Sensex, Nifty recover from day’s low points

Indian equity benchmarks recovered from day’s low points in late afternoon session, on the back of positive cues from European markets. Losses on the streets got trimmed, after capital markets regulator SEBI eased its norms for buyback of shares by listed companies, especially those having subsidiaries in housing finance and NBFC segments. However, trade remained in red, amid RBI’s data report showing that India's forex reserves declined by $388 million to $428.572 billion for the week ended September 20 due to a slide in core currency and gold assets. In the week to September 20, foreign currency assets, a major component of overall reserves declined by $125 million to $396.670 billion.

On the global front, European markets were trading mostly in green, after Eurozone unemployment rate unexpectedly dropped in August to its lowest level in more than a decade. The preliminary data from Eurostat showed that the seasonally adjusted unemployment rate fell to 7.4 percent from 7.5 percent in July. However, Asian markets were trading in red.

Back home, auto stocks were in watch, after credit rating agency, India Ratings and Research (Ind-Ra) in its latest report revised its outlook on the automobile sector to stable-to-negative from stable for the remaining FY20. The agency is expecting high, single-digit volume de-growth in the range of 8%-9% Y-o-Y in total domestic volumes in FY20.

The BSE Sensex is currently trading at 38642.80, down by 179.77 points or 0.46% after trading in a range of 38401.09 and 38873.12. There were 9 stocks advancing against 21 stocks declining, while 1 stock remain unchanged on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.20%, while Small cap index was down by 1.19%.

The top gaining sectoral indices on the BSE were Telecom up by 2.67%, IT up by 2.20%, TECK up by 2.17%, Energy up by 1.20% and Oil & Gas up by 0.40%, while Bankex down by 2.63%, Healthcare down by 1.74%, Realty down by 1.63%, Basic Materials down by 1.26% and Consumer Durables down by 1.16% were the top losing indices on BSE.

The top gainers on the Sensex were HCL Tech up by 3.72%, Bharti Airtel up by 3.61%, Infosys up by 2.72%, TCS up by 2.03% and ITC up by 1.96%. On the flip side, Yes Bank down by 14.34%, Indusind Bank down by 8.06%, Sun Pharma down by 3.56%, ICICI Bank down by 3.50% and SBI down by 3.48% were the top losers.

Meanwhile, amid weak urban and rural consumption along with limited credit availability and the rising cost of ownership, credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has revised its outlook on the automobile sector to stable-to-negative from stable for the remaining FY20. The agency is expecting high, single-digit volume de-growth in the range of 8%-9% Y-o-Y in total domestic volumes in FY20.

According to the report, although 1HFY20 witnessed sharp de-growth in volumes, the second half of the year will see flat-to-low single-digit growth, aided by the festive season and pre-buying due to the likely price rise from April 2020 after the enforcement of the Bharat Stage VI (BS-VI) emission norms. However, the overall vehicle growth for FY20 is expected to be subdued.

Further, Ind-Ra noted that the credit metrics of auto original equipment manufacturers (OEMs) are likely to remain resilient in 2HFY20, albeit at lower levels than those observed over FY15-FY19. Besides, the agency added that EBITDA margins and leverage of auto OEM sector are likely to moderate in FY20 due to weak volumes and the heavy discounts being offered to promote sales.

The CNX Nifty is currently trading at 11458.95, down by 53.45 points or 0.46% after trading in a range of 11390.80 and 11508.25. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 3.92%, HCL Tech up by 3.50%, Infosys up by 2.85%, UPL up by 2.83% and ITC up by 2.13%. On the flip side, Yes Bank down by 13.85%, Indusind Bank down by 8.02%, Sun Pharma down by 3.73%, ICICI Bank down by 3.54% and SBI down by 3.47% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 123.06 points or 0.56% to 21,755.84, Jakarta Composite lost 29.67 points or 0.48% to 6,167.22, Shanghai Composite declined 12.53 points or 0.43% to 2,919.64 and Straits Times was down by 6.92 points or 0.22% to 3,118.71. On the flip side, KOSPI rose 13.12 points or 0.64% to 2,063.05 and Hang Seng was up by 153.15 points or 0.59% to 26,107.96.

European markets were trading mostly in green; CAC gained 5.57 points or 0.10% to 5,646.15 and DAX surged 2.91 points or 0.02% to 12,383.85, while FTSE was down by 11.08 points or 0.15% to 7,415.13.