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    RIL drags Sensex 150 points down despite support from private banks

    Synopsis

    In the 50-share pack Nifty, ICICI Bank was the biggest gainer, up 5.16 per cent.

    BSE-2---BCCL
    Broader market indices outperformed their headline peers in morning trade as Nifty Smallcap rose 0.83 per cent while Nifty Midcap added 0.85 per cent. Broadest index on NSE, Nifty 500 was up 0.50 per cent.
    NEW DELHI: Sell-off in Reliance Industries shares following its quarterly earnings singlehandedly dragged the benchmark indices while weak global cues supplemented the fall in Monday’s trade.

    Uncertainty over the US Presidential elections and surging virus cases and a spate of lockdown in European countries are inducing volatility in the market, making trading riskier.

    Factors driving markets
    • US elections: With two days to go, Democrat Joe Biden holds a commanding national lead over President Donald Trump, but Trump has stayed competitive in the swing states that could be a deciding factor in the White House race.
    • US stimulus hopes vanish: US Senate Majority Leader Mitch McConnell on Friday said that any new coronavirus aid package should be considered in early 2021, possibly closing the door to such legislation shortly following Tuesday's election.
    • The virus spread legs in Europe: Europe's new COVID-19 cases have doubled in five weeks, propelling the region on Sunday to cross the milestone of 10 million total infections, prompting countries such as Britain and Portugal to enact fresh lockdowns.
    • Q2 earnings suffer: Underwhelming outlooks and results from some of Wall Street's largest companies last week, including Apple and Facebook, further soured the mood and dragged US stocks lower last week. Back home, RIL’s numbers also disappointed investors.

    How are bluechips doing
    After opening in the green, benchmark indices dropped sharply. At 9.29 am, BSE flagship Sensex was down 150 points or 0.38 per cent to 39,464. NSE benchmark Nifty followed and dropped 42 points or 0.38 per cent to 11,600.

    In the 50-share pack Nifty, ICICI Bank was the biggest gainer, up 5.16 per cent. IndusInd Bank, Hero Moto, NTPC, Bharti Airtel, Power Grid, Tech Mahindra and Axis Bank were among other gainers.

    UPL was the top loser in the pack, down 3.84 per cent. Reliance Industries, Hindalco, BPCL, IndianOil, Britannia, TCS, Eicher Motors and HCL Tech were among other names that opened with cuts.

    Broader markets
    Broader market indices outperformed their headline peers in morning trade as Nifty Smallcap rose 0.83 per cent while Nifty Midcap added 0.85 per cent. Broadest index on NSE, Nifty 500 was up 0.50 per cent.

    REC, Vodafone Idea, Godrej Properties, JB Chemicals and Pharma, Strides Pharma and Thyrocare technologies were among major gainers from the space while Welspun India, Welspun Corp, Lux Industries, Tata Chemicals, Ipca Labs and Endurance Technologies were under selling pressure.

    Global markets
    MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.5 per cent to 573.04. All major indexes except New Zealand were up on Monday. Australian shares rose 0.4 per cent.

    Chinese shares were higher with the blue-chip CSI300 rising 0.8 per cent with the country's vast industrial sector steadily returning to levels seen before the COVID-19 pandemic paralysed huge swathes of the economy.

    Japan's Nikkei jumped 1.5 per cent. E-Mini futures for the S&P 500 added 0.1 per cent, with investor focus turning to the U.S. Presidential elections on Tuesday.

    What to expect
    • IPO Listing: Equitas Small Finance Bank is scheduled to be listed on the bourses on Monday. The issue, sold in Rs 32-33 range, was subscribed mere 1.95 times in the three-day bidding process.
    • Macro data: IHS Markit will release Manufacturing PMI data for the month of October that will give an indication of demand recovery.
    • Q2 earnings: Bandhan Bank, NTPC, PNB, OFSS, Zee Entertainment and City Union Bank are among the major names that will come out with their numbers later in the day.



    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

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