The benchmark BSE Sensex and NSE Nifty fell over 2 per cent on Monday following global sell-off amid concerns over slowdown in China and escalating tension in the Middle East. The benchmark BSE Sensex plunged by 537.55 points to crack below the 26,000-mark and NSE Nifty fell below the 7,800-mark by losing 171.90 points or 2.16 per cent to 7,791.30.
“Indices nosedived on the back of steep correction in global peers amid Chinese sell-off. Further, escalating tension between Saudi Arabia and Iran, Nikkei India Manufacturing PMI hitting to a 28-month low too created havoc on the street,” Gaurav Jain, director, Hem Securities said.
Chinese stock markets tumbled 7 per cent in their opening session of 2016 as weak factory activity surveys and falls in the yuan added to concerns about the struggling economy, forcing exchanges to suspend trade for the first time.
Oil prices jumped as Saudi Arabia’s execution of a prominent Shiite Muslim cleric at the weekend spurred regional anger and geopolitical tensions in the Middle East, which affected the market sentiments globally. Global crude prices surged by 1.64 per cent to $37.89 per barrel while in the local market.
The sentiments were further dampened after India’s manufacturing sector output dipped in December to a 28-month low, the first contraction in over two years, as new orders fell sharply and production took a big hit from heavy rains in Chennai, putting pressure on RBI to keep rates low.
In the 50-share index, Tata Motors(6.41 per cent down), Idea Cellular (down 4.89 per cent), Bank of Baroda(down 4.72 per cent), Hindalco (down 4.59 per cent) and PNB(down 4 per cent) were among the major losers. On the other hand, Tata Steel (up 0.62 per cent), Asian Paints (up 0.20 per cent) and HCL Tech (up 0.13 per cent up) were among the top gainers.
Asian equity markets ended in red on Monday after Chinese factory data disappointed investors and China’s central bank set the reference rate for Yuan at a more than 4-1/2-year low.
Indian rupee depreciation also dampened the market sentiments. The rupee was at 61.52 per dollar at the time of equity markets closing as compared to 61.15 per dollar level on Friday.
As many as 27 scrips out of the 30-share Sensex pack ended lower. The broader markets too came under selling pressure with the mid-cap index falling 1.20 per and small-cap dropping 1.11 per cent.
The few gainers on the Sensex were Wipro up by 0.41 per cent, Hindustan Unilever up by 0.07 per cent and Asian Paints up by 0.06 per cent. On the flip side, Tata Motors down by 6.10 per cent, Bharti Airtel down by 4.10 per cent, Adani Ports &Special down by 3.66 per cent, BHEL down by 3.45 per cent and HDFC down by 3.26 per cent were the top losers.
“The slump in the Chinese economy is expanding further which is impacting all the Emerging markets. It is not a good start for the Indian market, which was hoping in expectation that FIIs will return post the holiday season. Volatility is likely to continue till we see stability in the Chinese economy and domestic cues like budget wish-list and Government’s reforms agenda,” Alex Mathews, head – research, Geojit BNP Paribas Financial Services Ltd said.
Markets through the day
3.30 pm: Sensex closed 537.55 points down at 25,623.35, while NSE Nifty closed 171.90 points down at 7,791.30
3.20 pm: Gold prices recovered by Rs 195 to Rs 25,615 at the bullion market tracking a firm overseas trend as rising tension between Saudi Arabia and Iran raised demand for the precious metals amid fresh buying by domestic jewellers. Silver rose by Rs 325 to Rs 33,625 per kg on increased offtake by industrial users and coin makers.
Sensex was trading 553.29 points down at 25,607.61. Nifty was trading 179.35 points down at 7,783.85.
2.51 pm: BSE Capital Goods index was trading 2.01 per cent down. Sensex was trading 554.74 points down at 25,606.16. NSE Nifty was trading 175.20 points down at 7,788.00.
2.2o pm: Sensex was trading at 25,657.13. Nifty was trading 157.60 points down at 7,805.60.
2.01 pm: Sensex was trading 556.64 points down at 25,604.26. NSE Nifty was trading 171.15 points down at 7,792.05. European shares fell sharply on Monday, the first day of trading for 2016, as weak Chinese economic data weighed on world stock markets. The pan-European FTSEurofirst 300 index fell 2.3 per cent, while the euro zone’s blue-chip Euro STOXX 50 index declined by 2.6 per cent.
1.38 pm: Sensex was trading 517 points down at 25,643.90. Nifty was trading 151.20 points down at 7,812.00. BSE Metal index was down 1.75 per cent.
1.10 pm: Punj Llyod shares were trading 3.48 per cent up at Rs 29.75 after the company on Monday informed the bourses that it has won four highway EPC projects worth Rs 1,555 crore in the states of Bihar, Chhattisgarh, Odisha and Punjab. Sensex was trading 476.42 points down at 25,684.48. NSE Nifty was trading 149.90 points down at 7,813.30.
12.50 pm: Tata Motors shares were trading 5.58 per cent down at Rs 379.25 after the company reported 4 per cent decline in sales at 39,973 units for December compared to 41,734 vehicles in December 2014. Sensex ws trading 427.40 points down at 25,733.50. NSE Nifty was trading 133.25 points down at 7,829.95.
12.31 pm: Stocks of telecom companies were trading lower after telecom regulator Trai wrote to operators to ensure compliance with call drop regulations, effective January 1, even as service providers remain defiant and say compensation to subscribers will be paid only after court orders them to do so. Bharti Airtel and Idea Cellular were trading 4.26 per cent and 4.24 per cent down at Rs 326.05 and Rs 136.80 respectively. Sensex was trading 423.13 points down at 25,737.77. NSE Nifty was trading 131.90 points down at 7,831.30.
12.15 pm: Eicher Motors shares were trading 1.49 per cent at Rs 17624.55 after its motorcycle division Royal Enfield on Friday reported 41 per cent jump in total motorcycles sales at 40,453 units during last month as against 28,634 units in December, 2014. Sensex was trading 388.37 points down at 25,772.53. NSE Nifty was trading 126.55 points down at 7,836.65.
11.52 am: Sensex was trading 466.01 points down at 25,694.89. Nifty was down 144.00 points at 7,819.20.
11.42 am: BSE’s Bankex index was trading 2.13 per cent down with shares of ICICI Bank, Yes Bank and Axis Bank falling 2.74 per cent, 3.27 per cent and 2.35 per cent, respectively. Sensex was trading 418.30 points down at 25,742.60.
11.19 am: Sensex slips 409.12 points to trade at 25,751.78. NSE Nifty trades 123.15 points down at 7,840.05. China’s benchmark CSI300 share index tumbled 7 per cent on the first session of 2016 on Monday, prompting the stock exchange to halt trading for the rest of the day.
11.02 am: Sensex falls 313.06 points to trade at 25,847.84. NSE Nifty was trading 99.75 points down at 7,863.45. PNC Infratech Ltd was trading 0.61 per cent up at Rs 537.25 after the company informed bourses it has completed the sale of 2,44,23,700 equity shares representing 8.51% of the share capital of Jaora – Nayagaon Toll Road company (a Special Purpose Vehicle) to Viva Highways and received an aggregate consideration of Rs 34.19 crore.
China’s CSI300 stock index fell 5 per cent on the first trading day of 2016, triggering a circuit breaker mechanism that would briefly halt trade. A 5 per cent rise or fall in the CSI300 index triggers a 15-minute suspension of all the country’s equity indexes and equity index futures. Moves of 7 per cent from the previous close would trigger a trading suspension for the rest of the day.
10.36 am: Stocks of IDBI Bank were trading 1.45 per cent down at 88.60 after reports that government is unlikely to go for a strategic stake sale of state-owned bank during the current fiscal due to some procedural issues. Sensex was trading 266.59 points down at 25,894.31. Nifty was 77.85 points down at 7,885.35.
10.17 am: Sensex falls 252.66 points at 25,908.24. NSE Nifty was trading 81.20 points down at 7,882.00. Ashok Leyland scrips were up 2.65 per cent at Rs 91.10 after the Hinduja Group flagship firm on Saturday reported a 31.4 per cent increase in total sales at 12,209 units in December 2015.
10.13: Somany Ceramics shares were trading 0.44 per cent down at Rs 403.90 after it informed the bourses that it has received an approval for issuance of Commercial Paper (CP) by the company up to Rs 25 crore. The Company Administrative Committee (CAC) of the board of directors at their meeting held on January 02, 2016 has approved for the same. Sensex was trading 207.54 points down at 25,953.36. NSE Nifty was trading 62.70 points down at 7,900.50.
9.59 am: Indian rupee was trading lower by 21 paise at 66.35 against the dollar in early trade on Monday at the Interbank Foreign Exchange (forex) market on increased demand for the US currency from importers and jump in global crude prices as tensions flared up between Iran and Saudi Arabia. Sensex was down 131.86 points at 26,029.04. Nifty was trading 36.40 points down at 7,926.80.
9.36 am: IRB Infrastructure Developers Ltd shares were trading 7.66 per cent up at Rs 263.60 after the company informed the bourses that it has received Rs 10,050 crore road project in Jammu and Kashmir. The project involves construction of a tunnel spanning a length of 14.08 kilometers. The company will receive semi-annual annuity of Rs 981 crore after the completion of construction of the project. Sensex was trading 133.33 points down at 26,027.57. NSE Nifty was 48.85 points down at 7,914.35.
9.19 am: Sensex falls 159.50 points at 26,001.40. NSE Nifty was trading 52.15 points down at 7,911.05
9.15 am: Sensex opens 44.72 points down at 26,116.18. NSE Nifty opened 57.70 points down at 7,905.50. Tata Motors was trading 1.48 per cent down at Rs 395.70 after the company on Friday reported 4 per cent decline in sales at 39,973 units for December compared to 41,734 vehicles in December 2014.
8.40 am: The BSE Sensex and NSE Nifty are likely to open on weak note on Monday tracking Asian cues. Asian shares and currencies fell on Monday on the first day of trading in 2016 after China factory activity contracted and the yuan weakened, while oil prices jumped as much as 3 per cent on rising tensions in the Middle East. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.7 per cent, after shedding nearly 12 per cent in 2015 as China’s cooling economy took a toll on its trade-reliant Asian neighbours and global commodity prices. Japan’s Nikkei fell 2.6 per cent to 2-1/2-month lows, while mainland China shares tumbled more than 4 percent.
At 8.38 am, SGX Nifty in Singapore was trading 32.50 points down at 7,915.50
The BSE Sensex and NSE Nifty on Friday closed with marginal gains in the absence of any major triggers. Sensex settled 43.36 points up at 26,160.90, while Nifty 50 index closed 16.85 points up at 7,963.20.
The Foreign Portfolio Investors(FPIs) were net buyers during the last week as they bought equities nearly worth $296 million, Bloomberg data showed. Foreign funds bought equities to a tune of $3.27 billion during Calendar 2015. This is the worst yearly inflows in four years. The Domestic Institutional Investors(DIIs) on the other hand turned net buyers in Indian equity markets for the first time in last four years. DIIs, comprising of banks, financial institutions and mutual funds, bought equities worth $10.3 billion during Calendar 2015,data showed.