Benchmark indices BSE Sensex and NSE Nifty plunged over 1 per cent on Tuesday on account of selling in frontline blue chip stocks. The sentiments were also affected after exports shrank for the 14th month in a row to 13.6 per cent in January.
Sensex closed 362.15 points down at 23,191.97, while Nifty settled 114.70 points down at 7,048.25.
In the 50-share index, share price of State Bank of India slid the most — 6.85 per cent, followed by Zee Entertainment (down 5.97 per cent), Bank of Baroda (down 5.96 per cent), Punjab National Bank (down 5.16 per cent) and Vedanta (down 5.13 per cent). On the other hand, Adani Ports, NTPC and Hero MotoCorp gained 4.84 per cent, 2.24 per cent and 0.46 per cent, respectively.
Alex Mathews, head, research, Geojit BNP Paribas, said, “The markets on Tuesday reversed its direction due to heavy selling by investors. The major contributors to the down fall were the banking, realty and the capital goods sectors.”
Market participants also remained concerned with India Ratings maintaining a negative outlook for infrastructure sector for the next fiscal as it sees a high concentration of poorly performing assets. Meanwhile, the Reserve Bank of India’s (RBI) Governor Raghuraman Rajan stated that RBI and the government don’t favour undervaluation of the exchange rate as a means to spur economic growth.
Sectorwise, the BSE Capital Goods index, BSE Realty index and BSE Telecom index slid 3.06 per cent, 3.03 per cent and 2.93, respectively. Rest all other sectoral indices also ended the day in red.
In scrip specific development, United Breweries (Holdings) lost over 11 per cent after Punjab National Bank declared the Vijay Mallya-controlled company as a ‘Wilful Defaulter’. UB Holdings stated that it is in consultation with its legal counsels to challenge the decision by taking appropriate legal action that may be required in this regard.
Shares of public sector oil marketing companies (OMCs) viz. BPCL (down 3.98 per cent), HPCL (down 5 per cent) and IOC (down 2.77 per cent) edged lower as global crude oil prices rose. State Bank of India (SBI) emerged as the biggest laggard after SBI chairman stated that non-performing assets will rise in the March quarter as well, and profitability will get impacted.
Overall market breadth for the day remained in favour of decliners as there were 614 shares on the gaining side against 2,007 shares on the losing side while 104 shares remain unchanged.
Asian markets ended higher on Tuesday as a combination of stabilising Chinese markets, rebounding oil prices and solid US consumption data prompted investors to look for bargains after last week’s rout. Chinese shares ended higher, helped by a surge in China’s bank lending to a record high and comments from China’s premier, who hinted of fresh stimulus if the economy slowed further. China’s bank lending surged to a record 2.51 trillion yuan ($385 billion) in January from 597.8 billion yuan recorded in December amid soaring demand for mortgages. Hong Kong shares extended gains, led by energy stocks as sentiment improved on the back of higher oil prices and rebounding European and Chinese equities. Japanese stocks rose slightly in choppy trade as weaker yen and firmer oil prices.
|Asian Indices||Last Trade||Change in Points||Change in %|
Data Source: Ace Equity
Markets through the day
3.30 pm: Sensex closed 362.15 points down at 23,191.97, while Nifty settled 114.70 points down at 7,048.25.
3.09 pm: Sensex was down 333 points at 23,220. Punj Lloyd, the diversified engineering, procurement and construction conglomerate has bagged oil & gas EPC orders worth Rs 2,070 crore from Oman Oil Refineries and Petroleum Industries Company (Orpic) and Oman Gas Company (OGC) which are owned by the Government of the Sultanate of Oman and Oman Oil Company SAOC. The scope of work for the contracts includes the construction of a 14’ dia, 300 km natural gas liquid (NGL) pipeline and a 32’ dia, 301 km gas pipeline. Shares of Punj Lloyd were trading 1.12 per cent up at Rs 22.55.
2.44 pm: Titagarh Wagons is planning to bring its ship building business, so far carried out through subsidiaries, under its fold. In this regard, the company’s shareholders considered a proposal for the merger of its wholly owned subsidiary Titagarh Marines along with two of its subsidiaries Corporate Shipyard and Times Marine Enterprise with Titagarh Wagons. Shares of Titagarh Wagons were trading 4 per cent down at Rs 122.75. Sensex was down 361 points at 23,192.
2.37 pm: Sensex was down 333 points at 23,220. Nifty was trading 100 points down at 7,062. UTI Mutual Fund has launched the UTI Capital Protection Oriented Scheme Series VII-II (1281 Days), a close ended income scheme. The NFO opens for subscription on February 16, 2016 and closes on February 26, 2016. No entry load and exit load will be applicable for the scheme. The minimum subscription amount is Rs 5000 & in multiple of Rs 1 thereafter.
2.11 pm: Heavy selling in banking stock further dampened market sentiments in the afternoon trade. The BSE Bankex was down 1.45 per cent at 16,189.42. Shares of Bank of Baroda, State Bank of India and Punjab National Bank were down 5.30 per cent, 4.75 per cent and 4.17 per cent, respectively. Sensex was down 216 points at 23,337.97. Nifty was down 77.05 points at 7,085. SBI Chairman Arundhati Bhattacharya, said the profitability will be hit as NPAs expected to rise next quarter.
1.57 pm: European stock markets rose on Tuesday, helped by stronger energy stocks which gained ground as oil prices surged on the possibility of output cuts.
1.26 pm: In the 50-share index, Adani Ports, NTPC, Tata Power, GAIL and Dr Reddy’s were up between 1.19 per cent and 5.08 per cent. On the other hand, Bank of Baroda, Vedanta, Sun Pharma, BPCL and Larsen & Toubro slid between 2.05 per cent and 4.06 per cent. Sensex was down 79 points at 23474. Nifty was trading 30.70 points lower at 7,132.
1.12 pm: Shares of logistics firm Gati surged as much as 9.5 per cent on Tuesday after the company said it will invest in start-ups in the delivery space as the company tries to achieve its target of delivering 1 million packages per day by 2020. The scrip was trading 3.01 per cent up at Rs 111.30 (at 1.22 pm). Sensex was up 116 points at 23,437.
1.06 pm: Sensex was down 137 points at 23,416. Market sentiments remained down-beat with the report that India’s merchandise exports fell for the 14th consecutive month with shipments in January, 2016 contracting 13.6 percent year-on-year to $21 billion due to a steep fall in shipment of petroleum products and engineering goods amid tepid global demand.
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12.27 pm: Ceat is planning to invest Rs 300 crore to set up a manufacturing facility in Maharashtra to primarily serve export market for off-road radial tyres. The company has already transferred its land in Ambernath, Maharashtra to its wholly-owned subsidiary Ceat Specialty Tyres (CSTL) to set up the plant. Shares of Ceat were trading 2.70 per cent up at Rs 979. Sensex was down 126 points at 23,428.
12.01 pm: Bharti Airtel, India’s number one operator and the third largest mobile services provider globally, has migrated 40,000 of its network sites across India to green technology. In continuation with the company’s long term commitment towards Green network initiatives – Airtel’s network transformation program ‘Project Leap’ is now focusing heavily on a series of fresh initiatives towards a greener environment and building sustainable network for the future. Under ‘Project Leap’, Airtel will establish a world-class and future-ready network, while committing to bring down its carbon footprint emission by 70% by 2018. Shares of Bharti Airtel were trading 1.04 per cent up at Rs 321.95. Sensex was down 64 points at 23,489.
11.28 am: Jindal Steel and Power shares fell on Tuesday after CRISIL downgrades JSPL credit rating to A4+ from A3+, indicating a negative outlook. Shares of Jindal Steel and Power were trading 1.66 per cent down at Rs 62.05. Sensex was down 127 points at 23,426. Nifty was down 38.25 points at 7,124.70.
11.24 am: Meanwhile, Nikhil Kamath, co-founder and director, Zerodha, said, “The rally which we have witnessed over the last two trading sessions feels like a typical bear market rally, most international markets seem to be witnessing short term spikes and this looks to be positively rubbing off on the Indian bourses. FIIs still seem to be exiting equities and redemption pressures are also increasing locally. Overall the scenario continues to remain bearish.”
11.19 am: Reliance Communications shares gained as much as 4.5 per cent in the morning trade on Tuesday on hopes that it may not have to raise another round of debt as Aircel deal faces delays. Shares of Reliance Communications were trading 2.13 per cent up at Rs 52.75.
11.16 am: NMDC shares were trading 1.06 per cent up at Rs 90.75. HSBC upgrades NMDC rating to ‘hold’ from ‘reduce’ and retained price target of Rs 78.
10.43 am: Idea Cellular is all set to launch its 4G service in Maharashtra, Goa and North East by next month. The company has launched the service in 29 towns across 20 districts in eight telecom circles operating in Andhra Pradesh, Telangana, Madhya Pradesh, Chhattisgarh, Punjab, Haryana and Odisha. The company’s plan was to cover 750 towns across 10 telecom circles by June 2016. The company would offer 4G service at 3G rates to subscribers. Shares of Idea Cellular were trading 0.05 per cent up at Rs 108.90.
10.32 am: Bank of Baroda shares which gained over 20 per cent in Monday’s trade were trading 2.62 per cent down in the morning trade. Sensex was down 57.86 points at 23,496. Nifty was down 19.90 points at 7,143.
10.04 am: Biocon shares were trading 1.30 per cent up at Rs 463.30. The biotech major has received its first generic formulation approval in Europe, paving way for the company to launch Rosuvastatin Calcium tablets in several European countries.
9.53 am: The rupee was trading lower by 15 paise at 68.22 against the American currency in early trade on Tuesday at the Interbank Foreign Exchange market as the dollar firmed up overseas. Sensex was down 26.40 points at 23,527.
9.40 am: Benchmark indices pared their initial gains and were trading in red. Sensex was down 104 points at 23,450. Nifty was down 24.15 points at 7,138.80.
9.28 am: United Breweries (Holdings) Ltd (UBHL) has received a letter from Punjab National Bank (PNB) on February 15, 2016, whereby the bank has declared the company as a ‘Willful Defaulter’. The company is in consultation with its legal counsels to challenge the decision by taking appropriate legal action that may be required in this regard. Shares of United Breweries were trading 6.39 per cent down at Rs 21.25. Sensex was up 12.56 points at 23,566.
9.16 am: Opto Circuits shares were trading 14.46 per cent up at Rs 11 in the early trade. Opto Circuits reported net profit of Rs 6.39 crore for the quarter ended December 2015 against net loss of Rs 178.83 crore in the same quarter last year. Sensex was up 63.34 points at 23,617.
9.15 am: The 30-share index Sensex opened 134.49 points up at 23,688.61, while the 50-share index Nifty opened 38.30 points up at 7,201.25. Heidelberg Cement India has successfully commissioned the Waste Heat Recovery based Power Generation Plant at its Narsingarh Plant in Damoh, Madhya Pradesh on February 15, 2016. The Power Plant will utilise the waste heat generated by the clinkerisation lines at Narsingarh Plant. Shares of Heidelberg Cement were up by over 1 per cent in the early deals.
8.40 am: The BSE Sensex and NSE Nifty are likely to open in green on Tuesday tracking Nifty futures on the Singapore Stock Exchange (SGX Nifty) and firm Asian markets.
At 8.25 am (IST), SGX Nifty was up 42.50 points, or 0.59 per cent, at 7,216.50.
However, traders are likely to turn cautious with exports falling for the 14th consecutive month with shipments in January, 2016 contracting 13.6 per cent year-on-year to $21 billion due to weak overseas demand as well as fall in major export items. Imports also fell during the month by 11 per cent to $28.7 billion that resulted in the trade deficit narrowing to an 11-month low of $7.6 billion.
Asian shares extended their gains on Tuesday as a combination of stabilising Chinese markets, a rebound in oil prices and solid US consumption data drove investors to look for bargains after last week’s rout. Hang Seng, Nikkei and Shanghai were up 1.60 per cent, 0.90 per cent and 2.44 per cent, respectively, in the morning trade.
The US markets remained closed in last session on account of a holiday, unable to give any cues to other global markets.
A relief rally was witnessed on domestic bourses on Monday backed by short covering and positive global equities. A sharp rise in crude oil prices and upsurge in commodity prices also boosted the sentiment. The BSE Sensex surged 568 points, or 2.47 per cent, to 23,554.12. NSE Nifty gained 182 points, or 2.61 per cent, at 7,162.95.
Shares of ICICI Bank and Mahindra & Mahindra will remain in focus on Tuesday. Private sector ICICI Bank on Monday said it plans to raise up to Rs 50,000 crore from bonds in tranches to fund affordable housing and infrastructure projects.
Homegrown utility vehicle major Mahindra & Mahindra plans to invest Rs 8,000 crore on its automotive plants in Maharashtra over the next seven years as part of its expansion plans.
(With agency inputs)