Triggered by feeble global cues, benchmark indices BSE Sensex and NSE Nifty ended nearly a percentage point lower on Thursday. Caution ahead of industrial production data for April, slated to be released on Friday, too dampened sentiment. Concern over rising crude oil prices, which are hovering near their one year highs, too weighed down sentiments.
Sensex closed 257.20 points down at 26,763.46, while Nifty 50 index settled 69.45 points down at 8,203.60.
In the 50-share index, Coal India, ONGC, NTPC, BPCL and Reliance Industries gained between 1.66 per cent and 2.39 per cent. On the other hand, Aurobindo Pharma, Infosys, Hero MotoCorp, Ambuja Cement and HUL slid between 2.47 per cent and 3.46 per cent.
Sectorwise, the BSE IT index tumbled the most — 2.17 per cent, it was followed by BSE TECk index (down 1.81 per cent), BSE FMCG index (down 1.60 per cent), BSE Capital Goods index (down 0.81 per cent) and BSE Auto index (down 0.62 per cent). However, BSE Metal index and BSE Oil & Gas gained 1.59 per cent and 1.19 per cent, respectively.
Metal and mining stocks gained as copper prices rose in global commodity markets. Infra stocks edged higher, as the governing council of National Investment and Infrastructure Fund chaired by finance minister Arun Jaitley reviewed progress of operationalising India’s maiden sovereign wealth fund NIIF, including the selection of its CEO and projects shortlisted for making initial investments. The government has proposed a corpus of Rs 40,000 crore for NIIF, which will invest in infrastructure projects.
Shreyash Devalkar, fund manager – equities, BNP Paribas Mutual Fund said, “It was a day of losses on the bourses as key benchmark indices opened the day in the red and continued to trade lower for the rest of the trading session. While investor action was partially guided by profit booking, sentiment also turned cautious on renewed worries over the impact of rising crude oil prices on India’s current account deficit. Weakness in global stocks also dampened domestic sentiment.”
In a scrip specific development, Kesoram Industries shares surged nearly 15 per cent on Thursday after a rating agency Credit Analysis & Research Ltd (CARE) revised long/short-term bank facilities of Kesoram Industries from CARE A minus to CARE A2 plus and removed it from credit watch.
Infosys closed 4.27 per cent down at Rs 1185.45. Nikhil Kamath, co-founder and director, Zerodha said, “Infosys shares plunged after the IT major warned about potential volatility in revenue growth in the coming quarters. Infosys also indicated that its June quarter margins may come under pressure on account of salary hikes.”
Asian equity markets ended lower on Thursday as weak data from both China and Japan added to global growth concerns, despite gains on Wall Street overnight and steadier oil and metal prices. Markets in China, Hong Kong and Taiwan were closed for the Dragon Boat Festival.
Markets through the day
3.30 pm: Sensex closed 257.20 points down at 26,763.46, while Nifty 50 index settled 69.45 points down at 8,203.60.
3.00 pm: Sensex was down 288 points at 26,731. Nifty was down 70.95 points at 8,202. Meanwhile, Nikhil Kamath, co-founder and director, Zerodha said, “Weakness crept into the indices on Thursday on the back of tepid global cues, the correction aggravated towards the latter part of the session to test 8200. Infosys shares fell over 4 per cent on Thursday after the IT major warned about potential volatility in revenue growth in the coming quarters. Infosys also indicated that its June quarter margins may come under pressure on account of salary hikes.”
2.11 pm: Dr Reddy’s Laboratories shares plunged as much as 2.24 per cent on Thursday after reports that the US Consumer Product Safety Commission charges company for packaging lapses in at least five prescription drugs.
1.54 pm: Pricol is targeting a 20-25 per cent revenue growth in the next few years and eyeing to hit the Rs 3,000-crore revenue mark by 2020. The company which turned profitable in FY16 on the back robust revenue growth led by strong order book, expects to better its momentum in FY17 and the years to come. Shares of the company were trading 6.86 per cent up at Rs 75.55. The scrip also hit its new 52-week high of Rs 77.25 in trade so far.
1.42 pm: Meanwhile, oil prices edged up to fresh 2016 highs on Thursday, buoyed by a fall in US crude inventories, a weaker dollar and strong demand, although some analysts warned that the recent rally was starting to look overblown. International Brent crude oil futures hit a high of $52.86 a barrel, and were up 23 cents at $52.74 a barrel at 12.30 pm. US crude hit a fresh high of $51.67 and was up 33 cents higher at $51.56 a barrel. Traders said the rises were largely a result of a drop in US crude inventories.
1.21 pm: The BSE Smallcap index was outperforming other major indices. The index was up 0.28 per cent at 11,413. The BSE Midcap index was down 0.09 per cent at 11,465. Read more: Mark Mobius bullish on smallcaps, what Franklin Templeton India is doing
1.11 pm: The BSE Sensex was trading 224 points down at 26,796. In the 30-share index, Reliance Industries, NTPC, ONGC and Cipla were up between 2.10 per cent and 1.30 per cent. Nifty was trading 59.85 points down at 8,213.
12.21 pm: JSW Steel’s crude steel production in May 2016 grew 16% and stood at 13.48 lakh tonnes (LT) as compared to 11.62 LT in May 2015. The production of rolled products (long) increased to 2.98 lakh tonnes compared to 2.44 lakh tonnes in May last year, representing a growth of 22%. The production of rolled products (flat) during the month increased to 9.30 lakh tonnes as compared to last year’s level of 8.70 lakh tonnes. Shares of the company were trading 0.84 per cent up at Rs 1,407. Sensex was down 182 points at 26,838. Nifty was trading 47.50 points down at 8225.55.
12.04 pm: Eros International shares surged over 7 per cent intraday on Thursday after its on-demand entertainment platform Eros Now inked a deal with Apple TV for showcasing its repository of Bollywood and regional language films and music videos across 80 countries. At 12.04 pm, shares of the company were trading 4.39 per cent up at Rs 215.
10.47 am: Most of the Asian equity benchmarks are trading lower in the early deals on Thursday despite the positive lead overnight from Wall Street and another increase in crude oil prices.
10.43 am: Sensex was down 135 points at 26,885. Brokers said apart from weak Asian cues, investors booked profit after recent gains, pushing the indices down.
9.59 am: Infosys shares slipped over 3 per cent in the early trade on Thursday after reports that Infosys’ COO Pravin Rao on Wendesday said that the company would face volatility over the next few quarters, due to weaker spending from sectors such as energy and insurance. Sensex was down 190.58 points at 26830. Nifty was trading 53.25 points down at 8,219.
9.16 am: Sensex was down 83.77 points, or 0.31 per cent, at 26936.89. Nifty was trading 19.35 points down at 8,253.70. Infosys was trading 2.56 per cent down at Rs 1,206.65. Vipul Ltd shares were trading 6 per cent higher at Rs 55.80. The share price of the company climbed after the real estate developer said that it has seen a good response to the launch of its new project, Aarohan, at Golf course Road, Gurgaon. This represents more than 26 per cent of the 382 apartments it opened for sale in the first phase of this project. The value of apartments sold is in excess of Rs 303 crore.
9.15 am: The BSE Sensex opened 26.18 points, or 0.10 per cent, down at 26,994.48, however NSE Nifty opened 0.30 points up at 8,273.35.
9.11 am: Vipul Ltd will also be in foucus in today’s trade. Vipul, a Gurgaon-based real estate developer has seen a good response to the launch of its new project, Aarohan, at Golf course Road, Gurgaon. This represents more than 26 per cent of the 382 apartments it opened for sale in the first phase of this project. The value of apartments sold is in excess of Rs 303 crore.
9.07 am: Crude oil futures continued their surge on Wednesday, with Nymex crude settling above $51 for the first time in almost a year. The rally was led by weaker dollar and large draw down in US crude oil inventories and traders remained undeterred by World Bank cutting its 2016 global growth forecast to 2.4 per cent from the 2.9 per cent estimated in January. The US Energy Information Administration (EIA) said US commercial crude oil inventories decreased by 3.2 million barrels for the week ending on June 3. At 532.5 million barrels, US crude oil inventories are still at historically high levels for this time of year. Meanwhile, crude production nationwide increased by 10,000 barrels per day to 8.745 million bpd, halting a four-month streak of weekly declines.
8.48 am: As per provisional figures, foreign institutional investors (FIIs)/ Foreign Portfolio Investors (FPIs) bought shares worth net Rs 529.16 crore on 8th June 2016. Domestic institutional investors sold shares worth Rs 257.76 crore on that day.
7.54 am: Domestic benchmark indices BSE Sensex and NSE Nifty are likely to open higher on Thursday tracking Nifty futures on the Singapore Stock Exchange (SGX Nifty) and global cues.
Asian stocks edged up on Thursday after Wall Street gained overnight, while a weaker dollar buoyed commodities such as gold and crude oil.
On Wall Street, the Dow gained 0.4 per cent overnight, rising above 18,000 for the first time since April as a weaker dollar lifted some commodity-related shares.
The BSE Sensex on Wednesday inched up higher for a second straight session to an over seven-month high, buoyed by arrival of monsoon rains in Kerala and continued foreign fund inflows following RBI’s accommodative policy. Sensex opened higher at 27,085.24 and moved between 27,105.41 and 26,973.71, before ending at 27,020.66, showing a moderate rise of 10.99 points or 0.04 per cent – its fresh highest closing since October 28.
The NSE Nifty on Wednesday also inched higher by 6.60 points or 0.08 per cent to close at 8,273.05.
Shares of Tata Motors, Lupin, JSW Steel, Dabur and Syndicate Bank will remain in focus on Thursday.
Tata Motors Wednesday reported a 10.3 per cent increase in global sales at 87,414 units, including that of Jaguar Land Rover (JLR) vehicles, in May. The company had sold 79,244 units in May 2015, Tata Motors said in a statement. In the passenger vehicles category, global sales stood at 55,039 units last month as against 50,181 units in May 2015, up 9.68 per cent. Sales of luxury brand Jaguar Land Rover increased by 18.84 per cent to 46,204 units last month as compared to 38,879 units in May 2015.
Drug firm Lupin is recalling over 54,000 vials of anti-bacterial injection Ceftriaxone manufactured at its Mandideep facility in Madhya Pradesh due to violation of current good manufacturing norms. The ongoing voluntary recall is a class III recall and is for the US and Puerto Rico, according to the latest enforcement report on USFDA site. The recall is being initiated by the company’s US arm Lupin Pharmaceuticals Inc covering 54,472 vials of Ceftriaxone for injection in various strengths, it added.
JSW Steel on Wednesday reported its highest-ever monthly crude steel production at 13.48 lakh tonnes (LT) in May.
Dabur is gearing up for a bigger play in the e-commerce segment in India to tap potential of the fast growing sector. The company which has ventured into online cosmetics and beauty products through NewU, run by its wholly-owned arm H&B Stores, is also working on another platform DaburUveda.com to enhance its presence in the e-commerce space. “We do see that e-commerce is going to expand in a very big way. Thanks to technical development and increased mobile phone penetration, the e-commerce opportunity is going to be very very big. We feel that it is going to expand further in the middle and long term scenario,” Dabur India CFO Lalit Malik told PTI.
State-owned Syndicate Bank on Wednesday said it proposes to raise up to Rs 1,700 crore from public issue, including Qualified Institutional Placement or QIP.
(With agency inputs)