Key benchmark indices BSE Sensex and NSE Nifty plunged more than 1 per cent on Monday on account of profit booking in recent outperformers ahead of a busy week of events, including the release of US economic data and the expiry of domestic derivative contracts. Sensex closed 371.16 points down at 24,966.40, while Nifty 50 index settled 101.40 points down at 7,615.10.
In the 50-share index, Vedanta, Hindalco, Tata Steel, Sun Pharma and State Bank of India slipped between 3.75 per cent and 9.20 per cent. On the other hand, Kotak Mahindra Bank, Power Grid, Bosch, Ambuja Cements and NTPC gained between 1 per cent and 1.80 per cent.
The NSE Nifty index has surged nearly 10 per cent so far this month after the government stuck to its fiscal deficit target and on hopes of bigger-than-expected rate cuts by the Reserve Bank of India at its policy meeting on April 5.
Sectorwise, the BSE Realty index and BSE Metal index slid 4.35 per cent and 3.92 per cent, respectively. Rest all other sectoral indices also ended in red.
Vinod Nair, head of research, Geojit BNP Paribas Financial Services, said, “The market has tanked amid profit booking in expectation of volatility ahead of F&O expiry on Thursday. We expect the market to trade sideways as the global market is eyeing US non-farm payroll and unemployment data on Friday.”
Stocks related to software pack edged lower despite global IT major, Accenture reporting strong Q2 results and raised revenue guidance for the financial year ending August 2016 (FY 2016). Gold and jewellary stocks remained in limelight, as Finance Minister Arun Jaitley has offered to walk the extra mile to ensure that small traders were not harassed but made it plain that luxury items cannot go untaxed. He has said that gold and other jewellery will be part of the Goods and Services Tax (GST) regime which will subsume the 1 per cent proposed excise levy, as there cannot be a situation where essential items are taxed and luxury items like gold are left out.
The market breadth for the day remained in favour of decliners, as there were 741 shares on the gaining side against 1,943 shares on the losing side while 165 shares remain unchanged.
Global cues too remained sluggish with Asian counters ending mostly in red on Monday as investors turned cautious awaiting US economic data and speeches by Federal Reserve officials this week that could signal more interest rate increases than expected. Easter Monday holiday in Europe keeps participation to a minimum.
Markets through the day
3.30 pm: Sensex closed 371.16 points down at 24,966.40, while Nifty 50 index settled 101.40 points down at 7,615.10.
3.00 pm: The BSE Sensex slid further and was trading 416.80 points, or 1.64 per cent, down at 24,920. Nifty was trading 120.85 points, or 1.57 per cent, down at 7595.65.
2.51 pm: Logging their first net outflow in 21 months, mutual funds have pulled out nearly Rs 5,200 crore from stock markets in March on profit booking, although for the entire fiscal ending March 31 they have invested more than Rs 70,000 crore. Sensex was trading 383 points down at 24,954. Nifty was trading 113.65 points down at 7,602.
2.15 pm: Sensex was down 289 points at 25,047.
2.07 pm: Nifty was down 72.80 points at 7,643.70. Gold futures edged lower on MCX as investors exited positions in the precious metal as an upward revision in US fourth quarter GDP numbers signaled strength in the world’s biggest economy, bolstering the case for the Federal Reserve to tighten interest rates further in the coming months, dimming the lure for the bullion. The US economy expanded at an annualised rate of 1.4 per cent in the December quarter, compared to a previously reported 1 per cent pace.
1.55 pm: Sensex was trading 260 points down at 25077. Nifty was down 57.60 points at 7658. Shares of Lloyd Electric and Engineering on Monday rose by over 4 per cent after the company announced the acquisition of Noske-Kaeser’s rail and vehicles business in select markets for 2.3 million euros.
1.38 pm: IL&FS Engineering shares surged over 8 per cent intraday on Monday after it informed bourses that a JV between the company and Unitech Power Transmission has won a contract from Power Grid for transmission line works in Gujarat. Sensex was trading 199.26 points down at 25,138. Nifty was down 52.35 points at 7,664.
12.59 pm: The benchmark Sensex was down 166.48 points at 25,171. Counters, which featured in the list of worst performers, include realty, metal, telecom and consumer durables. The broader indices too were reeling under pressure, while the market breadth on the BSE was negative; there were 774 shares on the gaining side against 1,655 shares on the losing side while 160 shares remain unchanged.
12.53 pm: European markets are closed for the Easter Monday holiday.
12.44 pm: Sensex was down 178 points at 25,159. Nifty was trading 42.30 points down at 7,674. GVK Power share price surged over 10 per cent intraday on Monday after it informed bourses that the board has approved the sale of 33 per cent stake in Bangalore International Airport to FIH Mauritius Investments and Fairfax India Holdings Corporation for a consideration of Rs 2149 crore.
12.21 pm: Dr Reddy’s Laboratories has entered into a US licensing pact with XenoPort for the development and commercialisation of latter’s clinical-stage oral new chemical entity XP23829. Dr Reddy’s Laboratories will pay an upfront fee of $50 million (Rs 335 crore) to XenoPort and up to $440 million (Rs 2,935 crore) on achievement of certain milestones. Shares of Dr Reddy’s Labs were trading 0.24 per cent up at Rs 3054.60.
12.03 pm: Natco Pharma shares were trading 12 per cent down at Rs 412.50. The United States Food & Drug Administration (USFDA) has conducted inspection at two manufacturing facilities of Natco Pharma recently. The inspection was conducted at the Active Pharmaceutical Ingredients (API) manufacturing facility at Manali, near Chennai, and the Pharmaceutical Formulations facility at Kothur, near Hyderabad, during early February and March, 2016, respectively. Sensex was down 112 points at 25,225.
11.50 am: Defence related stocks such as Reliance Defence and Walchandnagar Industries were trading up by 3.13 per cent and 1.13 per cent, respectively. India’s Defence Procurement Policy (DPP) would be launched online during Defence Expo India-2016, to be held in south Goa from tomorrow, Defence Minister Manohar Parrikar said.
11.46 am: Nintec Systems is coming out with an initial public offering (IPO) of 18,80,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 10 per equity share. The issue will open on March 29, 2016 and will close on April 06, 2016. The shares will be listed on SME platform of BSE. The share is priced at par to its face value of Rs 10.
11.40 am: The BSE IT index gained as much as 1.55 per cent on Monday after Accenture raises its full year revenue forecast on strong growth in its consulting business.
11.38 am: Hindustan Construction Company (HCC) has been awarded two contracts worth Rs 623 crore in the hydro power and tunneling sectors. The first order is of Rs 456 crore from the Tangsibji Hydro Energy of Bhutan while the second order is of Rs 167 crore from JKSPDC. The order from the Tangsibji Hydro Energy of Bhutan is for constructing 118 MW Nikachhu Hydropower Project in Trongsa district of Bhutan. This is an EPC contract and the project is to be completed in 48 months. Shares of HCC were trading 0.25 per cent down at Rs 19.80. Sensex was down 144.20 points at 25,193.36
11.11 am: ITC has acquired the entire equity share capital of Technico Agri Sciences, India, from Technico, Australia, for Rs 121 crore. Prior to acquisition, Technico Agri Sciences was a wholly owned subsidiary of Technico, which in turn is a wholly owned subsidiary of the company. Consequently, Technico Agri Sciences has become a direct subsidiary of the company with effect from March 22, 2016.
Technico Agri Sciences is in the Agricultural Bio-Technology business primarily of growing and selling TECHNITUBER Seed Potatoes and Field Generated seed Potatoes. Shares of ITC were trading 0.63 per cent down at Rs 322.35.
10.52 am: The 30-share index declined further and was trading 102.18 points, or 0.40 per cent, down at 25,235.38. Nifty was trading 23.25 points down at 7,693. In the 50-share index, Ambuja Cements, BPCL, Power Grid, ACC, Kotak Mahindra Bank gained between 1.13 per cent and 2.33 per cent. On the other hand, Vedanta, Hindalco, Sun Pharma, Cairn India and Tech Mahindra slid between 1.50 per cent and 4.30 per cent.
10.40 am: Sensex was down 95.77 points at 25,241. Nifty was down 20.85 points at 7,695.
10.07 am: PVR shares were trading 1.47 per cent up at Rs 724.15. PVR on Sunday launched Superplex, a premium concept that will house 15 movie screens in one multiplex. Located at the Logix City Centre in Noida, Superplex is the latest addition to PVR’s wide array of cinema concepts, which includes PVR Heritage, PVR Premier, PVR IMAX, PVR Director’s Cut, PVR Gold Class, PVR Premiere and PVR Icon. Sensex was down 67 points at 25,270. READ MORE
9.55 am: According to the data released by the NSE, the Foreign Institutional Investors (FIIs) were net sellers of Rs 338.88 crore in index futures and options segments, as per Wednesday’s data, March 23, 2016. FIIs were net buyers of index futures to the tune of Rs 739.61 crore and they sold index options worth Rs 1078.49 crore. In the stock segment, FII’s were net sellers of stock futures worth Rs 1,081.85 crore, while they sold stock options worth Rs 199.54 crore.
9.45 am: Meanwhile, Glenmark Pharma received final approval by the USFDA for Drospirenone and Ethinyl Estradiol Tablets USP, 3 mg/ 0.03 mg, the generic version of Yasmin Tables of Bayer HealthCare Pharma Inc and for Levonorgestrel Tablets, 1.5 mg, the generic version of Plan B One-Step Tablet of Teva Branded Pharma Products R&D, Inc, for over-the-counter (OTC) use as recommended in the submitted labelling. Shares of Glenmark Pharma were trading 0.84 per cent up at Rs 829. Sensex was down 70.25 points at 25,267. Nifty was down 16.90 points at 7,699.
9.37 am: The rupee weakened by 24 paise to quote at 66.88 against the dollar in early trade on Monday at the Interbank Foreign Exchange market on month-end demand for the American currency from importers and banks. Sensex was down 26 points at 25,310. Nifty was trading 4.70 points down at 7,711.80.
9.18 am: Benchmark indices wiped off their opening gains and were trading in red. Sensex was down 17.94 points at 25319. Nifty was trading 0.25 points down at 7,716.25. Natco Pharma shares were trading 9.36 per cent down at Rs 424.50. Natco Pharma on Sunday said it has received “minor” observations by US Food & Drug Administration (USFDA) following recent inspections at its two facilities and they will not have an adverse impact on its current or future products.
9.15 am: BSE Sensex opened 79.55 points up at 25417.11, while NSE Nifty 50 index opened 24.50 points up at 7,741.
8.38 am: The BSE Sensex and NSE Nifty are likely to open higher on Monday tracking Nifty futures on the Singapore Stock Exchange (SGX Nifty) and firm Asian markets.
At 8.28 am (IST), SGX Nifty was trading 10 points, or 0.13 per cent, up at 7,695.50.
Asian stocks edged higher on Monday after fairly strong consumer spending led to an upward revision in US economic growth in the fourth quarter, helping to underpin investor sentiment.
Nikkei and Shanghai were trading up by 0.77 per cent and 0.60 per cent, respectively, in the morning trade.
US indices ended on a flat note ahead of the long weekend led by profit taking along with concerns about the outlook for interest rates following comments from St. Louis Federal Reserve President James Bullard since the Fed’s economic outlook suggest the next rate hike” may not be far off provided that the economy evolves as expected.”
Back home, over the past week, which had three trading sessions, the benchmark 30-share Sensex gained 1.5 per cent to end at 25,337.56. Domestic equity markets were closed on Thursday and Friday on account of Holi and Good Friday.
Telecom stocks such as Bharti Airtel and Idea Cellular will remain in focus on Monday as the Department of Telecom is looking to commence the auction for spectrum, including in 700 Mhz band, around mid-July, which may fetch the government a whopping Rs 5.36 lakh crore.
(With inputs from agencies)