Report by- Team PurpleTrades
Tata Motors nosedives as it hits 7-year low-
The share price of TATA Motors corrected sharply on Tuesday, hitting nearly 7-year low on consistently weak performance from its luxury car brand Jaguar Land Rover. The stock fell below Rs 200 levels at Rs 170.65, the lowest level since December 19, 2011, falling 19.78% intraday. In the late hours of the market it recovered some of its loses and closed at Rs 184.25, down Rs 28.50 or 13.40% amid high volumes on the BSE and lost Rs 8,228 crores in market capitalization in a single day. The stock plunged nearly 60% in last one year due to continued weak financial performance at JLR and new emission rules in Europe which hit diesel cars sales. JLR on Monday reported total retail sales of 57,114 vehicles in September 2018, down 12.3% Y-O-Y, hit by lower demand in China.
The company’s sales in China declined by 46.2% during September as compared to the same month last year as ongoing market uncertainty resulting from import duty changes and continued trade tensions held back consumer demand. Following weak September sales, JLR announced 2-week shutdown at Solihull plant to align supply to reflect fluctuating demand globally. The only savior for TATA Motors is the up trending domestic segment wherein the company is witnessing robust prospects both in the M&HCV space as well as PV segment.
Source-MoneyControl, Purple Trades Research Department
After recovery by the bulls on Monday, Dalal Street ends on a negative note-
Chart source- Upstox
After the recovery made by the bulls on Monday, markets move down again. The markets opened higher today as Nifty traded above 10,350 level. But the bulls couldn’t sustain today’s high and moved down significantly throughout the day. There was a lot of swing today as the prices moved in both the directions. Bulls tried to make recovery after the lunch hours but the bears made sure that the prices couldn’t breach today’s high. Bears took control of the scenario in the last 40 mins and made sure that the markets yet again make a bearish candle on the Daily charts. Although the markets moved lower, Nifty is still trading near the 10,300 mark which was being considered as a crucial support level for the markets. As the week progresses the Investors would be cautious about the high volatility in the markets. At the close of market hours, the Sensex closed down 174.91 points or 0.51% at 34299.47, while the Nifty ended lower by 47 points or 0.45% at 10301.00. The market breadth is negative as 1,015 shares advanced, against a decline of 1,579 shares, while 768 shares were unchanged. There were a few major factors that could explain such a bearish movement in the markets. Let’s take a look at a few of those factors-
- Rupee breached the Rs 74/$ mark again today and traded near that level which was not a good sign for the markets. Rupee fell to a fresh record low of 74.27 per US dollar. At the time of equity market coming to a close, the currency had dipped to 74.35 per USD.
- FII cash flow in the markets has been significantly cut down by 1,805 crores. This shows the signs of a weaker market.
- Asian markets performed poorly today as Japanese Index NIKKEI went down by 314.33 points, almost a decline of 1.32%. Similarly Australian markets index S&P/ASX 200 also underperformed as it lost 59.20 points in intraday, losing almost 1% of its value.
- Brent Crude Oil prices further escalated by 0.77% today which is not a good sign for the bulls in the market.
- US treasury yield rates rose above 3.25% in early trading, returning to levels not seen in more than Seven Years.
Source- Purple Trades Research Department
Top sectors that moved the market today- Data source- Moneycontrol
Top Gainers for today- Data source- Moneycontrol
Top losers for today- Data source- Moneycontrol