The BSE Sensex and NSE Nifty fell on Tuesday as caution ahead of the US Federal Reserve interest rate decision continued to weigh on market sentiment. Sensex closed 150.77 points down at 25,705.93 as investors preferred profit-taking despite positive CPI data released after market hours on Monday. Nifty also closed 43.15 points down at 7829.10.
Consumer price inflation eased to 3.66 per cent in August from a revised 3.69 per cent a month ago.
Gaurav Jain, director, Hem Securities, said, “Markets opened on a flat note but selling intensified in the second half of the trading session on the back of weak global cues. Status quo policy of Bank of Japan and fears of a rate hike by the US Fed spooked the sentiments across the globe.”
Among the sectoral indices on the Bombay Stock Exchange (BSE), the BSE FMCG index gained 0.80 per cent at 7613.58. On the other hand, the BSE Metal and Capital Goods index declined 2.34 per cent and 2.11 per cent at 7219.43 and 15,668.99, respectively.
Selling activity was witnessed in banking sector stocks after the deputy governor of the Reserve Bank of India R Gandhi told a group of bankers and asset reconstruction companies (ARCs) at an event that the rate of growth of bad loans of Indian banks in 2011-15 was higher than credit expansion. The BSE Bankex slid 0.97 per cent at 19,163.76.
Gross bad debt of 41 listed banks have jumped to Rs 3.3 lakh crore in June compared to Rs 91,178 crore on March 2011. In the scrip specific development, Bharat Forge was trading in red after foreign brokerage firm lowered its target price on the stock, citing concerns over non-auto export growth.
In the 50-share Nifty index, Tech Mahindra, Hindustan Unilever, Sun Pharma, ITC and Cairn India gained between 1 per cent and 3 per cent. Tata Steel, Vedanta, Tata Motors, L&T and Ambuja Cements slid between 2.50 per cent and 5.50 per cent.
Vinod Nair, head, fundamental research, Geojit BNP Paribas Financial Services, said, “CPI is tad higher than expected and the market is concerned about the upcoming Fed decision and the slowdown in the Chinese economy. As a result, cyclical and rate sensitive stocks are under pressure.”
Asian peers, Shanghai and Hang Seng closed 3.52 per cent and 0.49 per cent down at 3,005.17 and 21,455. Nikkei gained 0.34 per cent at 18,026.
Chinese shares fell for a fourth straight session on Tuesday on concern over a slowing economy, weighing on emerging market stocks overall, with some currencies under pressure before a Federal Reserve meeting on interest rates.
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Markets through the day
3.30 pm: Sensex closed 150.77 points down at 25,705.93. Nifty also closed 43.15 points down at 7829.10.
S&P BSE Sensex
3.14 pm: Share price of Bharat Forge declined over 5 per cent on Tuesday after Bank of America Merrill Lynch cuts its target price on the stock to Rs 900 from Rs 1,080 and maintained “underperform” rating. Sensex was down 150.83 points at 25,705.
2.15 pm: The broader market also came under pressure, with nervousness ahead of the US Federal Reserve’s policy meeting on interest rates this week. Sensex was down 164.25 points at 25,692.
2.12 pm: Meanwhile, European shares extended the previous session’s losses on Tuesday, with miners losing ground and German energy firms RWE and E.ON falling sharply after a report saying they needed to set aside more money to shut down nuclear power plants. The STOXX Europe 600 Basic Resources index fell 2.6 percent, the top sectoral decliner in Europe.
2.05 pm: Sensex was down 182.85 points at 25,674. Among the sectoral indices on the BSE, the FMCG index was up 0.24 per cent at 7,571.45. On the other hand, the BSE Metal and Capital Goods index were down around 2.33 per cent and 2 per cent, respectively.
1.42 pm: Diagnostic chain Dr Lal PathLabs has filed draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (Sebi) to raise funds through an IPO. The promoters and other existing shareholders will collectively sell 11.6 million shares of the company amounting to 14.1 per cent stake. Nifty was down 35 points at 7,837.
1.30 pm: Everest Industries is planning to garner revenue of Rs 500 crore from its pre-engineered buildings (PEB) business in FY16. The company, which is engaged in two businesses– building products and PEBs, had clocked Rs 1,230 crore revenue in FY15, with the steel buildings division contributing nearly Rs 340 crore. Shares of Everest Industries were trading 3.21 per cent higher at Rs 311.80 apiece. The 30-share Sensex was down 85 points at 25,771.
12.43 pm: Corporation Bank shares gained as much as 4 per cent on Tuesday after the bank informed stock exchanges that Life insurance Corporation (LIC) has expressed its intention to infuse Rs 143 crore ($21.53 million) capital in the bank. Sensex was down 59.71 points at 25,796.
12.11 pm: Bouts of profit-booking were witnessed in capital goods, metal, auto, banking and consumer durable sectors, along with mid-cap and small-cap shares, while buying marked realty, FMCG, health care and IT segments. Sensex was down 115 points at 25,742.
12.06 pm: Goldman Sachs upgrades private lenders Axis Bank, ICICI Bank and YES Bank to ‘Buy’ from ‘Neutral’ citing attractive entry after recent underperformance of bad loand concerns. BSE Bankex was down 0.76 per cent at 19,205.57.
11.23 am: Texmaco Rail & Engineering gained over 3 per cent on BSE after the company said its board has approved acquiring a majority 76 per cent stake in Bright Power for Rs 100 crore. Sensex was down 110 points at 25,746. Nifty was down 45.70 points at 7,826. Sun Pharma and HUL were trading 1.16 per cent and 0.76 per cent higher at Rs 867 and Rs 801, respectively.
10.34 am: Nifty was down 27.50 points at 7844.75. Vedanta, Tata Power and Kotak Mahindra Bank were down over 1 per cent.
10.25 am: Sensex was down 95.20 points 25,761. In the 30-share index, Maruti Suzuki and ITC were up 1.32 per cent and 0.85 per cent at Rs 4,379.50 and Rs 315.80.
9.49 am: Brokers said sentiment turned somewhat weak as investors booked profits after Monday’s gains even as retail inflation fell to a new low of 3.66 per cent in August, which may prompt the Reserve Bank to cut rates at its September 29 policy meet. Sensex was down 43 points at 25,813.
9.24 am: Sensex was down 12.18 points at 25,844.52. Maruti Suzuki was trading 1.72 per cent higher at Rs 4,394.50. Share price of Maruti Suzuki gained after the Reserve Bank of India allowed foreign investors to invest up to 40 per cent of the paid up capital in the auto maker under the Portfolio Investment Scheme.
9.15 am: Domestic equity markets opened on a flat note on Tuesday tracking weak global cues. The BSE Sensex opened 51.64 points, 0.20 per cent, up at 25,908.34. NSE Nifty opened 5 points down at 7,867.35.
The Consumer price inflation (CPI) data that eased to 3.66 per cent in August from 3.69 per cent in July 2015, failed to boost market sentiments on Tuesday.
The rupee fell 5 paise to 66.38 against the dollar in early trade due to fresh dollar demand from importers.
(With inputs from agencies)