The BSE Sensex and NSE Nifty fell for fourth day in a row on Thursday, tumbling by over two percentage points as China accelerated the depreciation of the yuan, sparking sharp falls in regional equity and currency markets.
China also suspended its stock markets for the rest of the day less than half an hour after opening as a new circuit-breaking mechanism was tripped for the second time this week. After a gap-down start, the domestic bourses never looked in recovery mood and ended the trade at four month closing lows, breaching their crucial support levels of 24,900 (Sensex) and 7,600 (Nifty).
Markets ended at 4-month low as the benchmark BSE Sensex ended 554.50 points down at 24,851.83. NSE Nifty on the other hand plunged 172.70 down at 7,568.30.
“The markets continued to bleed, tracking global weakness post China’s trading halt and commodity rout. A fresh slump in crude oil and commodity prices, devaluation of Chinese currency by Chinese government and worries of economic slowdown spooked the sentiment of the equities worldwide.,” Gaurav Jain, Director – Hem Securities said.
Global shares tumbled for a sixth day on Thursday and oil prices slid to levels not seen since the early 2000s, after China guided the yuan lower and Shanghai shares tumbled by 7 percent, igniting fears of competitive devaluations across Asia.
Brent crude oil prices skidded over 5 percent to an almost-12-year-low of $32.16, with worries over weaker demand from China adding to a persistent drag on prices caused by oversupply and near-record output levels.
In the 50-share index, Vedanta (down 9 per cent), Cairn (down 8.36 per cent), Bhel (7.06 per cent), Tata Steel (down 6.60 per cent) and Bank of Baroda (down 6.52 per cent) were among the major losers.
Jindal Steel and Power was the worst Sensex performer that slid 10.02 per cent followed by Vendata that fell 8.72 per cent. Others losers included JP Associat, Cairn, J K Tyre, Bhel, Adani Power, Reliance Capital and DLF.
Metal sector stocks including Hindalco, Tata Steel, Vedanta, SAIL, Tata Steel dipped record low.
Sectorwise, the BSE Realty index suffered the most by falling 4.50 per cent followed by metal 3.70 per cent, Auto 3.72, Basic materials 3.62, industrial 3.54 per cent and Capital goods 3.23 per cent.
“With the bellwether Sensex falling to new 52 week low, stocks markets are bracing for deeper falls. Amidst all these FOMC minutes hinting at possible pause in rate hikes, had little effect on the frail sentiments. DII’s purchases were seen more or less matching the FII’s sales of Indian equities, but with Indian rupee one month forwards pushing beyond the 67 mark, the Chinese contagion looks to have reached the rupee as well, which has been so far a bright spot among EM currencies. Gold also rose steeply in Indian as well as international markets. Among all these, hopes of a resolution on GST front, with government reaching out to the opposition for an early budget session, proved too little to shore up sentiments”, Shreyash Devalkar, fund manager – equities, BNP Paribas Mutual Fund said.
Markets through the day
3.30 pm: Sensex plunges 554.50 points to close below 25,000 level, while Nifty cracks 7,600-mark, falls 172.70 points to 7,568.30
3.27 pm: Jindal Steel & Power shares were trading 10.50 per cent down at Rs 83.60, while Tata Steel shares were trading 6.85 per cent down at Rs 250.10. Sensex was trading 561.76 points down at 24,844.57. NSE Nifty was trading 175.70 points down at 7,565.30.
3.20 pm: Sensex was trading 572.79 points down at 24,833.54. NSE Nifty was trading 182.20 points down at 7,558.80.
2.39 pm: Sensex was trading 511.88 points down at 24,894.45. NSE Nifty was trading 155.70 points down at 7,585.30.
2.30 pm: Cairn India shares were trading 7.74 per cent down. The company recorded its biggest single-day fall since August 24 as oil prices tumbled over 5 per cent to levels not seen since the early 2000s on Thursday. Vedanta, ONGC shares fall too. Sensex was trading 478.20 points down at 24,928.13. NSE Nifty was trading 153.25 points down at 7,587.75.
2.19 pm: Tulsi Extrusions shares were trading 4.87 up at Rs 6.24 after the company bagged cumulative order worth Rs 30 crore to Sardar Sarovar Narmada Nigam, Ahmedabad, Gujarat through Manav Vikas Trust for supply of various sizes of pipes and fittings viz. PVC, LLDPE and HDPE Sprinkler. Sensex was trading 419.93 points down at 24,986.40. NSE Nifty was trading 137.45 points down at 7,603.55.
1.50 pm: The pan-European FTSEurofirst 300 index and the euro zone’s blue-chip Euro STOXX index both fell 2 percent. Germany’s DAX declined 1.4 percent, while Britain’s FTSE 100 weakened by 1.6 percent. Sensex was trading 460.48 points down at 24,945.85. NSE Nifty was trading 143.80 points down at 7,597.20.
1.35 pm: Sectorwise, the BSE Realty index suffered the most by falling 3.68 per cent, followed by BSE Auto at 3.22 per cent. Sensex was trading 452.42 points down at 24,953.91. NSE Nifty was trading 145.30 points down at 7,595.70.
1.03 pm: Parliamentary Affairs Minister Venkaiah Naidu today met Congress President Sonia Gandhi and sought cooperation for the early passage of the crucial GST bill and the Real Estate bill even as he said the government was ready for an early Budget session if the parties agree. Sensex was trading 433.46 points down at 24,972.87. NSE Nifty was trading 143.15 points down at 7,597.85.
12.29 pm: Transwarranty Finance shares were trading 5 per cent up at Rs 6.51 after the Reserve Bank of India has allowed foreign investors to buy up to 100 per cent of the paid up capital of the company. Sensex was trading 448.14 points down at 24,958.19. NSE Nifty was trading 137.95 points down at 7,603.05.
12.13 pm: Sensex tanks below 500 points by falling 508.66 to trade at 24,897.67. NSE Nifty was trading 154.45 points down at 7,586.55.
12.06 pm: Sensex was trading 473.39 points down at 24,932.94. Nifty slipped below 7,600 by falling 147.20 points to 7,593.80. Brent crude futures fell to a fresh 11-year low on Thursday as a sliding yuan and an emergency halt in China’s stock trading left Asian markets in a turmoil, while a huge supply overhang and near-record output levels also continued to drag on oil prices. Tracking the weakness across financial markets, the global benchmark Brent fell over 3 per cent to $33 per barrel, a level not seen since April 2004 and below the previous 11-year low from Wednesday.
11.55 am Corporation Bank shares were trading 2.60 per cent down at Rs 41.20 after the bank said it will buy 4 per cent stake in LIC Nomura Mutual Fund Asset Management Company from existing shareholders for Rs 5.67 crore. Sensex was trading 460.43 points down at 24,945.90. NSE Nifty was trading 138.35 points down at 7,602.65,
11.39 am: Torrent Pharma was trading 1.19 per cent up at Rs 225.90. Sensex was trading 455.09 points down at 24,951.24. NSE Nifty was trading 127.05 points down at 7,613.95.
11.23 am: Kalpataru Power Transmission shares were trading 1.42 per cent up at Rs 254.20 after the company acquired 100 per cent equity share capital of an SPV Company Alopurduar Transmission Ltd (ATL), a wholly owned subsidary of REC Transmission Projects Company Ltd. Sensex was trading 405.13 points down at 25,001.20. NSE Nifty was trading 122.70 points down at 7,618.30.
11.10 am: Tata Motors was trading 3.96 per cent down at Rs 351.20 on worries over China economy. Sensex was trading 373.22 points down at 25,033.11. NSE Nifty was trading 118.65 down at 7,622.35.
10.55 am: Sensex was trading 341.87 points down at 25,064.46. NSE Nifty was trading 108.50 points down at 7,632.50. World Bank has said that India is projected to grow by a robust 7.8 per cent this year and 7.9 per cent in the next two years, citing strong investor sentiment and the positive effect on real incomes of the recent fall in oil prices.
10.34 am: Sensex falls below 25,000-level for first time since Sept 7 on China rout, plunges 408.52 points to 24,997.81. NSE Nifty was down 127 points at 7,614.00.
10.27 am: Sensex was trading 405.16 points down at 25,001.17. NSE Nifty was trading 119.45 points down at 7,621.55. NBCC sahres were trading 0.65 per cent up at Rs 1013.60 after it bagged contracts worth Rs 8,523 crore in last month.
10.15 am: ICICI Bank shares were trading 2.20 per cent down at Rs 244.60 after country’s largest private sector lender picked up 19.58 lakh shares of United Breweries Limited for a little over Rs 186 crore through an open market transaction. Sensex was trading 364.19 points down at 25,042.14. NSE Nifty was trading 111.10 points down at 7,629.90.
10 am: Deepak Nitrite shares were trading 1.42 per cent down at Rs 73 after it informed BSE that the Project Funding Committee of Board of Directors at its meeting held on January 6, 2016, has approved the allotment of 1,17,50,000 Equity Shares of Rs. 2/- each at a price of Rs. 70.90 per Equity Share (including premium of Rs. 68.90 per Equity Share). Sensex was trading 347.71 points down at 25,058.62. NSE Nifty was trading 109.30 points down at 7,631.70.
9.46 am: Indian rupee was trading lower by 10 paise at 66.92 against the dollar in early trade at the Interbank Foreign Exchange today on sustained foreign fund outflows amid increase demand for the US currency from importers. Sensex was trading 373.24 points down at 25,033.09. NSE Nifty was trading 111.55 points down at 7,629.45.
9.30 am: Shares of Interglobe Aviation were trading 2.17 per cent higher at 1261.25 after it announced on Wednesday the launch of 24 new flights on its domestic network which include first daily non-stop flight between Delhi and Thiruvananthapuram. Sensex was trading 295.73 points down at 25,110.60. NSE Nifty was trading 96.45 points down at 7,644.55.
9.15 am: Sensex was trading 312.29 points down at 25,094.04. Nifty was trading 95.95 points down at 7,645.05.
The BSE Sensex and NSE Nifty opened on a weak note on Thursday as Chinese stocks nosedived, triggering the second daylong trading halt of the week and sending other Asian markets sharply lower as investor jitters rippled across the region.
8.50 am: The BSE Sensex and NSE Nifty are likely to open in red on Thursday tracking China market crash, weaker yuan and fragile global markets.
At 8.47 am, the SGX Nifty was trading 76 points, or 0.99 per cent down at 7,658.
China stock markets closed for the day less than half an hour after opening on Thursday when shares fell more than seven per cent, triggering an automatic “circuit breaker”.
The Shenzhen Composite Index, which tracks stocks on China’s second exchange, had tumbled 8.35 per cent, or 178.08 points, to 1,955.88.
Asian stocks fell to a three-month low on Thursday after China opted to keep guiding the yuan sharply lower, deepening concerns about the economy and the potential for competitive devaluations by other countries.
At 8.22 am, Hang Seng, Nikkei and Shanghai were down 2.87 per cent and 1.78 per cent, respectively.
US stocks closed at their lowest level since early October on Wednesday, weighed down by fresh concerns over China and slower global growth and as energy shares tumbled with oil prices.