Sensex Plummets 500 Points, Tata Motors Tank 9% Post Q2 Result

Indian share market fell in the afternoon session on worries about capital outflows as US bond yields surged and the dollar strengthened. Sentiment also continued to be weighed down by the government's move last week to withdraw higher-denomination bank notes  and slow replenishment in new bills. 

At the closing bell, the BSE Sensex stood lower by 514 points, while the NSE Nifty finished down by 188 points. Meanwhile, the S&P BSE Mid Cap & the S&P BSE Small Cap finished down by 3.9% and 4.7% respectively. Losses were largely seen in auto, metal and realty stocks.

Tata Motors share price slumped as much as 9.9% after second-quarter profit missed estimates by a wide margin due to a weak performance at its Jaguar Land Rover unit. The company hit its lowest level since July 7 who is currently mired in a corporate power struggle.  

Asian markets finished mixed as of the most recent closing prices.

The rupee fell and was trading at 67.72 against the US$ in the afternoon session. Oil prices were trading at US$ 44.45 at the time of writing

Power Grid Corporation of India’s share price finished on an optimistic note (up 0.7) after it was reported that the company is planning to build energy highways across the country in order to meet a projected growth in demand and ease the load on the national grid.

In this regard, the company has planned investment of Rs 1.12 trillion, with the energy highways costing Rs 580 billion and the HVDC systems Rs 120 billion each.

Stocks from power sector languished in red with JSW Energy and Reliance Infrastructure share price leading the losses.

In another development, after 2 months fall, export rose by 4.62% to US$ 22.88 billion in September backed by higher growth in engineering and gems & jewellery sectors. The exports recorded in the same month last year stood at US$ 21.87 billion. 

Commerce and Industry Minister Nirmala Sitharaman has reiterated that there is definitely prospect for the exporters, who are struggling in depressed demand globally, as India’s export for the month of September has shown very significant development. This news has brought hope to exporters who are battling depressed demand globally. 

 

You can read a more detailed Indian Stock Market Update here. For terms of use, visit here.