1. Sensex ends 46 points down ahead of RBI monetary policy review, Nifty settles at 7,556; Banking stocks fall

Sensex ends 46 points down ahead of RBI monetary policy review, Nifty settles at 7,556; Banking stocks fall

Sensex closed 45.86 points down at 24,824.83 on Monday, while Nifty settled 7.60 points down at 7,555.95.

By: | New Delhi | Updated: February 1, 2016 4:20 PM
sensex, nifty, bse, nse

The BSE Sensex and NSE Nifty closed in red on Monday ahead of the Reserve Bank of India’s (RBI) monetary policy review scheduled for Tuesday. (Photo: Reuters)

The BSE Sensex and NSE Nifty closed in red on Monday ahead of the Reserve Bank of India’s (RBI) monetary policy review scheduled for Tuesday. The sentiments remained under pressure after Standard & Poor’s Ratings Services stated that India will face challenges in sticking to the fiscal consolidation roadmap as the expected revenues may not be fully realised and subsidy cuts may be delayed.

Sensex closed 45.86 points down at 24,824.83, while Nifty settled 7.60 points down at 7,555.95.

In the 50-share index, Adani Ports, YES Bank, Ambuja Cements, Bharti Airtel and Coal India gained between 2.30 per cent and 3.95 per cent. On the other hand, ICICI Bank, State Bank of India, Maruti Suzuki, Bank of Baroda and Axis Bank slid between 2.24 per cent and 5.64 per cent.

In scrip specific development, IPCA Laboratories shares closed 2 per cent down at Rs 655.35 after it received warning letter from the US health regulator for three facilities on which the regulator had earlier imposed a import ban for not adhering to the good manufacturing norms. The scrip fell 16 per cent intraday.

Airline shares like Jet Airways, SpiceJet and InterGlobe Aviation gained on Monday following a sharp reduction in Aviation Turbine Fuel or jet fuel prices.

Gaurav Jain, director, Hem Securities, said, “Markets started the first day of the month of February on a positive note supported by strong global cues. But shed all the gains in late trade on account of dismal earnings by key corporate and slump in crude oil prices. Huge volatility was witnessed ahead of the RBI’s monetary policy review on Tuesday.”

Sectorwise, the BSE Bankex declined the most — 1.40 per cent, followed by BSE Power index (down 0.55 per cent) and BSE Auto index (down 0.36 per cent). On the other hand, BSE Telecom index, BSE Capital Goods index and BSE FMCG index gained by 1.94 per cent, 0.98 per cent and 0.98 per cent, respectively.

Market breadth for the day remained mildly negative and advances to declines ratio for Nifty stood at 22:28 for the day. Volumes for Nifty stocks stood at 2,066 lakh against Friday’s volumes of 3,076 lakh for Nifty stocks.

Asian equity markets ended mix on Monday as oil prices declined after last week’s sharp rally and a slew of data painted a mixed picture of the Chinese economy. Japan shares gained after the Bank of Japan’s move last week to adopt negative interest rates. China shares fell after China’s official manufacturing purchasing manager’s index (PMI) came in at 49.4 in January, slightly down from December’s 49.7 reading and missing estimates for a score of 49.6 while growth in the services sector activity slowed from the previous month. However, the Caixin China manufacturing PMI, a private gauge of nationwide factory activity, edged up to 48.4 from 48.2 in December, offering some respite to investors worried over slowing growth in the world’s second-largest economy.

Asian Indices Last Trade             Change in Points Change in %  
Shanghai Composite 2,688.85 – 48.75 -1.78
Straits Times 2,602.41 -26.7 -1.02
Hang Seng 19,595.50 -87.61 -0.45
Taiwan Weighted 8,156.96 11.75 0.14
Jakarta Composite 4,624.63  9.47 0.21
KOSPI Composite 1,924.82 12.76 0.67
Nikkei 225 17,865.23 346.93 1.98

Source: Ace Equity

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Markets through the day

3.30 pm: Sensex closed 45.86 points down at 24,824.83, while Nifty settled 7.60 points down at 7,555.95.

3.15 pm: Suzlon Energy shares were trading 8.37 per cent down at Rs 18.60 after its consolidated net loss has narrowed down to 113.17 crore for the third quarter ended December 31, on the back of increased volume and better operating margins. Sensex was trading 34.79 points down at 24,835.90. NSE Nifty was trading 12.40 points down at 7,551.15.

2.58 pm: Airline shares like Jet Airways, SpiceJet and InterGlobe Aviation were trading in green following a sharp reduction in Aviation Turbine Fuel or jet fuel prices. Jet Airways, SpiceJet and InterGlobe Aviation were up by 0.94 per cent, 3.32 per cent and 1.60 per cent, respectively.

2.39 pm: BGR Energy Systems were trading 5.08 per cent up at Rs 120. Sensex was up 10 points at 24,881.07

2.07 pm: In the 50-share index, Adani Ports, Cipla, YES Bank, ACC and Ambuja Cements were up between 2.25 per cent and 3.83 per cent. On the other hand, ICICI Bank, State Bank of India (SBIN), Maruti Suzuki, Axis Bank and Bank of Baroda were down between 2.15 per cent and 4.45 per cent. Nifty was up 6 points at 7,569.

1.47 pm: IPCA Labs shares nosedived as much as 16 per cent and hit their fresh 52-week low of Rs 560 after the pharma company informed BSE that it has received warning letter from US FDA for Ratlam (Madhya Pradesh), SEZ Indore (Pithampur) and Piparia (Silvassa) manufacturing units. Shares of IPCA Labs were trading 4 per cent down at Rs 642.45 (at 1.47 pm). Sensex was down 36 points at 24,834.

1.13 pm: Eicher Motors’ Royal Enfield on Monday reported a 65 per cent jump in total motorcycle sales at 47,710 units last month as against 28,927 units in January, 2015. Shares of Eicher Motors were trading 2.29 per cent up at Rs 16925. Sensex was up 22.10 points at 24,892. Nifty was up 12.25 points at 7,575.

12.47 pm: On the global front, Asian markets were trading mostly in green at this point of time on the back of the Bank of Japan’s surprise stimulus move continued to be felt across financial markets. Latest data showed that China’s Caixin manufacturing purchasing managers’ index (PMI) inched up to 48.4 last month. Closer home, select stocks from steel sector edged higher with Union Minister Narendra Singh Tomar stating that additional steps will be taken to protect domestic steel industry. The broader indices too were trading with traction, while the market breadth on the BSE was positive; there were 1,493 shares on the gaining side against 923 shares on the losing side while 118 shares remain unchanged.

12.43 pm: Sensex pared all of its initial gains and was trading 34 points down at 24,836. Nifty was down 4.85 points at 7,558.70.

12.01 pm: SpiceJet, one of the major aviation players in domestic market, has increased its ticket cancellation charges by almost Rs 100, effective February 1, 2016. The revised cancellation charges would be Rs 1,899 for a domestic ticket and Rs 2,349 for an international booking. The excess baggage fee for domestic and international flights has also been raised by a few hundred rupees. Shares of SpiceJet were trading 4.93 per cent up at Rs 91.60. Sensex was up 54.36 points at 24,925.

11.54 am: Larsen & Toubro shares were trading 3.33 per cent up at Rs 1138.95 after the engineering and construction giant reported a 19 per cent rise in consolidated net profit at Rs 1,034.8 crore for the quarter ended December 31. Sensex was trading 55.47 points up at 24,926.16. NSE Nifty was trading 20.15 points up at 7,583.70.

11.39 am: Indian manufacturing sector growth rose to a four-month high in January driven by rising inflows of new business orders from domestic as well as export clients, says a Nikkei survey. The Nikkei India Manufacturing PMI, a composite monthly indicator of manufacturing performance, stood at 51.1 in January, up from 49.1 in December. Sensex was trading 80.28 points up at 24,950.97. NSE Nifty was trading 27.55 points up at 7,591.10.

11.27 am: Just Dial shares hit fresh 52-week low of 547.80. The scrip was trading 9.46 per cent down at Rs 551.10. Sensex was up 69.20 points at 24,939.

11.17 am: Shares of Jet Airways were trading 2.63 per cent up at Rs 618.45. Jet Airways is in discussions with Air Serbia to lease an A330 aircraft and is evaluating options to operate or sell Boeing 777 planes upon return from Etihad Airways. Jet Airways has seven aircraft on lease with Etihad, including an Airbus A330 and six Boeing 777s, and lease terms will end this year. Jet is considering launching a second Delhi-London flight with a Boeing 777 aircraft upon end of lease term. It may also deploy an Airbus A330 plane (currently on Brussels-Newark route) on Mumbai-Singapore route. Jet Airways has a fleet of 115 planes, a mix of turboprop, narrow-body, and wide-body planes. This includes 10 Boeing 777s and 12 Airbus A330.

10.54 am: Maruti Suzuki shares fell over 2 per cent after the company reported 2.5 per cent year-on-year decline in its January 2016 sales figures to 1,13,606 units. The largest car maker sold 1,16,606 units in the same month last year. Nifty was up 23.25 points, or 0.31 per cent, at 7,586.80.

10.45 am: Sensex was up 67.79 points at 24,938. Brokers said revival of buying by foreign investors and
widening of positions by investors, mainly influenced the trading sentiment. Besides, mixed third quarterly earnings and a mixed trend at other Asian bourses supported the rise in the domestic markets.

10.43 am: Meanwhile, Nifty 50 index crossed the psychological level of 7600 for the first time since January 14, 2016.

10.17 am: Glenmark Pharmaceuticals rallied 3.97 per cent at Rs 801.50 after HSBC upgraded the stock to ‘Buy’ from ‘Hold’. Sensex was trading 55.26 points up at 24,925.95. NSE Nifty was trading 18.95 points up at 7,582.50.

10.04 am: Chinese manufacturing ebbed in January to its lowest in more than three years, a possible sign of further weakness in the world’s No. 2 economy after posting its slowest annual growth in a quarter century. Sensex was trading 74.44 points up at 24,945.13. Nifty was trading 17.15 points up at 7,580.70.

9.43 am: Indian rupee gained four paise to 67.74 against the US dollar in early trade at the Interbank Foreign Exchange on increased selling of the American currency by exporters and banks.Sensex was trading 14.20 points up at 24,884.89. Nifty was trading 7.25 points up at 7,570.80.

9.27 am: State-owned construction firm NBCC is aiming to increase its order book from Rs 17,000 crore to around Rs 1 lakh crore by the end of 2020. National Buildings Construction Corporation (NBCC) had a turnover of around Rs 5,000 crore in the 2014-15 fiscal. The company has bagged big-ticket projects this year and the order book is expected to reach about Rs 40,000 crore by end of this fiscal from the current Rs 17,000 crore. The company has broadly three areas of operations — project management consultancy (PMC), real estate development and EPC contracting. Shares of NBCC were trading 0.50 per cent up at Rs 968.05.

9.23 am: Shares of EIH Ltd were trading 1.63 per cent down at Rs 114.55. Sensex pared most its initial gains and was trading 10 points up at 24,880.

9.15 am: Domestic equity markets opened in positive on Monday on the back of firm global cues. Though there will be some cautiousness too ahead of the RBI’s monetary policy announcement on Tuesday. Sensex opened 111.53 points up at 24,982.22, while Nifty opened 25.95 points up at 7589.50.

8.46 am: The BSE Sensex and NSE Nifty are likely to open in green on Monday tracking SGX Nifty and global markets.

At 8.32 am (IST), SGX Nifty was up 0.59 per cent, or 44.50 points, at 7,595.50.

Asian stocks started a new month on a cautious note on Monday, with the Bank of Japan’s surprise policy easing sparking some buying but further signs of economic weakness in China and a fall in oil prices keeping investors on guard.

The US markets surged in last session supported by some good earnings. Dow Jones Industrial Average index closed 2.47 per cent up at 16,466.30

The benchmark BSE Sensex surged over 401 points on Friday to log its first weekly gain this year and closed at 24,870.69 as investors built fresh long positions in the new derivatives series amid a firming global trend after Bank of Japan adopted a negative interest rate policy.

The 50-share index, NSE Nifty closed at 7,563.55, up 138.90 points, or 1.87 per cent.

Foreign portfolio investors (FPIs) bought shares worth Rs 571.70 crores last Friday, as per provisional data released by the stock exchanges.

Shares of EIH Ltd and Birla Corp will remain in focus on Monday. Hospitality major EIH Ltd, which runs hotels and resorts under Oberoi and Trident brands, will close Oberoi, New Delhi for two years for major renovations of the property. “The Oberoi, New Delhi will be closed effective from April 1, 2016 for major renovations. The hotel is expected to be ready for commercial operations by April 1, 2018,” EIH Ltd said in a BSE filing.

Cement maker Birla Corporation on Saturday reported a 56 per cent drop in net profit at Rs 6.57 crore for the quarter ended December 31, 2015. The flagship firm of the M P Birla Group had clocked a net profit of Rs 15 crore in the year-ago period, it said in a BSE filing.

(With agency inputs)

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