Markets at day’s low; Nifty tumbles by 120 points

The benchmark indices extended losses in late afternoon session to trade at intraday lows on rising geopolitical tensions after missile launched by North Korea. Following the same trend, the broader indices also extended their losses. The markets declined more than a percent, as traders also remained concerned with a NITI Aayog’s report that there is a huge gap between what the state governments have done to improve ease of doing business and what the enterprises know of these improvements. On the sectoral front, shares of some sugar companies were trading in red, as government imposed stock limits on sugar mills for the next two months to keep prices under control during the festival season. Meanwhile, the government has started investigations into alleged dumping of Chinese belting fabric used for making conveyor belts following complaint from SRF.

On the global front, European markets were trading in red, as geopolitical concerns surrounding North Korea raised fresh jitters across global markets. Asian markets were also trading in red. Back home, in scrip specific development, Gokak Textiles jumped higher after the company received an approval for issuing Non-cumulative, Non-convertible, Non-Participating, Redeemable Preference Shares of Rs 10 each aggregating to Rs 35 crore in one or more tranches on Private Placement basis to the Shapoorji Pallonji and Company, Promoter and / or any other Promoter Group company.

The BSE Sensex is currently trading at 31386.43, down by 364.39 points or 1.15% after trading in a range of 31364.17 and 31739.80. There were 1 stocks advancing against 30 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.81%, while Small cap index was down by 0.85%.

The top losing sectoral indices on the BSE were Telecom down by 1.99%, Power down by 1.53%, Energy down by 1.42%, Consumer Durables down by 1.42% and Utilities down by 1.31%, while there were no gaining indices on the BSE.

The top gainer on the Sensex was Lupin up by 0.07%. On the flip side, NTPC down by 2.80%, Tata Motors - DVR down by 2.22%, Sun Pharma down by 2.21%, HDFC down by 2.19% and ONGC down by 1.93% were the top losers.

Meanwhile, In order to keep prices under control during the festival season, the government has imposed stock limits on sugar mills for the next two months. The move would boost availability of sugar in the open market, preventing mills from artificially withholding of sugar during the high demand festive season of September and October.

Food Minister Ram Vilas Paswan said that the mills for the month of September can hold upto 21 per cent of the total sugar available with them and for the October month, the stock limit would be 8 per cent of the total sugar availability with the mills during entire 2016-17 marketing year (October- September).

At present, in retail market sugar prices are ruling at more than Rs 40 per kg, while branded sugar is available at Rs 50 per kg. Recently, with an aim to restrict cheap inward shipments and maintain domestic prices, the government had increased import duty on sugar to 50 per cent, up from 40 per cent.

The CNX Nifty is currently trading at 9792.95, down by 119.85 points or 1.21% after trading in a range of 9783.75 and 9887.35. There were 2 stocks advancing against 49 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 0.18% and Zee Entertainment up by 0.13%. On the flip side, NTPC down by 2.74%, Hindalco down by 2.65%, Sun Pharma down by 2.34%, HDFC down by 2.18% and Tata Power down by 2.16% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 98.28 points or 0.35% to 27,765.01, Nikkei 225 decreased 87.35 points or 0.45% to 19,362.55, Taiwan Weighted decreased 29.41 points or 0.28% to 10,496.57, Jakarta Composite decreased 24.52 points or 0.42% to 5,878.82, FTSE Bursa Malaysia KLCI decreased 10.85 points or 0.61% to 1,758.64 and KOSPI Index decreased 5.56 points or 0.23% to 2,364.74. On the flip side, Shanghai Composite increased 2.57 points or 0.08% to 3,365.23.

European markets were trading in red; Germany’s DAX decreased 205.76 points or 1.7% to 11,917.71, UK’s FTSE 100 decreased 98.38 points or 1.33% to 7,303.08 and France’s CAC decreased 70.69 points or 1.39% to 5,009.06.