The BSE Sensex and NSE Nifty fell for third day in a row on Wednesday as sentiment remained weak in the absence of any positive trigger amid weak Asian cues. The broader NSE index ended 0.56 per cent lower while the benchmark BSE index fell 0.68 per cent at close. Sensex settled the day 174.01 points down at 25,406.33, while NSE Nifty dropped 43.65 points to close at 7,741.00.
“Markets slipped sharply lower on account of huge selling pressure across the globe. Geopolitical risks posed by North Korea’s latest nuclear test and geopolitical tensions in the Middle East, China’s economic slowdown worries, weakening of rupee against dollar and weak global cues weighed on the sentiment of the street; thereby posting losses, ” Gaurav Jain, director, Hem Securities said.
Asian stocks markets fell on Wednesday and most emerging currencies retreated as China allowed the yuan to weaken further, stoking fears about its slowing economy, while a North Korean nuclear test heightened geopolitical tensions.
Oil fell to its lowest in more than 11 years on Wednesday, down around 2 per cent, as the row between Saudi Arabia and Iran was seen extinguishing any chance of major producers cooperating to cut production in the face of mounting global over supply.
Not much support came from Nikkei Services Purchasing Managers’ Index (PMI) that touched a ten-month high in December driven by a significant rise in new business orders but the overall health of the economy remains fragile amid a weak manufacturing sector.
In the 50-share index, Vedanta(down 3.95 per cent), ITC (down 3.03 per cent), Hindalco (2.60 per cent), ICICI Bank (down 2.53 per cent) and Tata Motors(down 2.52 per cent) were among the major losers. On the other hand, Reliance (up 2.38 per cent), Cipla (up 1.51 per cent), TCS (up 1.41 per cent), BPCL (0.95 per cent) and IndusInd Bank (up 0.80 per cent up) were among the top gainers.
ITC was the worst Sensex performer that slid 2.96 per cent followed by ICICI Bank that fell 2.59 per cent. Others losers included Tata Motors, M&M, Maruti Suzuki, Adani Ports, Asian Paints, ONGC, Hero MotoCorp, Lupin, L&T, Sun Pharma, Axix Bank and HUL.
Metal sector stocks including Tata Steel, Vedanta Ltd and Hindalco too were at the receiving end after base metals retreated in global market.
“Key benchmark indices in India toed the flat line for most of the trading day before witnessing sharp selling pressure in afternoon trade. Plagued by fears of an economic slowdown in China, investors in India chose to ignore the Nikkei India Services PMI reading, which rose to a 10 month high of 53.6 in December, 2015. Metal, auto and FMCG stocks were under pressure with the respective sectoral indices losing 1.85 per cent, 1.36 per cent and 1.89 per cent. With oil prices hitting an 11 year low, energy stocks attracted some buying interest, ” Shreyash Devalkar, fund manager – equities, BNP Paribas Mutual Fund.
Sectorwise, the BSE FMCG index suffered the most by falling 1.57 per cent, followed by metal 1.48 per cent, capital goods 1.32 per cent, auto 1.24 per cent, realty 0.85 per cent and banking 0.81 per cent.
On the global front, Chinese markets rallied after two straight days of losses. Meanwhile, European markets were also down in their early trade as investor assessed the global growth outlook.
Markets through the day
3.30 pm: Sensex dips 174 points to close at 25,406.33. Nifty settles 43.65 points down at 7,741.
3.29 pm: Sensex falls 200.45 points at 25,379.89. NSE Nifty was trading 47.95 poinst down at 7,736.70.
3.17 pm: Bank of India shares were trading 0.04 per cent at Rs 114.20 after the public sector bank alloted 2 crore shares to LIC valued at Rs Rs 264.12 crore. Sensex was trading 183.47 points down at 25,396.87. NSE Nifty was trading 46 points down at 7,738.40.
2.46 pm: HMT shares were trading 11.36 per cent up at Rs 56.85 after government on Wednesday decided to close three unviable units of HMT including the once popular HMT Watches, along with HMT Chinar Watches and HMT Bearings, by offering an “attractive” voluntary retirement scheme (VRS) to the employees as per 2007 pay scales. Sensex was down 162.55 points at 25,417.79. NSE Nifty was trading 37.20 points down at 7,747.45.
2:23 pm: State Bank of India shares dropped 0.39 per cent on BSE and 0.30 per cent on NSE. SBI along with its associate bank State Bank of Travancore (SBT) has reportedly sold loans extended to a unit of Kohinoor Group, as the company is struggling to repay its liabilities primarily due to a slowdown in the real estate business.Sensex was trading 147.42 points down at 25,432.92. NSE Nifty was trading 45.30 points down at 7,739.35.
2.01 pm: Sensex was trading 144.21 points down at 25,436.13. NSE Nifty was trading 35.70 points down at 7,748.95. European stocks fell on Wednesday, hit by weakness in the commodity sector as concerns over the Chinese economy resurfaced after it allowed the yuan to weaken further. The FTSEurofirst 300 was down 0.6 percent at 1,402.07 by 0812 GMT, with basic resources stocks, including miners, down 2.4 percent, the biggest sectoral faller.
1.58 pm: Sensex was trading 84.55 points down at 25,495.79. NSE Nifty was trading 1.50 points down at 7,783.15. BSE Metal index was down 0.70 per cent.
1.47 pm: SRF Ltd shares were trading 5.57 per cent up at Rs 1351.20 after it said it would begin operating the Chennai plant in phases after the factory was temporarily shut last month due to flooding on heavy rainfall. Sensex was trading 15.87 points down at 25,564.47. NSE Nifty was trading 0.80 points up at 7,785.45.
1.28 pm: Sensex was trading with gains of 23.46 points at 25,603.80. NIfty was trading 12.45 points up at 7,797.10. BSE Oil and GAs index was up 1.44 per cent and BSE Energy index was up 1.92 per cent.
1.13 pm: Bharati Shipyard shares gained 4.96 per cent at Rs 33.85 after the company informed BSE that a meeting of the Board of Directors of the company will be held on Thursday to consider the allotment of convertible warrants to Non-Promoters on preferential basis. Sensex was trading 27.21 points down at 25,553.13. NSE Nifty was trading 5.15 points down at 7,779.50.
12.50 pm: Thiru Arooran Sugars stocks were trading 4.01 per cent up at Rs 46.70 after it informed the bourses that it has received Rs 232 crore as advance against export of sugar over the next 8 years. The advance received has been primarily used for repayment of the credit facilities availed by the company from various Banks. Sensex was trading 21.86 points down at 25,558.48. NSE Nifty was trading 3.45 points down at 7,781.20.
12.43 pm: Lack of definite cues continue to restrict the momentum as BSE Sensex and NSE Nifty trade with small gains and losses amid volatility. Sensex was trading 18.77 points down at 25,561.57. NSE Nifty was trading 0.15 points down at 7,784.50. BSE FMCG index down 1.15 per cent.
12.10 pm: Andhra Bank shares were trading 1.42 per cent up at Rs 64.40. Sensex was trading 8.61 points up at 25,588.95. NSE Nifty was trading 5.85 points up at 7,790.50.
11.49 am: SITI Cable Network shares were trading 3.23 per cent down at Rs 37.50 after the Essel group company on Wednesday said it plans to raise up to Rs 680 crore through issuance of warrants and optionally fully convertible debentures (OFCDs) to promoter companies. Sensex was trading 10.87 points down at 25,569.47. NSE N ifty was trading 0.75 points up at 7,785.40.
11.28 am: Glenmark Pharmaceuticals shares were trading 0.21 per cent up at Rs 934.75 after the company said it has received a tentative nod from the US health regulator for generic version of Sanofi-Aventis’ cardiac drug Multaq. Sensex was trading 17.51 points down at 25,562.83. NSE Nifty was trading 1.15 points down at 7,783.50.
11.10 am: RPP Infra Projects shares were trading 2.58 per cent up at Rs 111.20 after it received an order from Karnataka State Police Housing & Infrastructure Development Corporation for construction of 212 numbers of police quarters in Dharwad District under Police Gruha 2020 Scheme for Rs 30.50 crore. Sensex was trading 2.09 points down at 25,578.25. NSE Nifty was trading 2.95 points up at 7,787.60.
10.30 am: Sensex was trdaing 4.87 points up at 25,585.21. NSE Nifty was trading 1.50 points at 7,786.15. Narayana Hrudayalaya debuted at Rs 291.00 on the BSE, up by 41 points or 16.4% from its issue price of Rs 250. The scrip is currently trading at Rs 323.00 and has touched a high and low of Rs 323.50 and Rs 291.00.
10.09 am: Sensex was trading 42.49 points down at 25,537.85. NSE Nifty was trading 14.25 points down at 7,770.40.
9.54 am: Indian rupee was trading lower by 22 paise at 66.82 against the dollar in early trade at the Interbank Foreign Exchange market on increased demand for the US currency from importers. Sensex was down 34.28 points at 25,546.06. NSE Nifty was trading 15.20 points down at 7,769.45.
9.38 am: Royal Orchid Hotels shares were trading 8.16 per cent up at Rs 108.65 after it informed BSE that SBI Mutual Fund has sold 22,98,035 shares constituting 8.4381 per cent of paid up share capital of Royal Orchid Hotels. Sensex was trading 42.14 points down at 25,538.20. NSE Nifty was down 17.05 points at 7,767.60.
9.24 am: Sensex was trading 62.46 points down at 25,517.88. NSE Nifty was trading 19.30 points at 7,765.35. SpiceJet shares were trading 1.04 per cent up at Rs 82.95 after the low-cost airline announced network expansion and flight frequencies on 10 routes, including extra services on the Delhi-Kabul sector.
9.15 am: The BSE Sensex opened in negative terrain on Wednesday tracking global cues, while NSE Nifty traded below 7,800. Sensex opens 68.89 points down at 25,511.45. NSE Nifty was trading 3.40 points up at 7,788.05. Piramal Enterprises shares were trading 1.99 per cent up at Rs 1006.
8.45 am: The BSE Sensex and NSE Nifty are likely to open on a flat note with negative bias on Wednesday tracking SGX Nifty and global markets.
At 8.42 am, SGX Nifty was trading 19 points down at 7,762.
Asia stocks were subdued early on Wednesday as floundering crude oil prices continued to dampen risk sentiment, while the dollar and yen drew support from anxiety over global growth and geopolitical risk stemming from Iran-Saudi tensions. Hang Seng and Nikkei were down 0.54 per cent and 1.21 per cent, respectively. Shanghai was up 0.24 per cent.
The Dow and S&P 500 finished slightly higher on Tuesday, stabilizing after a weak start to the new year, though investor nervousness stayed high.
On Tuesday, BSE Sensex and NSE Nifty closed lower in a choppy trade on Tuesday as overall market sentiment remained cautious due to continued worries about China stock markets. Sensex fell 43.01 points to end at 25,580.34, while Nifty shed 6.65 points to settle at 7,784.65.
Narayana Hrudayalaya will make its stock market debut on Wednesday and will be listed on both National Stock Exchange (NSE) as well as on the BSE.