Stock Market Highlights: Sensex closes 1688 points lower, Nifty50 slides below 17,050 as COVID variant spooks market

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16:53:08 IST

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16:49:43 IST

Positive on Asian Paints, one should only exit around Rs 3,500, not before that: Vijay Chopra 

Vijay Chopra of enochventures.com is bullish on Asian Paints. “It is a great company and my sense is that one should keep on holding the stock. One should think of exiting the stock around Rs 3,500 and not before that. The company has clearly passed on the pricing to its customers. High crude prices and increase in input costs that has been entirely passed on to the consumer through the price increases,” he said. 

16:47:39 IST

Investors to be careful in capital allocation if cost of capital goes up: Pramod Gubbi 

Pramod Gubbi of Marcellus Investment Managers told CNBC-TV18 prudent capital allocation is “very much important”. Investors will be careful in allocating capital if the cost of capital rises. 

There were margin pressure in Q2 due to higher input costs, and one needs to focus on fundamentally strong companies that can pass on cost pressure, he said.

16:39:10 IST

Immediate support for Tata Consumer at Rs 770: Yes Securities’ Aditya Agarwala 

Yes Securities’ Aditya Agarwala believes immediate support for Tata Consumer Products is placed at Rs 770. “Tata Consumer hasn’t really corrected significantly with the way the market has corrected. The current chart structure suggests that there is some sort of a weakness due in the stock… My sense is the support level of Rs 770 will eventually get broken in the coming times and a stop loss can correct at levels of Rs 720-700, where good support lies. That is where one should look at averaging not at current levels. Let the stock correct, closer to about Rs 700-720. That is where one can look to average it out,” he said.

16:36:10 IST

handful of staples, discretionary companies to gain market share regardless of external environment: Marcellus Investment Managers’ Pramod Gubbi 

Pramod Gubbi, Co-Founder of Marcellus Investment Managers, believes there are a handful of staple and discretionary companies that are set to gain market share from peers irrespective of the external environment. “That makes it a more sustainable way of investing,” he said.

“We are bottom-up investors in both these sectors. Consumption means you are catering to a large number of customers as opposed to a B2B business to that extent. To cater to a large number of customers, you need significant strength on the brand front to be making your products and services appealing to those set of consumers. Secondly, you also need a significant distribution network and an efficient supply chain, which acts as a significant barrier to entry for new entrants. To that extent, these businesses are inherently resilient,” he said.

16:30:16 IST

Nifty could still lose about 300-400 points, stabilise, then probably see some sort of build-up: Prakash Diwan

Market expert Prakash Diwan believes the Nifty50 could still lose about 300-400 points, stabilise and then probably start to see some some buying. Speaking on concerns about the new COVID variant, he said: “Look at what’s happening. South Africa has come up with these details on the new variant of coronavirus. But how much traffic do we have in South Africa? How much of global travel gets impacted by that? We don’t have any change in our statistics in that sense, which is so adverse. And still we are reacting to that. So the market was looking for some trigger and my sense is that the froth will go out,” he said. 

A lot of companies, whose shares were waiting to correct post- earnings, will have to go through this phase of correction, he said. “Look at chemicals, the specialty chemical pack, look at some of the other consumption names… And all of that will probably mean that institutional money, the smart money, will start to buy into lower levels, because this could also be temporary. And in hindsight, we know what the impact can be. Last year, in March, when things happened with COVID. We saw the outbreak for the first time. Nobody had a clue in terms of how it’s going to impact the economy and the markets. But today, you are much wiser,” he said. 

16:24:42 IST

Market At Close | Biggest single-day fall for Sensex, Nifty50 since April 12

Here are some highlights: 

–Renewed COVID concerns lead to big fall in equity market

–Frontline indices fall 3-4%, 45 Nifty stocks in the red

–Nifty Bank falls 1,339 points to 36,025, midcap index drops 1,006 points to 29,920

–Except pharma, all sectors see major fall; Nifty Pharma up 1.7%, Nifty Healthcare 1.8%

–Volatility index surges 24% to 6-month high

–Unlock theme stocks like PVR, Indigo, Delta Corp, Bata fall sharply

–BSE companies erase Rs 7 lakh crore mcap gained in last 2 months

–Market breadth in favour of bears; advance-decline ratio at 1:4

16:04:12 IST

RBI releases working group recommendations on ownership, corp structure for private banks

The central bank said 21 of the total 33 recommendations of the internal working group were accepted, and the remaining were under examination. 

15:56:32 IST

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Market At Close | JSW Steel, Tata Motors, Hindalco, Adani Ports top Nifty50 laggards; Cipla, Dr Reddy’s, Divi’s, Nestle in the green

Disclaimer: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

15:38:22 IST

Rupee ends lower at 74.87 vs US dollar

The rupee ended at 74.87 against the greenback, as against its previous close of 74.51.

15:37:18 IST

Closing Bell | Sensex plummets 1,688 points, Nifty50 at 17,026

The 30-scrip index ended 1,687.9 points or 2.9 percent lower at 57,107.2 and the broader Nifty50 benchmark settled at 17,026.5, down 509.8 points or 2.9 percent from its previous close. 

That was the worst single-day fall in both headline indices since April 12. 

15:32:16 IST

Bitcoin, Ethereum tank 5% 

The price of Bitcoin — the world’s largest cryptocurrency — slumped five percent to $55,000 amid renewed concerns over a new COVID variant. Ethereum also slumped five percent, to $4,000.

15:26:03 IST

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Reliance Industries, HDFC twins, ICICI Bank, Infosys, Kotak Bank biggest drags on Nifty50

Disclaimer: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

15:23:00 IST

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Dr Reddy’s bucks the trend, up 3%

Nearly all of the 30 Sensex constituents were below the flatline, with IndusInd, Tata Steel, Maruti Suzuki, NTPC and HDFC being the worst hit.

Disclaimer: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

15:21:26 IST

Market Update | Sensex tanks over 1,800 points, cracks below 57,000 mark; Nifty50 gives up 17,000

The 30-scrip index plunged as much as 1,801.2 points or 3.1 percent to hit 56,993.9 on the downside, and the broader Nifty50 benchmark tumbled to as low as 16,985.7, down 550.6 points or 3.1 percent from its previous close. 

15:02:18 IST

Tarsons Products shares extend gains to Rs 840, premium at 27% over issue price

Tarsons Products shares continued to rise after making a strong debut in the secondary market, despite a broad-based sell-off on Dalal Street amid concerns about a new COVID variant.

The Tarsons Products stock was locked in the upper circuit at 20 percent in afternoon deals, having listed at a premium of six percent earlier in the day. Tarsons shares were in high demand after its IPO received a robust response from investors. (Read more on Tarsons Products shares)

15:01:26 IST

ITC to buy 16% stake in Mother Sparsh for Rs 20 crore

ITC has entered into a share subscription agreement to acquire 16 percent of the share capital of Mother Sparsh (on a fully diluted basis) for Rs 20 crore.

“The said acquisition will, inter alia, enable access to the fast growing direct to consumer (D2C) space in the ‘personal care’ category, which has been identified by the Company as an area of interest,” ITC said in an exchange filing.

Shares of the FMCG company were down nearly 3 percent on the BSE.

14:55:00 IST

Amit Gupta of ICICI Securities on Markets:

“Nervousness on the new variant of Corona virus and expectations of US increasing the pace of tapering have led to recent market weakness. This trend may take some time to recover as the WHO meeting on the new mutant variant impact and hospitalization rates in US and Europe will be watched by the market very closely,” said Amit Gupta, Fund Manager – PMS, ICICI Securities.

India is on higher earnings growth trajectory and this is the only major risk which can spoil the sentiments, he said.

The current dollar strength also suggests the risk-off sentiment and is leading to FII flows currently.

“Nifty has new base at 16,000-16,500 now which may be tested in this weakness,” Gupta said.

The recent commodity prices correction can lower the raw material cost for certain sectors like Consumer and help them to recover after a period of consolidation, he pointed out.

14:43:56 IST

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Buzzing in trade: Engineers India shares jumps 4% after alliance with Chempolis Oy for green fuels 14:35:10 IST

Zee Entertainment Enterprises shares up nearly 2%

14:27:26 IST

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Bank of Baroda raises Rs 1,997 cr via Basel III-compliant bonds 14:18:51 IST

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Bank Nifty ends November F&O series down 5%; first fall in 4 months 14:08:07 IST

IRCON International has emerged as the lowest bidder for two projects aggregating to over Rs 1,400 crore.

13:54:32 IST

Sanofi India shares gain 1%; Sanofi Group to sell Soframycin, SofradeGroup brands to Encube Ethicals 

Sanofi India shares were up 0.8 percent at Rs 8,240 apiece on BSE in late afternoon deals. 

13:51:18 IST

Expect recovery in pharma, healthcare, largecap IT to continue: Himanshu Gupta of Globe Capital

Pharmaceutical and healthcare shares have been seeing a lot of buying after a correction that lasted many weeks. “There are visible signs today that a lot of buying is happening in this sector… In largecap IT, there are some stocks which are near their long-term support, such as TCS, Infosys and Tech Mahindra. That is the second space where I think recovery can be seen in following days,” he said. 

“Steel is a contra buy at this point of time but if you see charts of some largecap steel and commodity stocks, they are very close to their long-term supports.

Cement stocks are also under pressure today but I think after a decline of nearly 3-5 percent from here, they will be a very good buy from a short- to medium-term perspective,” he said.

13:45:29 IST

Buy Ipca Labs, Abbott India: Hemen Kapadia

Here are two trading calls from Hemen Kapadia of KRChoksey Securities: 

–Buy Ipca Labs for a target of Rs 2,100 with a stop loss at Rs 2,040 

–Buy Abbott India for a target of Rs 20,400 with a stop loss at Rs 19,800 

13:22:40 IST

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Hotel, airline, cinema stocks take a hit as new COVID variant triggers lockdown fears

Hotel, airline and cinema stocks suffered sharp losses on Friday amid a broad-based selloff on Dalal Street. Global markets followed news of a new COVID variant, which triggered fears of stricter lockdown restrictions once again to curb the spread of the pandemic. Headline indices Sensex and Nifty50 hit nearly three-month lows, as the news of the new coronavirus variant spooked investors. (Read more)

13:19:34 IST

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Reliance Industries, HDFC twins, ICICI Bank, Kotak Bank top drags on Sensex; Dr Reddy’s, TCS lend support

Disclaimer: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

13:14:21 IST

A lot of profit taking in market, should not try to predict how far this fall goes: Alok Jain

Alok Jain, Founder of WeekendInvesting.com, believes there is a lot of profit taking happening in the market. Right now, it is based on the news of a new COVID variant, he said. 

“One should not be trying to predict how far this falls. In fact, rather, try to follow the price and follow the strategy of your trade. So without trying to double guess where the market may turn back from, as long as you are following your plan, you are following your strategy and your risk management is in place, I think traders should be doing very well,” he said. 

Jain also said that in the last one month, the market has been off by about nine percent, and several stocks have come off dramatically. “Some sharp trading could have been done in this last one month and a lot of money made here,” he said. 

13:02:47 IST

Tarsons Listing | Input costs have been on the rise for past 16-18 months, says Tarsons Products’ Rohan Sehgal 

Tarsons Products’ Rohan Sehgal told CNBC-TV18 input costs have been on the rise for the past 16-18 months. The company hopes to continue the same momentum going forward and sustain margins at the current levels, he said.