1. Sensex falls for 6th day in a row on GST worries, slumps 274 points; Metal stocks among worst hit

Sensex falls for 6th day in a row on GST worries, slumps 274 points; Metal stocks among worst hit

The BSE Sensex and NSE Nifty remained under pressure as hopes faded that goods and services tax would be cleared in the ongoing winter session of Parliament.

By: | New Delhi | Updated: December 9, 2015 5:10 PM
BSE Sensex, NSE Nifty

The BSE Sensex and NSE Nifty remained under pressure as hopes faded that goods and services tax would be cleared in the ongoing winter session of Parliament. (Express Photo)

The BSE Sensex and NSE Nifty fell for the sixth consecutive trading session on Wednesday on account of selling in front line blue chip counters. The sentiments were also under pressure following lingering concerns over GST.

Sensex closed 274.28 points down at 25,036.05. Nifty settled 89.20 points down at 7,612.50.

In the 50-share index, BHEL, TCS, ITC, ONGC and NTPC gained between 0.40 per cent and 2.65 per cent, respectively. On the other hand, Vedanta, BPCL, Cipla, Coal India and Tata Steel slid between 3.15 per cent and 5.60 per cent.

Among the sectoral indices on the BSE, the BSE Metal index fell the most — 3.07 per cent to 6,774.65, it was followed by BSE Telecom index (down 2.16 per cent), BSE Healthcare index (down 2.02 per cent) and BSE Auto index (down 1.74 per cent). Rest all other sectoral indices also closed in red.

Vinod Nair, head-fundamental research, Geojit BNP Paribas Financial Services, said, “The chaos in the market is increasing day by day in the run up to the FOMC meet next week. This turmoil is led by FIIs who are continuously reducing their exposure in EMs due to the reversal in US QE. In the meantime, logjam in the parliament is creating a hiccup in the Indian market since GST is expected to be passed in the winter session.”

In a scrip specific development, Dr Reddy’s Laboratories shares hit new 52-week low of Rs 2,953.35 amid concerns of currency devaluation in the key market of Venezuela. The share price of the company closed 2.40 per cent down at Rs 2,997.30.

Bharat Forge also closed 4.15 per cent down after the forging company issued a cautious outlook for this fiscal.

On the other hand, Electrosteel Steels gained on Wednesday after the board of the Kolkata-based steelmaker approved an increase in share capital following lenders’ approval to convert debt of Rs 2,507 crore into equity shares. The scrip closed 2.29 per cent up at Rs 4.02.

Asian equity markets ended mostly in red on Wednesday after oil prices took another tumble overnight and encouraging Japanese and Chinese data weakened the case for additional stimulus, at least in the near-term.

Oil prices regained some lost ground in Asian deals on a weaker dollar, helping cap losses across the region.

Asian Indices Last Trade Change in Points Change in %
Shanghai Composite 3,472.44 2.37 0.07
Hang Seng 21,803.76 -101.37 -0.46
Jakarta Composite
KLSE Composite 1,659.36 -9.88 -0.59
Nikkei 225 19,301.07 -191.53 -0.98
Straits Times 2,861.19 -14.48 -0.52
KOSPI Composite 1,948.24 -0.8 -0.04
Taiwan Weighted 8,229.62 -114.24 -1.37


Markets through the day

3.30 pm: Benchmark indices fell for the sixth consecutive trading session on Wednesday. Sensex closed 274.28 points down at 25,036.05. Nifty settled 89.20 points down at 7,612.50.

3.14 pm: Sensex was down 283.21 points at 25,027.12. European shares fell on Wednesday to their lowest level in more than two months, weighed down by a drop at pharmaceuticals group Bayer and more pressure on commodity stocks.

2.53 pm: Sensex was trading 273 points down at 25,037.33. Nifty was trading 79.30 points down at 7,622.40. Gati shares were trading 8.46 per cent down at Rs 151.40 after hopes dwindled over proposed goods and services tax (GST) Bill in the ongoing winter session of Parliament. Opposition Congress Party disrupted Parliament session and accused the government of pursuing a “vendetta” against the Gandhi family on Tuesday, in a blow to hopes of passing the proposed GST.

2.34 pm: Sensex was trading 200.30 points down at 25,110.03. Nifty50 was trading 64.05 points down at 7,637.65. BSE Metal and Energy index was down 2.61 per cent and 1.86 per cent respectively. The domestic markets head towards a sixth session of losses on Wednesday, staying near three-month lows hit on Tuesday, as hopes faded that goods and services tax (GST) would be cleared in the ongoing winter session of Parliament.

1.54 pm: Richa Industries, a leading Construction & Engineering company has secured first order to construct rail over bridge for Indian Railways. The project involves construction of approximately 100-110 meter span rail over bridge within the estimated completion time of fifteen months from the date of LOI. The project value is approximately Rs 20 crore. The share price of Richa Industries was trading 2.24 per cent up at Rs 29.70. Sensex was down 114 points at 25,195.

1.03 pm: Shares of Dr Reddy’s Laboratories were trading 2.03 per cent down at Rs 3,008.45. The scrip fell after the pharma major submitted a response to the US health regulator on a warning letter it had received last month.

12.42 pm: Besides, continued selling by Foreign Investors along with weakness in global markets also weighed on sentiment. Meanwhile, The foreign portfolio investors (FPIs) sold shares worth a net Rs 518.46 crore on Tuesday, as per provisional data released by the stock exchanges. However, losses remained capped with the government stating that the fall in foreign portfolio investments may not have any major macroeconomic impact as long as capital flows are adequate to finance current account deficit. Sensex was down 105 points at 25,205.

12.28 pm: BHEL share price gained as much as 3 per cent after the Heavy Industries & Public Enterprises Minister Anant Geete said that the government has no plans to divest part of its holding in the company. The scrip was trading 2.85 per cent up at Rs 169.35. Sensex was down 109 points at 25,201.

12.07 pm: The market breadth on BSE was negative, out of 2,561 stocks traded, 514 stocks advanced, while 1,917 stocks declined on the BSE

11.51 am: Sensex was down 103.73 points at 25,206.60. Nifty was down 39.60 points at 7,662.10. The BSE Midcap index was down 112.59 points, or 1.04 per cent, at 10,684. In the midcap space, Bharat Forge and Glenmark Pharma were down 4.64 per cent and 4.79 per cent, respectively.

11.23 am: Sensex was trading 77.65 points down at 25,232.68. Nifty50 was trading 27.05 points down at 7,674.65. Telecom Stocks were trading 2.14 per cent down, with Reliance Communications trading 2.60 per cent down.

10.40 am: Sensex was trading 128.49 points down at 25,181.84. Nifty50 was trading 33.45 points down at 7,668.25. Brokers said continued capital outflows by foreign funds
and a weak trend in other Asian markets following overnight losses in the US equities amid a retreat in commodity-linked stocks due to weaker oil prices accelerated selling here.

10.14 am: Indian rupee recovered by 6 paise to 66.78 against the dollar in early trade on Wednesday on fresh selling of the American currency by exporters and banks. Sensex was trading 61.27 points down at 25,249.06. Similarly, Nifty was trading 18.25 points down at 7,683.45.

9.54 am: The initial public offering of Alkem Laboratories was subscribed 35 per cent on the first day of the issue on Tuesday. Diagnostic chain Dr Lal PathLabs’ initial public offer started on a promising note on December 8 as the issue was subscribed 65 per cent on the first day of the offer.

9.51 am: Roads developer Ashoka Buildcon on Tuesday said it has fully acquired Ashoka Path Nirman Ltd. The share price of the company was trading 1.50 per cent up at Rs 195.85.

9.45 am: Tata Motors on Tuesday launched a more powerful variant of its sports utility vehicle Safari Storme, powered by a new engine, at a starting price of Rs 13.25 lakh (ex-showroom Delhi). The scrip was trading marginally down 0.17 per cent at Rs 401.20. The share price opened at Rs 402.40 and had touched a high and low of Rs 404.85 and Rs 400, respectively, in trade so far. Sensex was down 4.59 points at 25,305. Nifty was down 5.70 points at 7,696.

9.32 am: The share price of Bharti Airtel was down 2.20 per cent at Rs 310.70. Airtel will launch 4G services in Rajasthan within a few days and cover other important cities in next six months.

9.26 am: Shares of NBCC were trading marginally up 0.59 per cent at Rs 950.65. The state-owned real estate firm on Tuesday that it has bagged projects worth Rs 192.74 crore in November. The BSE Realty index was down 0.73 per cent at 1283.49.

9.18 am: Dr Reddy’s Laboratories has submitted a response to the US health regulator on a warning letter it had received last month. In response to the letter, DRL CEO G V Prasad had said the company is in the process of shifting some of the products from these plants to other facilities and considering third party assessment for its plants. The share price of Dr Reddy’s Labs was trading 2.54 per cent down at Rs 2,985.45. Sensex was down 71.47 points at 25,238.86.

9.15 am: The BSE Sensex and NSE Nifty opened on a weak to cautious note on Wednesday tracking global markets. Sensex opened 10.99 points down at 25,299.34. Nifty opened 6.20 points down at 7695.50.

Asian stock markets slipped further to two-month lows on Wednesday as crumbling oil prices took a toll on energy and resource shares, with cooling demand from China putting more pressure on resources-reliant economies.

Overnight on Wall Street, the S&P 500 lost 0.7 per cent, with the S&P energy sector falling 1.5 per cent in its fifth straight day of declines.

Back home, Sensex closed 219.78 points down at 25,310.33 on Tuesday, while NSE Nifty50 index settled 63.70 points down at 7,701.70. Benchmark indices extended losses on Tuesday, tracking weakness in global markets and poor exports data from China hinting towards weak global demand. Continued selling by FIIs also added to the weakness in Indian markets.

Shares of Amtek Auto surged almost 11 per cent on Tuesday on heavy volumes on Tuesday, defying an overall weak broader market trend, amid reports that fund house JP Morgan has recovered 85 per cent of the company’s bond dues.

(With agency inputs)

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