative territory.

Sectoral indices ended on a mixed note with stocks in the finance sector and banking sector witnessing selling pressure, while IT stocks and healthcare stocks ended in green.

At the closing bell, the BSE Sensex stood lower by 260 points and the NSE Nifty closed down by 67 points.

The SGX Nifty was trading at 9,041, down by 34 points, at the time of writing.

The BSE Mid Cap index and the BSE Small Cap index ended their day down by 0.8% and 0.2%, respectively.

Asian stock markets finished on a negative note. Japanese shares fell today as risk sentiment was hit after China's plans to impose a new security legislation on Hong Kong fueled worries over Sino-US tensions.

The Nikkei erased early gains and dropped 0.8%. Meanwhile, the Hang Seng tumbled the most in almost five years on back of the above news.

The Hang Seng dipped 5.6%, or 1,349.89 points today, its biggest decline since July 2015.

Gold prices are currently trading up by 1.2% at Rs 46,944.

The rupee is trading at 75.95 against the US$.

Note that the coronavirus impact has shaken markets worldwide. After all, 2020 has already seen one of the worst market crashes in history.

Will the 2020 Market Crash Be Worse than 2009?

Naturally, there is an atmosphere of fear all round.

Is it time to sell stocks now? Will the correction get worse?

History has shown that after years like the one we had just now, the next 3 years are good for the markets. In fact, these corrections are the rare times when you find businesses with solid fundamentals at reasonable valuations.

If you can find good businesses that can survive the current crisis, you will do well in the long run.

Meanwhile, in the video below, Rahul Shah, talks about how you can be 'Aatma Nirbhar' or self-reliant in your stock selection. He talks about some simple methods and principles so that you are able to buy stocks on your own and not be dependent on anyone.

Tune in to find out more...

Moving on, market participants were tracking Bosch share priceUPL share price, and JSW Steel share price as these companies announced their March quarter results (Q4FY20) today.

You can read our recently released Q4FY20 results of other companies here: Ultratech CementBajaj AutoL&T InfotechNescoSanofi IndiaApollo TyresAjanta PharmaGrindwell NortonJubilant Foodworks.

In news from the IT sector, shares of NIIT Technologies surged 9% intraday today after the company announced that its Rs 3,374-million buyback offer will commence from May 29.

The company, in a regulatory filing, said that the regulator had provided an extension for dispatching the letter of offer within 15 days from the closure of the lockdown as mandated by the government.

The buyback offer will open on May 29 and close on June 11.

Last year in December, the company had said its board has approved a proposal to buy back up to 1.95 million fully paid-up equity shares of a face value of Rs 10 each at a price of up to Rs 1,725.

Earlier this month, the company's board also approved the change of name of the company from 'NIIT Technologies' to 'Coforge', subject to shareholders' approval and other necessary approvals, if any.

Note that last month, the markets regulator had eased the 12-month cooling-off period that companies have to observe between buybacks and equity fundraising.

A company is restricted from raising further capital for one year from the expiry of the buyback period.

The market regulator had said "to enable quicker access to capital, it has been decided to temporarily relax the period of restriction provided in regulation 24(i)(f) of the buyback regulations. Accordingly, the words "one year" shall be read as "six months" in the said regulation."

Many companies have launched share buybacks amid a sharp fall in their stock prices. Some of these companies include Motilal Oswal Financial ServicesDelta CorpDalmia Bharat, Emami and Kalpataru Power.

Speaking of buybacks, as a shareholder in cash rich companies, you should not only be wary of expensive buybacks. But if possible use it to your advantage to rake in some cash.

As per Rahul Shah, co-head of Research, investors should not assume buybacks are always good. Here's an excerpt of what he wrote in one of the editions of The 5 Minute Wrapup:

  • The reason behind the buyback must be investigated. At the end of the day, an increase in earnings should be more a function of the inherent robustness of the business, as that's what will help it continue to grow at a healthy pace.

Moving on to news from the finance sector, SBI Cards and Payment Services share price witnessed huge selling pressure today.

Stock of the company slipped 9% to Rs 495 on the BSE after the Reserve Bank of India (RBI) announced an extension of the moratorium on loan EMIs by three months.

The non-banking finance company's stock was trading at its lowest level since listing on March 16, 2020.

In a surprise move, the RBI today decided to cut the repo rate by 40 basis points from 4.4% to 4%. The reverse repo rate has been reduced to 3.35%.

It also extended the moratorium on loan repayments by three more months. In March, the central bank had allowed a three-month moratorium on payment of all term loans due between March 1, 2020, and May 31, 2020.

For the working capital facilities, the interest payment has been deferred by another three months, in-line with extension of moratorium on term loans.

SBI Cards is the second largest credit card issuer in India.

Earlier this month, the company had reported a 71% year-on-year (YoY) decline in pre-tax profit at Rs 1.1 billion Q4FY20, due to additional bad loan provisioning of Rs 4.9 billion factoring in Covid-related disruption.

Apart from SBI Cards, shares of other financials including banks, housing finance companies and non-banking finance companies (NBFCs) witnessed selling pressure today, on back of the above news.

Shares of AU Small Finance Bank, Bajaj Finance, Axis Bank, Bandhan Bank, HDFC and ICICI Bank fell in the range of 4-8%.

Meanwhile, shares of Union Bank of India, Power Finance Corporation and Mahindra & Mahindra Financial Services hit their respective 52-week lows in intraday trade today.

What effects RBI's measures have on Indian stocks markets and the Indian economy remains to be seen. Meanwhile we will keep you updated on the latest developments from this space.

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


What else is happening in the markets today? Dig in...

Equitymaster requests your view! Post a comment on "Sensex Ends 260 Points Lower; Finance and Banking Stocks Witness Huge Selling". Click here!

  

Stock Market Updates

Sensex Zooms 879 Points; Consumer Durables and Metal Stocks Rally (Today's Market)

Jun 1, 2020 Closing

While the BSE Sensex closed higher by 879 points, NSE Nifty closed higher by 246 points.

DIVIS LABORATORIES at All Time High; BSE HEALTHCARE Index Up 0.4% (Today's Market)

Jun 1, 2020 03:33 PM

DIVIS LABORATORIES share price has hit an all time high at Rs 2,493 (up 3.5%). The BSE HEALTHCARE Index is up by 0.4%. Among the top gainers in the BSE HEALTHCARE Index today are DIVIS LABORATORIES (up 3.5%) and ABBOTT INDIA (up 0.7%). The top losers include DR. LAL PATHLABS LTD (down 0.2%) and LAURUS LABS LTD (down 0.3%).

AJANTA PHARMA Plunges by 5%; BSE HEALTHCARE Index Up 0.5% (Today's Market)

Jun 1, 2020 03:19 PM

AJANTA PHARMA share price has plunged by 5% and its current market price is Rs 1,544. The BSE HEALTHCARE is up by 0.5%. The top gainers in the BSE HEALTHCARE Index are PIRAMAL ENTERPRISES (up 15.0%) and NARAYANA HRUDAYALAYA LTD (up 9.2%). The top losers is AJANTA PHARMA (down 5.1%).

PNB Surges by 11%; BSE BANKEX Index Up 3.3% (Today's Market)

Jun 1, 2020 03:01 PM

PNB share price has surged by 11% and its current market price is Rs 30. The BSE BANKEX is up by 3.3%. The top gainers in the BSE BANKEX Index is PNB (up 10.6%).

ASHOK LEYLAND Surges by 10%; BSE AUTO Index Up 3.7% (Today's Market)

Jun 1, 2020 02:55 PM

ASHOK LEYLAND share price has surged by 10% and its current market price is Rs 47. The BSE AUTO is up by 3.7%. The top gainers in the BSE AUTO Index is ASHOK LEYLAND (up 10.0%). The top losers is HERO MOTOCORP (down 1.0%).

PERSISTENT SYSTEMS Surges by 5%; BSE IT Index Up 1.9% (Today's Market)

Jun 1, 2020 02:01 PM

PERSISTENT SYSTEMS share price has surged by 5% and its current market price is Rs 552. The BSE IT is up by 1.9%. The top gainers in the BSE IT Index are PERSISTENT SYSTEMS (up 5.0%) and HEXAWARE TECHNOLOGIES (up 5.4%). The top losers is ORACLE FINANCIAL (down 0.9%).

View More Indian Share Market News

Most Popular

6 Charts Showing the State of Indian Financial Markets in 2020(Sector Info)

May 26, 2020

Six charts showing how Indian financial markets have performed in 2020 so far...

What the RBI's Rate Cut Means for Options Traders(Fast Profits Daily)

May 25, 2020

The RBI governor has cut the repo rate to 4%. What does this mean for options traders? Find out in this video.

Which Stocks Should You Buy, Sell, and Hold in the Market Today?(Profit Hunter)

May 21, 2020

The coronavirus led uncertainty refuses to go away from the markets. Here's what retail investors should do with their stocks...

Why We Picked This Smallcap Stock for a Post Coronavirus World(Profit Hunter)

May 28, 2020

Covid-19 has made it a survival of the fittest race for many companies. The ones that can adapt will thrive in a post crisis world.

More

India's #1 Trader
Reveals His Secrets

The Secret to Increasing Your Trading Profits Today
Get this Special Report, The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Jun 1, 2020 (Close)

MARKET STATS