Sensex ends 247 points down ahead of RBI policy review; Airtel, Tata Motors touch new 52-week low

By: | Updated: September 28, 2015 4:24 PM

The BSE Sensex and NSE Nifty ended in red on Monday after trading in a narrow range in the first half.

Sensex and NiftyThe BSE Sensex and NSE Nifty ended in red on Monday after trading in a narrow range in the first half. (Photo: Reuters)

The BSE Sensex and NSE Nifty ended in red on Monday after trading in a narrow range in the first half. However, selling pressure in blue chips dragged down benchmark indices in the second half. Sensex closed 246.66 points down at 25616.84. Nifty closed 72.80 points down at 7795.70.

In the 30-share pack, share price of Tata Motors declined the most 6.31 per cent to Rs 284.25 and hit a fresh 52-week low of Rs 283.80. Share price of Vedanta, Coal India, Sun Pharma and Infosys also lost 4.61 per cent, 3.17 per cent, 3.26 per cent and 2.84 per cent, respectively. On the other hand, Dr Reddy’s Labs gained the most 5.37 per cent at Rs 4,185, it was followed by Lupin (up 2.18 per cent), HUL (up 1.48 per cent) and TCS (up 0.83 per cent).

Sun Pharmaceutical declined 3.42 per cent, while its research arm Sun Pharma Advanced Research Co Ltd (SPARC) also fell 2.54 per cent after the USFDA revoked approval for SPARC’s seizure drug, citing manufacturing quality problems at its plant.

Dr Reddy’s Laboratories bucked the trend, rising as much as 6.5 per cent, after it launched a generic version of AstraZeneca Plc’s heartburn pill Nexium in the United States on September 25.

Infosys shares declined 2.91 per cent on Monday after its rival Accenture projected first-quarter revenue below analysts’ average estimate on the back of strong dollar. Accenture forecast revenue of between $7.70 billion and $7.95 billion. Analysts were expecting revenue of $8.11 billion, according to Thomson Reuters I/B/E/S.

Among the sectoral indices on the Bombay Stock Exchange, the BSE Metal index and BSE Auto index declined 2.60 per cent and 1.74 per cent at 6,708.35 and 17,015.39. BSE Consumer Durables and BSE Realty index jumped 2.87 per cent and 1.03 per cent at 10,801.32 and 1,341.88, respectively.

The central bank is expected to cut its key repo rate to a four-year low on Tuesday to support the domestic economy at a time when consumer inflation is at a record low, but may express caution about easing further as price risks still loom.

A Reuters poll last week showed 45 of 51 economists expect the RBI to cut the repo rate by 25 basis points to 7 per cent, its lowest since May 2011.

“There should be a 25 basis point cut in interest rate and markets may react positively to it,” said Taher Badshah, senior vice president & co-head equities at Motilal Oswal AMC.

Achin Goel, head, wealth management and financial planning, Bonanza Portfolio, said, “Outcome of RBI’s monetary policy meet on Tuesday will decide the trend of the markets in the near term.”

Market breadth for the day remained negative as advances to declines ratio for Nifty stood at 13:36 for the day. Volumes for Nifty stocks stood at 1,403 lakh against near term average of around 1,700 lakh for Nifty stocks.

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Markets through the day

3.30 pm: Sensex closed 246.66 points down at 25616.84. Nifty closed 72.80 points down at 7795.70.

3.17 pm: Sensex declined 243 points at 25,620. Nifty was down 70.90 points at 7,797. Tata Motors, Coal India, Hindalco and Bharti Airtel hit new 52-week low. Tata Motors was trading 6.17 per cent down at Rs 284.90 on BSE.

2.55 pm: The realty shares continue to rally on the back of US Fed’s decision to keep the interest rate unchanged and over the possibility of slash in interest rates by RBI in the upcoming bi-monthly policy meet. The sectoral index for real estate companies in the BSE was up by nearly 2 per cent. Shares of HDIL and Sobha were up 5.10 per cent and 4.85 per cent, respectively. Sensex was down 190 points at 25,672.

2.33 pm: Shares of Cadila Healthcare gained after its inclusion in the National Stock Exchange’s derivatives market. The scrip was trading 1.79 per cent up at Rs 2,075.95. BEML, Bharti Infratel, Marico and NCC also included in the derivatives segment. Sensex was down 84.33 points, or 0.33 per cent at 25,784.

2.26 pm: Sensex was down 70 points at 25,793. Nifty was down 13.45 points at 7,855. Meanwhile, Confederation of Real Estate Developers’ Associations of India (CREDAI), a private real estate lobby, decides to stop procurement from UltraTech among other companies in the National Capital Region (NCR). CREDAI alleges that companies including UltraTech and Lafarge unilaterally raised cement prices in the last one month. UltraTech Cement shares were trading 2.91 per cent at Rs 2,729 apiece.

1.55 pm: The BSE Midcap index and BSE Smallcap index were up 0.42 per cent and 0.56 per cent at 10,641 and 11,003, respectively. Sensex was up 26 points at 25,890.

1.20 pm: Shares of Adani Ports moved up by over 3 per cent on Monday after the company replaced state-run iron ore miner NMDC on the National Stock Exchange’s benchmark index Nifty from today. Nifty was up 3.85 points at 7,872.

12.45 pm: Sensex was down 27.35 points at 25,836. Nifty was down 1.10 points at 7,867.40. In the 50-share index Tech Mahindra, Idea Cellular, Adani Ports, TCS and YES Bank gained between 1 per cent and 2.10 per cent. On the other hand, Sun Pharma, Cairn India, Coal India, Tata Motors and UltraTech Cements declined between 1.30 per cent and 2.40 per cent.

12.40 pm: Share price of Dr Reddy’s Laboratories jumped over 5 per cent after the company announced on Monday that it has launched Esomeprazole Magnesium Delayed-Release-Capsules USP, 20 mg and 40 mg, a therapeutic equivalent generic version of NEXIUM® (esomeprazole magnesium) Delayed-Release Capsules in the US market on September 25, 2015, following the approval by the United States Food & Drug Administration (USFDA).The NEXIUM® (esomeprazole magnesium) Delayed-Release Capsules brand and generic had US sales of approximately US$5.2 billion on MAT for the most recent twelve months ending in July 2015 according to IMS Health.

11.56 am: Meanwhile, Nomura, a Japanese brokerage firm, in research report said, “We expect demand for industrial batteries to remain subdued as power supplies improve. Hence, we think revenue growth for the battery companies is likely to be more tepid than the market expects.” Amara Raja Batteries were up 0.53 per cent at Rs 990.10 while Exide Industries shares were trading 0.91 per cent down at Rs 157.80. Sensex was down 28.66 points at 25,835.

11.29 am: Shares of Sun pharma and its research arm Sun Pharma Advanced Research Company (SPARC) were down by 2.40 per cent and 2.50 per cent, respectively, after the US Food and Drug Administration (USFDA) revoked an approval issued in March to SPARC for an epilepsy drug. Sensex was down 41 points at 25,822.

10.54 am: The BSE Realty index was up 1.93 per cent at 1,353.85. Consumer Durables index and Healthcare index were also up 1.42 per cent and 0.73 per cent, respectively.

10.50 am: Commodities regulatory body FMC on Monday merged with the capital markets watchdog Sebi with Finance Minister Arun Jaitley ringing the customary stock market bell to formalise the amalgamation. Sensex was down 13.16 points at 25,850. Nifty was up 2.20 points at 7,870.

9.49 am: Gammon India shares surged as much as 16.27 per cent in the early trade on Monday after the company announced on Thursday post market hours that it has secured the Engineering, Procurement & Construction (EPC) project worth Rs 1,709.99 crore from National Highways Authority of India (NHAI).

9.40 am: The rupee rose by 14 paise at 66.02 against the US dollar in early trade on Monday on fresh selling of the American currency by exporters.

9.34 am:  Traders are cautious ahead of the Reserve Bank of India’s monetary policy review on Tuesday. Sensex was down 80.94 points at 25782.56. Nifty was down 19.45 points at 7,849.

9.22 am: The BSE Bankex and BSE FMCG index were up 0.41 per cent and 0.39 per cent at 19776.41 and 7,602, respectively. Sensex and Nifty were up 6.03 points and 1.55 points at 25,869 and 7,870, respectively.

Domestic equity markets opened flat on Monday amid tepid cues from Asian markets. Sensex opened 59.21 points up at 25,922.71. Nifty opened 24.3 points down at 7,892.80. Banking and FMCG stocks also opened higher.

Back home, the Indian markets ended modestly higher on Thursday ahead of a long weekend and the upcoming monetary policy meeting on September 29. Mixed global cues, rupee weakness and portfolio churning on the eve of the expiry of September derivative contracts limited potential gains. Sensex and Nifty jumped 0.16 per cent and 0.29 per cent at 25,863.50 and 7868.50, respectively, on Thursday. Domestic equity markets were closed on Friday on account of Eid.

(With inputs from agencies)

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