BSE Sensex ends marginally lower on China stock markets crash; Nifty ends at 8,466; metal stocks slump

A fall of more than 6 per cent in the China market spooked investors sentiment on the domestic bourses on Tuesday as the key benchmark indices BSE Sensex and NSE Nifty closed 46.73 points and 12.45 points lower 27,831.51 and 8,464.85.

Also, market sentiments were dented after ratings agency Moody’s Investors Service revised its forecast for India’s economic growth to around 7 per cent this year from 7.5 per cent because of lower-than-expected rainfalls in the monsoon season further dents market mood. The weather department had said on Monday that India’s monsoon deficit has widened to 10 per cent as a strengthening El Nino weather pattern trimmed rainfall, raising fears of the first drought in six years.

Asian shares fell to a two-year low on worries that cooling demand in China will weigh on the trade-reliant region. The Shanghai Composite Index closed down 6.1 per cent at 3,749.12 in its biggest daily decline since July 27, snapping a three-day winning streak. Hang Seng and Nikkei also corrected 1.43 per cent and 0.32 per cent, respectively.

Gaurav Jain, director, Hem Securities, said, “Markets shed all the early gains in line with the fall in its global partners. Investors sentiment was affected by the sharp fall in the Chinese market. Continued fall in commodity prices also weighed on the sentiment.”

Alex Mathews, head research, Geojit BNP Paribas Financial Services, said, “Domestic indices slipped after a positive opening on the back fall in the Chinese markets and on the news of Moody’s reducing the country’s GDP forecast.”

Among the sectoral indices on the Bombay Stock Exchange (BSE), the BSE Metal index and BSE Realty index closed 1.92 per cent and 0.32 per cent lower at 7,756.17 and 1,406.31, respectively.

In the 30-share Sensex pack, share price of GAIL, Coal India and Cipla slid 4.43 per cent, 4.20 per cent and 2.87 per cent to Rs 330.20, Rs 364.05 and Rs 683.65, respectively. On the other hand, Tata Steel and Maruti Suzuki gained 2.07 per cent and 2.03 per cent to Rs 251.65 and Rs 4634.55, respectively.

Among day’s earnings announcements, Manappuram Finance surged intraday by more than 7 per cent after the company announced a 34.3 per cent growth year on year in its consolidated net profit. The company reported a consolidated net profit of Rs 59.30 crore in Q1 against Rs 44.15 crore in the same quarter last year.

Shares of Eros International too were in the limelight on Tuesday after the market reports that its parent company – Eros International PLC is planning to list its stock on Indian bourses via Indian Depository Receipts. The stock jumped 7.18 per cent to Rs 570.60.

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Markets through the day

2.45 pm: BSE Sensex was up over 20 points at 27,898.

2.38 pm: Shares of GAIL and Coal India were trading 4 per cent and 3.92 per cent lower at Rs 331.60 and Rs 365.10, respectively. Sensex was flat at 27,879.

2.01 pm: The Shanghai Composite Index closed down 6.1 per cent at 3,749.12 in its biggest daily decline since July 27, snapping a three-day winning streak. Meanwhile, ratings agency Moody’s Investors Service cut its forecast for India’s economic growth to around 7 percent this year from 7.5 percent because of lower-than-expected rainfalls in the monsoon season.

“People are not keeping positions at higher levels because of monsoon uncertainty, they are booking profits,” said Alex Mathews, head of research at Geojit BNP Paribas. The BSE Sensex was trading 0.16 per cent lower at 27,833.

1.54 pm: Realty stocks declined. HDIL (down 4.20 per cent), Prestige Estates (down 2.80 per cent), DLF (down 1.55 per cent), The Phoenix Mills (down 1.92 per cent) and Unitech (down 1.14 per cent) edged lower.

1.03 pm: Shares in China and Hong Kong fell on Tuesday as the yuan eased against the dollar, reigniting fears that Beijing may be intent on a deeper devaluation of the currency despite the central bank’s comments that it sees no reason for a further slide. The BSE Sensex was down 60 points, or 0.22 per cent, at 27,817.

12.19 pm: The BSE Sensex was trading 100 points down at 27,778. Among the sectoral indices on the Bombay Stock Exchange, the BSE Metal and BSE Realty index declined over 1.5 per cent in the afternoon trade. The Shanghai Composite index was down 6.22 per cent at the same time.

11.49 am: The BSE IT index was trading 1.86 per cent higher on positive economic data in US, the biggest outsourcing market for the Indian IT firms. The BSE Sensex was up 0.19 per cent at 27,932.

11.07 am: Brokers said sustained buying by funds and retailers amid a firming trend at other Asian markets helped boost the market sentiments. The market sentiments were also lifted by overnight gains on Wall Street that was driven by strong US housing data, indicating that the world’s top. The BSE Sensex and NSE Nifty were up 92.30 points and 28 points at 27,970 and 8,505, respectively

10.22 am: Sensex was up 0.54 per cent at 28,029.

9.36 am: The BSE Midcap index gained 65.88 points or 0.57 per cent at 11,554. The BSE Smallcap index was up 98.42 points or 0.83 per cent at 11,890. The BSE Sensex was up 131 points at 28,009.

Meanwhile, investors continue to watch the progress of the monsoon rains which will have a bearing on food prices and rural income. India’s weather office, the India Meteorological Department (IMD), said in a daily report issued on Monday (August 17), that for the country as a whole, cumulative rainfall during this year’s monsoon season was 10 per cent below the Long Period Average (LPA) until August 17.

9.23 am: The BSE Sensex and NSE Nifty were up 145.50 points and 39.70 points at 28,024 and 8,517.

The BSE Sensex and NSE Nifty opened 70.86 points and 28.55 points higher at 27,949.13 and 8,505.85, respectively, on Tuesday.

Shares of metal, realty, auto and information technology were trading in the positive zone in the early trade.

Continued depreciation of rupee weighed on the investors sentiment on Monday. As a result, the BSE Sensex and NSE Nifty slid 0.67 per cent and 0.48 per cent at 27,878.27 and 8,477.30, respectively.

(With inputs from Reuters)