Sensex ends 231 points down on Yellen comments, poor services data

By: | Updated: December 3, 2015 5:02 PM

The BSE Sensex and NSE Nifty fell for the second day in a row on Thursday after comments from Janet Yellen on interest rate hike and poor service data back home. Sensex closed 231.23 points down at 25,886.62, while Nifty50 index settled 67.20 points down at 7,864.15.

Sensex Nifty, stock market today, sensex liveThe BSE Sensex closed 231.23 points down at 25,886.62, while Nifty50 index settled 67.20 points down at 7,864.15.

Benchmark indices fell for the second day in a row on Thursday after hawkish comments from the US Federal Reserve Chair Janet Yellen reinforced the case for an interest rate hike later this month. Market sentiment also hurt after a business survey released on Thursday showed India’s services industry barely expanded in November, growing at its weakest pace in five months.

The BSE Sensex closed 231.23 points down at 25,886.62, while Nifty50 index settled 67.20 points down at 7,864.15. Falls were led by stocks which have a higher percentage of foreign ownership, on worries that a hike in US interest rates would lead to capital outflows.

In the 50-share index, Axis Bank, Tech Mahindra, NTPC, IndusInd Bank and Maruti Suzuki gained between 0.20 per cent and 0.75 per cent. On the other hand, BHEL, ONGC, Lupin, Punjab National Bank and Vedanta slid between 2.30 per cent and 2.90 per cent.

Nifty 50 index – Top 5 Gainers and Losers

Source: NSESource: NSE

Sectorwise, the BSE FMCG index fell the most — 1.48 per cent, followed by BSE Consumer Durables (down 1.43 per cent), BSE Metal index (down 1.35 per cent), BSE Healthcare index (down 1.08 per cent) and BSE Auto index (down 0.83 per cent). On the other hand, BSE Realty gained 0.37 per cent and reamined the only gainer in the BSE sectoral indices.

Vinod Nair, head, fundamental research, Geojit BNP Paribas Financial Services, said, “The Market took cues from the global peers and extended the losing streak. Global investors are sensing that the era of near zero interest rates is coming to an end this month after the Fed chairman expressed her confidence about the US economy. This is resulted in a pull back by global funds in the emerging markets. In addition, concerns over today’s ECB policy meet also influenced the market direction.”

Yellen said on Wednesday she was “looking forward” to a US interest rate rise that will be seen as a testament to the US economy’s recovery from recession.

Shares of auto and IT services companies fell on Thursday as rains in the southern state of Tamil Nadu hit normal business activities. Infosys fell 0.40 percent, while TCS declined 0.61 per cent. Most Indian IT companies have 10-30 percent of their workforce based in Chennai, the capital of Tamil Nadu. TVS Motor Company closed 2.04 per cent down at Rs 283.30.

Asian markets ended mostly in red on Thursday after crude oil prices fell below the $40 a barrel mark overnight and hawkish comments from Federal Reserve Chair Janet Yellen. Hong Kong stocks weakened, as investors assessed the effects of diverging global monetary policies after the market rallied this week on the Chinese yuan’s global reserve currency status. However, Shanghai Composite ended higher brushing aside a Caixin/Markit Purchasing Managers’ Index showing China’s services sector growth cooling in November. Weak indicators often stir hopes of government stimulus, providing a burst of support for Chinese shares. Japanese stocks ended little changed in choppy trade as investors were content to adopt a conservative approach before the European Central Bank’s policy decision later in the day.

Asian IndicesLast TradeChange in PointsChange in %
Shanghai Composite3,584.8247.921.35
Hang Seng22,417.01-62.68-0.28
Jakarta Composite4,537.38-8.48-0.19
KLSE Composite1,673.92-2.85-0.17
Nikkei 22519,939.901.770.01
Straits Times2,883.890.250.01
KOSPI Composite1,994.07-15.22-0.76
Taiwan Weighted8,456.06-1.34-0.02

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3.30 pm: The BSE Sensex closed 231.23 points down at 25,886.62, while Nifty50 index settled 67.20 points down at 7,864.15.

3.12 pm: Chennai Petroleum Corp Ltd was sharing 4.44 per cent down at Rs 192.50 after the company shut its 10.5 million tons Manali refinery near Chennai due to floods caused by heaviest rainfall in over a century. Sensex slump continued and was trading 237.28 points down at 25,880.57. NSE Nifty was trading 76.05 points down at 7,855.30.

2.59 pm: Meanwhile, Standard & Poor’s Ratings Services projected on Thursday that India’s economy will grow at 7.4 per cent in the current fiscal, which will further improve to over 8 per cent in 2016-17. Sensex was down 143.77 points at 25,974.

2.25 pm: Eicher Motors’ operations at its plants in Thiruvottiyur and Oragadam have been disrupted due to the unprecedented rainfall in Chennai. It has severely affected the company’s manufacturing facilities, employees and offices. The floods caused by the rain have impacted logistics and supply-chain, resulting in disruption of production. As a consequence, the company has shut down its offices in the city and its plants in Thiruvottiyur and Oragadam since December 1. Due to the rains, in November the company has lost production of 4,000 motorcycles. The share price of Eicher Motors were trading 1.88 per cent up at Rs 16,651.

2.05 pm: Bhushan Steel was trading 15.12 per cent up at Rs 49.50 after the BSE sought clarification from the company on Thursday with reference to news report that said it may get Rs 3000 crore from asset sale. Sensex was trading 115.43 points down at 26,002.42. NSE Nifty was trading 35.35 points down at 7,896.00.

1.41 pm: Sensex was down 107 points at 26010. “Fundamentally nothing has changed but FIIs are selling frontline stocks which is where you’re seeing pressure on the markets,” said Deven Choksey, managing director at KR Choksey Securities. Nifty was down 35.30 points at 7,896.

1.15 pm: Benchmark indices Sensex and Nifty continued to trade lower in noon deals on sustained selling by funds and retail investors amid sluggish Asian cues. Sentiments also remained dampened after India’s services activity broadly stagnated in November with the Nikkei Services Business Activity Index posting a five-month low of 50.2 compared with 52.6 in October, which was an eight-month high. Weak demand across the country meant services companies had the slowest rise in incoming new work since July. Depreciation in Indian rupee too weighed down sentiments. Sensex was down 177 points at 25,940.

1.00 pm: Shares of Apollo Tyres were trading 2.44 per cent down at Rs 160.10. Apollo Tyres on Thursday said its production operations at its plant located at Oragadam, near Chennai have been disrupted due to flooding at the factory premises caused by heavy rains.

12.35 pm: Shares of Tata Teleservices (Maharashtra) were trading 14.77 per cent up at Rs 8.55. Sensex was down 151 points at 25,966.

12.13 pm: MTNL shares were trading 15.87 per cent up at Rs 24.10 after government on Wednesday said that there is no proposal to disinvest stake in BSNL and MTNL as part of their revival strategy. Sensex was trading 134.11 points down at 25,983.74. NSE Nifty was trading 40.10 points down at 7,891.25.

12.01 pm: In the 50-share index, Bharti Airtel, UltraTech Cements, Wipro, NTPC and Reliance Industries were up between 0.40 per cent and 1.02 per cent. On the other hand, Tata Steel, Vedanta, Hindalco, BHEL and Lupin were down between 1.39 per cent and 2.70 per cent. Nifty 50 index was down between 42.55 points at 7888. Sensex was down 144 points at 25,973.

11.42 am: Meanwhile, the growth of India’s services sector stagnated in November as new work orders saw slowest rise in over three months and confidence waned, says a survey. Falling from October’s eight-month high of 53.2 to 50.1 in November, the seasonally adjusted Nikkei Business Activity Index pointed to broadly unchanged levels of services activity across the country. Sensex was down 137 points at 25,980.

11.36 am: Share price of Eicher Motors were trading 1.29 per cent up after the company and Volvo Group’s joint venture firm, VE Commercial Vehicles (VECV) reported 25.7 per cent jump in total sales in November 2015 at 3,639 units as against 2,896 units in the same month last year. Sensex was down 137.35 points at 25,980.

11.01 am: Sensex was down 144.42 points at 25,973. Brokers said selling by participants in recent gainers and a weak trend in other Asian markets, tracking overnight sell-off in the US markets on plummeting oil prices mainly dampened the sentiment.

10.41 am: Aditya Birla Nuvo (ABNL) has entered into an agreement with the Canadian insurance major Sun Life to sell around 437 million equity shares constituting 23% of the issued and paid up equity share capital of Birla Sun Life Insurance (BSLI). On completion of the transaction, Sun Life’s stake in BSLI will increase from current 26% to 49% while ABNL will continue to hold the controlling stake at 51%. The 23% stake sale will fetch ABNL Rs 1,664 crore, valuing BSLI at Rs 7,235 crore. Shares of Aditya Birla Nuvo were trading 0.42 per cent up at Rs 2,127. Sensex was down 158 points at 25,962. Nifty was down 47 points at 7,884.

10.13 am: Rajasthan Global Securities has bought 14.27 lakh shares of Datamatics Global Services through open market route. The shares were purchased on an average price of Rs 63.25 valuing the transaction to Rs 9.03 crore. On the other hand, Datamatics Employees Welfare Trust has sold 16.43 lakh shares in the company for an average price of Rs 63.29 through open market route. Shares of Datamatics Global Services were trading 5.88 per cent up at Rs 67.55 in the morning trade. Sensex was 130 points at 25,986. Nifty was down 39.75 points at 7,891.

9.50 am: The rupee fell by 13 paise to 66.72 against the dollar in early trade today due to fresh demand for the American currency from importers.

9.47 am: Shares of Chennai-based TVS Motor Company was trading 2.07 per cent down at Rs 283.20. The company on Monday reported 2.43 per cent increase in total sales at 2,25,401 units in November. In a statement TVS Motor said, “Incessant rains for the past three weeks in Chennai have had an adverse effect on company’s production during this period. The company suffered sales loss of approximately 15,000 units due to inclement weather”. Sensex was down 95 points at 26,022.

9.46 am: Just Dial share price fell as much as 5.76 per cent in the early trade after the company informed BSE that it has filed the Draft Letter of Offer for Buy-back of Equity Shares of the company with Securities and Exchange Board of India on December 02, 2015.

9.40 am: Natco Pharma was down 0.34 per cent at Rs 515.10. Shares of the drug firm fell 1.41 per cent on Wednesday after the company said its active pharmaceuticals ingredient plant at Chennai has suspended operations due to flooding caused by rains. The BSE Healthcare index was down 0.52 per cent at 16,530.34. Sensex was down 85 points at 26,032. Nifty was down 32 points at 7,899.35.

9.36 am: According to the data released by the NSE, the Foreign Institutional Investors (FIIs) were net buyers of Rs 643.13 crore in index futures and options segments, as per Wednesday’s data, December 02, 2015.

FIIs were net sellers of index futures to the tune of Rs 506.26 crore and they bought index options worth Rs 1,149.37 crore. In the stock segment, FII’s were net sellers of stock futures worth Rs 217.19 crore, while they bought stock options worth Rs 56.71 crore.

9.31 am: Tree House shares hit upper circuit for the third consecutive trading session on Thursday after the company on Tuesday clarified that there was an error with respect to the promoters’ pledge of shares reported by BSE on their website. On November 20, it had been communicated to BSE that promoters have pledged 2,50,000 shares in one of the promoters’ accounts which was erroneously mentioned as 25,00,000 shares by BSE. This has created unnecessary confusion and concerns among investors. The share price of the company jumped 10 per cent up to Rs 202.40. Sensex was down 68.76 points at 26,049.

9.29 am: Shares of Bharat Seats zoomed 20 per cent to Rs 49.40 in the early trade and hit upper circuit on Thursday after the company informed BSE on Wednesday that the Board of Directors on November 10, 2015 have approved policy on preservation of documents and determination of material/ price sensitive information. Sensex was down 57.71 points at 26,060.

9.18 am: Sensex was down 90.36 points at 26027. Nifty was down 29.80 points at 7,901. India’s third largest software services firm Wipro on Wednesday said it will acquire German IT consulting firm cellent AG for 73.5 million euros (about Rs 518 crore). The share price of the company was trading 1 per cent up in the early trade.

9.15 am: The BSE Sensex and NSE Nifty opened on a flat to cautious note on Thursday tracking weak global markets. Sensex opened 6 points up at 26,123.86, while Nifty opened 29 points down at 7,902.30.

Most of Asian stocks slipped and the dollar advanced on Thursday after hawkish comments from Federal Reserve Chair Janet Yellen reinforced the case for an interest rate hike later this month.

US stocks closed sharply lower on Wednesday after hawkish comments from Janet Yellen boosted expectations of an interest rate hike, and oil dipped below $40 a barrel. The S&P 500 energy index fell 3.1 per cent, leading declines in the S&P 500 as US crude oil futures finished the session down 4.6 per cent at $39.94.

Back home, the BSE Sensex and NSE Nifty snapped four-day winning streak on Wednesday. Sensex closed 51.56 points down at 26,117.85, while Nifty50 index closed 23.55 points down at 7,931.

(With inputs from agencies)

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