The BSE Sensex and NSE Nifty plunged over 1 per cent for the second straight day on Tuesday on account of selling in IT and metal stocks coupled with weak global markets. Sensex closed 266.44 points down at 24,020.98, while Nifty 50 index settled 89.05 points down at 7,298.20.
In the 50-share index, Punjab National Bank slid the most — 6.68 per cent, followed by Tech Mahindra (down 4.82 per cent), Coal India (down 4.73 per cent), Bank of Baroda (down 4.63 per cent) and HCL Technologies (down 4.09 per cent). On the other hand, Lupin, Sun Pharma and NTPC gained 4.55 per cent, 2.55 per cent and 2.07 per cent.
Sectorwise, the BSE IT index, BSE TECk index and BSE Metal index plummeted 3.4 per cent, 2.98 per cent and 2.47 per cent, respectively. The BSE Oil & Gas index gained 0.20 per cent and remained the only sectoral indices.
S&P BSE Sensex on Feb 9, 2016
Vinod Nair, head, fundamental research, Geojit BNP Paribas Financial Services, said, “In spite of the revamp in GDP forecast to 7.6 per cent, due to the increase in 9 month GDP (April – Dec), the market is not positively reacting because of the negative influence from global events.”
IT stocks came under heavy selling pressure taking clues from the weak guidance given by Cognizant and renewed selling pressure in NASDAQ.
In a scrip specific development, Punjab National Bank shares closed 6.89 per cent down at Rs 87.85 after the bank posted 93.41 per cent fall in its net profit figures at Rs 51.01 crore for the quarter ended December 2015 against Rs 774.56 crore in the same quarter a year ago.
Motherson Sumi shares plunged 11 per cent after the company reported lower-than-expected results for the quarters ended December 2015. Consolidated net profit of the company jumped 20.91 per cent to Rs 307.35 crore during October-December period against Rs 254.21 crore in the corresponding quarter a year ago.
Asian markets ended in red on Tuesday after US and European markets fell sharply overnight on concerns over slowing global growth and speculation over the Federal Reserve raising rates further in March. Japanese shares fell after a sell-off in the European banking sector triggered safe-haven bids for the yen, sending dollar crashing through the 115-yen level to its lowest since November 2014. Many of the regional markets, including China, Hong Kong, South Korea, Malaysia, Singapore and Taiwan were closed for the Lunar New Year holiday.
Nikkei 225 declined 918.86 points or 5.4 per cent to 16,085.44 and Jakarta Composite was down by 30.32 points or 0.63 per cent to 4,768.63.
Markets through the day
3.30 pm: Sensex closed 266.44 points down at 24,020.98, while Nifty 50 index settled 89.05 points down at 7,298.20.
3.03 pm: Steel giant SAIL reported a standalone net loss of Rs 1,528.73 crore for the third quarter ended December 31, on lower income. The country’s largest steelmaker had reported a profit of Rs 579.09 crore in the corresponding quarter last fiscal, the company said in a BSE filing. Shares of SAIL were trading 4.67 per cent down at Rs 38.75.
2.52 pm: Meanwhile, Purvankara Projects shares hit new 52-week low of Rs 48. The scrip was trading 4.05 per cent down at Rs 48.60. Sensex was down 225 points at 24,061.
2.38 pm: Sensex was down 229 points 24,058. Nifty was trading 70.55 points down at 7,316.
2.26 pm: European stocks fell extending sharp losses from the previous session. The pan-European FTSEurofirst 300 index, which had fallen 3.4 percent in the previous session, lost more ground to decline by 0.3 percent in early session trading. Sensex was trading 268.33 points down at 24,019.09. Nifty50 dropped 89.55 points to trade at 7,297.70
2.08 pm: Sensex was down 295 points at 23,991. Gujarat Mineral Development Corporation shares were trading 0.65 per cent up at Rs 62.30. The company reported 39.86 per cent fall in its net profit at Rs 47.92 crore for the quarter ended December 31, 2015 as compared to Rs 79.68 crore for the same quarter in the previous year. The company’s total income decreased by 16.34 per cent to Rs 299.20 crore for the quarter under review from Rs 357.64 crore for the corresponding quarter of the previous year.
1.31 pm: BSE Metal index was down 2.20 per cent. Sensex was trading 241.14 points down at 24,046.28. NSE Nifty was trading 84.35 points down at 7,302.90.
1.13 pm: JK Tyres & Industries shares were trading 2.74 per cent down at Rs 86.95 after the company reported 20.5 per cent increase in consolidated net profit at Rs 110.64 crore for the third quarter ended December 31, 2015. Sensex was trading 259.04 points down at 24,028.38. NSE Nifty was trading 87.80 points down at 7,299.45.
12.38 pm: Sensex was trading 332.78 points down at 23,954.64. NSE Nifty was down 105.95 points at 7,281.30. Competition Appellate Tribunal has stayed penalties totalling Rs 106 crore imposed by fair trade watchdog CCI on leading carriers IndiGo, Jet Airways and SpiceJet for alleged cartelisation in fixing fuel surcharge on air cargo. SpiceJet shares were trading 3.03 per cent down at Rs 75.20, while InterGlobe Aviation Ltd shares were down 1.85 per cent down at Rs 807.25 and Jet Airways were trading 2.83 per cent down at Rs 576.70.
12.15 pm: Shares of Punjab National Bank were trading 4.45 per cent down at Rs 90.15. The bank posted 93.41 per cent fall in its net profit figures at Rs 51.01 crore for the quarter ended December 2015 against Rs 774.56 crore in the same quarter a year ago.
11.45 am: Motherson Sumi shares plunged over 6 per cent after the company reported lower-than-expected results for the quarters ended December 2015. Consolidated net profit of the company jumped 20.91 per cent to Rs 307.35 crore during October-December period against Rs 254.21 crore in the corresponding quarter a year ago.
11.28 am: GlaxoSmithkline Consumer Healthcare was trading in green on registering a rise of 36.76 per cent in its net profit at Rs 131.85 crore in Q3FY16 as compared to Rs 96.41 crore in the corresponding quarter previous year. Shares of GlaxoSmithkline Consumer Healthcare were trading 1.37 per cent up at Rs 5,900. Sensex was down 314 points at 23,972.
11.27 am: Traders were seen piling position in Oil & Gas and Power stocks while selling was witnessed in IT, TECK and Metal sector stocks.
11.14 am: Meanwhile, shares of Tech Mahindra hit their new 52-week low of Rs 448. The scrip was trading 4.33 per cent down at Rs 450.25.
11.10 am: GAIL shares gained as much as 2.7 per cent ahead of Dec-qtr results due later in the day. Traders cite expectations of better-than-expected earnings. According to Thomson Reuters, the gas company is expected to post a net income of Rs 460 crore on revenue of Rs 14550 crore. Sensex was down 277 points at 24009. Nifty was down 87.65 points at 7,299.
10.38 am: Motherson Sumi shares were trading 1.07 per cent down at Rs 268.55 ahead of its Q3 results. Sensex was down 286 points at 24,001.
10.23 am: The BSE Information Technology index slid over 3 per cent in the early trade on Tuesday after the Nasdaq-listed Cognizant Technology Solutions, a IT service provider issued a weak sales forecast. Cognizant, whose rivals include Indian IT services firms such as Tata Consultancy Services and Infosys Ltd said the financial services sector was off to a slow start this year. Shares of Infosys and TCS were trading 3.79 per cent and 3.33 per cent down at Rs 1,105.50 and Rs 2,289.60, respectively. Sensex was down 284 points at 24,002.
9.58 am: Sensex was trading 246 points down at 24,041. Brokers said sentiment remained weak in the absence of any positive trigger amid sustained capital outflows by foreign funds.
9.48 am: The rupee again broke below the 68-mark by depreciating 26 paise to 68.20 against the dollar
in early trade at the Interbank Foreign Exchange due to increased demand for the American unit from importers and banks amid a lower opening in the domestic equity market. Sensex was down 246 points at 24,041.
9.44 am: Dr Reddy’s Laboratories’ US subsidiary, Promius Pharma, LLC, US, has received approval for Sernivo (betamethasone dipropionate) Spray, 0.05% from the US Food and Drug Administration (USFDA). Sernivo Spray, a prescription topical steroid, is indicated for the treatment of mild to moderate plaque psoriasis in patients 18 years of age or older. The commercial launch of the product is planned for the coming quarter. Shares of Dr Reddy’s were trading 0.50 per cent down at Rs 3055.15.
9.40 am: In the 50-share index, Bank of Baroda, Bosch, State Bank of India, Axis Bank and Bharti Airtel were up between 1.65 per cent and 2.53 per cent. On the other hand, Tata Motors, ONGC, IndusInd Bank, Vedanta and Kotak Mahindra Bank were down between 3.02 per cent and 4.40 per cent.
9.34 am: Just Dial shares were trading 6.46 per cent down at Rs 509.60. Sensex was down 275 points at 24,026. Nifty was down 78.25 points at 7,309.
9.17 am: Sensex was down 354 points at 23,933.02. Strides Shasun and Tata Motors were down by over 1 per cent in the early trade. Nifty was down 89.60 points at 7,297.
9.15 am: Sensex opened 210.57 points down at 24,076.85, while Nifty opened 83.30 points down at 7,303.95.
8.49 am: Domestic equity markets are likely to open in red on Tuesday tracking Nifty futures on the Singapore Stock Exchange (SGX Nifty) and weak global markets. However, the strong the GDP numbers might protect the index from falling sharply.
At 8.35 am (IST), SGX Nifty was down 0.84 per cent, or 61.50 points, at 7,312.50.
Asian share markets were down on Tuesday as stability concerns put a torch to European bank stocks and sent investors stampeding to only the safest of safe haven assets.
Japan’s Nikkei share average tumbled to a 2-1/2-week low on Tuesday morning, with banks taking the brunt of the sell-off, while a stronger yen dragged down stocks across the board.
Wall Street did pare its losses but still ended deep in the red. The Dow lost 1.1 per cent, while the S&P 500 fell 1.42 per cent and the Nasdaq 1.82 per cent.
European equities fell sharply on Monday, extending the previous week’s steep losses, with cyclical sectors losing ground on persistent concerns about the pace of global economic growth. The rout began in Europe where the FTSEurofirst 300 index shed 3.4 per cent to its lowest since late 2013, led by a near 6 per cent dive in the banking sector.
Back home, Sensex plunged by 330 points to 24,287.42 on Monday, while NSE Nifty also moved down by 101.65 points or 1.36 per cent to close at 7,387.25 after moving in a range of 7,512.55 to 7,363.20.
Drug firm Strides Shasun and Tata Motors will remain in focus on Tuesday. Strides Shasun has acquired controlling stakes in Kenya’s Universal Corporation and Australia-based Generic Partners Holdings in a bid to strengthen its business in these regions.
Tata Motors on Monday said a lockout has been declared at the Dharwad plant of one of its subsidiaries, Tata Marcopolo Motors, following “illegal strike” by workmen over wage negotiations.
(With agency inputs)