The BSE Sensex and NSE Nifty fell for a third straight day on Wednesday owing to persistent selling by the FIIs amid weakness in global peers. Sentiments also remained downbeat after growth in India’s services firms fell to a four-month low of 53.7 in April from 54.3 in March on the back of new business growing slower than the previous months.
The 30-share index closed 127.97 points down at 25,101.73, while Nifty 50 index settled 40.45 points down at 7,706.55.
In the 50-share pack, HDFC, NTPC, Aurobindo Pharma, Infosys and HCL Technologies gained between 0.90 per cent and 2.82 per cent. On the other hand, Adani Ports, Tata Motors, Tata Motors DVR, Hindalco and Tata Steel plunged between 5.55 per cent and 12 per cent.
Adani Ports and Special Economic Zone slumped 11.98 per cent on disappointment over its January-March earnings.
BASF India jumped 3.91 per cent after the chemicals company reported strong March-quarter results.
Sentiments also remained dampened on report that private sector activity in the country eased in April amid slower expansion in new business inflows in services sector while order books at manufacturers also broadly stagnated, adding to the clamour for further interest rate cuts by Reserve Bank. Meanwhile, the International Monetary Fund (IMF) Regional Economic Outlook for Asia and Pacific has said that structural reforms, including GST and in areas like land and labour, will be key to boost India’s economic growth potential going forward. Though, IMF has retained its growth forecast for India this year at 7.5 per cent.
Telecom stocks edged lower despite a Parliamentary panel saying that government targets revenue of Rs 64,580.92 crore in the current financial year from spectrum auction proceeds. The BSE Telecom index fell 1.64 per cent to 1,332.12. On the flip side, stocks related to aviation counter edged higher despite report that after ATF price hike, the government is set to hold talks with domestic airlines to cap airfares on short routes during natural calamities or unpredictable situations. Share price of IndiGo and Jet Airways closed 0.93 per cent and 0.56 per cent up at Rs 1063.60 and Rs 623.85, respectively.
Asian equity markets ended mostly lower on Wednesday, with markets in Hong Kong, Singapore and Taiwan bearing the brunt of the selling, after US stocks fell sharply to hit a three-week low overnight in reaction to falling oil prices, weak Chinese and UK manufacturing data and downgrades to GDP and inflation forecasts from the European Commission.
Chinese shares closed largely unchanged despite resource shares coming under selling pressure in the wake of a regulatory crackdown to curb speculation in commodities markets. Japanese markets were closed for the Greenery day public holiday.
Markets through the day
3.30 pm: The 30-share index closed 127.97 points down at 25,101.73, while Nifty 50 index settled 40.45 points down at 7,706.55.
3.17 pm: Alstom T&D India shares tumbled over 6 per cent on reporting 45 per cent fall in Q4 net profit.
2.51 pm: Sensex was down 108.92 points down at 25,120.78, while Nifty fell 37.55 points down at 7,709.45
2.21 pm: Sensex was down 59.74 points at 25169. Nifty was trading 21.40 points down at 7725. In the 50- share index, HDFC, NTPC, HCL Tech, Aurobindo Pharma and Kotak Mahindra Bank were up between 1.10 per cent and 3 per cent.
1.22 pm: European stocks hovered near a three-week low on Wednesday, with shares in Dialog Semiconductor and BHP Billiton among the worst performers.
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12.13 pm: The 30-share index was trading 65 points down at 25,164. Investors remained cautious with private report that India is likely to pursue a mildly expansionary fiscal policy over the next 12 months largely due to the one off impact of government employee wage hike. The government has budgeted for around 60% of the incremental expenditure on salaries, and thus there is a risk that if the government takes up full-scale implementation of the pay commission recommendation, it could compromise on the fiscal deficit reduction target. However, losses remained capped with the report that Indian companies will likely resume growth in the coming quarters helped by lower debt, positive cash flows and a better economic environment signalling the end of the corporate debt crisis in the country. Moreover, the International Monetary Fund has retained its growth forecast for India this year at 7.5 per cent, largely driven by private consumption even as weak exports and sluggish credit growth weigh on the economy.
11.33 am: ICICI Bank was trading 1.60 per cent down at Rs 217.80. Shares of the private sector lender had fallen over 8 per cent since it reported a decade-low quarterly profit on April 29. Sensex was down 35 points at 25,194. Nifty was trading 15.30 points lower at 7,731. Read more: Kotak Mahindra Bank outpaces ICICI Bank in market cap
10.48 am: Meanwhile, shares of Adani Ports and Special Economic Zone (APSEZ) lost nearly 12 per cent on equity dilution worries after the company said it will seek shareholders nod for raising up to Rs 10,000 crore by issue of shares. Sensex was down 84.34 points at 25,145.
10.19 am: The rupee weakened 21 paise to 66.63 against the US dollar in early trade at the Interbank Foreign Exchange market on increased demand for the American currency from importers and banks.
10 am: Sensex was down 112.29 points at 25,117. Nila Infrastructures shares jumped nearly 4 per cent after it entered into contract with Urban Improvement Trust Bhilwara
9.43 am: Shares of Jindal Steel and Power (JSPL) advanced as much as 3.55 per cent in the early trade on Wednesday after the company agreed to divest the 1000 MW 4(250x MW) unit of Jindal Power. Read More
9.26 am: The BSE Bankex was trading 0.16 per cent down at 18,635. Amid the talks of rise in nonperforming assets (NPA) of the public sector banks (PSBs), the government has informed that the number of ‘wilful defaulters’ who have not repaid their loans to PSBs despite having the ability to do so shot up by 38 per cent to 7,686 at the end of December 2015, compared to 5,554 in December 2012. The amount involved in these cases too shot up by 2.4 times to Rs 66,190 crore, compared to around 27,750 crore earlier.
9.16 am: Sensex plunged 109.24 points to 25,120.46 in the opening trade. Jindal Steel & Power was trading 3 per cent up at Rs 71.05.
Nifty was down 13.45 points at 7,733.55.
9.15 am: The BSE Sensex opened 18.83 points, or 0.07 per cent, down at 25,210.87, while Nifty opened 22.85 points, or 0.29 per cent, down at 7,724.15.
8.58 am: There will be some important result announcements too, to keep the markets buzzing. Jindal Steel, Hexaware, Adani Enterprises, NELCO, DHFL, V Guard Mangalam Cement and SKS Microfinance, among others, will disclose their numbers today.
8.57 am: The Indian ADRs closed in red on Tuesday. HDFC Bank was down 0.40 per cent, Tata Motors was down 0.40 per cent, ICICI Bank was down by 0.31 per cent, Infosys was down 0.28 per cent and Dr Reddy’s Lab was down 0.18 per cent.
8.40 am: Benchmark indices BSE Sensex and NSE Nifty are likely to open lower on Wednesday tracking Nifty futures on the Singapore Stock Exchange (SGX Nifty) and weak global cues.
Parag Milk Foods IPO to hit markets today: should you invest? Read more
At 8.24 am (IST), SGX Nifty was down 31.50 points, or 0.41 per cent, at 7,749.50.
Asian shares plunged on Wednesday as worries about global growth and creeping deflation resurfaced, undermining commodities and boosting demand for safe-haven sovereign debt.
Disappointing manufacturing surveys from China and the UK combined with downgrades to growth impacted market mood.
On Wall Street, the Dow had ended Tuesday down 0.78 per cent, while the S&P 500 lost 0.87 per cent and the Nasdaq 1.13 per cent. Even a surprisingly upbeat report on US auto sales failed to lift the mood, with shares of car makers falling on worries the industry’s recovery was running out of steam.
Back home, the BSE Sensex slid 207.27 points, or 0.81 per cent, to 25229.70 on Tuesday on global growth worries. Nifty 50 index also slid 58.90 points, or 0.75 per cent, at 7,747.
Shares of Adani Ports and JSPL will remain in focus on Wednesday. Adani Ports and Special Economic Zone Ltd (APSEZ) on Tuesday reported a 38 per cent jump in its consolidated net profit to Rs 914.06 core for the March quarter on account of rise in income. The company had clocked a net profit of Rs 660.73 crore in the same quarter of the 2014-15 fiscal.
Indian billionaire Sajjan Jindal’s JSW Energy has agreed to buy a 1,000 megawatt power plant from his brother’s heavily indebted Jindal Steel and Power (JSPL) in a deal valued at up to $976 million, the companies said on Wednesday.