Stock market started the week on a weaker note with the equity benchmarks — Sensex and Nifty — crashing around 1.50 per cent. The BSE Sensex ended at 58,773.87, down by 872.28 points or 1.46 per cent while the 50-share Nifty50 settled at 17,490.70, tumbling 267.75 points or 1.51 per cent.
Zee Business Managing Editor Anil SInghvi said that the weakness was largely imported with very little to do with the domestic reasons. The domestic markets took cues from the US markets which exhibited weakness more than expected. Another reason was the strength of Dollar Index (DXY) which has an inverse relationship with the equity markets, the Market Guru said. The third reason was the bond yields which were around 3 per cent in the US.
In the domestic markets, the Nifty50 closing below 17800 on Friday was the first sign of weakness, the Managing Editor said. The Foreign Institutional Investors (FIIs) did a significant selling in the futures market while the Domestic Institutional Investors (DIIs) also booked profits.
Both Nifty50 and Bank Nifty slipped from crucial support levels. There was selling pressure in indices as well as in small cap and mid cap stocks.
10 Things to watch out when markets reopen on Tuesday:
1) Market Expert Sudip Bandopadhya Sudip Bandyopadhyay, Group Chairman at Indi trade Capital-JRG: There isn’t any big trigger for the domestic markets. The earnings season is behind us. Markets are looking for fresh triggers and they are from the global markets. The risk aversion is back with rising bond yields, strengthening USD. All this is weakening the equity markets. The pressure is likely to continue even on Tuesday and we could see volatility, he added.
2) The momentum in Tuesday trading session will depend upon high US markets end on Monday, Singhvi said. The Monday closing levels of Nifty50 and Bank Nifty are important levels and are make or break levels, he added.
3) The next support level for Nifty50 will be 17425 and 17350 while the resistance will be 17625 and 17700.
4) As for Bank Nifty, the support is between 38150 and 38025. The weakness will increase at levels below 38000. If Bank Nifty crosses the 38500 level, an upside will open for levels between 38650 and 38850. Profit booking will be seen at these levels, Singhvi said.
5) Tomorrow’s session will be a make or break session.
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6) Syrma SGS Technology IPO allotment date is Augst 23 (tomorrow), as per discount broker Upstox.
7) Equity investors poorer by over Rs 6.57 lakh crore in two days: A decline in equities for two sessions has eroded investors’ wealth by more than Rs 6.57 lakh crore. In two straight sessions, the benchmark index has tanked 1,524.13 points or 2.52 per cent. The weak trend in the broader market have pulled down the market capitalisation of BSE-listed firms by Rs 6,57,758.04 crore to Rs 2,73,95,002.87 crore (over Rs 273.95 lakh crore) in two days.
8) Gillette India profit jumps two-fold to Rs 68 crore; sales rise 27 pc to Rs 553 crore in April-June.
9) Rupee ends flat at 79.84 against US dollar: The rupee recovered early losses to close flat at 79.84 against the US dollar on Monday amid a strong greenback overseas and massive sell-off in equities. However, lower crude oil prices supported the local unit, forex dealers said. At the interbank foreign exchange market, the local currency opened weak at 79.90 and moved in a range of 79.78 to 79.92 during the session. It finally settled unchanged at 79.84 against the US dollar. The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.20 per cent to 108.38. (PTI)
10) RBL Bank to raise Rs 3,000 crore: RBL Bank on Monday said its board has approved raising up to Rs 3,000 crore to fund the lender’s business growth. The fund raising will be subject to the approval of the shareholders, the bank said in a regulatory filing. Besides, the board has approved issuance of 1.75 crore additional equity stock options exercisable into equivalent number of equity shares fully paid up of Rs 10 each, in addition to residual/remaining options which remain ungranted under ESOP 2018. PTI