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 Trades 300 Points Lower; Axis Bank & Bajaj Finance Top Losers
Fri, 22 May 12:30 pm | Monish Vora, TM Team

Share markets in India are presently trading on a volatile note. Benchmark indices edged lower today even after the Reserve Bank of India (RBI) slashed repo rate by 40 bps to 4%.

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

Barring IT stocks, all sectoral indices are trading on a negative note with stocks in the finance sector, metal sector and banking sector witnessing most of the selling pressure.

The BSE Sensex is trading down by 301 points (down 1%), while the NSE Nifty is trading down by 85 points (down 1%).

The BSE Mid Cap index is trading down by 0.6% and the BSE Small Cap index is trading down by 0.2%.

Gold prices are trading up by 0.8% at Rs 46,761 per 10 grams.

The rupee is trading at 75.77 against the US$.

--- Advertisement ---
A One Stock Gift in 1990 is Now Worth Rs 130 Crores. Here's The Full Story...

In 2017, Ravi made headlines by calling a leading business news channel with a surprising announcement - his grandfather had left him 20,000 shares of only one stock.

And on the day of his call - these shares were worth Rs 130 crore.

Can you guess which is this company?

It's MRF.

Ravi's story is one of the amazing stories of becoming Crorepati from a single stock.

But the question is, how to find that one stock that could make one a crorepati?

To find the answer to this million-dollar question, join our 'One Stock Crorepati' MEGA summit on 17th July, where we will reveal details of what we call a 'crorepati' stock...

Register NOW and Block Your 'Crorepati' Seat...
------------------------------

Market participants are tracking Bosch share price, UPL share price, and JSW Steel share price as these companies are scheduled to announce their March quarter results (Q4FY20) later 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 banking sector, shares of Bandhan Bank slipped over 6% today after the private lender said its services have been impacted in some areas of West Bengal and Odisha due to cyclone Amphan and the cyclone is likely to impact business worth Rs 2.6 billion.

In a regulatory filing, the bank said, "as per the initial assessment, in our areas of operations, 49 banking units (micro banking outlet) in five districts were impacted of which 45 are operational today."

The bank further said, it could continue operations in all but five branches in the affected districts. Where the outlets could not continue services, it was due to issues in accessibility.

As per estimate, the business of around 65,000 of its micro banking borrowers, amounting to an exposure of approximately Rs 2.6 billion could be impacted due to the cyclone.

Bandhan Bank share price is presently trading down by 5.5%.

Moving on to news from the macroeconomic space, in a new set of measures to trim the impact of coronavirus on the economy, the Reserve Bank of India (RBI) today decided to cut the repo rate by 40 basis points (bps) from 4.4% to 4%.

The reverse repo rate has been reduced to 3.35%.

RBI Governor Shaktikanta Das said that RBI's Monetary Policy Committee (MPC) met again from May 20-22. MPC voted to 5:1 majority to reduce the policy repo rate by 40 basis points.

The RBI also extended the moratorium on payment of loans by another three months till August to provide much-needed relief to borrowers.

Earlier in March, the apex bank had allowed a three-month moratorium on payment of all term loans due between March 1, 2020, and May 31, 2020.

As a result of this moratorium, individuals' EMI repayments of loans taken were not deducted from their bank accounts. The EMI payments will restart only once the moratorium time period expires on August 31.

Here are some key takeaways from RBI's press conference:

RBI governor Shaktikanta Das said that the private consumption, which comprises 60% of the GDP, has taken the biggest hit. Both the demand compression and supply disruption has taken a toll on the economy.

On economic growth in the current fiscal, the RBI projected negative growth with a pickup in growth impulses in second half.

NOW REVEALED: 5 Best Stocks That Could Possibly Surge Up to 300% In the Long-Term

The special refinancing facility of Rs 150 billion to SIDBI at repo rate for 90 days for lending & refinance operations has been further rolled over for another 90 days at the end of initial 90 days period.

The RBI said it will extend Rs 150 billion line of credit to EXIM Banker.

The RBI increased export credit period to 15 months from 1 year.

The governor said inflation outlook is highly uncertain due to the outbreak of the COVID-19 pandemic and expressed concern over elevated prices of pulses. He also said there is a need to review import duties to moderate prices.

He said that headline inflation may remain firm in the first half of the year and may ease in second half. He added that inflation may fall below 4% in the third or fourth quarter of the current fiscal.

Note that in March, the RBI governor had announced several measures to ease liquidity pressure in the banking system and to boost the economy from the coronavirus shock, including a sharp 75 basis points rate cut in March.

With the RBI cutting interest rates, the focus of market participants has now shifted to whether the RBI's decision will translate into better economic activity in the near term.

Note that RBI rate cuts have always had a big gap with bank lending rates. This is evident in the chart below:

Yet Another RBI Rate Cut May Not Result in Lower Lending Rates

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

  • It will be a while before lower lending rates stoke the economy.

    Therefore, hoping for an immediate revival in the economy is futile. The RBI has no magic wand to do this.

    Rather look for stocks that can outperform irrespective of the RBI policy.

    I believe the cement sector may be a good place to start.

    One of my recent recommendations from the sector is a typical Rebirth of India stock.

    And I won't be surprised if it repeats its 2002-2006 performance.

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 Trades 300 Points Lower; Axis Bank & Bajaj Finance Top Losers". Click here!

  

Stock Market Updates

GRANULES INDIA at All Time High; BSE HEALTHCARE Index Up 0.6% (Today's Market)

Jul 9, 2020 03:22 PM

GRANULES INDIA share price has hit an all time high at Rs 226 (up 7.4%). The BSE HEALTHCARE Index is up by 0.6%. Among the top gainers in the BSE HEALTHCARE Index today are GRANULES INDIA (up 7.4%) and SANOFI INDIA (up 1.2%). The top losers include ALKEM LABORATORIES and FORTIS HEALTHCARE .

SUNTECK REALTY Share Price Up by 5%; BSE REALTY Index Up 0.4% (Today's Market)

Jul 9, 2020 03:14 PM

SUNTECK REALTY share price is trading up by 5% and its current market price is Rs 192. The BSE REALTY is up by 0.4%. The top gainers in the BSE REALTY Index is SUNTECK REALTY (up 5.1%). The top losers are PRESTIGE ESTATES (down 0.1%) and SOBHA LIMITED (down 0.5%).

GULF OIL LUBRICANTS Share Price Up by 6%; BSE OIL & GAS Index Up 0.2% (Today's Market)

Jul 9, 2020 01:44 PM

GULF OIL LUBRICANTS share price is trading up by 6% and its current market price is Rs 603. The BSE OIL & GAS is up by 0.2%. The top gainers in the BSE OIL & GAS Index is GULF OIL LUBRICANTS (up 5.6%). The top losers are BPCL (down 0.5%) and INDRAPRASTHA GAS (down 0.7%).

SHRIRAM TRANSPORT Share Price Down by 5%; BSE 500 Index Up 0.6% (Today's Market)

Jul 9, 2020 01:42 PM

SHRIRAM TRANSPORT share price is trading down by 5% and its current market price is Rs 769. The BSE 500 is up by 0.6%. The top gainers in the BSE 500 Index are GRANULES INDIA (up 5.3%) and HINDALCO (up 5.2%). The top losers are SHRIRAM TRANSPORT (down 5.1%) and CENTURY PLYBOARDS (down 5.6%).

SHILPA MEDICARE Share Price Up by 5%; BSE HEALTHCARE Index Up 0.4% (Today's Market)

Jul 9, 2020 12:26 PM

SHILPA MEDICARE share price is trading up by 5% and its current market price is Rs 514. The BSE HEALTHCARE is up by 0.4%. The top gainers in the BSE HEALTHCARE Index are SHILPA MEDICARE (up 5.3%) and GRANULES INDIA (up 5.3%). The top losers are PFIZER and ABBOTT INDIA (down 0.1%).

Sensex, Nifty Extend Gains; Bajaj Finance & Tata Steel Surge Over 4% (Today's Market)

Jul 9, 2020 12:30 pm

The BSE Sensex is trading up by 255 points, while the NSE Nifty is trading up by 73 points.

View More Indian Share Market News

Most Popular

How to Find the Best Stocks for Day Trading - 1(Fast Profits Daily)

Jul 2, 2020

In the first of two videos, I'll show you how to identify the best stocks for intraday trading.

Two Agri Stocks Are Likely to Outperform Even in this Market(Profit Hunter)

Jul 2, 2020

Why we have recommended two agriculture stocks for our Hidden Treasure subscribers. Read on...

A Warning for Traders: Don't Get Addicted to Hopium(Fast Profits Daily)

Jun 30, 2020

If you are a trader, you must watch out for this dangerous addiction.

Smallcaps Are in a Sweet Spot Again: Are You Buying?(Profit Hunter)

Jul 3, 2020

This is why I believe smallcaps are the place to be in the near future.

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


Jul 9, 2020 (Close)

MARKET STATS