Sensex Today Plunges 571 Points | SJVN Tanks 13% | 3 Reasons Why Indian Share Market is Falling

Thu, 21 Sep Closing

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After opening the day on a negative note, Indian share markets extended losses as the session progressed and ended the day on a weak note.

Equity benchmark indices fell  reeled under selling pressure for a second straight day on Thursday, the day of weekly F&O expiry as well, after the US Federal Reserve's tighter policy through 2024 spooked investors. Besides, escalating diplomatic tensions between India and Canada also dampened sentiment.

At the closing bell, the BSE Sensex stood lower by 571 points (down 0.8%).

Meanwhile, the NSE Nifty closed down by 159 points (down 0.8%).

Adani Ports and Asian Paints were among the top gainers today.

Cipla and SBI were among the top losers today.

Check out the NSE Nifty heatmap to get the complete list of gainers and losers.

The Gift Nifty was trading at 19,750, down by 155 points, at the time of writing.

Broader markets ended on a negative note. The BSE Midcap index and the BSE SmallCap index fell 0.9%.

Sectoral indices ended on a negative note with stocks in the realty sector, power sector, and financial sector witnessed heavy selling.

Shares of Indian Bank and Phoenix Mill hit their 52-week highs today.

Now track the biggest movers of the stock market using stocks to watch today section. This should help you keep updated with the latest developments...

Asian share markets ended on a negative note. The Hang Seng fell 1.3% while the Shanghai Composite fell 0.7% and Nikkei ended 1.4% lower.

The rupee is trading at 83.05 against the US$.

Gold prices for the latest contract on MCX are trading down by 0.8% at Rs 58,940 per 10 grams.

Meanwhile, silver prices for the latest contract on MCX are trading 1.1% lower at Rs 72,425 per kg.

Here are 3 reasons why Indian share markets plunged today.

Why Indian Share Market is Falling

#1 Bond yields

The yield on two-year US Treasury notes rose to a 17-year high of 5.2%, while the 10-year yield jumped to 4.4%, a new 16-year peak. Rising bond yields are negative for equity prices.

Nasdaq ended 1.5% lower and other Asian markets like those of Japan and China were also trading over 1% lower.

#2 Dollar Index

The dollar index, which measures the American currency against a basket of rivals, rose as high as 105.59 on Thursday, its strongest since 9 March 2023.

#3 Boiling oil prices

Adding to the inflationary noise is rising crude oil prices.

Oil prices retreated further with investors uncertain when peak rates will be hit and how much of an impact it will have on energy demand.

Further, a stronger dollar typically makes commodities such as oil more expensive for buyers using other currencies.

Speaking of stock markets, owning scores of stocks delivering 15% annual rate of return or thereabouts is not a bad idea.

But do not cut the potential mango tree along with the grass.

Only then will you have a few 15% return contenders getting converted into the 15 baggers of your portfolio over time.

In the below video, Research Analyst, Tanushree Banerjee talks about catalyst to convert 15% CAGR into 15x return.

M&M's Associate Firm Winds Up

In news from the auto sector, Mahindra & Mahindra on Thursday said its Canada-based associate firm, Resson Aerospace Corporation, has ceased to exist.

Resson has received a Certificate of Dissolution from Corporations Canada dated 20 September 2023, which was informed to the company.

Consequent to this, Resson has ceased to be in existence and has also ceased to be an associate of the company with effect from 20 September 2023.

Upon liquidation of Resson, the company is entitled to receive approximately 4.7 million Canadian Dollars (equivalent to Rs 287 m) as distribution of proceeds towards Class C Preferred Shares held by the company.

The electric vehicle (EV) megatrend is a once in a century revolution happening right in front of us.

The revolution has taken the auto sector by storm. All segments of the sector are ripe for disruption, and India's top EV stocks are set to benefit from this shift.

Take a look at the chart below, which shows the massive opportunity in the two-wheeler EVs.

It remains to see how it pans out.

M&M is among top 5 Indian stocks with consistently rising operating margins.

Tata Consumer to Win Rs 55 billion Race

Moving on to news from the FMCG sector, Tata Consumer Products (TCPL) is reportedly in advanced talks to acquire Capital Foods, the company behind popular food brands Ching's Secret and Smith & Jones.

TCPL will initially purchase a 65-70% stake in Capital Foods from its three investors, with an option to acquire the remaining stake in the future. Furthermore, the deal is expected to value the company at Rs 55 bn. The negotiations have been ongoing for several weeks and are said to be in the final stages.

The stakeholders of TCPL, including Invus Group, General Atlantic, and the company's founder chairman Ajay Gupta, had decided to sell their stake in 2022.

Negotiations have been underway to determine the stake that existing shareholders will retain or if they will exit entirely, with Kotak Mahindra advising TCP on this matter.

Nestle SA and Kraft Heinz Co. were also among the contenders vying to acquire the stake.

Tata Consumer is among five FMCG companies are ruling the sector. Find out reasons behind their growth and what the future holds for it.

Why SJVN's Share Price is Falling?

Moving to news from the power sector, shares of SJVN tanked 9% in early trade on 21 September after the government launched an offer for sale (OFS) for up to 4.92% equity stake at a deeply discounted floor price.

The government announced an OFS to sell 96.7 m equity shares, or 2.5% equity stake in SJVN, with an option to sell another 2.5% by retaining oversubscription. SJVN OFS opens for non-retail investors on 21 September and for retail investors on 22 September.

The floor price of the offer is set at Rs 69 per share, which is a nearly 15% discount on the previous closing price.

Offer for sale in SJVN opens tomorrow for non-retail investors. Retail investors can bid on Friday. The government will divest 4.9% equity, including a Green Shoe option of 2.5%.

SJVN, formerly known as Satluj Jal Vidyut Nigam, is an Indian public sector undertaking involved in hydroelectric power generation and transmission.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

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