The BSE Sensex and NSE Nifty fell over 1 per cent on Friday on account of negative Asian markets and corporate earnings amid crude oil prices slipping below $30 per barrel. Sensex closed 317.93 points down at 24,455.04. Nifty settled 99 points down at 7,437.80.
Among 50 Nifty scrips, 41 ended in red with Vedanta fell the most — 8.32 per cent to Rs 72.75. Other major losers that dragged down the benchmark index included State Bank of India (down 6.50 per cent), Cairn India (down 6.24 per cent), Punjab National Bank (down 6.19 per cent) and GAIL (down 5.75 per cent).
Barring the BSE IT index (up 0.07 per cent), rest all other sectoral indices on BSE ended in red. The BSE Realty index fell the most — 4.20 per cent, followed by the BSE Power index (down 3.88 per cent), BSE Capital Goods index (down 2.82 per cent), BSE Bankex (down 2.72 per cent) and BSE Metal index (down 2.61 per cent).
Banking shares remained under selling pressure on hopes that October-December (Q3FY16) should mark as one of the toughest quarters particularly for PSU banks in the light of continued surmounting asset quality pressures.
Gaurav Jain, director, Hem Securities, said, “Late selling pressure triggered by sharp fall in crude oil prices and global equities dragged Indian benchmarks sharply lower. Further, depreciating rupee against the US dollar and disappointing quarterly earnings by index heavyweight and FMCG major also spoiled the mood of the market.”
Market sentiments also remained down beat on report that United Nations has downgraded its GDP growth forecast for India for 2016 to 7.5 per cent from 8.2 per cent estimated earlier, largely due to slow progress in implementing reform policies.
Among the day’s major moving events, Hindustan Uniliver took the markets by surprise by a 22 per cent slump in its profits year on year. The company reported a Rs 971 crore net profit in the quarter ending December 2015 against Rs 1,252 crore clocked in the same quarter the previous fiscal. The stock was down by more than 6 per cent intraday over the weak numbers posted by the FMCG major.
Shares of Wockhardt too remained under bearish pressures after the company received Form 483 from US Drug regulator for its Shendra plant which markets believed is a warning signal for the company. The stock was down by 17.4 per cent intraday over the news.
Asian equity markets ended in red on Friday after continued falls in the price of oil and poor Chinese bank lending figures undermined confidence. Chinese shares ended deep in the red after another late afternoon sell-off.
Japanese stocks ended down in choppy trade, giving up early gains as oil prices turned lower in Asian deals and Bank of Japan Governor Haruhiko Kuroda said he isn’t considering additional easing at the moment, blaming tumbling global oil prices for the sluggish price trend. Hong Kong shares closed at its lowest level in nearly 3-1/2 years, pounded by tumbling mainland stocks and a drop of the Hong Kong dollar against the US dollar.
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Markets through the day
3.30 pm: Sensex plummeted 317.93 points to end at 24,455.04. Nifty cracked below 7,500-mark by falling 99 points to 7,437.80.
3.13 pm: Sensex was down 306 points at 24,466. Nifty was trading 96.65 points down at 7440.15.
2.56 pm: Hindustan Unilever shares slid as much as 6 per cent intraday after the FMCG major announced 22 per cent year-on-year (yoy) fall in its net profit figures to Rs 971.40 crore for the quarter ended December 31, 2015. The company earned Rs 1252.17 crore in the corresponding quarter a year ago. The scrip was trading 3.32 per cent down at Rs 799. Sensex was down 275 points at 24,497.
2.41 pm: Sensex was down 252 points at 24,520. Nifty was trading 64.25 points down at 7,472. China’s Shanghai Composite Index was trading over 3 per cent down at 2,900.
2.15 pm: Suzlon Group has received an additional sanction of working capital lines (substantially non-fund based) of Rs 2,300 crore to meet its requirements for execution of sizable order backlog and pipeline. This will enable Suzlon to scale up its volumes. The additional working capital sanctions are over and above the existing working capital facilities of Rs 4,300 crore. These facilities will be catalyst to help Suzlon tap the growth opportunities in Indian and international markets. Shares of Suzlon Energy were trading 1.49 per cent up at Rs 20.50.
1.57 pm: Tata Steel shares were trading 1.38 per cent down at Rs 235.40. Global rating agency Standard & Poor’s (S&P) has downgraded rating of steel major Tata Steel’s to ‘BB-’, a low investment grade rating, over persistent subdued operating performance amid subdued demand and low steel prices.
1.50 pm: Mahindra & Mahindra (M&M) shares were trading 0.53 per cent down at Rs 1181.60. M&M launched its much awaited compact SUV KUV100 on Friday.
1.17 pm: Wockhardt shares fell as much as 12.69 per cent intraday on Friday on reports the company has received a notice from the US Food and Drug Administration highlighting concerns with its Shendra drug manufacturing plant in Aurangabad.
12.49 pm: Hindustan Unilever hit new 52-week low of Rs 771 ahead of Q3 results. The scrip was trading 1.55 per cent down at Rs 813.60. Sensex was down 0.30 per cent at 24,699.
12.32 pm: Leading fruit juice player, Manpasand Beverages, has entered into a tie up with German wholesale retail and trading major, METRO Cash & Carry. Shares of Manpasand Beverages were trading 2 per cent up at Rs 469. Manpasand’s flagship mango-based brand ‘Mango Sip’ and recently launched ‘Fruits Up’ will be available in all of METRO’s various outlets across India. Sensex was down 83.26 points at 24,690.
12.13 pm: Marksans Pharma shares were trading 17.39 per cent down at Rs 64.35. Sensex was down 80 points at 24,693.
11.29 am: Infosys was trading 1.58 per cent up at Rs 1146.50. The IT major raised its annual revenue growth forecast on Thursday due to stronger demand for high-margin automation and other services.
11.01 am: Idea Cellular was 0.10 per cent higher on the BSE after the company announced the launch of world class high-speed 4G LTE services in three more telecom service areas expanding its 4G offering to 7 circles. Sensex was down 72.16 points, or 0.16 per cent, at 24,700. Nifty was down 27.40 points, or 0.36 per cent, at 7,509.
10.30 am: Shares of Prakash Industries gained over 6 per cent after the company said its PVC Pipe division is likely to achieve sales of 31,800 mt in the current financial year 2016 against 27,638 mt last year, registering a growth of 15 per cent year-on-year (yoy) and is likely to further grow by 20 per cent in the next financial year with a target sale of 38,000 mt. Sensex was down 26.49 points 24,746. Nifty was down 2.40 points at 7,534.
10.06 am: Benchmark indices pared initial gains. Sensex was down 32.21 points at 24,740. HCL Technologies and GAIL were trading 1.44 per cent and 1.19 per cent down at Rs 816.90 and Rs 353.30, respectively. Nifty was down 8.50 points at 7,520.
9.57 am: According to Brokers, value-buying in bluechip stocks by participants after recent losses and a overnight rally in US stocks following strong corporate earnings and a rebound in oil prices boosted market sentiment here. Moreover, a mixed trend at other Asian bourses influenced sentiments. The barometer index, BSE Sensex, was up 18.25 points at 24,791.
9.54 am: The rupee recovered by four paise to 67.25 against the US dollar in early trade on fresh selling of the American currency by exporters and banks.
9.43 am: Jindal Steel and Power shares were trading 2.48 per cent down at Rs 70.65. The Naveen Jindal-promoted Jindal Steel & Power (JSPL), which has reported losses for the past four quarters, has reduced employee salaries by 10 per cent in order to reduce cost. Moreover, the salary disbursements to employees are also being delayed, multiple sources told Financial Express newspaper.
9.30 am: SpiceJet shares gained over 2 per cent in the early trade after the airline launched two new flights from Jaipur and Hyderabad to Dubai. Following the introduction of these two new flights, the airline now connects ten Indian cities with Dubai every day. Sensex was up 62.50 points at 24,834.
9.20 am: Sensex was up 58.25 points, or 0.24 per cent, at 24,831.22. HUL shares were trading 0.57 per cent down at Rs 821.75.
9.18 am: In the 50-share index, Vedanta, Infosys, Cairn India, Reliance and Sun Pharma were up between 0.64 per cent and 1.40 per cent. Nifty50 was up 6.10 points at 7542.90.
9.15 am: The benchmark index BSE Sensex opened 108.79 points up at 24,881.76. Nifty opened 24.85 points up at 7,561.65.
9.05 am: Brokerage house Angel Broking believes HUL may post 18.1 per cent year-on-year fall in net profit figures to Rs 1,026 crore for the quarter ended December 2015. The FMCG major posted net profit of Rs 1,252 crore in the same quarter last year.
9.00 am: Punjab & Sind Bank has proposed to issue Basel-III Compliant Tier-II Bonds amounting up to Rs 500 crore by way of private placement. The bank has received ratings of ‘AA/Stable’ by CRISIL Ratings and ‘AA’ by CARE Ratings for the proposed issue of bank.
8.41 am: The BSE Sensex and NSE Nifty are likely to open on a flat note with positive bias on Friday tracking SGX Nifty and global markets.
At 8.21 am (IST), SGX Nifty was up 10.50 points, or 0.14 per cent, at 7,548.50.
Asian stocks won a temporary reprieve on Friday after oil prices snapped their eight-day rout, helping to lift battered energy shares even as investors remained on edge as they looked for signs of stability in China’s economy and its volatile markets.
Oil prices rebounded on Thursday, with international benchmark Brent futures rising 2.4 per cent to $31.03 a barrel, recovering from its 12-year low of $29.73 hit earlier in the day.
The Dow Jones Industrial Average closed up 227.64 points, or 1.41 per cent, to 16,379.05, the S&P 500 gained 31.56 points, or 1.67 per cent, to 1,921.84 and the Nasdaq Composite ended up 88.94 points, or 1.97 per cent, to 4,615.
Back home, Sensex fell by over 81 points on Thursday to close at 24,772.97 as heavy selling in Tata Steel offset better-than-expected third quarter numbers of Infosys. Nifty closed 25.60 points or 0.34 per cent lower at 7,536.80.
Hindustan Unilever and Zee Entertainment will announce their Q3 results on Friday.
(With agency inputs)