Aug 16, 2019 10:43 AM IST | Source: Moneycontrol.com
All sectoral indices traded in the red with Auto, IT, Metal and PSU Bank falling 1-2 percent.
Glenmark Pharma Tanks 5%
CLSA has maintained its sell call on the stock but slashed price target sharply to Rs 350 from Rs 500 earlier as earnings growth would remain under pressure.
The brokerage cut its FY20-21 EPS estimates by 15-18 percent.
“Debt reduction will depend upon divestment of API business and non-core assets. Weak revenue growth & high R&D spend phase should keep margin subdued,” it said.
Indian Rupee Slips:
The Indian rupee recouped some losses and fell 4 paise to 71.31 against the US dollar amid rising crude oil prices and cautious opening in domestic equities.
Sensex Off Day’s Low:
Benchmark indices cut down losses with the Sensex declining 122.61 points to 37,188.92 and the Nifty50 falling 43.50 points to 10,985.90.
The market breadth remained in favour of declines as about two shares declined for every share rising on the BSE.
Tata Motors Falls Nearly 3%
Shares of Tata Motors fell 2.6 percent intraday after CRISIL downgraded its long term rating amid weakening risk profile of Jaguar Land Rover.
The stock lost more than half of its value in last one year.
CRISIL in its release said it has downgraded rating on the long-term bank facilities of Tata Motors (TML) to ‘AA-/Negative’ from ‘AA/Negative’, but reaffirmed rating on short term bank facility, commercial paper and short-term debt at ‘A1+’.
“Going ahead, the immediate support for the index is placed around 10,870 (78.6 percent retracement of recent pullback) whereas the resistance is seen at the swing high of 11,181. Traders are advised to trade with a stock specific approach with a tab on the above mentioned levels in the index,” Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel Broking told Moneycontrol.
More Fed Rate Cuts likely?
Calling economic and financial market signals for the economic outlook “mixed,” Minneapolis Federal Reserve Bank President Neel Kashkari signalled that he is likely to support further reductions in US interest rates to support growth.
Trade tensions are making businesses cautious, he said, and the inversion of the US yield curve that this week sent global stocks plummeting “is an indicator that people are nervous.” At the same time, the jobs market is strong, and so is consumer spending.
As Fed policymakers gear up for their September rate-setting meeting, he said, they will be assessing all of the data to make a decision. “I am leaning towards the camp of, ‘yes we need to give more stimulus to the economy, more support, we need to continue the expansion and not allow a recession to hit us,'” he said. Source: Reuters.