Domestic equity markets pared their early gains on Monday on account of selling in blue chip counters taking cues from the Asian markets. The weakness in the rupee also weighed on the market sentiment which slipped to a two-year low of 66.78 as foreign investors continued to liquidate their investment in the equity market.
The BSE Sensex and NSE Nifty closed 308.09 points and 96.25 points lower at 24,893.81 and 7,558.80, respectively.
In the 30-share Sensex pack, Axis Bank, Vedanta and ICICI Bank fell over 3 per cent on Monday. On the other hand, HDFC and Tata Motors gained 0.64 per cent and 0.23 per cent, respectively.
Among the sectoral indices on the Bombay Stock Exchange, the BSE Healthcare index declined the most — 2.57 per cent at 16696.04, it was followed by the BSE Metal index (down 2.31 per cent at 7,116.66) and the BSE Bankex (down 2.1 per cent at 18050.35). Rest all other indices also ended in red.
Gaurav Jain, director, Hem Securities, said, “Weakness continues at the Indian benchmarks on the back of continued selling pressure by the foreign portfolio investors. Rupee hitting two-year lows raised the concerns of the street with Nifty breaking down its psychological level of 7,500. China’s downward revision of its GDP growth further dampened the sentiment.”
China revised down 2014 GDP growth to 7.3 per cent from the previously released figure of 7.4 per cent, the National Bureau of Statistics said on Monday. Satya Prakash Goel, director, Bonanza Portfolio, said, “Data from Chinese economy continued to rattle global investor nerves and the same was reflected in day’s performance of Asian markets.”
Investors have started eyeing the IIP data slated for release on September 11 which would give further direction of the market.
Share price of Elder Pharmaceuticals fell as much as 6 per cent on Monday after the company on Saturday sent a letter to the BSE saying it was facing a severe financial crunch and that its audited results for the year ended June 30 were delayed. The share price of the company closed 5.37 per cent down at Rs 83.65.
Amtek Auto shares plunged over 11 per cent at Rs 29.10 on Monday. Goel of Bonanza Portfolio said, “Amtek Auto slid on market rumors that the company could default on its debt payment that is due next month.”
Asian peers, Shanghai and Hang Seng closed 2.52 per cent and 1.23 per cent down at 3,080.42 and 20,583.52. Nikkei closed 0.38 per cent higher at 17,860.
Markets through the day
3.30 pm: The BSE Sensex closed 308.09 points down at 24,893.81. The benchmark index opened the day at 25302.98 and touched a high and low of 25,387.32 and 24,851.77.
S&P BSE SENSEX
3.20 pm: Rupee was trading 14 paise down at 66.82. Meanwhile, Sensex fell below 25,000 mark for the first time in 15 months.
3.13 pm: Sensex and Nifty were down 312 points and 95.25 points at 24,889 and 7,560, respectively.
2.47 pm: In the 50-share Nifty index, HDFC, Grasim, Cipla, Cairn India and Tech Mahindra were up between 0.51 per cent and 2 per cent. Nifty was down 70.45 points at 7,584. Sensex was down 206 points at 24,996.
2.00 pm: Coal India shares were trading 2.08 per cent down at Rs 339.55 apiece on BSE. According to Ambit, Coal India’s operational performance has improved materially over the last eight months but lacks support from power sector demand. FY16 offtake estimates might be at risk if electricity boards’ financing issues are not resolved and power demand does not pick up in second half of the ongoing financial year. Sensex was down 62.38 points at 25,140.
1.55 pm: All sectors were trading in the red except for select auto stocks and some beaten-down financial stocks on bargain-buying by some investors. IT and pharma stocks saw selling pressure despite weakness in the local currency. Infosys fell 0.66 per cent, HCL Tech was down 2.20 per cent while Sun Pharma was down 0.90 per cent and Lupin fell 1.91 per cent.
1.35 pm: PTC India shares were trading 5.19 per cent higher at Rs 580.70 apiece. The company has inked Memorandum of Understanding (MoU) with South Delhi Municipal Corporation for adoption of part of Bhikaji Cama Place under its ‘Swachh Bharat Abhiyan’. As per the MOU, the company will provide the civic services within the adopted area of Bhikaji Cama Place. Sensex was down 96.94 points at 25,104.
1.09 pm: Sensex was down 51 points at 25,150. Coal India and GAIL were trading 2 per cent lower than their previous close.
12.44 pm: Share price of Dr Reddy’s Laboratories fell over a per cent on Monday on reports that the drug major is recalling over 55,000 bottles of Amlodipine besylate and Atorvastatin calcium tablets, used to treat high blood pressure and cholesterol related diseases, in the US market. The scrip was trading 1.21 per cent lower at Rs 4,007 on BSE.
12.31 pm: Key benchmark indices were trading lower in mid session following all-round selling seen mainly in Healthcare, Metal, Teck, capital goods, IT, power and oils&gas sectors. Sensex and Nifty were down 0.12 per cent and 0.18 per cent at 25,172 and 7,641, respectively.
11.56 am: Sensex was down 60.90 points at 25,141. Market breadth was negative as advances to declines ratio for Nifty was at 15:35. Meanwhile, ICICI Securities in a research note said, “We believe Nifty levels of 7,400-7,500 are good buying opportunity for long term equity play.”
11.28 am: ONGC was trading 0.16 per cent higher at Rs 225.95 on BSE. The company on September 4 informed stock exchanges that its overseas investment arm — ONGC Videsh (OVL) — has acquired a 15 per cent stake in Vankor oil field in East Siberia, Russia’s second-largest oil field from Rosneft for about $1.35 billion. The 15 per cent stake will give OVL about 3.5 million tonnes of oil a year.
11.05 am: Metal shares fell after China revised down 2014 GDP growth to 7.3 per cent from the previously released figure of 7.4 per cent, the National Bureau of Statistics said on Monday. The BSE Metal index was down 0.86 per cent at 7,055. Sensex was down 0.10 per cent at 25,177.
Coal India, NMDC and Hindalco were down between 1 per cent and 2.50 per cent.
10.50 am: Sensex was down 36.27 points at 25,165.
10.34 am: Sensex was up 18.34 points at 25,220 while Nifty was down 13.30 points at 7,641.75. The BSE Healthcare index was down over 1 per cent at 16,918.
9.57 am: The BSE Midcap index and the BSE Smallcap index were down 1.35 per cent and 1 per cent at 10,220 and 10,499, respectively. Benchmark index Sensex was down 137 points at 25,064.
9.52 am: Sensex and Nifty were down 35 points and 11 points at 25,166 and 7,643.
9.21 am: In the 30-share index, Tata Motors and HDFC were trading 2.40 per cent and 1.55 per cent higher at Rs 330.60 and 1159.75, respectively.
Domestic equity markets opened on a positive note on Monday. The BSE Sensex and NSE Nifty opened 101.08 points and 30.08 points higher at 25,302.98 and 7,685.85, respectively.
Brokers said value-buying in recently beaten down select blue-chip stocks along with covering-up of short positions by speculators influenced trading sentiments.
Furthermore, a moderate recovery in Chinese shares on the first day of trade after an extended holiday weekend, influenced trading sentiments, they said.
Shares of realty, power and oil & gas were trading in red in the early trade.
The BSE Sensex and NSE Nifty lost 562.88 points and 167.95 points at 25,201.90 and 7655.05, respectively, on Friday.
(With inputs from agencies)