The BSE Sensex and NSE Nifty fell for the fifth consecutive trading session on Tuesday on account of weak global markets and fall in the shares of oil producers such as Cairn India and Oil and Natural Gas Corporation after crude prices tumbled to seven-year lows. Sensex closed 219.78 points down at 25,310.33, while NSE Nifty settled 63.70 points down at 7,701.70.
In the 50-share index, HCL Tech, Tata Motors, Bosch, TCS and Bajaj Auto gained between 0.25 per cent and 1.25 per cent. On the other hand, Cairn India, GAIL, Vedanta, Dr Reddy’s Labs and ONGC slid between 4.19 per cent and 6.25 per cent.
All the sectoral indices on BSE closed in red. The BSE Realty index slid the most — 3.69 per cent to 1,292.89, followed by BSE Metal index (down 3.25 per cent), BSE Oil & Gas index (down 2.14 per cent) and BSE Power index (down 1.80 per cent).
In the scrip specific development, Oil India, ONGC, Reliance Industries and Cairn India plunged 3.38 per cent, 3.57 per cent, 1.18 per cent and 5.57 per cent, respectively, as crude falls to 7-year low on international markets.
On the other hand, shares of 3i Infotech closed 6.83 per cent up at Rs 5.63 after the board of the mid-sized IT Company approved a debt realignment scheme and restructuring of foreign currency convertible bonds (FCCBs).
Shares of Amtek Auto too remained in limelight on Tuesday after the shares traded with high volumes on market reports that JP Morgan has recovered 85 per cent dues of the ailing auto maker. The stock was trading up more than 15 per cent on the news. The scrip closed 10.98 per cent up at Rs 51.55.
Shares of GAIL slipped 5.05 per cent after market reports the company is in plans to close its coal-based power plants near metros.
“The weakness in crude is good for India. But the global weakness in commodities indicates that the global growth could slow down further,” said HDFC Securities in an email to clients.
Market breadth for the day remained negative and advances to declines ratio for Nifty stood at 9:41 for the day. Volumes for Nifty stocks stood at 1,391 lakh, lower than Tuesday’s volumes of 1,418 lakh for Nifty stocks.
Asian equity markets ended in red on Tuesday after oil prices fell more than 5 per cent overnight. Oil prices suffered a sharp decline as a result of a global supply glut. The Organization of the Petroleum Exporting Countries’ (OPEC) failed to reach an agreement to reduce production levels when it met on Friday.
Chinese stocks posted their biggest loss in 10 days, as disappointing China trade data and slumping oil prices unnerved investors already cautious ahead of an anticipated US rate hike that could trigger more capital outflows. China’s exports fell by a more-than-expected 6.8 per cent in November from a year earlier, a fifth straight month of decline. Imports, meanwhile, were down 8.7 per cent on-year. There was a trade surplus of $54.10 billion.
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Markets through the day
3.30 pm: Sensex closed 219.78 points down at 25,310.33, while NSE Nifty settled 63.70 points down at 7,701.70.
3.10 pm: Meanwhile, SSIPL Retail, Paranjape Schemes (Construction) Ltd and Bharat Wire Ropes have received capital markets regulator Sebi’s approval to raise funds through initial public offerings. Sensex shed 215 points at 25,314. Nifty was down 7,707.95.
2.48 pm: European shares fell on Tuesday, with Anglo American slumping to a new record low after suspending its dividend and BHP Billiton slipping after a civil lawsuit seeking billion of dollars in damages.
2.57 pm: Wockhardt has received Qualified Infectious Disease Product (QIDP) status for its new drug WCK 5222, a product from its breakthrough New Drug Discovery program in Anti Infectives from the US Food and Drug Administration (FDA). This is the fourth product from the company to receive this coveted status. The share price of the pharma major was down 0.74 per cent at Rs 1639.39. The scrip opened at Rs 1650 and had touched a high and low of Rs 1694.75 and Rs 1623.80, respectively, in trade so far. Sensex was down 153.39 points at 25,376.72. Nifty was down 39.15 points at 7,726.25.
2.35 pm: Shares of oil producers extended falls after crude prices tumbled to seven-year lows. Reliance Industries, ONGC and Cairn India were trading 0.75 per cent, 3.17 per cent and 4.17 per cent down at Rs 946.50, Rs 217 and Rs 130, respectively. The BSE Oil & Gas index was down 1.50 per cent at 9,121.42. Sensex was down 112.04 points at 25,418. Nifty was down 25.20 points at 7,740.20.
2.25 pm: Foreign investors sold a net $1.6 billion in shares since the start of November, though they remain buyers of $3.3 billion so far this year. Broadly, foreign-owned blue chips were also lower, with HDFC Bank was 0.91 per cent at Rs 1052.80 and Larsen & Toubro was down 0.81 per cent at Rs 1,330. Sensex was down 107 points at 25,422. Nifty50 index was down 25.50 points at 7,739.90.
2.11 pm: Shares of Unichem Laboratories gained as much as 5.58 per cent on Tuesday after the company infomed BSE that it has received final ANDA approval (tentative approval was received earlier) from the United States Food and Drug Administration (USFDA) for Irbesartan Tablets USP. Irbesartan Tablets USP 75mg, 150mg and 300mg are therapeutically equivalent to Avapro Tablets, 75mg, 150mg and 300 mg of Sanofi-aventis U.S.LLC. At 2.14 pm, the share price of Unichem Laboratories was trading 2.87 per cent up at Rs 283.50. Sensex was down 130 points at 25,399.
1.42 pm: Oudh Sugar Mills informed BSE that it will be commencing the sugarcane crushing operations for the sugar season 2015-16 at its sugar mills at Rosa in Uttar Pradesh shortly. The scrip was trading marginally down 0.14 per cent at Rs 35. Sensex was down 112 points at 25,417.
1.21 pm: NHPC shares fell over 2 per cent on Tuesday after the company informed that its Sewa-ll Power Station (120 MW) in Jammu & Kashmir has been completely shut down for attending annual maintenance of machines/MIVs for about 20 days with effect from December 07, 2015. The scrip was trading 2.54 per cent down at Rs 19.15.
1.07 pm: Shares of GAIL India on Tuesday fell by over 2.5 per cent as the company mulls shutting down of coal- based power plants near metro cities. Sensex was down 127 points at 25,403.
12.51 pm: Tata Communications share price gained as much as 2.29 per cent on Tuesday after the company informed BSE that its South Africa-based subsidiary Neotel and Vodacom SA confirmed that they have concluded a modified transaction in terms of which Vodacom will acquire the majority of Neotel’s assets related to its fixed line business as a going concern, excluding, inter-alia, Neotel’s licenses (spectrum, ECN, ECNS). As part of this agreement, Neotel will offer a roaming arrangement to all the mobile network operators, including Vodacom. The share price of Tata Communications was up 0.86 per cent at Rs 415.10.
12.36 pm: The market breadth on BSE was negative, out of 2,624 stocks traded, 1,023 stocks advanced, while 1,471 stocks declined on the BSE. Traders were seen piling up position in FMCG, IT, auto and TECK stocks, while selling was witnessed in metal, real estate, PSU, oil & gas and consumer durables stocks. Sensex was down 107 points at 25,426.
12.30 pm: Meanwhile, Larsen & Toubro (L&T) informed BSE that its subsidiary — L&T Construction — has won orders worth Rs 1,960 crore across its various businesses.
12.26 pm: Share of Tata Motors was trading higher after its luxury vehicle unit Jaguar Land Rover (JLR) posted a 27 per cent growth in November sales. JLR reported sales of 46,547 units in November, aided by strong growth in Europe and North America. Its Europe sales surged 68 per cent while in North America they grew 52 per cent. However, in China its sales declined 22 per cent in November. Tata Motors was trading 1.65 per cent up at Rs 405.55. Sensex was down 109 points at 25,420.
12.10 pm: Benchmark indices extended early losses and reached at their intra-day low level in early noon session, due to sustained capital outflows amid a weak trend in global markets.
11.44 am: Talwalkars Better Value Fitness has received approval for allotment of 250 numbers – 10 per cent Secured, Taxable, Redeemable, Non-Convertible Debentures (NCDs) of Rs 10 lakh each aggregating to Rs 25 crore. The board of directors at its meeting held on December 07, 2015 has approved for the same. Talwalkars shares were trading 0.12 per cent up at Rs 260.60. Sensex was down 115 points at 25,414.
11.24 am: Sensex was down 104.05 points at 25,426. Nifty was down 27.75 points at 7737.65. In the 50-share index, HCL Tech, Tata Motors, BPCL, Infosys and TCS were up between 0.60 per cent and 2.05 per cent. On the other hand, Cairn India, Vedanta, Hindalco, GAIL and ONGC were down between 2.95 per cent and 3.80 per cent.
10.55 am: Meanwhile, IPOs of Dr Lal Pathlabs and Alkem Laboratories hit market on Tuesday and will close on December 10 (Thursday). Alkem Laboratories has raised Rs 395 crore from anchor investors, including Abu Dhabi Investment Fund, by allotting shares at a price of Rs 1,050. Diagnostic chain Dr Lal PathLabs on Monday raised over Rs 191 crore from anchor investors by selling shares at a price of Rs 550 apiece.
10.39 am: Due to heavy rains and flooding in Chennai, both of Royal Enfield’s production facilities in Thiruvottiyur and Oragadam were shut since the 1 of December 2015. Eicher Motors in a release said, “We resumed production of motorcycles on December 7, 2015. However, due to a high rate of absenteeism by our employees, and issues with our local suppliers – we will be running at approximately 50 per cent capacity this week, and plan to be back up to 100 per cent capacity by next week.” The share price of Eicher Motors was trading 1.09 per cent up at Rs 16,405. The BSE Auto index was up 0.40 per cent at 18516.23. Sensex was down 70 points at 25,460. NSE Nifty was down 16 points at 7,749.40.
10.32 am: Brokers said sentiment took a hit on sustained foreign fund outflows and a weak trend in other Asian markets, tracking overnight losses in the US after oil sank to a seven-year low as OPEC decided not to slash output. Sensex was down 41 points at 25,489.
10.16 am: Infosys on Monday said that it will expand its operations in Ireland and intends to create 250 new jobs over the next three years in the country. The share price of the IT major was trading 1.21 per cent up at Rs 1,058.95. Nifty50 index was down 9.20 points at 7756.20. Sensex was down 39.89 points at 25,490.
9.45 am: The rupee was trading lower by 10 paise at 66.83 against the dollar in early trade on sustained
foreign fund outflows amid increased demand for the US currency from importers.
9.32 am: ITC’s step-down subsidiary – Greenacre Holdings (GHL) has acquired 87.06 per cent of the equity share capital of Classic Infrastructure & Development (CIDL) at an aggregate consideration of Rs 11.38 crore. CIDL is an associate of Russell Credit (RCL). GHL is a wholly owned subsidiary of RCL, which a wholly owned subsidiary of ITC. CIDL having become a wholly owned subsidiary of GHL and of RCL and it has also become a wholly owned subsidiary of ITC with effect from December 07, 2015. The share price of ITC was trading 0.56 per cent up at Rs 315.30.
9.28 am: Future & Option (F&O) total turnover stood at 1,23,221.52 crore on December 07 and the total number of contracts traded on the day were 21,63,234. Of the total turnover, Index Futures contributed Rs 8,530.32 crore, Stock Futures Rs 18,008.97 crore and Index Options Rs 86,596.79 crore, while the contribution of the Stock Options was of Rs 10,085.43 crore. For the day, the total F&O PutCall ratio stood 0.68 while Index Options PutCall ratio was 0.70 and that of Stock Options was 0.52. The top five scrips with highest PCR on OI were UCO Bank (1.68), HCL Tech (1.24), Lupin (1.23), KSCL (1.23) and STAR (1.19).
9.16 am: Sensex was down 99 points at 25,431.22. Shares of oil producers will be in focus on Tuesday due to falling crude oil prices and OPEC decision against slashing high output levels. Reliance Industries, Cairn India and ONGC fell 1.25 per cent, 2.62 per cent and 1.54 per cent, respectively, on Monday. Cairn India was trading 2.10 per cent down at Rs 133.
9.15 am: The BSE Sensex and NSE Nifty opened in red on Tuesday tracking weak global markets. Sensex opened 41.69 points down at 25,488.42. Nifty opened 26.90 points down at 7,738.50.
Asian stock markets teetered near their weakest levels in three weeks on Tuesday, as a rout in oil prices to near seven-year lows knocked global energy company shares and commodity currencies. Hang Seng, Nikkei and Shanghai were down 1.89 per cent, 1.03 per cent and 1.43 per cent, respectively.
The plight of oil market hit energy shares on Wall Street hard. S&P 500 lost 0.7 per cent to 2,077.07, led by 3.7 per cent decline in the S&P energy sector energy index.
Global oil benchmark Brent crude futures dropped 5.4 per cent to $40.66 per barrel on Monday, after the Organization of the Petroleum Exporting Countries’ (OPEC) policy meeting on Friday ended without an agreement to lower production. Keeping production at near record levels in an oversupplied market has spooked investors grappling with reduced demand from China, the world’s biggest energy consumer.
Back home, the benchmark BSE Sensex on Monday slipped by 108 points to close at a three-week low of 25,530.114 led by a fall in ITC after a GST panel suggested 40 per cent tax rate for demerit goods like pan masala and tobacco. The index is on a downward spiral since Wednesday on sustained foreign fund outflows and has lost 639.30 points since.
(With agency inputs)