1. Sensex closes 43 points down ahead of derivatives expiry

Sensex closes 43 points down ahead of derivatives expiry

The BSE Sensex closed 43.60 points down at 28,775.74, while Nifty50 index closed 17.65 points down at 7831.60. Domestic equity markets will remain shut on Wednesday on account of Gurunanak Jayanti.

By: | New Delhi | Updated: November 24, 2015 4:38 PM
Sensex, bse, nse, nifty

The BSE Sensex closed 43.60 points down at 28,775.74, while Nifty50 index closed 17.65 points down at 7831.60. Domestic equity markets will remain shut on Wednesday on account of Gurunanak Jayanti.(Express Photo by Heena Khandelwal)

The BSE Sensex and NSE Nifty showed a lackluster trade on Tuesday and ended marginally in red on the penultimate session of the F&O series expiry, with sentiments remaining cautious given the amount of contracts rolled over to the next month remaining low compared to previous series. Sensex closed 43.60 points down at 28,775.74, while Nifty 50 index closed 17.65 points down at 7,831.60.

The cautiousness was also ahead of the start of winter session of Parliament on Thursday with all eyes on development on GST after Parliamentary Affairs Minister Venkaiah Naidu said that the government is reaching out to the Opposition to bring it on board to ensure passage of the Constitution Amendment Bill for GST.

In the 50-share index, HUL, HDFC, Reliance Industries, Bharti Airtel and Grasim gained between 0.75 per cent and 2.75 per cent. On the other hand, Bosch, Adani Ports, Maruti, GAIL and Larsen & Toubro slid between 2 per cent and 3 per cent.

Vinod Nair, head, fundamental research, Geojit BNP Paribas Financial Services, said, “The Market continues to be volatile as investors are cautiously positioning their trade before the holiday shortened F&O expiry. The commencement of winter session of parliament on the day of F&O expiry and the RBI’s policy meet scheduled for 1st December-2015 are forcing investors on to the back foot. Emerging markets are cautious over a possible US Fed rate hike in December.”

Among the sectoral indices on the Bombay Stock Exchange, the BSE Capital Goods index slid the most — 1.20 per cent, followed by BSE Auto index (down 0.74 per cent) and BSE IT index (down 0.66 per cent).

The BSE Realty index and the BSE Energy index remained among top gainers and jumped 1.29 per cent and 1.08 per cent, respectively.

Volumes in derivatives have also taken a hit after India unveiled rules that raised the minimum contract size to Rs 5 lakh from Rs 2 lakh to reduce speculative trading among retail investors. The rules came into effect from the start of the current November contracts.

“The market is too sluggish. Ever since the new contract has come, the derivative market has become very quiet,” said Deven Choksey, managing director at KR Choksey Securities.

“The contract demands higher amount of exposure so obviously participation will get reduced to only proprietary traders and the global desk of institutional investors,” Choksey said.

Resources shares gained after Saudi Arabia’s cabinet said on Monday it was ready to cooperate with others to achieve market stability, days before the Organisation of the Petroleum Exporting Countries meets to review its year-long policy of not supporting prices.

Nestle India shares fell 1.33 per cent on Tuesday on reports that the government was looking to conduct more tests on its popular noodle snack Maggi.

Shares of BGR Energy climbed 3.42 per cent after the company informed BSE that it has bagged new orders worth Rs 300 crore in the electricals sub-stations segment following its recent focus on power generation projects.

Shares in Pfizer climed over 2 per cent after its parent Pfizer Inc’s buyout of Botox maker Allergan on Monday.

The FIIs as per Tuesday’s data were net sellers in equity and in debt segments both, according to data released by the NSDL. In equity segment, the gross buying was of Rs 3142.62 crore against gross sell of Rs 3170.15 crore. Thus, FIIs stood as net sellers of Rs 27.53 crore in equities. In the debt segment, the gross purchase was of Rs 380.56 crore with gross sales of Rs 855.27 crore. Thus, FIIs stood as net sellers of Rs 474.71 crore in debt.

Domestic equity markets will remain shut on Wednesday on account of Gurunanak Jayanti.

The Asian markets closed mostly higher on Tuesday while investors treading cautiously following the weak cues overnight from Wall Street. Chinese Premier Li Keqiang stated that China was on track to reach its economic growth target of about 7 percent this year, and the economy was going through adjustments to maintain reasonable medium- to long-term growth.

Asian Indices Last Trade Change in Points Change in %
Shanghai Composite 3,616.11 5.8 0.16
Hang Seng 22,587.63 -78.27 -0.35
Jakarta Composite 4,545.38 4.31 0.09
KLSE Composite 1,677.03 6.13 0.37
Nikkei 225 19,924.89 45.08 0.23
Straits Times 2,923.49 20 0.69
KOSPI Composite 2,016.29 12.59 0.63
Taiwan Weighted 8,400.14 -85.59 -1.01

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Markets through the day

3.30 pm: The BSE Sensex closed 43.60 points down at 28,775.74, while Nifty50 index closed 17.65 points down at 7831.60.

2.52 pm: Shares of NBCC jumped over 5 per cent after the real estate company informed BSE that all India Institute of Medical Sciences (AIIMS) has issued letter of award dated November 23, 2015 to NBCC for the re-development of AIIMS Western Campus & Ayurvigyan Nagar, New Delhi involving construction of 3,000 flats in 2.5 years time with the financial implication of Rs 5,828 crore. The revenue generation for commercial viability of the project would be met by selling 10 per cent of area.

2.37 pm: Benchmark BSE Sensex was down 64.20 points at 25,755. Nifty was down 23 points at 7,826. Domestic equity markets will remain shut on Wednesday on account of Gurunanak Jayanti. The markets will closely watch the winter session of Parliament, beginning this week, which sets the agenda of the government. NDA’s recent reverses in Bihar elections have put a cloud over the pace of reforms, and market participants fear that it won’t be smooth sailing in Parliament.

2.31 pm: On the sectoral front, energy, realty and oil and gas witnessed the maximum gain in trade, while capital goods, software and auto remained the top losers on the BSE sectoral space.

2.25 pm: Tata Motors’ subsidiary Jaguar Land Rover (JLR) is planning to double the size of its Engine Manufacturing Centre (EMC) as part of a £450m expansion programme. Shares of Tata Motors were flat at Rs 401.85.

2.17 pm: The BSE Midcap index and BSE Smallcap index were up 0.20 per cent and 0.45 per cent at 10,919 and 11,470.

1.50 pm: Sanwaria Agro Oils has decided to form a subsidiary company in Dubai to cater specific business needs for export and marketing of Basmati Rice for Middle East Market. Further, Iran, Iraq and African markets will also be catered through this subsidiary. Cheering the development, the share price of Sanwaria Agro Oils soared 10 per cent to Rs 7.81. Sensex was up 12.87 points at 25,832.

1.22 pm: Shares of Pfizer Ltd rose sharply by nearly 9 per cent intraday on Tuesday after its parent Pfizer Inc’s announcement to buy Botox manufacturer Allergan in a record $160 billion deal, a biggest buyout in the global healthcare sector. At 1.22 pm, the scrip was trading 3.47 per cent up at Rs 2,522. Sensex was up 53 points at 25,872. Nifty was up 12.20 points at 7,861.

1.13 pm: Japan’s Nippon Life on Tuesday said that it has signed definitive agreements to increase its stake in India’s Reliance Life to 49 per cent from 26 per cent earlier for Rs 2,265 crore. Shares of Reliance Capital was trading 2.30 per cent up at Rs 417.65. Life Insurance is one of Reliance Capital’s major businesses.

1.01 pm: Berger Paints India (Berger) and Nippon Paint Automotive Coatings, Japan (NPAU), together with Nippon Paints (India) (NPI) have entered into definitive agreements to transfer certain business including three wheeler and four wheeler (passenger cars and SUV) paint business of Berger and four wheeler (other than commercial vehicles, auto parts and ancillaries) paint business of NPI to BNB Coatings India (BNB) at agreed values. The transferred businesses may include transfer of electro coat business also. The understanding is subject to the parties entering into definitive agreements as regards values and other terms and conditions, after due diligence. Shares of Berger Paints were trading 0.31 per cent down at Rs 221.85.

12.55 pm: Shares of Suzlon Energy were up 1.14 per cent at Rs 22.25. The scrip jumped after the company informed BSE that Suzlon has won its maiden order from Hero Future Energies, an Independent Power Producer (IPP) company, for 31.50 MW of wind power project. Suzlon will install its S97 suite of WTGs (wind turbine generators) with 120m hub height and rated capacity of 2.1 MW each at Zaheerabad site in Medak district, Telangana on supply and installation basis. The project will be scheduled for commissioning by June 2016.

12.52 pm: On the global front, Asian markets were exhibiting mixed trend after a healthcare mega-merger failed to impress investors while the dollar held firm near an eight-month high as investors grew more convinced of a US rate hike next month.

12.34 pm: Sensex was up 31 points at 25,850. Nifty was up 6.65 points at 7,855. In the 50-share index, Hindustan Unilever, ONGC, HDFC, Ambuja Cements, Cairn were up between 1.15 per cent and 2.45 per cent. On the other hand, Bosch, Maruti Suzuki, GAIL, Adani Ports and Larsen & Toubro were down between 1.15 per cent and 2.70 per cent.

11.50 pm: Foreign portfolio investors (FPIs) sold shares worth a net Rs 35.37 crore on Monday, as per provisional data released by the stock exchanges.

11.47 am: Infosys were among the top losers in the Nifty 50 pack. The share price of the company was trading 1.27 per cent down at Rs 1,040.30. Infosys announced that Carol M Browner has resigned as Member of the Board and Independent Director of the Company with immediate effect, due to personal reasons. Sensex was up 17 points at 25,836.

11.07 am: Videocon Realty & Infrastructure has bought 3.41 lakh shares of ABG Shipyard through open market route. The shares were purchased on an average price of Rs 83 valuing the transaction to Rs 2.83 crore. On the other hand, IL and FS Financial Services has sold 3.43 lakh shares of the company for an average price of Rs 83 through open market route. The share price of ABG Shipyard was down 2.14 per cent at Rs 77.85.

10.43 am: Indian Oil Corporation shares were trading 2.23 per cent up at Rs 421.15 after the company reportedly decided to set up 1,400 MW solar power systems at its Gujarat Refinery. The solar power systems will be commissioned in 2016. A grid-connected 250-kW Solar Power system is already catering to the partial electricity requirement of technical building. Sensex was trading 12.43 points up at 25,831.77. Similarly, Nifty was trading 1.55 points up at 7,850.80.

10.19 am: JSW Steel shares were trading 0.47 per cent up at Rs 894.30 after Credit ratings agency Fitch on Monday downgraded its outlook on the company to ‘Negative’ from ‘Stable’ due to risk of further decline in product prices. Sensex was trading 65.90 points up at 25,885.24. NSE Nifty was trading 14.35 points up at 7,863.60.

9.50 am: According to the data released by the NSE, the Foreign Institutional Investors (FIIs) were net sellers of Rs 272.02 crore in index futures and options segments, as per Monday’s data, November 23, 2015.

FIIs were net buyers of index futures to the tune of Rs 403.26 crore and they sold index options worth Rs 675.28 crore. In the stock segment, FII’s were net buyers of stock futures worth Rs 288.97 crore, while they sold stock options worth Rs 95.43 crore. Sensex was up 30 points at 25,849.

9.40 am: The rupee recovered from over two-month low by rising 13 paise to 66.34 against the dollar in early trade today at the Interbank Foreign Exchange on fresh selling of the US currency by exporters and banks.

9.28 am: Lanco Infratech on Monday announced that its subsidiary Lanco Solar Private Limited signed a landmark agreement with Chhattisgarh Government to bring Chhattisgarh on the global silicon map. As per the MOU inked on Monday with the Chhattisgarh Government, Lanco Solar will set up 100 MW solar cell manufacturing plant. Shares of Lanco Infratech was trading 19.89 per cent up at Rs 6.39.

9.22 am: Shares of Gammon India were up around 17 per cent in the early trade. The company on Monday informed BSE that the Corporate Debt Restructuring Empowered Group-(CDR EG) in its meeting held on November 23, 2015 has discussed and noted the invocation of Strategic Debt Restructuring (SDR) in the Company by the CDR Lenders, pursuant to RBI Circular dated June 08, 2015.

9.18 am: Shares of Petronet LNG will remain in focus today as after months of intense negotiations, RasGas of Qatar has agreed to not to press for the $ 1 billion in penalty that Petronet LNG, India’s biggest import of liquefied natural gas (LNG), has to pay for buying only 68 per cent of the contracted 7.5 million tonnes this year. Shares of Petronet LNG were trading 0.21 per cent up at Rs 233.85 in the early trade. Sensex was down 47.45 points at 25,771.89. Nifty was down 23.35 points at 7825.90.

9.15 am: Domestic equity markets opened marginally in red on Tuesday taking cues from global markets. Sensex opened 33.73 points down at 25,785.61. Nifty opened 12.25 points down 7,837.

Asian shares dragged their feet on Tuesday after a healthcare mega-merger failed to impress investors while the dollar held firm near an eight-month high as investors grew more convinced of a US rate hike next month.

Wall Street shares edged down on Monday with Pfizer’s plan to buy Allergan plc in a $160 billion deal quickly drawing criticism from politicians as a tax dodge.

Back home, benchmark indices were plagued with volatility on Monday on account of the derivatives expiry on Thursday. The India VIX registered an increase of 7.5 per cent to 17.15 in Monday’s trade. The Sensex and the Nifty both struggled in afternoon trade on selling pressure in banking, FMCG and metals stocks. BSE Sensex closed 49.15 points down at 25819.34, while NSE Nifty closed 7.30 points down at 7849.25.

(With inputs from agencies)

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