Domestic benchmark indices BSE Sensex and NSE Nifty swung between gains and losses on Tuesday and ended the trade on a flat note as Brexit worries continued to affect global markets. Investors also remained cautious ahead of US Fed meet.
Sensex closed 1.06 points down at 26,395.71, while Nifty 50 index settled 1.75 points down at 8,108.85.
In the 50-share index, State Bank of India surged the most — 3.17 per cent, followed by Cipla (3.05 per cent), Adani Ports (up 2.76 per cent), Bank of Baroda (up 1.71 per cent) and Eicher Motors (up 1.64 per cent). On the other hand, UltraTech Cements, ZEEL, BPCL, Ambuja Cements and HUL plunged 2.32 per cent, 1.85 per cent, 1.70 per cent, 1.45 per cent and 1.22 per cent, respectively.
Shares of PSU banks soared after the RBI came out with a scheme for resolution of bad loans of large projects wherein a portion of the debt will be converted into equity or other instruments. The Nifty PSU Bank index gained 3.16 per cent to 2557.05.
Sectorwise, the BSE Oil & Gas index, IT index and TECK index gained 0.52 per cent, 0.42 per cent and 0.37 per cent, respectively. The BSE Realty and Healthcare index gained 0.84 per cent and 0.51 per cent, respectively.
However, broader indices outperformed benchmarks and garnered gain of around half a percent. Indian equity benchmarks, soon after making a positive start, entered into red terrain in morning deals concerned with India’s Consumer Price Index (CPI)-based inflation for the month of May 2016 rising to 5.76%, the highest in 19 months, and the most since the new series of retail inflation with base year of 2012 was introduced from January 2015. Sentiments also remained dampened after India’s Wholesale Price Index (WPI) in the month of May 2016 increased to 0.79 percent compared to 0.34 percent in the previous month and -2.20 percent during the corresponding month of the previous year.
Meanwhile, targeting April 2017 for the rollout of Goods and Services Tax with the support from smaller regional parties, Minister of State for Finance Jayant Sinha has said that “If we can pass it in the monsoon session of Parliament beginning next month, then we can implement it from April 1, 2017.”
Asian equity markets ended mostly lower on Tuesday, as falling oil prices on worries about global growth and renewed strength in the yen added to the impending uncertainty over the outcome of the UK’s EU referendum. Japanese shares hit nine-week lows as falling government bond yields and a strengthening yen kept financials and exporters under pressure. Hong Kong shares fell on Tuesday, with market sentiment curbed by worries about China’s economy and uncertainty around this week’s Federal Reserve meeting and next week’s British referendum on whether to leave the European Union. However, Chinese shares eked out modest gains ahead of MSCI’s decision on whether to add Chinese A-shares to its Emerging Markets Index.
3.21 pm: European shares fell for a fifth straight session to a new three-month low, led down by commodities stocks, with investors becoming jittery before the US Federal Reserve’s policy meeting and next week’s EU referendum in Britain.
3.15 pm: Meanwhile, A2Z Infra Engineering shares hit their fresh 52-week high of Rs 34.70. Of late, the company won a $13.56 million (around Rs 90 crore) contract from Nepal government for expansion of electricity distribution network.
3.06 pm: Sensex again turned flat in the late afternoon trade and recovered over 100 points from day’s low. The index was trading 12.19 points down at 26,384.58. Nifty was down 0.90 points at 8,109.
2.29 pm: Sensex was down 64 points at 26,332. Snowman Logistics shares were trading 7.21 per cent down at Rs 73.40.
2.13 pm: Sensex was trading 113.21 points down at 26283.56, while Nifty was down 35.55 points at 8,075. Logistics shares were under pressure in the afternoon trade. VRL Logistics and Allcargo Logistics were down nearly 3 per cent and 7 per cent, respectively.
2.03 pm: KPIT Technologies share price plunged as much as 8 per cent on Tuesday after the company on Monday (post market hours) informed bourses that Copart Inc, a former US client, has filed a case against KPIT’s 100 per cent subsidiary Sparta Consultancy Inc and seeking damages amounting to not less than $50 million. Sensex was down 84 points at 26,312. Nifty was down 27.35 points at 8,083.25.
1.15 pm: Shares of PSU banks today gained up to 5 per cent after the RBI came out with a scheme for resolution of bad loans of large projects wherein a portion of the debt will be converted into equity or other instruments. Read more
12.30 pm: Meanwhile, Wholesale Price Index (WPI) in the month of May 2016 has increased to 0.79 per cent compared to 0.34 per cent in the previous month and -2.20 per cent during the corresponding month of the previous year. Meanwhile, March WPI inflation has been revised to -0.45 per cent from -0.85 percent.
12.17 pm: Sensex continued to trade flat in the noon trade. The index was down 22 points at 26,374. Growing worries of forthcoming referendum in Britain which could see it exit European Union and latest domestic retail inflation accelerating to 5.76 per cent in May loomed over the sentiment.
11.42 am: Stocks of infrastructure firm IVRCL jumped over 9 per cent in the morning trade after the company said it has allotted 6.46 lakh shares to Bank of Nova Scotia as part of a Strategic Debt Restructuring (SDR).
11.41 am: SKS Microfinance on Monday said the name of the company has been changed to Bharat Financial Inclusion Ltd. Shares of the company were trading 0.46 per cent up at Rs 671.50.
11.19 am: The 30-share index was trading 27.70 points down at 26,369. Losses remained capped with Minister of State for Finance Jayant Sinha’s statement that the government has enough backing from smaller regional parties to pass the Bill in Rajya Sabha without support from the main opposition Congress party and if we can pass it in the monsoon session of Parliament, then we can implement it in April 1, 2017.
10.46 am: Deepak Fertilisers shares surged as much as 7.78 per cent in the early trade on Tuesday after the company said Ministry of Chemicals and Fertilizers has agreed to release about Rs 485 crore outstanding subsidy payment to the company. Sensex was down 16.63 points at 26,380.
10.04 am: The rupee depreciated 4 paise to quote at a fresh one-week low of 67.18 against the US dollar in early trade on Tuesday on sustained demand for the American currency from importers and bankers.
9.24 am: Sensex was up 18.25 points at 26415. Nifty was up 5.70 points at 8,116.30. In the 50-share index, Bosch, Wipro, Mahindra & Mahindra, Kotak Mahindra Bank and Zee Entertainment were down between 0.26 per cent and 0.44 per cent. On the other hand, Bank of Baroda, Hindalco, Dr Reddy’s Labs, State Bank of India and Maruti Suzuki were down between 0.33 per cent and 0.85 per cent.
9.15 am: The BSE Sensex opened 85.73 points, or 0.32 per cent up at 26482.50, while NSE Nifty opened 23.80 points, or 0.29 per cent up at 8,134.40.
The BSE Sensex and NSE Nifty are likely to open lower on Tuesday tracking SGX Nifty and weak global cues.
At 7.48 am (IST), SGX Nifty was down 13.50 points, or 0.17 per cent, at 8,115.
Asian stocks slipped on Tuesday amid growing worries this month’s referendum in Britain could see it exit the European Union, while markets were also nervous ahead of the US Federal Reserve’s two-day meeting that begins later in the day.
The Bank of England, Swiss National Bank and the Bank of Japan will also meet this week, and are similarly expected to stand pat on policy with the Brexit vote looming.
Wall Street stumbled for a third straight session on Monday as tech stalwarts Microsoft and Apple dragged on indexes and investors braced for major economic and political events in the United States and Europe.
The Dow Jones industrial average closed down 132.86 points, or 0.74 per cent, to 17,732.48, the S&P 500 lost 17.01 points, or 0.81 per cent, to 2,079.06 and the Nasdaq Composite dropped 46.11 points, or 0.94 per cent, to 4,848.44.
BSE Sensex on Monday slipped for a third straight session to hit an over two-week low as investors cut down exposure after India’s factory output fell in April amid continued global sell-off on growing anxiety over the future of Britain in the European Union. Sensex stayed in the negative zone through out the day and touched a low of 26,262.27 before winding up 238.98 points or 0.90 per cent down at 26,396.77, its weakest closing since May 26. The index had fallen by 384.91 points in the previous two sessions.
Retail inflation rose to nearly two-year high of 5.76 per cent in May mainly due to rising prices of food items, including vegetables, and may hold back
the RBI from reducing rates in the near term.