Sell-off continues, Sensex cracks 1,200 points

Around 137 stocks have registered a fresh 52-week low on the NSE counter, while only nine stocks have hit 52-week high.The domestic currency is now quoted at 66.59 - down 76 paise per dollar. The CNX Realty index is the major loser, down nearly 7 percent at 155. The PSU Bank has slipped 5.5 percent at 3,301.

The market continues to witness heavy losses, owing to sharp sell-off across-the-board amid decline in Indian rupee against the US dollar.

The domestic currency is now quoted at 66.59 - down 76 paise per dollar.

Now, the NSE Nifty is down 353 points at 7,946 and the BSE Sensex is down 1,142 points at 26,223.

In the broader market, the CNX Midcap and Smallcap indices have slipped 5.5-5.7 percent each at 13,018 and 5,184, respectively.

The Volatility index - India VIX is quoted at 23.95 - up almost 40 percent.

Sector-wise, the CNX Realty index is the major loser, down nearly 7 percent at 155. The PSU Bank has slipped 5.5 percent at 3,301.

The Energy, Infra and Bank Nifty indices have tumbled a 5 percent each at 7,570, 2,966 and 17,144, respectively.

The Auto, Finance, Infra and Pharma indices are the other significant losers.

Among PSU Bank stocks - Bank of India has tanked 10.5 percent to Rs. 149. Oriental Bank of Commerce has slumped 10 percent at Rs. 144.

IDBI has cracked nearly 9 percent at Rs. 61.20. Syndicate Bank and Union Bank have plunged 8.3 percent each at Rs. 91.10 and Rs. 183, respectively.

Punjab National Bank and Andhra Bank have slipped over 7.5 percent each Rs. 147 and Rs. 69.20, respectively.

Canara Bank, Bank of Baroda, SBI, Allahabad Bank and Indian Overseas Bank are the other prominent losers.

Around 137 stocks have registered a fresh 52-week low on the NSE counter, while only nine stocks have hit 52-week high.

Indian Economy is in revival stage: FM

FM says that the Fiscal deficit target set for this year is realistic.

Finance Minister Arun  Jaitley said that the Indian Economy is in revival Stage.

The fiscal deficit target set for this Year is ‘Realistic’, says FM.

Jaitley also says that the economy will be impacted as and when major countries take any measures.

GST Implementation will help widen tax base, says Jaitley.

India is in better position compared to other markets: Raghuram Rajan

Speaking at FIBAC 2015, held by Federation of Indian Chambers of Commerce and Industry (FICCI) and Indian Banks' Association (IBA) in Mumbai, he also stated that there needs to be strengthening of the domestic market, and one way to do it is by way of increasing production, conforming to 'Make in India' vision of PM Narendra Modi.

Debunking speculations about the weakness in Indian markets, Reserve Bank of India (RBI) Governor Raghuram Rajan has said that India is in a better position compared to other markets, but the economic growth is still below the level India is capable of.

Speaking at FIBAC 2015, held by Federation of Indian Chambers of Commerce and Industry (FICCI) and Indian Banks' Association (IBA) in Mumbai, he also stated that there needs to be strengthening of the domestic market, and one way to do it is by way of increasing production, conforming to 'Make in India' vision of PM Narendra Modi.

Rajan said that there is $380 billion in reserves to be used when needed. Therefore, there would be no hesitation to use it when required to reduce the volatility in rupee. Once the volitality reduces, he expressed confidence that India will re-emerge as a destination of choice for investments.

Talking about the inflation, he said that expectations among public still remain high. He highlighted that high stressed assets have been dampening banks' ability to cut base rates. Therefore, the short term priorities of RBI is to two fold. First is to help growth by bringing down the inflation, as much of the industry desires. The second objective is to work with the government and the banks to speed up the clearing of bank balance sheets, so that they are capable of lending to the major projects.

Global crude oil price of Indian Basket was US$ 45.21/bbl on Friday

The price of Indian Basket decreased to Rs. 2,976.17 per bbl on Friday as compared to Rs. 3,024.53 per bbl on Thursday.

The international crude oil price of Indian Basket as published by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 45.21 per barrel (bbl) on Friday. This was lower than the price of US$ 46.36 per bbl on previous publishing day of Thursday.

In rupee terms, the price of Indian Basket decreased to Rs. 2,976.17 per bbl on Friday as compared to Rs. 3,024.53 per bbl on Thursday. Rupee closed weaker at Rs. 65.83 per US$ on Friday as against Rs. 65.24 per US$ on Thursday.

L&T plunges after exiting Kachchigarh project

Larsen & Toubro is trading on a weak note in early morning deals on the BSE, on reports that the company has exited the project to develop a port at Kachchigarh in Gujarat citing environmental concerns.

The stock slipped to a low of Rs. 1,671 and is now down 3 percent at Rs. 1,687.

The counter has seen trades of around 64,000 shares as against the two-week daily average volume of 136,000 shares.

Meanwhile, the BSE Sensex has slumped 840 points at 26,519.

Gold Near Seven-Week High After Best Week Since January

Manila: Gold hovered near its highest level in almost seven weeks early on Monday after scoring its biggest weekly gain since January as worries over a slowing Chinese economy spurred appetite for safe-haven assets.

FUNDAMENTALS

Spot gold was little changed at $1,160.50 an ounce by 0047 GMT, after touching a high of $1,165.11 in early deals.

Gold rose to as much as $1,168.40 on Friday, its highest since July 7. It gained more than 4 percent last week, the most since mid-January.

U.S. gold for December delivery was flat at $1,160.40 an ounce.

Markets will be watching for China's next move as signs of a slowdown in the world's second-largest economy stack up, raising expectations it will act to stoke growth.

Data on Friday showed activity in China's factory sector shrank at its fastest pace in almost 6-1/2 years in August as domestic and export demand dwindled.

On Sunday, China allowed pension funds managed by local governments to invest in the stock market for the first time, potentially channelling hundreds of billions of yuan into the country's struggling equity market.

Federal Reserve officials planning to lift interest rates as soon as September have been encouraged by solid U.S. jobs growth, but inflation holds the key to how far the Fed can go in moving rates away from zero.

Top aides to the leaders of North and South Korea negotiated overnight and into Monday morning in a marathon bid to try to ease tensions involving an exchange of artillery fire that has brought the peninsula to the brink of armed conflict. 

Chinese Shares Plunge Nearly 8%

Chinese shares were down more nearly 8 per cent in early trade on Monday in the face of a global sell-off, despite Beijing authorising the state pension fund to invest in stocks in its latest attempt to shore up markets.

The benchmark Shanghai Composite Index plummeted nearly 8 per cent to 3,232. The Shenzhen Composite Index, which tracks stocks on China's second exchange, plunged 7.82 per cent to 3,308.        

Sensex Crashes 1,000 Points Amid Global Selloff, Rupee Hits 66.49

The BSE Sensex and the Nifty crashed on Monday, falling over 3.5 per cent in opening trade. The rupee also came under sharp selloff, down 1 per cent to hit a fresh two-year low of 66.49 per dollar.

Here's your 10-point cheat-sheet to the story

1) The Sensex plunged as much as 1,000 points, while the 50-share slipped below the crucial 8,000 levels for the first time in two months. All 50 shares in the Nifty traded in the red, while on the broader BSE 500 index, just one stock traded higher.

2) The trigger for Monday's carnage is the rout in Chinese equities. Shanghai shares dived over 8 per cent to a five-month low, having lost more than 10 per cent so far this month.

3) The selloff in China markets weighted on risk assets across the globe. Asian stocks dived to 3-year lows on Monday. Copper, seen as a barometer of global demand, tumbled to 6-1/2-year lows as the anxiety over China sapped investor confidence.

4) The widespread unrest in global financial markets was set in motion nearly two weeks ago when China sharply devalued the yuan and stoked concerns about the state of its economy. There are fears that China could be forced to devalue the yuan even more should its economy falter.

5) Last week, Reserve Bank of India governor Raghuram Rajan said China's devaluation of the yuan was not a concern, but did not rule out a currency was if the move was part of a long-term competitive devaluation.

6) The devaluation in the yuan has impacted most emerging market currencies and stoked fears about a currency war. South Africa's rand struggled at 14-year lows, the Turkish lira languished near a record low, while the Malaysian ringgit hit a 17-year low. South Korean authorities were suspected of selling dollars to arrest the won's fall.

7) The Indian rupee has been better off as compared to its emerging market counterparts, but it has lost over 4 per cent in the last two weeks.

8) The depreciation in the rupee hits foreign investors and diminishes their returns. Analysts say foreign funds have started selling shares aggressively because of the rupee fall.

9) Foreign investors have started selling domestic shares aggressively. On Thursday, they sold cash shares worth Rs 1,000 crore, while on Friday they sold shares worth Rs 2,340 crore, which is the biggest selling since April 2015.

10)  Domestic markets are also likely to face liquidity issues because of the 10 per cent stake sale in state-run refiner Indian Oil Corp. The floor price for the share sale is Rs 387, a two percent discount from Friday's close. At the floor price, the 10 per cent stake sale in the company will bring in Rs 9,396 crore for the government.