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Monday, May 25, 2020

Market Highlights: Sensex cracks 788 points as US-Iran tensions scares investors

Share Market LIVE, Stock Market Highlights: Everything that happened in equity, money and commodity markets on Monday.

By: Express Web Desk | New Delhi | Updated: January 6, 2020 5:40:47 pm
The benchmark indices on BSE and NSE ended nearly 2 per cent lower on Monday amid US-Iran tensions. (File photo)

Share/Stock Market Highlights: The benchmark equity indices on the BSE and National Stock Exchange (NSE) crashed nearly 2 per cent on Monday amid geopolitical tensions in the oil-producing region of West Asia involving Iran and the US.

The S&P BSE Sensex cracked 787.98 points or 1.90 per cent to settle at 40,676.63. During the day the 30-share benchmark index fell as much as 850.65 points to touch an intraday low of 40,613.96.

HDFC twins, which comprise of HDFC Bank and HDFC and oil-to-telecom heavyweight Reliance Industries (RIL) were the biggest contributors to Sensex’s fall on Monday.

On the other hand, the broader Nifty 50 fell 233.60 points or 1.91 per cent to end the day below the 12,000-mark at 11,993.05. The 50-share index fell to an intraday low of 11,974.20 during the trade, down 252.45 points from Friday.

All the sectoral indices on NSE ended in a sea of red on Monday, with Nifty PSU Bank index being the top loser of the day. The index fell 4.34 per cent dragged by Canara Bank, Punjab National Bank (PNB), Bank of Baroda and State Bank of India (SBI).

Apart from PSU bank index, the Nifty Metal, Nifty Bank, Nifty Financial Services, Nifty Media, Nifty Private Bank, Nifty Realty and Nifty Auto fell in the range of 2.32-2.90 per cent on Monday.

The broader market indices underperformed their benchmark peer on Monday. The S&P BSE MidCap settled at 14,765.85, down 348.70 points or 2.31 per cent, while the S&P BSE SmallCap index ended at 13,715.18, down 273.71 points or 1.96 per cent.

(with inputs from agencies)

Live Blog
17:40 (IST)06 Jan 2020
Rupee at close

The rupee plunged 13 paise to settle at 71.93 against the US currency on Monday, weighed down by the spike in global crude oil prices as escalating US-Iran tensions fanned fresh fears of conflict in the Middle East.

Forex traders said growing geopolitical tensions could continue to keep the domestic unit under pressure.

At the interbank foreign exchange, the rupee opened weak at 72.03 against the US dollar. During the day, the domestic unit touched a low of 72.11. The local unit recovered some lost ground and finally closed at 71.93 against the US dollar, lower by 13 paise over its previous closing.

(PTI)

16:55 (IST)06 Jan 2020
Petrol prices up 15 paisa, diesel by 17 paisa as crude hits $70-mark

Petrol prices on Monday were hiked by 15 paisa a litre and diesel rates were increased by 17 paisa as global oil prices hit USD 70 mark in the wake of escalating US-Iran tensions fanning fresh fears of conflict in the crude-rich Middle East.

The retail pump prices of petrol in Delhi rose to Rs 75.69 per litre – the highest since November 2018, while those of diesel climbed to Rs 68.68, according to a price notification of state-owned fuel retailers. Click here to read the story

16:21 (IST)06 Jan 2020
Global crude oil update

Oil prices rose a further 2 per cent on Monday, pushing Brent above $70 a barrel, as rhetoric from the United States, Iran and Iraq fanned tensions in the Middle East after a U.S. air strike which killed a top Iranian military commander.

Brent crude futures soared to a high of $70.74 a barrel and was at $69.74 at 0940 GMT, up $1.14, or 1.66 per cent, from Friday's settlement. US West Texas Intermediate crude was at $63.92 a barrel, up 87 cents, or 1.38 per cent, after touching $64.72, the highest since April.

The gains extended Friday's more than 3 per cent surge after a US air strike in Iraq killed Iranian military commander Qassem Soleimani on Friday, heightening concerns about an escalation in conflict in the Middle East and the possible impact on oil supplies. The region accounts for nearly half of the world's oil production, while a fifth of the world's oil shipments pass through the Strait of Hormuz.

(Reuters)

16:17 (IST)06 Jan 2020
MARKET QUOTE | Vinod Nair, Head of Research, Geojit Financial Services on Monday's market crash

"The ground reality is unstable, global market feels that this tension can escalate further. Investors are closing their current position and shifting to haven assets leading to a mount in bond yield, oil and gold prices."

16:15 (IST)06 Jan 2020
BSE Sensex: Gainers and losers of the day

28 out of 30 shares in S&P BSE Sensex ended in red on Monday. In percentage terms, Bajaj Finance, SBI, IndusInd Bank, Maruti Suzuki, HDFC and Hero MotoCorp were the biggest losers of the day on the Sensex. Only Titan Company and Power Grid ended in green on Monday.

Source: BSE
16:01 (IST)06 Jan 2020
MARKET QUOTE | S Ranganathan, Head of Research at LKP Securities on Monday's market crash

"US-Iran-Middle East tensions spooked Indian Markets badly throughout the day as Financials & Metals led the fall which was pretty broad-based. Risk-Off was evident as Gold jumped to a 7 year high. Rising Oil prices also took a toll on our markets"

15:42 (IST)06 Jan 2020
Equity markets at close

The S&P BSE Sensex cracked 787.98 points or 1.90 per cent to settle at 40,676.63. During the day the 30-share benchmark index fell as much as 850.65 points to touch an intraday low of 40,613.96. On the other hand, the broader Nifty 50 fell 233.60 points or 1.91 per cent to end the day below the 12,000-mark at 11,993.05. The 50-share index fell to an intraday low of 11,974.20 during the trade, down 252.45 points from Friday.

15:29 (IST)06 Jan 2020
Global market update

Tensions in the Middle East after the killing of a top Iranian general by the United States erased new year gains for a gauge of world shares on Monday as investors pushed safe-haven gold to a seven-year high, and oil jumped to its highest since September.

The United States detected a heightened state of alert by Iran's missile forces, as President Donald Trump warned the US would strike back, "perhaps in a disproportionate manner", if Iran attacked any American person or target.

European shares extended losses and were set for their worst day in a week, with the pan-European STOXX 600 index down 1.12 per cent by 0838 GMT. The European oil and gas stock index rose about 0.74 per cent and was the sole gainer among its peers, hitting its highest since July.

MSCI's All-Country World Index, which tracks shares in 47 countries, was down 0.43 per cent, erasing all its new year gains in its biggest two-day fall since early December. In Asia, Japan's Nikkei slid almost 2 per cent in a sour return from holiday, while E-Mini futures for the S&P 500 fell 0.7 per cent. Chinese shares, which had opened in the red, reversed their losses, as did Australian shares which ended the day flat. Hong Kong's Hang Seng index lost 0.8 per cent.

(Reuters)

15:20 (IST)06 Jan 2020
NSE approaches markets regulator Sebi for IPO

The National Stock Exchange (NSE) on Monday said it has approached markets regulator Sebi for its initial public offering and hopes to launch the public issue by September this year subject to approvals.

“We have approached Sebi to seek its approval for the IPO and after that we will start the process of appointing merchant bankers, who will help the exchange in filing draft prospectus for the IPO,” NSE MD and CEO Vikram Limaye told PTI here. Click here to read the report

14:50 (IST)06 Jan 2020
Soybean futures slump on weak domestic cues

Soybean prices on Monday fell by Rs 124 to Rs 4,234 per quintal in futures market as traders cut down their positions amid weak cues from physical markets.

On the National Commodity and Derivatives Exchange, soybean to be delivered in January contracts moved down by Rs 124, or 2.85 per cent, to Rs 4,234 per quintal with an open interest of 70,530 lots.

Soybean for delivery in February contracts also eased by Rs 125, or 2.86 per cent, to Rs 4,258 per quintal with an open interest of 1,89,725 lots.

The fall in soybean prices in futures trade was mostly due to reduction of exposure by participants, marketmen said.

(PTI)

14:49 (IST)06 Jan 2020
Mustard seed futures slide on muted demand

Mustard seed prices on Monday dropped by Rs 75 to Rs 4,539 per quintal in futures trade as speculators cut down their positions on subdued demand.

On the National Commodity and Derivatives Exchange, mustard seed contracts for January delivery fell by Rs 75, or 1.63 per cent, to Rs 4,539 per quintal in a business turnover of 13,560 lots. Mustard seed contracts for February delivery declined by Rs 72, or 1.56 per cent, to Rs 4,544 per quintal in a business turnover of 9,540 lots.

Marketmen said offloading of positions by participants following a weak trend in spot market led to fall in mustard seed prices.

(PTI)

14:47 (IST)06 Jan 2020
Guar gum futures fall over 2 per cent on subdued demand

Guar gum prices on Monday dropped by Rs 164 to Rs 7,290 per five quintal in futures market as traders offloaded their positions amid subdued demand.

Marketmen said trimming of positions by participants amid weak demand dragged down guar gum prices here.

On the National Commodity and Derivatives Exchange, guar gum contracts for January delivery slipped by Rs 164, or 2.2 per cent, to Rs 7,290 per five quintal in 16,050 lots. Guar gum contracts for February delivery eased by Rs 160, or 2.12 per cent, to Rs 7,386 per five quintal in 52,225 lots.

(PTI)

14:45 (IST)06 Jan 2020
Cottonseed oil cake futures fall on low demand

Cottonseed oil cake prices on Monday fell by Rs 51 to Rs 2,088 per quintal in futures trade as participants reduced their bets amid a weak trend in spot market.

Market players said sell-off by participants at the existing levels amid subdued trend in market mainly weighed on cottonseed oil cake prices.

On the National Commodity and Derivatives Exchange, cottonseed oil cake to be delivered in January fell by Rs 51, or 2.38 per cent, to Rs 2,088 per quintal with an open interest of 41,590 lots. Cottonseed oil cake for delivery in February went down by Rs 50, or 2.31 per cent, to Rs 2,112 per quintal in 63,060 lots.

(PTI)

14:44 (IST)06 Jan 2020
Coriander futures slump over 3 per cent on weak demand

Coriander prices on Monday plunged Rs 246 to Rs 6,425 per quintal in futures trade as speculators reduced their positions amid sluggish demand in spot market.

On the Multi Commodity Exchange, coriander contracts for January fell by Rs 246, or 3.69 per cent, to Rs 6,425 per quintal in 6,940 lots. Similarly, coriander contracts for April delivery declined by Rs 248, or 3.49 per cent, to Rs 6,865 per quintal in 8,080 lots.

Market analysts said subdued demand in spot market mainly led to decline in coriander prices in futures trade.

(PTI)

14:43 (IST)06 Jan 2020
Rising demand lifts copper futures

Copper prices on Monday traded up by 0.20 per cent at Rs 442.70 per kg in futures market on the back of pick-up in spot demand.

On the Multi Commodity Exchange, copper contracts for delivery in January traded higher by 90 paise, or 0.20 per cent, at Rs 442.70 per kg in a business turnover of 2,531 lots. Similarly, the metal for delivery in February edged up by 45 paise, or 0.10 per cent, to Rs 445.90 per kg in 197 lots.

Analysts attributed the rise in copper prices to raising of bets by participants driven by a pick-up in spot demand.

(PTI)

14:42 (IST)06 Jan 2020
Nickel futures gain on spot demand

Nickel prices on Monday edged up by Rs 8.20 to Rs 1,028.10 per kg in futures trade as speculators built positions owing to rising demand from alloy-makers in domestic market.

On the Multi Commodity Exchange, nickel contracts for January delivery gained Rs 8.20, or 0.8 per cent, to Rs 1,028.10 per kg in a business turnover of 3,264 lots. The metal for delivery in February gained Rs 8.60, or 0.84 per cent, to Rs 1,027.20 per kg in a business turnover of 36 lots.

Rising demand in spot market from alloy-makers mainly supported price rise in nickel futures, analysts said.

(PTI)

13:41 (IST)06 Jan 2020
Paddy futures update

Paddy futures on the Indian Commodity Exchange (ICEX) were trading down by 2.02 per cent at Rs 3,349 following the news that domestic trade body All India Rice Exporters' Association (AIREA) asked exporters not to undertake any shipment till the situation improves.

The fall in the prices is more-than-2 per cent after a US airstrike in Iraq killed top Iranian commander Qassem Soleimani on Friday. The killing has heightened concerns of a widening Middle East conflict that could disrupt shipments and trade between Indian and Iran also, India's basmati rice exports to Iran are likely to be affected.

During the last fiscal, India exported total basmati rice worth Rs 32,800 crore, of which nearly Rs 10,800 crore worth rice was shipped to Iran.

Annually, the Iranian government issues LCs for purchase of 2 lakh tonnes of basmati rice from Indian private traders. The rest of the trade is done by private parties from both nations. Technically now Paddy is getting support at Rs 3,312 and below same could see a test of Rs 3,285 levels, and resistance is now likely to be seen at Rs 3,378, a move above could see prices testing Rs 3,420, Ajay Kedia, Director, Kedia Advisory said in an update.

13:26 (IST)06 Jan 2020
MARKET QUOTE | Ajay Kedia, Director, Kedia Advisory on the crude oil market

"Crude oil prices on MCX gained around 6.47 per cent made high of Rs 4,670 in 2020 tracking rising Brent prices which have crossed $70 a barrel mark, after the latest flare-up in US-Iran relations. Support also is seen after US President Donald Trump issued a threat to impose sanctions on Iraq amid escalating tensions with Iran in the Middle East. The price of oil surged to a fresh eight-month high, and now technically price above $70.00 barrier, which hints the price head to achieve more gains on the short term and medium-term basis due to currency geopolitical events, and the way is open to achieve level of $74.70, noting that surpassing this level will push the price towards $76.88 which had seen in Oct 2018."

13:18 (IST)06 Jan 2020
Crude oil futures jump over 3 pc as tensions in Middle East escalate further

Crude oil prices on Monday rose over 3 per cent to Rs 4,646 per barrel as tensions in Middle East escalated further after US president Donald Trump warned of a "major retaliation" if Iran tries to avenge the killing of its top military commander Qasem Soleimani.

On the Multi Commodity Exchange, crude oil for delivery in January traded higher by Rs 147, or 3.27 per cent, to Rs 4,646 per barrel in 66,031 lots. Crude oil for February delivery was up by Rs 142, or 3.16 per cent, at Rs 4,636 per barrel with an open interest of 3,368 lots.

General Soleimani, the head of Iran's elite al-Quds force and architect of its regional security apparatus, was killed following a US airstrike on Baghdad's international airport on Friday.

The ongoing geo-political events raised concerns regarding disruption in supplies of crude oil, the analysts said.

Soleimani's killing was the most dramatic escalation yet in spiralling tensions between Iran and the US, already hit by serious differences over Tehran's ambitious nuclear programme.

Globally, the West Texas Intermediate (WTI) was trading up 2.09 per cent to USD 64.32 per barrel. Meanwhile, Brent crude, the international benchmark, edged up 2.27 per cent to USD 70.16 per barrel in New York.

(PTI)

13:16 (IST)06 Jan 2020
Silver futures rise over 2 pc on firm global cues

Silver futures on Monday traded higher by Rs 1,008 to Rs 48,535 per kg after speculators raised bets, driven by a firm trend overseas.

Silver contracts for March delivery rose by 2.12 per cent, or Rs 1,008, to Rs 48,535 per kg in a business turnover of 5,945 lots on the Multi Commodity Exchange.

Besides, the white metal to be delivered in May jumped by Rs 1,024, or 2.13 per cent, to Rs 49,051 per kg in 37 lots.

Analysts said widening of positions by traders in sync with a firm trend overseas mainly influenced silver prices here.

In the international market, silver traded higher by 1.73 per cent at USD 18.47 an ounce in New York.

(PTI)