The BSE Sensex and NSE Nifty snapped four-day winning streak on Wednesday after banking stocks declined on caution ahead of the unveiling of a new methodology for calculating lending rates, with broader sentiment also hit by continued worries about a US rate hike. Sensex closed 51.56 points down at 26,117.85, while Nifty50 index closed 23.55 points down at 7,931.
In the 50-share index, Tata Steel, Lupin, Cipla, Dr Reddy’s Labs and Hindalco gained between 1.25 per cent and 3.02 per cent. On the other hand, Punjab National Bank, HCL Tech, State Bank of India, Bank of Baroda and Infosys fell between 1.60 per cent and 2.62 per cent.
Nifty50 index – Top 5 Gainers and Losers
Sectorwise, the BSE Bankex slid the most 1.03 per cent, followed by BSE IT index (down 0.86 per cent), BSE Capital Goods index (down 0.71 per cent) and BSE TECk index (down 0.64 per cent). On the other hand, BSE Healthcare and BSE FMCG index gained 0.87 per cent and 0.70 per cent, respectively.
Gaurav Jain, director, Hem Securities, said, “Indices continue its southward journey on the back of weak global cues. Latest downbeat data from the US and the status quo RBI monetary policy review puts selling pressure on the bourses. Further, weak auto monthly sales numbers and rupee depreciation dampened the sentiment of the street.”
Steel stocks witnessed some buying, after Steel Secretary Aruna Sundararajan said that the government is looking to extend safeguard duty to more steel products in addition to hot rolled coil (HRC) steel. The government had recently imposed a 20 per cent safeguard duty on HRC for 200 days. In addition, the steel ministry is talking with the commerce ministry and finance ministry for co-ordinated efforts to reduce the stress in the steel sector. Shares of Tata Steel and SAIL gained 2.46 per cent and 2.15 per cent, respectively, and Bhusan Steel climbed around 1 percent. The BSE Metal index closed 0.40 per cent up at 7,373.81.
Banking stocks fall on worries about the impact on the sector when some of their freedom in setting rates is taken away. State Bank of India fell 1.83 per cent, while ICICI Bank declined 1.21 per cent.
Reserve Bank of India Governor Raghuram Rajan, expressing frustration that lenders are not lowering lending rates despite steep rate cuts, said on Tuesday the central bank would soon announce a new methodology that will force them to set lending rates based on their marginal cost of funding.
Meanwhile, some software service exporters and auto firms such as TVS Motor fell as heavy flooding in the southern state of Tamil Nadu shut down factories and paralysed the airport. Share price of TVS Motor Company and Infosys fell 4.87 per cent and 1.53 per cent, respectively, on Wednesday.
Shares of drug firm Natco Pharma fell 1.41 per cent after the company on Wednesday said its active pharmaceuticals ingredient plant at Chennai has suspended operations due to flooding caused by rains. For list of 10 Chennai-based stocks that fell after heavy rainfall click here.
The Asian markets closed mostly lower on Wednesday after US reported weak manufacturing data which raised questions about the US economy and the pace of expected interest rate rises by the Federal Reserve. Though the markets got a strong lead from Wall Street, Japanese shares were down in thin trade as investors avoided investing in cyclical shares before big market events this week such as the European Central Bank’s policy meeting and the release of US jobs data. Hong Kong stocks rose, bolstered by financial and property shares as well as a sharp rebound in blue-chips in mainland China. China stocks posted their biggest one-day percentage rise in a month as investors rotated out of small caps into blue chips, with property shares surging for the second day on speculation that Beijing was about to announce a new incentive to boost the country’s sagging property market.
|Asian Indices||Last Trade||Change in Points||Change in %|
Markets through the day
3.30 pm: Sensex closed 51.56 points down at 26,117.85, while Nifty50 index closed 23.55 points down at 7,931.
3.09 pm: Sensex was down 40.15 points at 26129, while Nifty was down 18.20 points at 7,936. Shares of Tata Steel and Lupin were trading 3.01 per cent and 2.45 per cent up at Rs 244.70 and Rs 1,856.
3.04 pm: Bajaj Auto, the second-largest motorcycle manufacturer has registered a marginal rise of 0.13 per cent in total sales to 3,09,673 units in November 2015 against 3,09,259 units in November 2014. The share price of the company was trading 1.29 per cent up at Rs 2,492.
2.30 pm: Shares of iStreet Network hits upper circuit on Wednesday after the company launched EMI (Equated Monthly Installments) facility to enable its consumers to convert their high value transactions into easy installments. To begin with, iStreet Network has tied up with Aasaan Retail, known for its brand ‘ONEMI’ to offer this facility to its lakhs of consumers thru its over 2,500 ‘iStreet Bazaar’ stores. With Christmas and New Year eve around the corner, this initiative will add to consumer celebrations by empowering them to buy their desired products on ‘Street Bazaar’ and pay in easy EMI. Consumers can buy products of their choice at any ‘iStreet Bazaar’ neighborhood store and then can avail payment option in EMI of 3, 6, 9 or 12 months, as per their convenience. The share price of the company climbed 5 per cent to Rs 28.40.
2.09 pm: Sensex was down 67.69 points at 26,101. Aviation stocks were flying high. SpiceJet, Jet Airways and Interglobe Aviation were trading 8.49 per cent,12.49 per cent and 2.31 per cent up at Rs 72.80, Rs 575.20 and Rs 1119.25, respectively. Nifty was trading 28.10 points down at 7,926.
Benchmark indices were trading in red on bouts of heavy profit booking in key stocks of banking, telecom, utilities, IT, power and industrial sectors.
2.00 pm: Meanwhile, Sebi Chairman U K Sinha said on Wednesday that small investors are best advised to enter the stock market through institutions such as mutual funds and pension funds.
“I don’t mind if retail investors don’t participate in the IPOs because I would rather like them to participate through institutional investors,” He said.
1.45 pm: Foreign portfolio investors (FPIs) sold shares worth a net Rs 106.78 on Tuesday, as per provisional data released by stock exchanges.
1.15 pm: SML Isuzu reported 28.14 per cent rise in November sales. The company sold 683 vehicles during November, 2015 against 533 vehicles sold in November, 2014. The share price was trading 0.70 per cent down at Rs 1,299. The scrip hit a high and low of Rs 1,319 and Rs 1286.05, respectively, in trade so far.
12.56 pm: Shares of IL&FS Engineering and Construction Company on Wednesday soared 20 per cent after the company bagged Rs 675 crore project from the Ministry of Road Transport and Highways (MoRTH). Sensex was down 108 points at 26,061. Nifty was down 38.85 points at 7,916.
12.19 pm: Share price of Chennai-based auto companies TVS Motor and Ashok Leyland fell after the flood in the state. TVS Motor Company and Ashok Leyland was trading 3.80 per cent and 0.91 per cent down at Rs 292.45 and Rs 92.50.
In auto component makers, shares of Sundaram Clayton, a Chennai based TVS Group company, was trading 3.70 per cent down at Rs 2,119. The BSE Auto index was marginally down 0.06 per cent at 18842.59.
On the current market movement, Nikhil Kamath, director, trading & risk, Zerodha said, “Markets have remained resilient over the last few days, with GDP numbers looking up and no negative surprises from the credit policy, we may see a short term rally brewing forthwith. FII numbers look encouraging, the impending GST sentiment could help aid overall market direction, we are most upbeat on the Auto Sector and NBFCs”.
12.15 pm: Giving some cheers to the government, which has recently relaxed foreign direct investment (FDI) norms in as many as 15 sectors including defence, single brand retail, construction development, civil aviation and LLPs to boost foreign inflow in the country, the FDI in the country grew by 13 percent to $16.63 billion during the April-September period of the current fiscal, compared to $ 14.69 billion during April-September 2014. Sensex was down 86 points at 26,083.
11.48 am: Eicher Motors on Tuesday announced its motorcycle division Royal Enfield entry and future plans for the Thai market at the Thailand International Motor Expo 2015, as a part of its growth strategy and focused international thrust of leading and expanding the global mid-sized motorcycle segment (250-750cc). Royal Enfield displayed its entire range of evocative motorcycles at the Thailand International Motor Expo, which includes the iconic Bullet 500cc, the retro-street models – Classic 500cc and Classic Chrome, and the Continental GT (535cc) cafe racer. Along-with the motorcycles, the brand also introduced its latest gear and accessories collection for the Thailand market. The company on Tuesday also reported 48 per cent jump in total motorcycles sales to 40,769 units in November as against 27,542 units sold in the same month last year. The share price of Eicher Motors was up 0.59 per cent at Rs 16,327.
11.37 am: Share price of TAKE Solutions gained over 2 per cent after the company launched PVIndia, a unique pharmacovigilance peer network, organised and managed by one of TAKE’s Life Sciences division, Navitas. At the time when the pharma industry is facing business challenges and the government of India citing delayed regulatory approvals as a primary concern, it is imperative for Pharma companies to arrive at solutions to tackle these problems. The scrip was trading 2.07 per cent up at Rs 204.95. Sensex was down 87 points at 26,082.
11.27 am: Sensex was trading 116.60 points down at 26,052.81. Nifty was trading 37.90 points down at 7,917.00. BSE Bankex was down 1.06 per cent
10.44 am: Sensex was down 102 points at 26066.51. Nifty was down 31.10 points at 7,923. Mahindra & Mahindra’s (M&M) Farm Equipment Sector (FES), a part of the $16.9 billion Mahindra Group, reported its sales numbers for November 2015. Domestic sales in November 2015 stood at 20,819 units, up by 47 per cent as against 14,207 units during November 2014. The company’s total tractor sales (domestic + exports) during November 2015 stood at 21,717 units, up by 42 per cent as against 15,333 units for the same period last year. Exports for the month stood at 898 units, registering a fall of 20 per cent. Shares of M&M were trading 0.17 per cent up at Rs 1,372.
10.16 am: Debt-ridden, troubled auto component manufacturer Amtek Auto, which is looking at deleveraging to raise funds to reduce its debt, is likely to prune its workforce by combining several of its operations. The company has total workforce of 16,000 in India, which includes employees at its various subsidiary firms. Shares of Amtek Auto were trading 1.31 per cent up at Rs 42.65.
10.07 am: The rupee edged higher by three paise to 66.46 against the US dollar in early trade on Wednesday at the Interbank Foreign Exchange on continued selling of the American currency by exporters and banks. Sensex was marginally 21 points at 26,190.
9.44 am: Coal India, the world’s largest coal miner by output, has reported provisional production of 47.47 million tonnes in November 2015, as against target of 49.67 million tonnes. The company’s total off-take for the month of November stood at 45.33 million tonnes as against a target of 46.16 million tonnes. Also, the proposed sale of another 10 per cent government stake in Coal India (CIL), on which the Centre’s FY16 non-tax revenue hinges a lot on, is unlikely before April. Despite the Cabinet clearing the stake sale last month, reflecting the government’s keenness to push it through in FY16, a lack of appetite among potential investors as well as objections raised by some existing stakeholders in the world’s largest coal miner could upset the plan, sources familiar with the matter told FE. The share price of Coal India was up 0.81 per cent at Rs 344.25. Sensex was up 26 points at 26,195.
9.27 am: Sensex was up 33.56 points at 26,202. Nifty was up 5.80 points at 7960.70. Tata Motors continued to witness strong year-on-year growth in the M&HCV segment in November 2015, with a growth of 21 per cent. However, total sale of Tata Motors passenger and commercial vehicles (including exports) were at 38,918 vehicles, lower by 7 per cent, over 41,720 vehicles, sold in November 2014. The domestic sale of Tata commercial and passenger vehicles for November 2015 were at 35,345 nos. lower by 6 per cent over 37,427 vehicles sold in November 2014. Shares of Tata Motors were trading 0.73 per cent down at Rs 414.35.
9.20 am: Tree House shares again hit upper circuit on Wednesday after the company updated BSE that it has successfully received all amounts related to preschools and franchise operations that were outstanding as on 30 September 2015. The company also clarified that there was an error with respect to the promoters’ pledge of shares reported by BSE on their website. On November 20, it had been communicated to BSE that promoters have pledged 2,50,000 shares in one of the promoters’ accounts which was erroneously mentioned as 25,00,000 shares by BSE. This has created unnecessary confusion and concerns among investors. The share price of the company climbed 9.98 per cent to Rs 184 on Wednesday.
9.15 am: The BSE Sensex and NSE Nifty opened in green on Wednesday. Sensex opened 69.98 points up at 26,239.39, while Nifty opened 21.80 points up at 7,976.70.
Shares of Jyoti Structures will remain in focus on Wednesday as lenders to the loss-making Jyoti Structures have decided to convert Rs 307.6 crore of loans into shares at a value of Rs 26.90 apiece, a premium to the current market price, sources told FE. The move is part of a strategic debt restructuring (SDR), a scheme outlined by the Reserve Bank of India (RBI) earlier this year. The stock closed at Rs 17.70 on Tuesday on the BSE, down 6.84% from its previous close. Shares of Jyoti Structures was trading over 8 per cent up in the early trade.
Tata Motors will also remain in focus after the company on Monday reported 6.71 per cent decline in sales at 38,918 units in November compared to 41,720 vehicles in the same month last year.
The US markets coming out of the consolidation mood rallied on Tuesday, despite the Institute for Supply Management showing an unexpected contraction in US manufacturing activity. The Asian markets have made a mixed start, with some of the indices trading in red on speculation that the Federal Reserve will take a gradual approach to raising interest rates. The Dow and S&P 500 both gained about 1 per cent on Tuesday thanks to a rebound in health and consumer shares.
Back home, domestic equity markets managed to end the Tuesday’s session with marginal gains amid slew of economic data announcements. Markets kick-started the session with a decent gains and traded in narrow range as sentiment got a boost after India’s economy grew by 7.4 per cent in the second quarter (July-September), outpacing China to become the fastest growing major economy. Some support also came in with Finance Minister Arun Jaitley’s statement that GDP in the current fiscal will be better than the growth rate recorded in the last financial year and improve further in subsequent years.
Meanwhile, Reserve Bank of India (RBI) in its fifth Bi-monthly Monetary Policy review kept the key policy rate unchanged but affirmed the central bank’s commitment to ease it as and when room is available, saying inflation is likely to perform better than expected. However, markets pared most of their initial gains after India’s manufacturing sector grew at its weakest pace in over two years in November as demand and output continued to soften.
Finally, the BSE Sensex gained 23.74 points or 0.09 per cent to 26169.41, while the CNX Nifty50 index added 19.65 points or 0.25 per cent to 7,954.90.
(With inputs from agencies)