The BSE Sensex and NSE Nifty fell for the third straight session on Monday on renewed worries about the impact of Britain’s June 23 referendum on whether to leave the European Union amid subdued Asian markets ahead of US Fed meet. Sensex closed 238.98 points down at 26,396.77, while Nifty 50 index settled 59.45 points down at 8,110.60.
In the 50-share index, Idea Cellular, Tata Motors DVR, Tata Steel, ICICI Bank and Tata Motors slid between 2.70 per cent and 3.58 per cent. On the other hand, BPCL, Lupin, Dr Reddy’s Labs, Aurobindo Pharma and Bharti Infratel gained between 0.92 per cent and 2.46 per cent.
Barring the BSE Healthcare index (up 0.10 per cent), rest all other sectoral indices on the BSE ended in red. The BSE Telecom index, BSE Realty index, BSE Bankex, BSE Capital Goods index slid 1.74 per cent, 1.32 per cent, 1.29 per cent and 1.17 per cent, respectively.
Market participants also opted to cut their positions in risky assets on account of weak industrial production data, as the IIP contracted by 0.8 per cent in April, the first decline in three months, on the back of sharp fall in capital goods production and manufacturing activity.
Traders also remained on sidelines ahead of key macroeconomic data i.e. consumer price index (CPI) to be released later in the day and inflation based on the wholesale price index (WPI) for May to be released on Tuesday.
Vinod Nair, head of research, Geojit BNP Paribas Financial Services said, “Weak IIP and expectation that CPI inflation is likely to accelerate is hammering the market. Weakness in rupee due to anxiety over the upcoming FOMC and BoJ policy meet is shifting the investor’s focus from riskier assets to safe havens like gold.”
Textile stocks edged lower on report that textiles exports for the 2015-16 fiscal stood at $40 billion, way short of the $47.5 billion target. The ministry has set an exports target of $48.5 billion for the current fiscal. Telecom stocks too felt selling pressure during trade, as the Telecom Regulatory Authority of India (Trai) put up a consultation paper that seeks to create policies on cloud computing, including lawful interception and whether to license service providers. Meanwhile, shares of industrial companies Larsen & Toubro, Bharat Heavy Electricals and Power Grid Corp of India fell after disappointing industrial production data.
Asian peers ended lower on Monday as falling oil prices, disappointing Chinese data and weak cues from offshore markets dampened investor sentiment ahead of the Fed and BOJ meetings and the upcoming Brexit referendum later this month. Speculation is rising over whether Britain will choose to remain in the 28-nation European Union in a June 23 referendum. A poll in London’s last week showed that 55 percent of British citizens want to leave the European Union. Meanwhile, the Bank of Japan’s rate decision is due on Thursday and it is likely that the central bank will ease its policy mainly by increasing its ETF purchases, against the backdrop of a broadly weak dollar and falling expectations for Fed rate hikes. China and Hong Kong shares ended lower, as mixed data from China overshadowed recent optimism that MSCI could add mainland Chinese stocks to its benchmark Emerging Markets Index.
3.07 pm: Meanwhile, oil prices fell on Monday, weighed down by gloomy economic prospects in Europe and Asia and a related strengthening in the US dollar, which makes fuel imports for countries using other currencies more expensive. Sensex was down 243 points at 26,392. Gokaldas Exports shares fell 10 per cent to Rs 115.25.
2.25 pm: Reserve Bank of India (RBI) has notified that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest from the existing 100 per cent up to 80 per cent of the paid up capital of IIFL Holdings (Formerly India Infoline) under the Portfolio Investment Scheme (PIS). As a result, shares of IIFL Holdings were trading 4.16 per cent down at Rs 220. Sensex was down 253 points at 26,382. Nifty was trading 66.60 points down at 8,103.
1.54 pm: Meanwhile, Hong Kong stocks suffered their worst day in four months with investors joining a global equity sell-off on lingering economic concerns and rising risks from the UK’s possible exit from the European Union. Sensex was down 240 points at 26,395. Read more: Has equity market become expensive? Fortis Healthcare, Welspun India among 5 stocks to bet on
1.05 pm: Shares of A2Z Infra Engineering surged nearly 12 per cent intraday after the company won a $ 13.56 million (around Rs 90 crore) contract from Nepal government for expansion of electricity distribution network. The scrip was trading 5.17 per cent up at Rs 32.55 in the afternoon trade. Sensex was down 285 points at 26,350.
12.38 pm: Benchmark indices continued to trade under pressure in the afternoon trade. Read more: 5 reasons why Sensex tanked over 350 points in today’s trade
12.31 pm: Tata Steel shares slid as much as 3.86 per cent on Monday after Goldman Sachs downgraded stocks to ‘sell’ from ‘neutral’ and said the stock is pricing in most of the potentially positive drivers such as higher profitability and sale of UK assets. Read more
11.49 am: In the 50-share index, Coal India, BPCL, Lupin, Bosch and Dr Reddy’s Labs were up between 0.55 per cent and 1.09 per cent. On the other hand, Tata Motors DVR, Tata Motors, ICICI Bank, Tata Steel and Idea Cellular were down between 3.08 per cent and 4.12 per cent.
11.09 am: Meanwhile, Sensex plunged 307.19 points to 26328.56. Nifty was down 83.90 points at 8086.15. Shares of Fortis Healthcare slumped over 4 per cent after the company said its subsidiary has received an order from the Directorate General of Health Services (DHS) to deposit Rs 503.36 crore for non-compliance of conditions of land allotment lease.
10.50 am: Sensex was trading 290 points down at 26,345. Nifty was down 72.25 points at 8,097.80. Read more: Stocks pricey, Sensex may correct to 26k by year-end
10.20 am: Meanwhile, Welspun Enterprises shares surged over 10 per cent in the early trade. Read more: How Tata Power helped Welspun Enterprises surge over 10% in today’s trade
10.00 am: The rupee again hit the 67-mark against the US dollar after plunging 24 paise in early trade on Monday on sustained demand for the American currency from importers and bankers amid a lower opening in the domestic equity market.
9.16 am: Benchmark Sensex slid further and was trading 254.96 points, or 0.96 per cent, down at 26,380.79. Nifty was down 74.25 points, or 0.91 per cent, at 8,095.80. ICICI Bank and State Bank of India were trading down by over 2 per cent in the early trade.
9.15 am: The BSE Sensex opened 167.48 points, or 0.63 per cent, down at 26,468.27, while Nifty 50 index opened 67.80 points, or 0.83 per cent, down at 26,468.27.
8.14 am: The BSE Sensex and NSE Nifty are set to open in red on Monday on account of subdued global markets.
Asian shares and sterling tumbled on Monday and the perceived safe-haven yen rose, as investors fretted ahead of this week’s central bank meetings as well as Britain’s June 23 referendum on whether to remain in the European Union. Asian peers, Hang Seng, Shanghai and Nikkei were down by 503 points, 472 points and 21.10 points, respectively in the morning trade.
SGX Nifty was also trading 71.50 points down at 8,125.50, indicating a negative opening in the domestic equity markets.
US stocks extended losses into a second day on Friday following another drop in oil prices and rising worries about the global economy ahead of Britain’s referendum on whether to stay in the European Union.
Sensex on Friday ended 128 points lower and the Nifty below the 8,200-mark ahead of key global events, including the US Fed meet and Brexit outcome. The industrial production shrank by 0.8 per cent in April in its first decline in three months. Factory output measured in terms of the Index of Industrial Production (IIP) had expanded by 3 per cent in April last year, the data released by Central Statistics Office (CSO) after market hours on Friday showed.
Stocks in focus
Tata Power on Sunday said it will acquire Welspun Energy’s subsidiary, Welspun Renewable Energy Pvt Ltd (WREPL) for an undisclosed amount. Tata Power’s subsidiary Tata Power Renewable Energy Ltd (TPREL) will acquire WREPL through a share purchase agreement (SPA), it said in a statement.
Fortis Healthcare on Friday said its subsidiary Escort Heart Institute and Research Centre (EHIRCL) has received an order from the Directorate General of Health Services (DHS) to deposit Rs 503.36 crore for non-compliance of conditions of land allotment lease.
Reserve Bank on Friday increased the foreign holding limit to 74 per cent of the paid-up capital in Yes Bank under the portfolio investment scheme.
Multiplex chain operator PVR has earmarked a capital expenditure of up to Rs 250 crore for the current fiscal for opening new screens and refurbishing the existing ones.
Gujarat-based thermal power plants of Tata Power and Adani Power have placed fresh demands for compensatory tariffs before the Central Electricity Regulatory Authority (CERC) for the under-recoveries suffered by their Mundra units on account of unforeseen increase in imported (Indonesian) coal prices.