Sensex falls 374 points to end near 1-month low; banks weigh

The Sensex has hit its lowest level since August 29, 2016 whereas the Nifty hit its lowest level since Sep 12, 2016

Benchmark indices ended over 1% lower, amid weak global cues, with rate-sensitive sectors especially financials leading the decline. Investors' focus across the globe has shifted to American politics ahead of the first US presidential debate.

Besides, domestic markets will remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month September 2016 series to October 2016 series. The near month September 2016 derivatives contracts expire on Thursday, 29 September 2016.

The S&P BSE Sensex ended down 374 points at 28,294 and the Nifty50 slipped 109 points to settle at 8,723. Among broader markets, BSE Midcap and the Smallcap index fell by 0.5% each.  The Sensex has hit its lowest level since August 29, 2016 whereas the Nifty has hit its lowest levels since September 12, 2016.

A K Prabhakar, Head of Research, IDBI Capital, said, “Market has entered into a final phase of rally and once Nifty breaks 8,510, I assume that best phase of the market in 2016 will be over."

"Nifty has entered into a consolidation phase where the 8,980-plus level is a bullish trend, while below 8,510 would signal a trend reversal," Prabhakar added.

Asian shares too began the week under a cloud on Monday after losses on Wall Street, and as investors' attention turned from central banks to American politics ahead of the first US presidential debate.

Half of America's likely voters will rely on the presidential debates to help them make their choice between Republican Donald Trump and Democrat Hillary Clinton in the November 8 election, according to a Reuters/Ipsos poll released on Monday.

MSCI's broadest index of Asia-Pacific shares outside Japan extended early losses and was down 0.8% by afternoon, while Japan's Nikkei stock index ended down 1.3%. European markets too are reeling under pressure with CAC, DAX and FTSE down between 1%-2%.

Back home, rate-sensitive sectors like financials, auto were the main draggers in trades today. Shares of interest rate sensitive sectors were under radar ahead of the monetary policy. The Reserve Bank of India (RBI) will unveil fourth bi-monthly monetary policy statement for the year ending March 2017 on 4 October 2016.

Abnish Kumar Sudhanshu, Director & Research Head, Amrapali Aadya Trading & Investments feels that the markets are likely to trade range bound ahead of September series derivative expiry. He expects Nifty to trade between 8,750–8,950 with higher volatility and broader markets to outperform.

Top losers from the Sensex pack included ONGC, NTPC, Tata Motors, ICICI Bank and GAIL, all plunging between 3%-4%. Among gainers, RIL, Coal India, TCS, Dr Reddy's Labs and Lupin were up 0.3%-1%.

India's largest energy conglomerate NTPC will raise $500-USD 700 million in Masala bonds from the financial markets in London, Hong Kong and Singapore from November this year, a top company official said today.

ICICI Bank has said it has brought 32 lakh customers under the voice recognition service for phone banking and is aiming to conduct 50 lakh transactions via this facility by the end of this fiscal.

GNA Axles was listed at Rs 252, a 22% premium against issue price of Rs 207 per share, on the National Stock Exchange (NSE). The stock moved higher and hit a high of Rs 262 post listing.

Adlabs Entertainment surged 12%, extending its previous two trading days rally on the NSE on back of heavy volumes.

Marksans Pharma moved higher by 11% on the BSE after the company announced that it has got US drug regulator nod for loratadine liquid filed capsules 10 mg.

Capri Global Capital (CGCL) soared over 16%, extending its past two days rally of over 25% on the BSE, after the company announced that the board will consider stock split and fund raising plans.

Shares of BPL continued its upward march, up 20% at Rs 91.30 on the BSE on back of heavy volumes.

Minda Corporation has tanked nearly 5% on the BSE after a more than 5% of total equity of the company changed hands via multiple block deals on the counter. With Reuters input

Photograph: Danish Siddiqui/Reuters