Weak global markets dragged benchmark indices BSE Sensex and NSE Nifty down over 1 per cent on Wednesday ahead of F&O expiry and Rail Budget scheduled on Thursday. The 30-share index Sensex closed 321.25 points down at 23088.93, while the 50-share index Nifty settled 90.85 points down at 7,018.70.
In the Nifty 50 pack, share price of Bharat Heavy Electricals Ltd slid the most — 5.13 per cent, followed by NTPC (down 4.24 per cent), Tata Motors (down 3.77 per cent), Hindalco (down 3.50 per cent) and Cairn India (down 3.29 per cent). On the other hand, BPCL, Power Grid, Bank of Baroda and YES Bank gained 4.97 per cent, 2.12 per cent, 1.24 per cent and 0.82 per cent, respectively.
Barring the BSE Oil & Gas index which gained 0.21 per cent in Wednesday’s trade, rest all other sectoral indices closed in red. The BSE Metal index, BSE Healthcare index, BSE Capital Goods index and BSE Bankex lost 2.62 per cent, 1.72 per cent, 1.67 per cent and 1.36 per cent, respectively.
Dipen Shah, senior vice-president and head of private client group research, Kotak Securities, said, “Markets fell sharply, mirroring the weakness in global markets, and ahead of the F&O expiry on Thursday. With the budget just a few days away, markets will look out for measures to support growth and also for achievable assumptions on the potential sources of revenues. There are concerns regarding potential budget announcements relating to the taxability of long term capital gains on shares.”
Sugar companies Shree Renuka Sugars and Balrampur Chini Mills jumped 5 per cent and 1.65 per cent amid hopes of export parity as global sugar prices soared.
Oil refining stocks Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) gained 4 per cent and 1.50 per cent as companies jointly negotiate oil purchase deals with OPEC producers for the first time, Indian industry and government officials familiar with the talks told Reuters.
NMDC tumbled by more than 14 per cent intraday after the stock went ex-dividend on Wednesday. The stock witnessed heavy selling in the session after the stock went ex-dividend for a dividend of Rs. 9.5 per equity share as approved by the company’s board of directors for the FY2015-16.
Overall market breadth remained negative and advances to declines ratio for Nifty stood at 13:36 for the day.
Asian markets ended mostly lower on Wednesday as hopes for a coordinated production cut by OPEC faded and investors fretted over additional pressure on bank earnings in 2016. Trading sentiment remained sluggish after the major US averages fell over 1 per cent overnight amid a spate of worries ranging from lower oil prices to bad loans in the energy sector. Japanese shares hit a one-week low, with sentiment dampened by a stronger yen, weaker US and European data and the oil price decline after both Iran and Saudi Arabia ruled out a deal by major producers to cut oil output. Chinese shares ended higher on hopes that the upcoming meeting by China’s legislature starting March 5 will result in more stimulus.
3.30 pm: Weak global cues dampened market sentiments in today’s trade. The 30-share index Sensex closed 321.25 points down at 23,088.93, while the 50-share index Nifty settled 90.85 points down at 7,018.70.
2.53 pm: Sensex slid further and was trading 300.17 points down at 23,110.01. Nifty was down 73.40 points at 7,036. BPCL shares were trading 4 per cent up at Rs 766.05.
2.42 pm: European stocks fell for a second straight session on Wednesday, with commodities-related shares coming under further selling pressure as prices of copper and crude oil slipped. BSE Sensex was trading 257.55 points down at 23,152.63. Nifty was down 71.45 points at 7,038.10
2.21 pm: Kridhan Infra shares gained as much as 11 per cent intraday on Wednesday after it informed bourses that the company through its subsidiary, KH Foges Pte, has won orders worth over Rs 247 crore in Singapore for EPC works and foundation engineering. Shares of Kridhan Infra were trading 2.79 per cent up at Rs 92.20. Sensex was down 147 points at 23,265.
Railway Budget 2016: 8 stocks that are in focus
1.52 pm: Sensex was down 211 points at 23,198. Nifty was trading 57.90 points down at 7,051.65.
1.27 pm: IDBI Bank shares gained as much as 3.77 per cent on Wednesday after the bank received Sebi approval to raise capital by issue of equity shares aggregating upto Rs 3,771 crore. Sensex was down 134 points at 23,227.
1.02 pm: Sensex was down 130 points at 23,279. Nifty was trading 30.20 points down at 7,079.35.
12.25 pm: On the global front, Asian markets were trading in red, as oil prices skidded after Saudi Arabia effectively ruled out production cuts by major producers anytime soon, sending investors into safe-havens such as the yen. Punj Lloyd shares were trading over 2 per cent higher after the company has secured an Rs 308 crore infrastructure order in Dubai, United Arab Emirates.
12.16 pm: Shares of domestic sugar companies rose on Thursday tracking overnight gains in futures amid hopes of export boost. At 12.13 pm, shares of Shree Renuka Sugars, Bajaj Hindusthan Sugar , Dhampur Sugar Mills and Balrampur Chini Mills were trading higher by 5 per cent, 3.09 per cent, 5.24 per cent and 3 per cent, respectively. Investors rush to cover bearish bets amid growing concerns that heavy rains and drought from Thailand to Central America will tighten sugar supplies.
12.05 pm: Shares of Punjab National Bank were trading 0.83 per cent down at Rs 72.10. The public sector lender has declared a list of 904 wilful defaulters, including Winsome Diamonds & Jewellery and Zoom Developers that owe close to Rs 11,000 crore to the lender. Sensex was down 186 points at 23,223.
11.48 am: Sensex was down 234 points at 23,175. Uncertainty surrounding Budget announcements on February 29 and the futures and options expiry coming up tomorrow kept investors skittish. Investors are closely watching the Railway Budget as well, which will be presented on Thursday, while the Economic Survey is set to be unveiled on Friday.
11.39 am: Glenmark Pharmaceuticals informed the bourses that it has received the final nod from the US health regulator for generic oral contraceptive norgestimate ethinyl estradiol tablets. Shares of the pharma company were trading 1.70 per cent down at Rs 735.55. Sensex slipped 226.08 points to trade at 23,184.10, while Nifty50 was trading 65.95 points down at 7,043.60.
11.18 am: Stocks of the Railway sector-linked companies were in focus ahead of the rail budget to be presented on Thursday. Stocks of Kalindee Rail Nirman (Engineers), Siemens, Sanghvi Movers and Titagarh Wagons were trading 0.58 per cent, 2.17 per cent, 4.12 per cent and 0.31 per cent down at Rs 136.50, Rs 995.00, Rs 258.00 and Rs 126.65, respectively. Sensex was down 225.91 points at 23,184.27, while NSE Nifty was down 65.20 points at 7,044.35.
11.02 am: Neyveli Lignite shares were trading 3.45 per cent down at Rs 69.95 as the company has been allotted coal mines in Odisha to meet the fuel requirements for the power projects of its subsidiary companies. Sensex was trading 220.51 points down at 23,189.67. Nifty50 was trading 56.10 points down at 7,053.45.
10.35 am: Stocks of the Alstom T&D were trading 1.17 per cent down at Rs 371.00 after US giant GE’s Rs 1,926-crore open offer to acquire 6.4 crore publicly held shares in Alstom T&D India elicited a poor response, with just 43,439 shares getting tendered. Sensex was trading 142.10 points down at 23,268.08, while Nifty50 were trading 44.15 points down at 7,065.40.
10.08 am: Tata Motors shares were trading 1.98 per cent down at Rs 312.15 as around 300 workers at its Sanand plant in Gujarat have gone on flash strike to press for reinstatement of around 20 of their colleagues who have been suspended for serious misconduct. Sensex was trading 167.69 points down at 23,242.49. NSE Nifty was trading 47.75 points down at 7,061.80.
9.45 am: Jet Airways were trading 1.24 per cent up at Rs 556.45. The airline is expanding its operations to Bangkok with the launch of new daily flights from its hubs in Mumbai and Delhi. With the introduction of these new frequencies, Jet Airways becomes the largest Indian airline flying between India and Bangkok. Sensex was down 161 points at 23,247.
9.38 am: The rupee on Wednesday lost 6 paise to 68.64 against the dollar in early trade at the inter-bank foreign exchange market due to appreciation of the US currency overseas.
9.31 am: Market sentiments also affected after industry body the Federation of Indian Chambers of Commerce and Industry (FICCI), has said that the Indian economy is expected to grow at 7.4 per cent in the current fiscal, slightly lower than 7.6 per cent projected in advance estimates of CSO. Sensex was trading 139.57 points down at 23,270.
9.27 am: Maruti Suzuki shares were trading 0.22 per cent up at Rs 3,500.35. The country’s largest car maker Maruti Suzuki India has resumed production at its two manufacturing facilities in Haryana after two days of suspension due to the Jat reservation agitation in the state. The suspension of work at the two plants, located at Gurgaon and Manesar in Haryana, resulted in production loss of around 10,000 units to the company. Sensex was down 150 points at 23,259.
FULL COVERAGE: Union Budget 2016
9.20 am: In the 50-share index, BPCL, Power Grid, HUL, Maruti Suzuki and Bharti Airtel were up between 0.49 per cent and 1.85 per cent. On the other hand, Punjab National Bank, Cairn India, Vedanta, ONGC and Tata Motors were down between 2.10 per cent and 3.66 per cent. NSE Nifty was down 34.40 points, or 0.48 per cent, at 7,075.15.
9.17 am: The 30-share index Sensex was trading 118.30 points down at 23,271.88. The 50-share index Nifty was down 40 points at 7,069.40.
9.15 am: Sensex opened 77.24 points, 0.33 per cent, down at 23,332.94, while Nifty opened 34.55 points, or 0.49 per cent down at 7,075.
8.44 am: The BSE Sensex and NSE Nifty are likely to open on a flat to cautious note on Wednesday tracking Nifty futures on the Singapore Stock Exchange (SGX Nifty) and weak global markets.
At 8.28 am, SGX Nifty was trading 1.78 points up at 2,905.12.
However, market are likely to remain volatile ahead of the Rail Budget, Economic Survey, F&O Expiry and Union Budget 2016.
Most of Asian shares were on the back foot on Wednesday as a nascent recovery in the oil market lost momentum after Saudi Oil Minister Ali Al-Naimi effectively ruled out production cuts by major producers anytime soon.
On Wall Street, S&P 500 index slid 1.25 per cent on Tuesday to 1,921.27, having failed to rise above its peak hit on Feb 1, with energy and material sectors being a major drag as oil prices quickly gave up Monday’s hefty gains. Dow Jones Industrial Average index also plunged 1.14 per cent to 16,431.78.
Back home, ending a four-day rising streak, the 30-share index Sensex on Tuesday shed 379 points amid foreign institutions selling heavily and domestic investors staying on the sidelines on concerns about rising bad debt and lack of clarity on fiscal consolidation road map ahead of the Union Budget 2016.
Shares of ONGC and TVS Motor will remain in focus on Wednesday. Venezuela’s state oil company PDVSA is about to clinch a deal for Oil and Natural Gas Corp (ONGC) to invest some $500 million in their San Cristobal joint venture, the South American company’s president said on Tuesday.
TVS Motor company is expecting 16 per cent market share in the two-wheeler segment next year, helped by robust sales of the newly-launched TVS Victor motorcycle.