Ambani-Bezos tug of war weighs on Sensex; Rs 1.92 lakh crore gone

Reliance Industries was the biggest drag on bluechip indices as investors dumped shares fearing it may not be able to complete the acquisition of Future Group assets.

Reuters
Investors on Dalal Street became poorer by Rs 1.92 lakh crore as the total market cap of BSE-listed firms slid to Rs 158.66 lakh crore at the end of the trading.
NEW DELHI: The tug of war between Mukesh Ambani-led Reliance Industries and Jeff BezosAmazon over Future Group weighed on domestic equity markets on Monday. Meanwhile, weak global cues, lack of clarity on US stimulus and rising Covid cases in Europe and the US also dampened the investor sentiments.

Reliance Industries was the biggest drag on bluechip indices as investors dumped shares fearing it may not be able to complete the acquisition of Future Group assets. Selloff in banking and auto shares also deepened the market crash.

The 30-share pack Sensex tumbled 540 points or 1.33 per cent to 40,145.50. Its broader peer NSE Nifty slumped to 11,767.75, registering a loss of 162.60 points or 1.36 per cent. Investors on Dalal Street became poorer by Rs 1.92 lakh crore as the total market cap of BSE-listed firms slid to Rs 158.66 lakh crore at the end of the trading.


Market at a glance:
  • RIL tanks nearly 4% after setback in Future Group acquisition
  • Kotak Bank gains 2% after beating Street estimates by a huge margin
  • Nestle India among the top Nifty, Sensex gainers after Q2 show
  • Reliance Power continues to gain after doubling its bottomline
  • India VIX, indicator of volatility, surges nearly 5%

“Markets started the week with a cut of over a percent, pressurised by feeble global cues and not so supportive domestic factors. The news of rising Covid cases across Europe and the US is haunting markets across the globe including ours. Besides, participants are hoping for some clarity over the US stimulus package before the US election. Amid all, domestic earnings announcements are further adding to the volatility,” said Ajit Mishra, VP - Research, Religare Broking.

Among bluechip names, HDFC Life Insurance was the biggest gainer, up 3.16 per cent at Rs 582.35. Nestle India, Kotak Mahindra Bank, IndusInd Bank, SBI Life Insurance, L&T and Power Grid were among other major gainers, rising 1-3 per cent.
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Hero MotoCorps was the biggest Nifty loser, crashing 6.69 per cent to Rs 2,902.85. Bajaj Auto, Hindalco, M&M, JSW Steel, UPL, Tata Steel and Reliance Industries were among other top losers from the pack, down 3-6 per cent.

Nifty snip 26
Top 5 Nifty gainers & losers
We feel it’s prudent to maintain positions on both sides in stocks despite the prevailing consolidation bias in Nifty.

-Ajit Mishra, Religare Broking

Broader market indices also suffered losses, following their headline peers. Nifty Smallcap dropped 1.02 per cent while Nifty Midcap dropped 1.71 per cent. Nifty 500, the broadest index on NSE, fell 1.36 per cent.

Polycab India, Syngene International, V-Guard, Thyrocare Technologies, Kaveri Seeds Company and KEI International were among the top gainers from mid and smallcap indices, rising 3-8 per cent.

On the other hand, Coforge, Jindal Steel, Indiabulls Ventures, Laurus Labs, India Cements and Indiabulls Real Estate were major losers from broader market space, falling in the range of 4-8 per cent.
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All sectoral indices ended the day in the red. Nifty Metal was the biggest loser, down 3.50 per cent followed by 3.22 per cent drop in Nifty Auto. Nifty Media, Nifty Realty and Nifty Bank were the next biggest losers.

Market breadth was in favour of losers as 1,000 stocks ended in the green while 1,678 names settled with cuts. As many as 123 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 65 names hit 52-week lows, mostly from the microcap space. About 260 stocks hit upper circuit limits and 221 lower circuit limits.
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European market opened with cuts amid rising Covid cases. Frankfurt’s DAX crashed 2.35 per cent while Paris dropped 0.76 per cent and London fell 0.54 per cent. Asian markets closed mixed with Hong Kong, Taiwan and Indonesia in the green and China, Japan, Singapore and South Korea ended the day in the red.

Let’s prepare for tomorrow:
  • Q2 earnings: Tata Motors and Bharti Airtel are among the top names that will come out with their earnings on Tuesday.
  • US Stimulus: The market will also keep an eye on development in talks over US economic aid bill as a clarity is expected later in the day.
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