Sensex falls for 3rd day in a row, ends 248 points down, Nifty settles below 7,800; GMR Infra slips nearly 15%

The BSE Sensex and NSE Nifty fell for the third consecutive trading session on Friday triggered by global sell-off after the European Central Bank’s (ECB) stimulus package fell well short of markets’ high expectations. Sensex closed 248.51 points down at 25,638.11, while Nifty50 index closed 82.25 points down at 7,781.90. Expectation of US interest rate hike and weak rupee also hit market sentiments.

In the 50-share index, Sun Pharma, Cairn India, Bharti Airtel, State Bank of India and Tata Steel gained between 0.14 per cent and 3.90 per cent. On the other hand, Zee Entertainment, Tata Power, Power Grid, M&M and HDFC slid between 2.15 per cent and 3.55 per cent.

Barring the BSE Metal index (up 0.42 per cent) and Healthcare index (up 0.08 per cent), rest all other sectoral indices on the BSE ended in red. BSE Power index slid the most — 1.98 per cent, followed by BSE Realty index (down 1.35 per cent) and BSE FMCG index (down 1.21 per cent).

The market breadth indicating the overall health of the market remained negative. On BSE, 1,572 shares fell and 1,174 shares rose. A total of 166 shares stood unchanged.

“Concerns of a US interest rate hike, ECB’s stimulus package and impact of rains in Chennai are impacting the market,” said Alex Mathews, head of research at Geojit BNP Paribas.

The ECB cut its deposit rate deeper into negative territory and extended its asset buying by six months on Thursday. However, its rate cut of 0.10 percentage point, to -0.30 per cent, was smaller than a 0.15 to 0.20 percentage point reduction many traders expected.

In a stock specific development, Reliance Communication fell 3.11 per cent to Rs 81.05 after the company said it has signed a non-binding pact to sell its mobile phone masts business to a consortium led by buyout firm TPG Capital Management LP.

shares of GMR Infrastructure fell as much as 18 per cent after the company informed BSE that it has authorised the issue of US$ 300 million principal amount of 7.5 per cent unsecured subordinated foreign currency convertible bonds due 2075 (the “Bonds”) to Kuwait Investment Authority. These Bonds will be convertible into equity shares having face value of Re 1 each of GMR Infra. The initial conversion price in respect of such optional conversion by investor is Rs 18 per equity share which is available after 18 months. The share price of the company settled 14.64 per cent down at Rs 15.45.

Asian equity markets ended in red on Friday, following a global sell-off overnight as investors digested comments from the Federal Reserve and the European Central Bank (ECB). Federal chair Janet Yellen said Thursday that recent economic data back the central bank’s expectations of an improved job market. The US non-farm payrolls number for November is due later today. Yellen added the bank will proceed with caution in raising interest rates from near zero and that Fed funds rates would remain accommodative after the initial increase. Elsewhere, ECB president Mario Draghi announced monetary policy measures that fell short of market expectations. The central bank cut deposit rate by 10 basis points to negative 0.3 per cent and said its asset purchase program will also be extended until at least March 2017 and broadened in scope.

————————————————————————————————————————–

Markets through the day

3.30 pm: Domestic equity markets suffered sharp set-back on Friday, tracking a retreat in Asian stocks amid disappointment in the European Central Bank’s (ECB’s) stimulus decision, the ECB President Mario Draghi delivered a smaller stimulus package than many had expected. Also there was probability that the US Federal Reserve will raise interest rates this month. Back home, the rupee depreciated for the third straight session to hit a two-year low of 66.90 against the US dollar, in contrast to other Asian currencies, which too weighed on the sentiments. Sensex closed 248.51 points down at 25,638.11, while Nifty50 index closed 82.25 points down at 7,781.90.

2.40 pm: Reliance Communications, India’s fourth-biggest wireless telecommunications carrier, has signed a non-binding pact to sell its mobile phone masts business to a consortium led by buyout firm TPG Capital Management LP. Financial details of the proposed deal were not disclosed. The share price of Reliance Communications was trading nearly 4 per cent down at Rs 80.50.

1.56 pm: Shares of Panacea Biotec were trading 10.02 per cent up at Rs 157. Mukta Arts share price surged 19.98 per cent to Rs 55.85 and hit upper circuit. Mukta Arts also hit new 52-week high at Rs 55.85. Sensex was down 118 points at 25,767. Nifty was down 49 points at 7,815.

1.54 pm: Meanwhile, Deepak Nitrite informed BSE that it has repaid the Commercial Paper of Rs 30 crore on December 03, 2015 which was issued on September 04, 2015. The company had earlier repaid the Commercial Paper of Rs 30 crore on October 15, 2015 which was issued on July 17, 2015.

1.22 pm: Shares of Cosmo films jumped over 2.5 per cent to Rs 278 after the company informed BSE that the Board of Directors of the Company have approved raising of funds upto Rs 100 Crore (including premium) through Qualified Institutional Placement (QIP) of Equity Shares and/or any other eligible securities. Sensex was down 162 points at 25,724. Nifty was down 53.95 points at 7810.20.

12.55 pm: Sensex was down 189.56 points at 25,697. Simbhaoli Sugars informed BSE that the Board of Directors of the Company has appointed Lt. Gen. Dalbir Singh Sidhu as an independent director on the Board of the Company with effect from December 03, 2015.

12.44 pm: An expert panel led by chief economic adviser Arvind Subramanian is set to recommend a revenue-neutral rate (RNR) of 18-20 per cent for the goods and services tax (GST) with minimal exceptions and aberrations, sources in the know told Financial Express newspaper. The panel is also learnt to have voted against the 1 per cent additional tax on interstate sale of goods, proposed in the relevant Constitutional Bill in the Lok Sabha to help “manufacturing states”. If you are looking for some stocks which may benefit from GST click here.

12.31 pm: Sun Pharma shares were trading 3.87 per cent up at Rs 755. So far, around 7.25 lakh shares of Sun Pharma exchanged hands on the BSE as compared with two-week average daily volume of 3.68 lakh shares. Sensex was down 212 points at 25,674.

12.24 pm: Shares of Alpa Laboratories, a BSE group ‘T’ stock of face value Rs 10 surged 4.97 per cent to Rs 79.15 and hit upper circuit on Friday. Sensex was down 218.53 points at 25,668.

12.01 pm: Mastek shares were trading 1.77 per cent down at Rs 194.00 after the company said it will make no further investments towards development of ‘Veyo’, a platform built to help in conveyancing process. Sensex was trading 205.03 points down at 25,681.59. Nifty was trading 67.90 points down at 7,796.25.

11.38 am: Nifty50 index was down 67.50 points at 7,796.65. Out of 50 stocks in the index, only Cairn India shares were trading in green. Infosys, Bank of Baroda, PNB, Adani Ports and BHEL were among top losers.

11.20 am: Sensex was down 213.23 points at 25,673. Zee Learn share price gained as much as 9.9 per cent in the morning trade on Friday after the Essel Group’s education arm, informed BSE that its Board has accorded in-principle approval for exploring consolidation options with pre-school chain Tree House Education and Accessories. 

11.11 am: Sequent Scientific’s subsidiary Alivira Animal Healthcare has forayed into the European Veterinary Pharmaceutical markets through acquisition of three companies – N-Vet AB, Fendigo SA & Fendigo BV. The transactions are in line with Alivira’s stated focus of becoming a leading global and integrated company in the Animal Health space. Alivira has acquired 85 per cent stake in the aforementioned companies with the current management retaining the balance stake. The structure of the transaction permits the current management team to drive the business while Alivira would provide a stronger framework for growth through a larger product portfolio, backed by regulatory compliance, global reach and integrated manufacturing capabilities. Shares of Sequent Scientific were trading 1.69 per cent up at Rs 1,155.

10.48 am: Meanwhile, Sun Pharmaceutical announced that one of its subsidiaries has received final approval from US FDA for its Abbreviated New Drug Application (ANDA) for generic version of Gleevec, Imatinib Mesylate tablets 100mg and 400mg. These tablets are indicated for the treatment of chronic myeloid leukemia. Share price of Sun Pharma was trading 5.72 per cent up at Rs 768.45. The BSE Healthcare index was up 1.37 per cent at 16662.05.

10.40 am: Tree House shares jumped 9.98 per cent to Rs 222.60 and hit upper circuit on Friday after the company informed BSE that the Board of Directors met on December 4 and accorded in-principle approval for exploring consolidation option with Zee Learn.

10.35 am: Ujaas Energy informed BSE on Thursday that it has bagged EPC order of 10MW Canal Bank Grid Connected Solar Photovoltaic Power Plant at Vadodara, Gujrat and its operation and maintenance for 25 years as issued by Sardar Darovar Narmada Nigam. The company has received Letter of Acceptance-cum work order issued by General Manager (HP) Sardar Sarovar Narmada Nigam, Gandhinagar. The approximate amount for the work is around Rs 91.78 crore. The share price of Ujaas Energy was trading 5.16 per cent up at Rs 21.40.

This is a consecutive win of the company in last four months. After 9MW of Oil India Rajasthan, 10MW at Teesta Cananl West Bengal, 1000 KWp at Andaman & Nicobar and 6MW at Daman & Diu .

10.26 am: Brokers said persistent selling by participants following hefty losses across Asia and other global markets, as an anticipated revision of the European Central Bank’s stimulus programme fell short of expectations, mainly dampened the sentiments. Furthermore, depreciating rupee against the dollar also negatively impacted sentiment. Sensex was down 181 points at 25,705.

10.04 am: Meanwhile, shares of Tata Consultancy Services hit new 52-week low of Rs 2,322. The BSE IT index was down 0.83 per cent at 10,702.18. Sensex was down 151 points at 25,735.

9.46 am: The Indian rupee slumped to an over two-year low on Friday, tracking weakness in global markets after the European Central Bank’s stimulus package fell short of expectations and renewed fears of a US rate hike.

9.30 am: Future & Option (F&O) total turnover stood at 1,43,471.74 crore on December 03 and the total number of contracts traded on the day were 24,89,348. Of the total turnover, Index Futures contributed Rs 11,694.36 crore, Stock Futures Rs 22,908.53 crore and Index Options Rs 98,662.99 crore, while the contribution of the Stock Options was of Rs 10,205.86 crore. For the day, the total F&O PutCall ratio (PCR) stood 0.66 while Index Options PutCall ratio was 0.68 and that of Stock Options was 0.48. The top five scrips with highest PCR on OI were UCO Bank (1.90), JSW Steel (1.26), STAR (1.24), ACC (1.18) and GAIL (1.18).   

9.19 am: Sensex slid 237.50 points in the early trade. All the 30 components of Sensex were trading in red. ITC, HDFC and Lupin were trading over 1 per cent down in the early trade.

9.16 am: Sensex was down 173 points at 25,713. Nifty was down 56.20 points at 7,807. Shares of Dabur India was trading 2.46 per cent down at Rs 271.10.  Dabur has become the first major private Indian company to be hit by prevailing political tension in Nepal as the homegrown FMCG giant is expecting its juice sales to dip 10-15 per cent in October-November due to disruption of supplies from its plant in the Himalayan nation.

9.15 am: The BSE Sensex and NSE Nifty opened in red on Friday tracking weak global markets. Sensex opened 76.56 points down at 25,810.06, while NSE Nifty50 index opened 46.55 points down at 7,817.60.

Shares of public sector lender Dena Bank will remain in focus as the bank has got board approval for dilution of government holding to up to 52 per cent and raise capital up to Rs 2,500 crore from various bonds. Government shareholding in the bank was 65 per cent at the end of September 30.

Asian shares slipped while the euro retained lavish gains on Friday, a day after its biggest one-day surge in nearly seven years as the European Central Bank’s stimulus package fell well short of markets’ high expectations.

Investors are now focused on US jobs data, which is likely to cement expectations that the Federal Reserve will hike interest rates later this month, barring surprisingly weak readings.

The S&P 500 suffered its biggest daily drop since late September on Thursday as the European Central Bank disappointed market hopes for greater stimulus. The Dow Jones industrial average fell 252.01 points, or 1.42 per cent, to 17,477.67, the S&P 500 lost 29.89 points, or 1.44 per cent, to 2,049.62 and the Nasdaq Composite dropped 85.70 points, or 1.67 per cent, to 5,037.53.

Back home, 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.

(With inputs from agencies)