Benchmark equity indices Sensex and Nifty shed 1 per cent each on Wednesday, tracking weak global markets amid concerns over a growth slowdown in China. Investor sentiment deteriorated also after the government once again missed the Rs 1 lakh crore monthly GST collection target in December.
A fall in revenue collection raises concerns that the government may not be able to contain fiscal deficit at 3.2 per cent of gross domestic product (GDP).
NSEs Nifty50 tanked 117 points to 10,792, while BSE Sensex slipped 363 points to 35,891.
Lets have a look at the highlights of Wednesday's session:
Rs 1.39 lakh cr investor wealth gone
Wednesdays selloff wiped out Rs 1.39 lakh crore worth of market capitalisation of BSE-listed companies. Total market-cap of BSE stocks fell from Rs 144.81 lakh crore on Tuesday to Rs 143.42 lakh crore at the end of Wednesday.
Jet Airways hits air pocket
Shares of Jet Airways slipped 6 per cent after the crisis-hit airline defaulted in debt repayment to a consortium of Indian banks, led by SBI. The scrip settled 6.16 per cent lower at Rs 263.
Rupee tanks again
The rupee fell nearly 1 per cent, or 66 paise, to trade at 70.06 against the US dollar in the afternoon trade amid buying of the US currency and weak equity market.
Metal stocks cracked
Shares of five metals and mining companies such as Tata Steel, JSW Steel and Hindalco plunged after global brokerages CLSA downgraded these stocks to sell, citing weak Chinese demand. Shares of Tata Steel, JSW Steel and Hindalco closed 4.21 per cent, 4.89 per cent and 3.77 per cent down at Rs 493.85, Rs 288.70 and Rs 214.40, respectively. The global brokerage firm maintained a buy rating on both Vedanta and Coal India, but revised price targets to Rs 250 (Rs 300 earlier) and Rs 310 (Rs 360 earlier), respectively. Vedanta shares closed 4.48 per cent down at Rs 193, while those of Coal India settled 4.10 per cent lower at Rs 237.
BoB-Vijaya-Dena Bank share swap ratio
In a regulatory filing, Dena Bank said its shareholders will receive 110 equity shares of Bank of Baroda of face value Rs 2 for every 1,000 shares held. Vijaya Bank shareholders will get 402 equity shares of Bank of Baroda (BoB) for every 1,000 shares held. The announcement came after market hours. Earlier, BoB shares settled 3.16 per cent down at Rs 119.40, while Dena Bank closed 0.28 per cent lower at Rs 17.95 and Vijaya Bank 0.29 per cent higher at Rs 51.05.
60 stocks look ready to fall
Momentum indicator moving average convergence divergence, or MACD, showed bearish crossovers on 60 counters on NSE, signalling that these stocks may witness a fall in the coming sessions. Among them were Ashok Leyland, Vedanta, Hindalco Industries, Bharat Petroleum Corporation, Reliance Industries, L&T Finance Holdings, Coal India and Motherson Sumi Systems. On the other hand, 30 stocks, including LT Foods, FirstSource Solutions, Emami, Ramco Industries, Minda Industries and Natco signalled bullish crossovers.
Who moved my Sensex
In absolute terms, HDFC proved the biggest drag on Sensex, followed by Reliance Industries, HDFC Bank, Mahindra and Mahindra, Maruti Suzuki and State Bank of India. In percentage terms, Vedanta (down 4.48 per cent), Tata Steel (down 4.21 per cent), Mahindra & Mahindra (down 4.15 per cent) and Tata Motors (down 2.91 per cent) were top losers in the 30-share pack.
Spurt in open interest
With a 13.54 per cent change in open interest, Escorts led the stocks that witnessed biggest spurt in open interest on NSE. It was followed by Eicher Motors (13.50 per cent), Mahindra & Mahindra (12.06 per cent), IGL (10.84 per cent) and Indian Bank (10 per cent).
Most active stocks
Reliance Communications (number of shares traded 9.20 crore), JP Associates (4.46 crore), Ashok Leyland (4.01 crore), YES Bank (3.26 crore) and Punjab National Bank (2.71 crore) were the most traded stocks on NSE in terms of volume while Eicher Motors (Rs 1040.86 crore), Reliance Industries (Rs 795.53 crore), Mahindra & Mahindra (Rs 791.11 crore), SBI (Rs 762 crore), ICICI Bank (Rs 665.62 crore) and Maruti Suzuki (Rs 654.46 crore) were most active in terms of value.
Nifty formed bearish candle
The index formed a small bearish candle on the daily chart and made lower low formation for the second session. It eventually closed a tad above its 200-day moving average around 10,790 level. The daily strength indicator RSI has turned bearish along with a negative crossover, which supports bearish sentiment. Chandan Taparia of Motilal Oswal Securities said that the index, which had been moving in a rising channel, was finding multiple hurdles near 10,950-10,985 zone from last couple of sessions.