Lower-than-expected GDP data and sell-off in global equities hit market sentiments as the key benchmark indices plunged over 2 per cent on Tuesday. The BSE Sensex and NSE Nifty tanked 586.65 points and 185.45 points at 25,696.44 and 7,785.85. Sensex settled at its lowest level in more than a year while Nifty settled at its lowest level in more than 10 months.
Among the sectoral indices on the Bombay Stock Exchange (BSE), the BSE Bankex declined the most — 3.63 per cent at 18,923.6, it was followed by the BSE Metal index (down 3.24 per cent at 7,204.79) and the BSE Realty index (down 3.17 per cent at 1,220.73). Rest all other indices ended in red.
In the 50-share Nifty index, Punjab National Bank, Bank of Baroda, Kotak Mahindra Bank, Hindalco and Axis Bank declined between 5 per cent to 7.5 per cent. On the other hand, Bajaj Auto, ACC, Sun Pharma and Ambuja Cements gained between 0.10 per cent to 0.90 per cent and remained the only gainers in the index.
Overall market breadth on the BSE remained weak. There were more than three losers against every gainer on BSE. 2,093 shares declined and 595 shares advanced A total of 86 shares were unchanged.
Sanjeev Zarbade, vice president, private client group research, Kotak Securities, said, “Today’s markets began on weak global cues as the US markets had closed lower on Monday amid continued uncertainty about China and the Fed. European markets also fell on Monday over continuing concerns on China and on uncertainty over what the US Fed will do in the next FOMC meeting. China’s official PMI also indicated a contraction in activity, giving credence to fears of slowdown. Apart from global cues, Indian equities were buffeted by lower-than-expected GDP data and disappointing sales numbers of Maruti and Mahindra & Mahindra (M&M).”
M&M reported its auto sales numbers which stood at 35,634 units during August 2015 as against 35,180 units during August, registering a marginal gain of 1.29 per cent. The company’s exports for August 2015 stood at 3,512 units registering a growth of 73 per cent.
Gaurav Jain, director, Hem Securities seconds Zarbade and said, “Market shut the day with severe cuts on the back of weak global and domestic macro economic data. China’s weak PMI and India’s lower GDP growth dampened the sentiments. Sell-off was mainly triggered by the banks especially PSU banks on raising the concerns of pressure on their margins.”
Foreign investors sold a record amount of Indian shares in August, offloading even more than in the midst of the global financial crisis, as turbulent markets in China led many funds to reduce their holdings in riskier emerging markets.
Foreign institutional investors sold a net Rs 16,877 crore in Indian shares in August, more than the previous monthly record of Rs 15,347 crore in October 2008, according to data from National Securities Depository Limited (NSDL).
India GDP growth slowed to 7 per cent in the June quarter, from 7.5 per cent in the previous quarter amid deceleration in farm, services and manufacturing sectors.
Further, China’s final PMI reading was logged at 49.7 for the month of August against previous month’s 50.0. The PMI reading is lowest in previous three years.
Asian peers, Hang Seng, Nikkei and Shanghai dipped 2.24 per cent, 3.84 per cent and 1.23 per cent at 21,185.43, 18,165.69 and 3,166.62.
Markets through the day
3.23 pm: Out of the 30-Sensex constituents, 29 were in red. Hindalco and Axis Bank were down over 5 per cent.
3.20 pm: Sensex was down 569 points at 25,713.86. All the sectoral indices led by metal, bank and realty, tumbled up to 4.15 per cent.
3.11 pm: Meanwhile, Atul Auto reported 14.82 per cent growth in sales for the month of August 2015 at 3,906 units as compared to 3,402 units sold in August 2014. The company’s total sales from April to August this year rose by 7.08% and stood at 16,461 units as compared to 15,372 units sold in the same period last year. Shares of Atul Auto were trading 0.27 per cent higher at Rs 414.90.
3.08 pm: Sun TV Network shares were trading 1.33 per cent up at Rs 346.75. Sensex was down 2.33 per cent at 25,673.
3.00 pm: Metal stock declined on Tuesday after twin surveys showed China’s manufacturing sector in the grip of its worst slump in several years. The BSE Metal index was down 3.58 per cent at 7446.07.
2.57 pm: There were more than four losers against every gainer on BSE. The BSE Midcap index and the BSE Smallcap index were down 2.24 per cent and 2.53 per cent, respectively.
2.47 pm: Inox Wind was trading 1.61 per cent higher at Rs 371.80. The share price of the company gained after the company said it has secured an order for a 100 megawatts wind power project from Ostro Energy in Madhya Pradesh. NSE Nifty was down 216 points at 7,755.
2.40 pm: Sensex was down 642 points at 25,640.
2.31 pm: Sensex down over 700 points at 25579.88.
2.24 pm: Sensex was down 660.76 points at 25,622.33. Nifty fell 213.30 points at 7,758.00. BSE Metal was down 3.93% BSE Bankex was down 3.83 per cent
2.19 pm: Sensex falls 602.04 points at 25,681.05. Nifty down 194.60 points at 7,776.70
2.13 pm: Sensex down 577.91 points at 25,705.18. Nifty falls 175.05 at 7,796.25. Bankex down 3.74 per cent
12.10 pm: Sensex was down 324 points at 25,985. Barring IT and TECk sectors, rest all other segments led by banks, capital goods, consumer durables, metal, auto, realty, oil & gas and power witnessed sustained selling pressure. Country’s key macro-data with slower GDP growth of April-June quarter, subdued Asian cues amid weakness in China’s economy, loomed over the trading sentiments.
12.01 pm: Infosys, Sun Pharma and TCS were up over 1 per cent.
11.47 am: Among other Asian markets, Hong Kong’s Hang Seng declined 0.96 per cent, Shanghai Composite fell 1.76 per cent, while Japan’s Nikkei were down 3.69 per cent. Sensex was down over 300 points.
11.40 am: Sensex was down 274 points at 26,008. Nifty was down 95.90 points at 7,875
11.17 am: Shares of Sun Pharmaceutical Industries gained over 1.5 per cent in the morning trade on Tuesday after the company announced that it has successfully completed the acquisition of Opiates business in Australia from GSK. The announcement was made before market hours on Tuesday. The share price of the company was trading 1.83 per cent higher at Rs 914.10. Sensex was down 173.76 points at 26,109.
10.50 am: Meanwhile, Maruti Suzuki reported sales figures for the month of August 2015. The company sold total of 1,17,864 vehicles in August 2015, a growth of 6.4 per cent. This includes 1,06,781 units in the domestic market and 11,083 units in exports. The share price of Maruti Suzuki was trading 0.91 per cent lower at Rs 4,129.50.
10.25 am: BSE Bankex index fell over 1.5 per cent. HDFC Bank cuts base rate by 35 basis points to 9.35 per cent from September 1. According to analysts, After this cut most banks base rates are 35-65 basis points higher than HDFC Bank and they will have to take some hit on NIMs if they match it.
10.18 am: The market breadth indicating the overall health of the market was weak. Index heavyweights HDFC and Hindalco were down over 2 per cent. Sensex was down 225 points at 26,057.12
9.23 am: Sensex was down 214.40 points at 26,068. Nifty was down 66 points at 7,905.25.
Domestic stock market opened in red on Tuesday on the back of slowdown in GDP growth rate in Q1 June 2015 and weak Asian markets. The BSE Sensex and NSE Nifty opened 156.05 points and 63.35 points lower at 26,127 and 7,907.95, respectively.
Monday’s government data showed gross domestic product expanded at an annual 7 per cent rate in the April-June quarter, matching China, but slower than provisional growth of 7.5 per cent in the previous quarter.
The BSE Sensex on Monday closed 109.29 points, or 0.41 per cent lower at 26,283.09. NSE Nifty closed 30.65 points, or 0.38 per cent, down at 7971.30.
Asian shares fell on Tuesday and the dollar struggled after twin surveys showed China’s manufacturing sector in the grip of its worst slump in several years, raising fresh fears about the health of its economy.
China’s official Purchasing Managers’ Index (PMI) fell to 49.7 in August from the previous month’s reading of 50.0, the weakest showing in three years.
Asian peers, Hang Seng, Nikkei 225 and Shanghai were also down 0.46 per cent, 2.38 per cent and 2.29 per cent at 21,571.57, 18440.28 and 3137.60, respectively.
(With inputs from Agencies)