The BSE Sensex and NSE Nifty fell for the third consecutive day on Friday on account of weak European cues coupled with tighter P-Note norms. Sensex closed 97.82 points down at 25301.90 while Nifty 50 index settled 33.70 points down at 7,749.70.
Traders also remained cautious on Friday over the possibility of an interest rate hike by the US Federal Reserve as early as June
In the 50-share index, ITC, Adani Ports, Tata Power, Idea Cellular, ONGC gained between 1.39 per cent and 4.10 per cent. On the other hand, Lupin, Ambuja Cement, ICICI Bank, BPCL and Reliance Industries shares slid between 1.86 per cent and 9.04 per cent.
Barring the BSE FMCG index (up 0.19 per cent), rest all other sectoral indices on BSE ended the day in red. The BSE Realty index, BSE Healthcare index and BSE Capital Goods index slipped 1.42 per cent, 1.39 per cent and 0.95 per cent, respectively.
SEBI on Thursday made rules tougher on P-Notes, making mandatory for all end-users of these overseas instruments to follow anti-money laundering law in India and asked their issuers to report any suspected breach immediately.
Among day’s major market moving events, crude oil prices continued to rise owing to expectations of supply tightening following turmoil in Nigeria, shale bankruptcies in the United States, and crisis in Venezuela. Brent crude was seen trading at $49.02 a barrel, up 0.43% or 21 cents while US Crude was up 29 cents, 0.6 per cent at $48.45 per barrel.
Shares of low cost airline – Spicejet slipped more than 10 per cent intraday on BSE even after the carrier reported numbers almost in line with market expectations. Spicejet reported a net profit of Rs. 73 crore in Q4FY16 against net profit of Rs 80 crore in the same quarter the previous fiscal. The carrier reported a one-time expense of Rs. 173 crores on stabilisation and reliability of its fleet which impacted the bottom line significantly in this quarter.
Shares of Gujarat Pipavav Port corrected by more than 3.7 per cent after the company reported a fall of 25.49 per cent in standalone profits at Rs 49.83 crore for Q4FY16. The company had reported a profit of Rs 66.88 crore for the same quarter the previous fiscal.
Asian equity markets ended mostly higher on Friday, as oil prices rebounded ahead of US rig count data and the dollar held gains against the yen on the eve of a G7 meeting, with issues such as money laundering, tax evasion and currency volatility high on the agenda. Chinese shares eked out modest gains after China said it would allocate 27.64 billion yuan ($4.23 billion) from the central budget to cut steel and coal capacity. Japanese shares reversed early losses to end higher as a weaker yen boosted exporters’ shares.
Markets through the day
3.30 pm: Sensex closed 97.82 points down at 25,301.90 while Nifty 50 index settled 33.70 points down at 7,749.70. Traders also remained cautious on Friday over the possibility of an interest rate hike by the US Federal Reserve as early as June.
3.06 pm: Barring HDFC Bank, YES Bank and Federal Bank, rest all other banking majors in the BSE Bankex index were trading in red. ICICI Bank was down 2.44 per cent, followed by Bank of Baroda (down 1.28 per cent), Punjab National Bank (down 1.15 per cent) and State Bank of India (down 1.01 per cent). Sensex was down 112 points at 25,287.30. Nifty was trading 42.25 points down at 7,741.15.
2.47 pm: Karnataka Bank shares surged over 9 per cent intraday despite the bank posted 26.81 per cent fall in net profit figures at Rs 141.87 crore for the quarter ended March 2016 against Rs 193.84 crore in the corresponding quarter a year ago. Sensex was down 71 points at 25328. Nifty was down 26.45 points at 7,756.
Bond yields remained flat on Friday as investors turned cautious ahead of a fresh supply of notes later today. Some cautiousness prevailed in the markets on tighter P-Note norms. SEBI had made rules tougher on controversy-ridden P-Notes, making mandatory for all end-users of these overseas instruments to follow anti-money laundering law in India and asked their issuers to report any suspected breach immediately.
2.37 pm: Stock market came under pressure after European shares dropped on Thursday as weaker oil and metals prices put pressure on commodities stocks and concern mounted that US interest rates would be raised soon. Sensex was 23.88 points down at 25,375.84. Nifty was trading 13.90 points down at 7,769.50.
2.05 pm: Sensex was up 41 points at 25,440. Shares of Ujaas Energy were trading 3.89 per cent up at Rs 22.70.
1.08 pm: In the 30-share index, Adani Ports (up 3.17 per cent), ONGC (up 1.93 per cent) and HDFC (1.16 per cent) were among top gainers. On the other hand, Lupin was trading 7 per cent down at Rs 1536. ICICI Bank and Cipla were trading down by 1.11 per cent and 1.03 per cent, respectively.
12.47 pm: Sensex was up 92 points at 25,491. Nifty was trading 20.40 points up at 7,803.
11.50 am: ITC shares climbed as much as 1.42 per cent in the early trade on Friday ahead of Q4 results to be announced later in the day. Read more
11.07 am: Sensex was trading 55 points up at 25455. Nifty was up 11.60 points at 7795. Read more: Stringent norms to make P-Notes investments expensive, say analysts
10.40 am: Pidilite Industries reported a rise of 48.98 per cent in its net profit at Rs 115.04 crore for the quarter ended March 31, 2016 as compared to of Rs 77.22 crore for the same quarter in the previous year. Total income of the company has increased by 12.83 per cent at Rs 1101.10 crore for quarter under review as compared to Rs 975.93 crore for the quarter ended March 31, 2015. Shares of Pidilite Industries were trading 3.64 per cent up at Rs 639. Sensex was up 21 points at 25,420.
10.18 am: Tightening its norms to check any misuse of controversy-ridden PNotes, regulator Sebi on Thursday made it mandatory all end-users of these overseas instruments to follow anti-money laundering law in India and asked their issuers to report any suspected breach immediately. Sensex was up 3 points at 25,403. Nifty was trading 4.25 points down at 7,779.
10.03 am: The rupee weakened by 4 paise to 67.40 against the dollar in early trade at the Interbank Foreign Exchange market, falling for the seventh straight session, on sustained demand for the American currency from importers and banks amid foreign fund outflows.
9.34 am: Sensex was trading 70.82 points, or 0.28 per cent, up at 25,470, while Nifty was up 13.90 points at 7,797. SpiceJet was trading 4.02 per cent down at Rs 76.35.
9.16 am: Lupin shares plunged over 7 per cent to Rs 1,534.90. Drug major Lupin on Thursday pulled off a 47.5 per cent growth in consolidated net profit for the fourth quarter ended March at Rs 807.1 crore, its best-ever quarterly show, driven by strong sales in the US, Europe, Japan and India.
Post Q4 results, Sharekhan said, “We have revised downwards our estimates for FY2017 and FY2018 by 6.3 per cent and 4.4 per cent respectively mainly due to increase in interest cost (due to increase in debt on account of acquisition) and higher tax rate (30 per cent vs earlier 28 per cent). Also, 483 observations from the USFDA continue to remain overhang for near term and poses an upside risk to our valuation. Hence, we have retained our ‘Hold’ rating with a revised price target of Rs 1,850.”
9.15 am: The BSE Sensex opened 28.70 points, or 0.11 per cent, up at 25428.42, while NSE Nifty index opened 8.80 points, or 0.11 per cent up at 7,792.20.
8.31 am: The BSE Sensex and NSE Nifty are likely to open on a flat note with positive bias on Friday tracking SGX Nifty and mixed global markets.
At 8.17 am (IST), SGX Nifty was up 9 points, or 0.12 per cent, at 7,789.50.
Asian markets edged up on Friday but were on track for a weekly loss, while the dollar was poised for a winning week as comments from a key Federal Reserve official led to increased betting on the Fed hiking interest rates as early as next month.
Wall Street closed down on Thursday with the Dow Jones industrial average and the S&P 500 both touching roughly two-month lows before paring losses.
The BSE Sensex on Thursday tanked by 305 points to hit a two-week low of 25,399.72 after worries over stricter P-Note norms and a likely June rate hike by the US Fed spooked investors.
Shares of SpiceJet and Parag Milk Foods will remain in focus on Friday. SpiceJet’s net profit more than tripled to Rs 73.19 crore in the three months to March as higher income from operations helped the no-frills carrier remain profitable for the fifth straight quarter. The carrier had a net profit of Rs 22.52 crore in the year-ago period.
Leading multi-asset class fund manager IDFC Alternatives said it has completed a partial exit in Parag Milk Food Ltd, which got listed on the bourses on Thursday.
(With agency inputs)