The BSE Sensex and NSE Nifty gained on Wednesday as investors selectively picked up stocks that were hit hard in the previous session when indexes fell more than 2 per cent. Sensex closed 171.15 points up at 25822.99 while Nifty gained 33.95 points at 7845.95 ahead of the September derivatives expiry slated for Thursday.
Shares that hit hard on Tuesday stood among the leading gainers on Wednesday. ICICI Bank rose 1.64 per cent after slumping 3.1 per cent on Tuesday, while HDFC Bank gained 2.65 per cent after falling 2.1 per cent in the previous session. Cigarette maker ITC rose 1.71 per cent after falling 3.1 per cent over the previous three sessions.
Among the BSE Sectoral indices, the BSE Consumer Durables index gained the most — 1.70 per cent at 10295.25, followed by BSE Bankex up 1.16 per cent and BSE Realty index up 1.06 per cent. On the other hand, the BSE Power index declined 0.31 per cent and 0.03 per cent at 1,808.72 and 6,113.46.
Sentiment got a boost after Economic Affairs Secretary Shaktikanta Das said the Reserve Bank will soon come out with a draft paper on relaxing external commercial borrowing (ECB) norms to attract overseas investments.
Optimism in Europe and a gain in commodities spurred a rebound in the region after stocks saw their worst decline in a month, which too influenced the market sentiments.
Gaurav Jain, director, Hem Securities, said, “Indian benchmarks opened the day on a weak note in line with Asian markets due to weak China macro numbers. However, indices took a U-turn with firm opening of European markets. Volatility ruled on account of penultimate day of September derivative contracts expiry.”
Shreyash Devalkar, fund manager, equities, BNP Paribas Mutual Fund, said, “Europe opened on a benign note, and that coupled with expectations of a rate cut by the RBI next week, helped domestic markets erase all of its day’s losses to finally close in the green.”
In the 50-share index, Cairn India, Vedanta, Lupin, Kotak Mahindra Bank and BPCL gained between 2.50 per cent and 5.05 per cent. NMDC, Bosch, Power Grid, Tata Motors and Idea Cellular slid between 1.70 per cent and 4.05 per cent.
The overall market breadth for the day remained positive as the advances-to-decline ratio for the Nifty remained 30:20.
Asian peers, Hang Seng and Shanghai closed 2.26 per cent and 2.19 per cent down at 21,302.91 and 3,115.89.
Markets through the day
3.30 pm: Sensex closed 171.15 points up at 25,822.99 while Nifty advanced 33.95 points at 7,845.95.
S&P BSE Sensex
2.34 pm: Among the sectoral indices on the BSE, the BSE Realty index and BSE Bankex were up 1.25 per cent and 1.60 per cent at 13,22.92 and 19,814, respectively. Sensex was up 250 points at 25,902.
2.29 pm: Sensex was up 218 points at 25,870. Nifty was up 52 points at 7,864. Vedanta, Mahindra and Mahindra and Lupin were up over 2 per cent. On the other hand, Tata Motors and Wipro were trading 1.41 per cent and 1.12 per cent down at Rs 311.20 and Rs 588, respectively.
2.07 pm: Share price of Larsen & Toubro (L&T) was trading 1 per cent higher at Rs 1,499.05. The company is looking to sell some assets including roads and infrastructure projects and dilute its stake in non-core subsidiaries to revive performance, the group’s executive chairman said on Wednesday.
1.56 pm: Meanwhile, the government’s chief economic adviser said on Wednesday that India does not need further fiscal stimulus to revive the economy, despite GDP growth seen at the lower end of an 8.1 per cent to 8.5 percent target in the current financial year. Sensex was up 162 point at 25,813.
“I don’t think extra stimulus at this stage is necessary,” Arvind Subramanian told Reuters in an interview, adding that the government “will and must” meet a fiscal deficit target of 3.9 per cent of GDP in the current fiscal year.
1.25 pm: Shares of Dishman Pharmaceuticals surged as much as 15 per cent on Wednesday after the company informed BSE that it has received a license agreement from Janssen Pharmaceutica NV, one of the Janssen Pharmaceutical Companies of Johnson & Johnson (Janssen) to produce the Active Pharmaceutical Ingredient (API) of SIRTURO (bedaquiline), a medicine used in the treatment of Multi-Drug Resistant Tuberculosis (MDR-TB). The scrip was trading 13.33 per cent higher at Rs 299.30 in the afternoon trade. The BSE Healthcare index was up 0.07 per cent at 17,377.30. Sensex was up 77 points at 25,729.
1.21 pm: Sensex was up 97 points at 25,749. According to experts, market is likely to remain volatile as traders will roll over positions in the Futures & Options (F&O) segment from the near month ie September 2015 series to next month ie October 2015 series.
12.36 pm: Sensex wipes off initial losses, up 98.34 points at 25,750.18. Nifty up 16.55 points at 7,828.55. Bharat Heavy Electricals (BHEL) shares were trading 1.12 per cent down at Rs 199.40 after Crisil on Monday revised downwards the rating outlook on the long-term bank facilities of Bharat Heavy Electricals (BHEL) to ‘negative’ from ‘stable’.
11.50 am: The Sensex turned flat in the late morning trade. The index was up 1.77 points at 25653. Nifty was down 15 points at 7,797. The BSE Bankex was up 0.48 per cent at 19,502.
11.36 am: Small stocks were trading in green. The BSE Small index was up 0.04 per cent at 10,807.51. Sensex was down 41.38 points at 25,610. Shares of Mercator were trading over 10 per cent up in the late morning trade.
11.09 am: Sensex down 100.33 points at 25,551.51. Nifty was trading 40.75 points down at 7,771.25 during the same time. BSE Realty was up 0.71 per cent.
11.04 am: Metal stocks continued to be under selling pressure as China continues to remain a concern for the commodity markets. The BSE sectoral index for metals was down 0.52 per cent and shares of JSW Steel fell by nearly 4 per cent. The government recently announced imposition of special safeguard duty on Steel as imports of the metal surged due to falling steel prices in China. Investment banking arm of HSBC said in a note to investors published during last week that Steel imports in India have increased 57 per cent in 1QFY16, compared to a tepid 7 per cent growth in consumption.”Chinese steel prices have come off 40 per cent over the last one year, which has imparted further pressure to Indian steel prices. In 1QFY16, combined EBITDA of Indian steel companies was down 56 per cent. Indian steel prices are now trading at $40 per tonne premium to Chinese landed prices, and should the safeguard duty get imposed, it will increase realisations and profitability of Indian steel mills,” the note said. Sensex was down 61 points at 25,568. Nifty was down 28.65 points at 7,783.
10.29 am: Sensex was down 94 points at 25,558.21. Brokers said besides persistent capital outflows by
foreign funds, a weak trend in Asia following an overnight heavy sell-off at US markets and a plunge in Chinese factory activity stoked fresh fears about the health of the world’s second-largest economy and the global outlook, which soured mood here. Caution ahead of Thursday’s September expiry in the derivatives segment also weighed. Nifty was down 39.30 points at 7,772.
10.15 am: Continuing its slide for the third straight day, the rupee depreciated by another 19 paise to
trade at 66.07 against the dollar in early trade on Wednesday on foreign funds outflows amid a lower opening in the domestic equity market.
9.45 am: Visa Steel shares surged as much as 20 per cent in the early trade on Wednesday after lenders of Visa Steel decided to convert a large portion of their loans into equity using the Reserve Bank of India’s (RBI) strategic debt restructuring (SDR) scheme. Visa Steel shares were trading 15 per cent up at Rs 16.60 apiece. Sensex was down 113 points at 25,538.
9.38 am: Metal stocks declined in the early trade on Wednesday after a survey has found that China’s manufacturing slump has deepened as activity in the vital sector has fallen to its lowest level in 6 – 1/2 years. The Caixin preliminary survey of factory purchasing managers released Wednesday fell in September to 47.0, its lowest level in 78 months. The BSE Metal index plunged 1.41 per cent at 6,878.08.
9.30 am: In the 50-share index, BPCL, Cairn India, Power Grid, TCS and Hero MotoCorp gained between 0.35 per cent and 0.80 per cent. On the other hand, Bosch, NMDC, Tata Steel, Tata Motors and HCL Technologies declined between 1.70 per cent and 3.60 per cent. CNX Nifty was down 60.60 points, or 0.78 per cent, at 7,751.40. The BSE benchmark index Sensex was down 161.51 points, or 0.63 per cent, at 25,487.02.
9.17 am: Sensex was down 223 points at 25,429. Nifty was down 84.75 points at 7727.25. Continuing to fall for the third straight day, shares of auto component maker Motherson Sumi Systems declined naerly 4 per cent amid concerns related to Volkswagen, which is facing a fine of up to $18 billion in
the US for using device to falsify emissions data. The scrip was trading 3.80 per cent down at Rs 232.70 in the early trade.
Domestic equity markets opened in red on Wednesday following weak global cues. Sensex opened 125.31 points down at 25526.53.
SKS Microfinance informed BSE before market hours that it has decided to reduce the interest rate charged to its borrowers from 22 per cent to 20.75 per cent on income generating loans to be extended wef October 1, 2015. SKS Microfinance shares were trading 0.56 per cent down at Rs 390.20 in the opening trade.
Foreign portfolio investors (FPIs) net sold shares worth Rs 1,052.24 crore on Tuesday, data from stock
Stock markets tumbled over 2 per cent on Tuesday. Jayant Manglik, president, retail distribution, Religare Securities, said, “Sentiments were under pressure on Tuesday after Asian Development Bank (ADB) stated that weaker growth in China this year is expected to cause a slowdown in the rest of Asia. Selling pressure intensified further with decline in the European and US markets in the second half, which triggered steep decline across the board.”
(With inputs from agencies)