Domestic equity markets closed in red on Tuesday following weak global cues coupled with some profit booking. The BSE Sensex closed 57.58 points down at 26,846. NSE Nifty closed 11.90 points down at 8,131.70.
In the 50-share index, UltraTech Cements, Bajaj Auto, Coal India, BPCL and YES Bank gained between 1.35 per cent and 1.95 per cent. On the other hand, Idea Cellular, ONGC, Hindalco, Vedanta and HCL Technologies slid between 2.80 per cent and 3.85 per cent.
Vinod Nair, head, fundamental research, Geojit BNP Paribas Financial Services, said, “The market was in a profit booking mode led by metals and IT sector.”
Software stocks remained under pressure after Infosys trimmed its US dollar revenue growth guidance, clouding the outlook for the sector. The BSE IT index slid more than 1 per cent at 11,164.50.
Infosys, India’s second-largest software services exporter by revenue, on Monday cut its fiscal year 2016 revenue forecast, saying broad weakness in IT spending and a stronger dollar were making clients wary.
Oil explorers such as Oil and Natural Gas Corp also fell after US and Brent crude tumbled in the previous session to post their biggest daily percentage declines since the start of September. The share price of ONGC declined 3.49 per cent to Rs 254.25.
“Large-cap results would remain weak relative to mid-caps due to global slowdown,” said G Chokkalingam, founder of Equinomics, a Mumbai-based research and fund advisory firm.
Some profit-taking is also seen amid lack of clear triggers apart from the earnings season, he added.
Share price of DB Realty soared over 11 per cent to Rs 69.95 on BSE after the company informed stock exchanges that its subsidiary is proposing to enter in a joint venture agreement with Vishwaroop Estates for development of a project in Bandra, Mumbai. The revenue from the project on completion is expected to be in the region of Rs 3,500 crore. Sensex was down 50 points at 26,854.
In the earnings front, Hindustan Unilever, Hinduja Ventures and Zee Entertainment may announce their earnings on Wednesday.
Hang Seng and Nikkei closed 0.57 per cent and 1.11 per cent down at 22,600 and 18,235.
Markets through the day
3.30 pm: The BSE Sensex closed 57.58 points down at 26,846. NSE Nifty closed 11.90 points down at 8,131.70.
3.07 pm: Shares of DB Realty surged over 15 per cent after the company informed BSE that MIG (Bandra) Realtors & Builders, a subsidiary of DB Realty, is proposing to enter into a joint venture agreement with Vishwaroop Estates and Developers (Radius Group, a Sanjay Chhabria Venture) for the development of MIG CHSL Group I, Gandhi Nagar, Bandra (E), admeasuring approximately 20,149 sq mts, whereunder, both parties would make investments to meet certain agreed cost lines and share the free sale area in an agreed ratio, The project will be co-branded. The total BUA of the project is expected to be over 2.4 million sq ft. The revenue from the project on completion is expected to be in the region of Rs 3,500 crore. Sensex was down 50 points at 26,854.
2.39 pm: Shares of aviation companies gained after a sharp decline in global crude oil prices on Monday (October 12). SpiceJet and Jet Airways (India) advanced 19.97 per cent and 7.33 per cent. Lower crude oil prices benefit aviation companies as jet fuel prices, which constitute about 50 per cent of airlines’ operating costs, are directly linked to international crude oil prices. Sensex was down 170 points at 26,734. Nifty was down 46.50 points at 8,091.10.
2.30 pm: YES Bank shares jumped over 1.5 per cent intraday on Tuesday as it has become the first Indian bank to be selected as an index component of the Dow Jones Sustainability Indices (DJSI) in the Emerging Market Index. The Index comprises of 92 companies from 14 emerging economies including China, Brazil, South Africa and Taiwan. 116 banks from emerging economies were invited to participate, of which the Bank is the only Indian Bank to have been included. The selection is effective from September 21, 2015 and valid for one year. The BSE Bankex was down 0.34 per cent at 20,005.64.
2.22 pm: Shares of Pfizer Ltd dipped as much as 1.79 per cent on Tuesday after the drug major informed BSE that its managing director Aijaz Tobaccowalla has resigned from the post. Tobaccowalla’s resignation would be effective from October
2.16 pm: Shares of Reliance Capital surged 6 per cent on Tuesday after Japan’s Nippon Life acquired 14 per cent additional stake in fund house Reliance Capital Asset Management Company for Rs 1,196 crore, hiking its stake to 49 per cent. Sensex was down 134 points at 26,770. Nifty was down 39 points at 8,104.50.
2.11 pm: Meanwhile, Gulf Oil Corporation announced that the change in name of the Company from GULF OIL CORPORATION to GOCL CORPORATION has been approved by the Registrar of Companies, Hyderabad vide the fresh Certificate of Incorporation pursuant to change of name, dated 12 October 2015. The share price of Gulf Oil Corporation was down 0.80 per cent at Rs 148.30.
1.48 pm: Sensex slipped 175.55 points at 26,728.56. Nifty was down 49.40 points at 8,094.20. European shares opened slightly lower on Tuesday, following losses in Asia overnight, although SABMiller soared after accepting a 68 billion-pounds ($104.48 billion) takeover proposal from rival Anheuser-Busch. The pan-European FTSEurofirst 300 index was down 0.8 per cent while the euro zone’s blue-chip Euro STOXX 50 dropped 1 per cent.
1.23 pm: Sensex was down 109 points at 26,794. The BSE Midcap index was down 0.22 per cent while BSE Small index was up 0.24 per cent. Nifty was down 30.55 points at 8,113. The share price of ITC and Bajaj Auto were up 1.26 per cent and 1.19 per cent at Rs 345.20 and Rs 2,454.30, respectively.
1.02 pm: Infosys shares were down 2.43 per cent at Rs 1,095.20 apiece. Infosys’ sharp fall in stock price after marking a record high on Monday has seen mixed reaction from brokers so far. The IT major announced its Q2 results on Monday.
Morgan Stanley: maintains “overweight” on Infosys with a target of Rs 1,300 per share.
UBS: maintains “sell” citing valuations. Broadly sees Q2 FY16 as the peak for fundamentals in the medium term. Says a weak Q4 FY16 could impact consensus revenue forecasts for FY17
Jefferies: says given strong deal win momentum and low ask rate, Infosys should still end FY16 at the top end of its guidance
12.33 pm: Meanwhile, a drug firm Suven Life Sciences informed BSE that it has been granted patent by Australia, China, Europe, South Korea and the US for a drug used in the treatment of neuro-degenerative diseases. Shares of Suven Life Sciences were trading 4.43 per cent up at Rs 291.25 in the afternoon trade.
12.12 pm: Among the sectoral indices on the Bombay Stock Exchange, the BSE IT index was down 1.31 per cent at 11,133.29. The BSE Metal and BSE Oil & Gas index were down 0.50 per cent and 0.41 per cent at 7,504.47 and 9,044.27.
12.07 pm: Sensex was down 69 points at 26,835. Inox Wind shares were trading 1.42 per cent up at Rs 378.60 apiece. Inox Wind on Monday informed BSE that it has bagged an order for a 50 MW wind power project at Lahori, in the state of Madhya Pradesh from Tata Power Renewable Energy (TPREL). The order is TPREL’s third project with the company after two previous orders of 172 MW. TPREL is a 100 per cent subsidiary of Tata Power and has – 300 MW of commissioned renewable assets. Tata Power, including TPREL’s capacities, has a commissioned capacity of 600+ MW of Wind and Solar assets.
12.02 pm: Meanwhile, in the biggest ever FDI in Indian mutual fund industry, Japanese giant Nippon Life on Tuesday acquired 14 per cent additional stake in leading fund house Reliance Capital Asset Management Company for Rs 1,196 crore, hiking its stake to 49 per cent.
11.35 am: Shilpi Cable Technologies announced that a meeting of the board of directors of the company will be held on Tuesday (October 13), to consider and approve the preferential allotment of 1.5 crore convertible warrants to Shilpi Cables, a promoter group company at an exercise price of Rs 60 each. The share price of Shilpi Cable was 1.33 per cent at Rs 68.70. Sensex was down 87 points at 26,816. Nifty was down 27 points at 8,114.
10.59 am: Share price of Lanco Infratech gained as much as 6.40 per cent in the early trade on Tuesday after the company informed BSE that it has pre-closed its outstanding term loan with Yes Bank to the extent of Rs 205.42 crore by obtaining lower interest rate term loan from another bank. The Term loan was taken for a couple of Solar Power Projects, which are operating well and the cash flow from the Solar Power projects, are healthy. Other Term loans of Rs 61.04 crore from Yes Bank for other Solar Power Projects are continuing. Sensex was down 88 points at 26,815.
10.36 am: Sensex was down 63.72 points at 26,840.39. Nifty was down 17.80 at 8,125.80. S&P Teck stocks traded 0.91 per cent down. The Indian rupee declined by 17 paise to 64.92 against the US dollar in early trade today on increased demand for the US currency from importers, adding to the market gloom.
10.14 am: The benchmark BSE Sensex was down over 75 points in early trade on profit booking by investors in recent gainers despite positive macroeconomic data. Brokers said sentiment turned weak despite industrial production grew at a nearly three-year high of 6.4 per cent in August on account of improvement in manufacturing as well as mining activity and better offtake of capital goods. Nifty was down 19 points at 8,123.
9.45 am: Sensex slipped further 99.62 points at 26,804.49. Nifty was down 25.95 points at 8,117.65.
9.24 am: Sensex was down 25.95 points at 26,878.16. Nifty was down 3.10 points at 8,140.50. Cox & Kings shares were trading 2.67 per cent up at Rs 253.65 apiece. The Cox & Kings Group has acquired 100 per cent of the issued and outstanding shares of Late Rooms (UK) (Late Rooms) for GBP 8.5 million. The acquisition fits the group’s strategic intent to expand its global online and B2C leisure proposition.
Domestic equity markets opened flat with negative bias tracking mixed global cues. Sensex opened 29.82 points down at 26,874. Nifty opened 21.65 points down 8,121.95.
Hindalco,Vedanta and Infosys were down over 2 per cent in the early trade.
Retail inflation also rose to 4.41 per cent in September due to costlier food items in general and beverages and pulses in particular. The Consumer Price Index (CPI) based inflation in August stood at 3.74 per cent on cheaper vegetables, fruits and protein rich items, government data showed on Monday.
Sensex and Nifty slid 0.65 per cent and 0.56 per cent at 26,904.11 and 8,143.60 on Monday. Foreign portfolio investors (FPIs) bought shares worth a net Rs 317.56 crore on Monday, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 175.07 crore, as per provisional data.
IT major TCS will announce its second quarter earnings on Tuesday.
(With inputs from agencies)