Nifty50: 17,646 ▼-176 (-0.9%)
Sensex: 59,189 ▼-555 (-0.9%)
The markets witnessed selling pressure today. Of the Nifty50 pack, 42 stocks declined.
All Nifty indices closed in the red with Metal (-2.9%) and PSU Bank (-1.9%) being the top losers.
| Top gainers | Today's change |
| Tata Consumer | ▲ 2.4% |
| ONGC | ▲ 2.2% |
| UPL | ▲ 1.6% |
| Top losers | Today's change |
| Hindalco | ▼ 4.1% |
| SBI Life | ▼ 3.6% |
| IndusInd | ▼ 3.3% |
For more updates on F&O, click here.
Here are the top stories of the day.
Big FDI push for telecom sector
The government has permitted 100% FDI in the telecom sector through the automatic route, which currently stands at 49%.
As per reports, the government is also considering abandoning its demand for spectrum charges of about ₹40,000 crore. This is expected to benefit telecom majors - Bharti Airtel and Vodafone-Idea which are already under high debt. Meanwhile, shares of Bharti Airtel (-1.1%) and Voda-Idea (-0.8%) closed in red today.
Marico sees strong revenue growth in Q2
In the September quarter, the FMCG major’s revenue grew in the low twenties, as per the company update. The company’s India business witnessed healthy consumer sentiment across categories.
With the economic revival picking up pace, Marico’s oil products, parachute and value-added hair oils delivered double-digit volume growth. However, Safola had a muted quarter. The company’s international business grew in double digits on a constant currency basis as it witnessed positive trends across markets. Meanwhile, shares of Marico rose nearly 6% intraday but succumbed to market selloff and finally closed 1.1% up today.
Power plants stare at coal shortage
According to reports, 64 power plants in the country have coal stock for less than four days. Also, of the 135 plants, which the Central Electricity Authority (CEA) tracks, not even a single plant has coal stock for eight or more days.
Against this backdrop, shares of Coal India have risen more than 30% since September 1. They saw some profit booking today amidst broader market weakness. Similarly, since the start of September, shares of power companies like Tata Power and NTPC have risen 35% and 23%, respectively.
Closing bell
The markets witnessed broad-based selling pressure as indicated by the fall across all the sectoral indices. Technically, the Nifty50 has given a bearish engulfing candle on the daily charts, which gives bearish cues. Further, the Nifty Midcap 100 and Smallcap 100 indices are also showing similar candlestick patterns. The bounce back in the India VIX also suggests that traders expect volatility to rise in the coming weeks. To sum up, all the above indicators point to an ensuing weakness.
Good to know
What is a bearish engulfing candlestick pattern?
A bearish engulfing pattern is a two candlestick chart pattern that signals lower prices to come. The pattern consists of a green candle followed by a large red candle. The red candle here eclipses or engulfs the previous green candle which in turn signals that sellers have overtaken the buyers and are pushing the prices down. Click here to watch a detailed explanation on candlesticks.
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