Closing Bell: Market down for the fifth consecutive day

Indian stock market down for the fifth consecutive day today. The morning market opened in the green in expectation of a rate cut by the RBI to revive the economy. The global cues were also supportive today. Asian markets were trading in green in the morning and SGX Nifty indicating positive opening.

Market down for the fifth consecutive day

At the close market was down today, Nifty fell 139.20 points and closed at 11174.80 whereas Sensex down 433.56 points and closed 37,673.31. The Bank Nifty also plunged 682.30 points and closed at 27731.80 today. In the mid and small-cap space, the Nifty midcap 100 down 141.60 or 0.90% and Nifty small-cap fell 63.95 or 1.17% during the day.

Details on the sector-wise market down, Media plunged almost 4% followed by Banks, Logistics, Constructions, Auto, Metal and Real Estate. On the gaining side, there are very few like IT, Retail, Ship Building.

The top five Nifty50 gainers of the day are ONGC, Infosys, TCS, Tech Mahindra, and Wipro. The top five Nifty50 losers of the day are Zee Ent, Ultratrech, Grasim, Titan, and Kotak Mahindra. In the nifty midcap space, the top gainers are Info edge and R Capital and losers are Prestige Estate and Sun TV. In the Nifty small-cap, the gainers are UCO Bank and Suzlon Energy and losers are Just Dial and Kalpataru Power.

RBI Policy Today

The main reason for the market down is the commentary of the RBI monetary policy. The Indian market slipped into negative territory as soon as the RBI cut the repo rate by 25 bps to 5.15%. This is the fifth rate cut by RBI in a row. RBI has revised the GDP growth for FY 19-20  from 6.9% in August to 6.1 %. RBI has reduced the reverse repo rate to 4.9% and the bank rate stands at 5.40%. Other than Equity market Rupee and Bond prices also fell after the RBI monetary policy announced today.

Stocks in News 

Citi, the global financial firm has maintained a Buy recommendation on IndusInd Bank with a price target of Rs 1980. The share price IndusInd Bank has gained 0.78% and closed at Rs1265.30 per share.

After the CEO of Yes Bank, Ravneet Gill’s assurance of fundraising plan and offload of promoters pledge shares now the Yes Bank looks attractive to some brokerage house. The share price of Yes Bank down 0.82% and closed at Rs 42.15 per share

After strategic tie-up with ICICI Bank, Goldman Sachs has upgraded the stocks ‘Neutral’ from ‘sell’ and increased the target price. The share price of Wipro gained 0.78% and closed at Rs 237.70 per share

CLSA has maintained a Buy rating on Maruti with a target price of Rs 7950. The share price of Maruti Suzuki fell 1.55% at closing and the price of Rs 6649.60 per share.

The global brokerage house Morgan Stanley has slashed the target price of Zee Ent by 33% on debt concern. The share price of Zee Ent down 5.84% and closed at Rs 236.85 per share.

The Joint venture company of Alembic Pharma got USFDA’s approval for a spray used for treating plaque psoriasis. The share price of Alembic Pharma gained 4.40% and closed at Rs 549.05 per share.

Info Edge holds a 26.38% stake in Zomato. Now Chinese Investor Ant Financial may take 29% and finance $600 million in Zomato. The share price of Info Edge has gained 6.99% and closed at Rs2270.25 per share

Crude and Rupee Update:

Brent crude oil future is trading higher today on the second consecutive day. At present, the Brent crude oil future is trading at $58.20 per barrel almost 0.85% up from the previous close. The Indian rupee is trading at Rs 70.88 against the US dollar.

Conclusions:

The Indian markets are down for five consecutive days today. Today the market fell after the RBI rate cut. We have already discussed in our last report that the market has already discounted the 25bps rate cut and the commentary will be important. RBI has cut the GDP growth from 6.9% to 6.1% which is negative for the short term. Monday market will open as per the global cues.

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Editor desk