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Sensex drops over 140 pts; Nifty ends below 11,200
07-Oct-19   16:53 Hrs IST

Key equity benchmarks extended losses for sixth straight trading session on Monday. Negative Asian cues spoiled investors' sentiment. The barometer index, the BSE Sensex, fell 141.33 points or 0.38% to 37,531.98. The Nifty 50 index fell 48.35 points or 0.43% to 11,126.40.

Domestic stock markets will remain closed on Tuesday, 8 October 2019, on account of Dussehra.

The market breadth was tilted in favour of sellers. On the BSE, 892 shares rose and 1629 shares fell. A total of 230 shares remain unchanged.

The broader market was under pressure. The S&P BSE Small-Cap index fell 0.24%. The S&P BSE Mid-Cap index fell 0.75%.

After opening higher, the Nifty 50 index reversed gains in early trade. Buying emerged at lower levels and pushed the index to fresh intraday high in morning trade. The 50-unit index traded in narrow range with modest gains for most part of the session. Sudden selling pressures in late trade dragged the index below 11,200 mark.

In the past six trading sessions, the Sensex shed 3.74% while the Nifty tumbled 3.86% from recent closing high on 26 September 2019.

In the foreign exchange market, the partially convertible rupee edged lower. It hovered at 71.015, compared with its close of 70.885 during the previous trading session.

In the commodities market, Brent crude for December 2019 settlement was up 47 cents at $58.83 a barrel. The contract rose 66 cents or 1.14% to settle at $58.37 a barrel in the previous trading session.

Overseas, European shares bounced back from early lows. Most Asian stocks ended lower on Monday. Investors awaited a fresh round of US-China trade negotiations set to begin later this week.

Principal-level trade negotiations between the United States and China are reportedly set to begin on Thursday in Washington. Tariffs on $250 billion worth of Chinese goods are scheduled to rise to 30% on 15 October 2019. Both countries have slapped tariffs on billions of dollars worth of each other's goods, which has roiled global markets, created uncertainty and dampened economic growth outlooks around the world.

US markets rallied on Friday after data showed the U.S. unemployment rate dropped to the lowest in almost 50 years, easing concerns of a slowdown in the world's largest economy. US jobs data released Friday showed moderate growth as the jobless rate in September fell to a 50-year low while non-farm payrolls rose by 136,000 in September.

On the equity front, Tata Motors fell 1.76%. Jaguar Land Rover (JLR) retail sales for the quarter ending 30 September 2019 were 128,953 vehicles, slightly down (-0.7%) compared to the same period a year ago. These results reflect an encouraging recovery of JLR retail sales in China (up 24.3%), with a third consecutive month of double-digit sales growth for the company in the region. Sales were also up slightly in Europe (+0.9%), offset by lower sales in the US (-1%), UK (-5.1%) and in overseas markets (-19.2%).

Yes Bank gained 8.19% to Rs 45.60 on reports that the bank is in talks with three top technology companies, including Microsoft Corp., to induct one of them as a strategic shareholder. According to reports, Yes Bank could sell as much as 15% through a fresh equity issuance. The plan is part of the bank's strategy to get fresh capital infusion and augment its digital ambitions.

The bank, however, clarified during trading hours today that it was not aware of the source, which resulted in the above mentioned news item and as a matter of policy, the bank would not like to comment on such article.

HDFC Bank fell 0.11%. The bank said its advances rose 19% to approximately Rs 897000 crore as of 30 September 2019 as compared to Rs 750800 crore as of 30 September 2018 (Rs 829700 crore as of 30 June 2019). The bank's deposits rose 22% to approximately Rs 1021500 crore as of 30 September 2019 as compared to Rs 833400 crore as of 30 September 2018 (Rs 954600 crore as of 30 June 2019). The bank's CASA ratio stood at around 39.2% as of 30 September 2019, as compared to 42% as of 30 September 2018 and 39.7% as of 30 June 2019. During the quarter ended 30 September 2019, the bank purchased loans aggregating Rs 7160 crore through the direct assignment route under the home loan arrangement with Housing Development Finance Corporation.

Bajaj Finance rose 0.05% to Rs 3904.80. The company said its assets under management (AUM) rose 38.25% at approximately Rs 135,500 crore as of 30 September 2019 as compared to Rs 98,013 crore as of 30 September 2018. Customer franchise as of 30 September 2019 stood at approximately 38.7 MM as compared to 30.1 MM as of 30 September 2018. During the quarter, the company acquired 1.9 MM new customers. New loans booked during Q2 FY20 were 6.5 MM as compared to 5.3 MM in Q2 FY19. During the quarter, the company has entered into facility agreement with various banks toavail ECB loans of $575 million in one or more tranches. The company has not yet drawn any amount from these facilities.

Pharmaceutical stocks witnessed selling pressure. The Nifty Pharma index tumbled 3.35% at 7,148.95.

Aurobindo Pharma slumped 19.16% to Rs 458.50 on reports that the US drug regulator issued Form 483 to the company's unit 7 in Telangana. According to reports, the US Food and Drug Administration (USFDA) issued a Form 483 with 7 observations to the company's unit 7 in Telangana citing lack of good manufacturing practices. The observations related to control procedures, documentation, equipment cleanliness and quality control, reports added.

Glenmark Pharmaceuticals tumbled 9.30% to Rs 286.30 after the company said it received a warning letter from the US drug regulator for its Baddi facility in Himachal Pradesh.

Lupin fell 2.59% to Rs 668.80. The drug major announced after market hours on Friday, 4 October 2019, the launch of Mycophenolate Mofetil Capsules USP, 250 mg. Lupin's alliance partner Concord Biotech (Concord) had received an approval from the United States Food and Drug Administration (U.S. FDA) earlier.

Dr Reddy's Laboratories fell 0.15%. The drug major informed that it received the Establishment Inspection Report (EIR) from US FDA, for the above-referred facility, indicating closure of the audit and the inspection classification of this facility is determined as Voluntary Action Initiated (VAI). The announcement was made on Saturday, 5 October 2019.

Ashok Leyland fell 5.51%. The automobile giant said it will observe non-working days ranging from 2-15 days in October 2019 to align production. Auto ancillary major, Bosch fell 1.83% to Rs 13,036 after the company said it will observe no production days for upto 10 days per month per plant during the third quarter of the financial year 2019-2020. In order to align production with sales requirements, Bosch at its various plants belonging to powertrain solutions division, will continue to observe no production days ranging upto ten days per month per plant during the third quarter of the financial year 2019-2020. The announcement was made after trading hours on Friday, 4 October 2019.

BEML fell 0.49% to Rs 936.70. The company said it bagged further orders in Metro from Delhi Metro Rail Corporation (DMRC) for 'RS15' - design, manufacture, supply, testing and commissioning of 80 units broad gauge intermediate cars compatible with existing 'RS1' type trains for conversion of 6-car train set to 8-car train set valuing Rs 729 crore approximately. The announcement was made after market hours on Friday, 4 October 2019.

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