Sensex falls for 3rd day, ends 316 points down on global sell-off, banking and metal stocks fall

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Updated: February 3, 2016 5:49:35 PM

Sensex dived 315.68 points to close at 24,223.32, while Nifty settled below 7,400-mark by plunging 93.75 points to end at 7,361.80.

sensex, nifty, bse, nse, outlook 2016, stock market outlook 2016, top stocks for 2016The BSE Sensex and NSE Nifty opened on a weak note on Wednesday tracking SGX Nifty and global markets. (Photo: Reuters)

Extending losses for third consecutive day, the BSE Sensex and NSE ended 1.3 per cent down on Wednesday following their global counterparts that slumped after a decline in crude prices. Sensex dived 315.68 points to close at 24,223.32, while Nifty settled below 7,400-mark by plunging 93.75 points to end at 7,361.80.

“The continuing volatility in crude price has dragged the benchmark indices for the third day. The rising uncertainty in global market is influencing the investors to pull out funds from the emerging markets. At home the budget could be the next trigger since it is the FM’s turn to give confidence to the global investors by way of structural reforms and the way to achieve the fiscal deficit target of 3.5% in FY17, ” Vinod Nair, head-fundamental research, Geojit BNP Paribas Financial Services said.

India’s services activity data that rose at its fastest pace in 19 months in January also failed to impress that investors. Nikkei/Markit Services Purchasing Managers’ Index (PMI) surged to 54.3 in January from December’s 53.6, marking a seventh month above the 50-level that separates growth from contraction. Market participants also failed to get any solace with the Reserve Bank keeping its growth projections for Indian economy unchanged at 7.4 percent for the current fiscal, a tad higher than 7.3 percent forecast by the World Bank.

“Yesterday’s profit booking post RBI event extended today as buyers remained indecisive on a re entry ahead of the much awaited till budget announcement. Cues from global markets were not encouraging either, as US stress tests have brought forward the idea of negative interest rates. Though it was emphasized that it is hypothetical scenario and not a forecast, the stress test results are played up as a worrying indication towards US economy’s health, especially as Japan had only recently decided to go along the same line citing sluggish economy. Further, in this backdrop, the upcoming US Non Farm payrolls data assumes much more significance. Indian rupee has resumed its southbound journey after pausing near 68 last week, ” Anand James, co-head technical research desk, Geojit BNP Paribas Financial Services said.

BHEL was the worst-hit, down 4.86 per cent followed by NTPC at 4.10 per cent. Others laggards included Tata Steel, ICICI Bank, Tata Motors, Axis Bank, Cipla, RIL, SBI, Asian Paints, Wipro, ONGC and Adani Ports.

Bucking the trend, HUL gained the most by surging 2.66 per cent, while TCS rose 0.77 per cent, while Sun Pharma and Bajaj Auto rose by up to 0.24 per cent.

Sectorwise, the BSE power index suffered the most by falling 4.16 per cent, followed by capital goods 2.79 per cent, realty 2.63 per cent, infra 2.30 per cent, metal 2.03 per cent, PSU 1.96 per cent, banking 1.63 per cent, auto 1.62 per cent and oil&gas 1.58 per cent.

The broader markets also performed weak with the BSE small-cap index ending 2.25 per down while the mid-cap fall 1.30 per cent.

European shares fell on Wednesday as weak earnings from some leading companies weighed on markets.

Asian shares tumbled on Wednesday as oil prices dropped for a third day, prompting investors to seek shelter in safe-haven assets and lifting bonds and gold to multi-month highs. The MSCI’s broadest index of Asia-Pacific shares outside Japan fell 2.1 per centled by a 2.7 per cent fall in Hong Kong shares. Japan’s Nikkei lost 3.2 per cent, wiping out almost all of its gains made after the Bank of Japan on Friday had announced it would introduce negative interest rates. Overnight, the US S&P 500 index fell 1.9 per cent.

Markets through the day

3.50 pm: Sensex ended 315.68 points down at 24,223.32, while NSE Nifty settled the day 93.75 points down at 7,361.80. BSE Banking nd metal stocks fall.

3.26 pm: Dish TV shares were trading 13.30 per cent down at Rs 76.95. Sensex was trading 323.55 points at 24,215.45. NSE Nifty was trading 98.10 points down at 7,357.45.

3.08 pm: Hindustan Unilever was trading 2.91 per cent up at Rs 823.50 after BoFA Merrill upgraded its rating on the stock to “buy” from “neutral,” and raised target price to Rs 933 rupees from Rs 891. Sensex was trading 317.82 points down at 24,221.18. NSE Nifty was trading 90.05 points down at 7,365.50.

2.52 pm: Bajaj Finance shares were trading 10.34 per cent up at Rs 6432.15 after the lender reported 58 per cent jump in December-quarter earnings. Sensex was trading 192.13 points down at 24,346.87. NSE Nifty was trading 49.90 points down at 7,405.65.

2.38 pm: Bajaj Hindusthan Sugar Limited shares were trading 2.09 per cent down at Rs 16.40 after the country’s largest sugar firm’s net loss narrowed to Rs 66.88 crore in the quarter ended on December 31. Sensex was trading 188.97 points down at 24,350.03. NSE Nifty was trading 52.65 points at 7,402.90.

2.05 pm: Aurobindo Pharma shares were trading 0.65 per cent up at Rs 771.50 after it received final approval from the US health regulator to manufacture and market generic Isosulfan Blue injection in the American market. Sensex was trading 220.56 points down at 24,318.44, while NSE Nifty was trading 65.50 points down at 7,390.05.

1.51 pm: European shares fell on Wednesday, as weak earnings from some leading companies weighed on markets, although Syngenta surged after ChemChina agreed on a $43 billion bid for the Swiss seeds and pesticides group. The pan-European FTSEurofirst 300 index, which fell 2 per cent in the previous session, fell 0.6 per cent in early session trading. The euro zone’s blue-chip Euro STOXX 50 index  fell 0.8 per cent, Britain’s FTSE 100 declined 0.5 percent while Germany’s DAX fell 1 per cent. Sensex was trading 241.86 points down at 24,297.14. NSE Nifty was trading 66.90 points down at 7,388.65.

1.31 pm: Suzlon Energy shares hit new 52 Week low of Rs 13.75 and was trading 12.35 per cent down at Rs 14.90. Sensex was trading 136.44 points down at 24,402.56. NSE Nifty was trading 42.85 points down at 7,412.70.

12.56 pm: BSE Capital Goods index was trading 2.88 per cent down. Sensex was trading 200.40 points down at 24,338.60. NSE Nifty was trading 61.35 points down at 7,394.20.

12.36 pm: Country’s leading bourses BSE and NSE will conduct a mock trading session on Saturday to test the system performance and software related to trading and risk management, including algorithmic-based trades. The two bourses said separately that they will conduct mock trading sessions on Saturday, February 6, 2016. Sensex was trading 225.67 points down at 24,313.33. NSE Nifty was trading 66.25 points down at 7,389.30.

12.13 pm: Sun Pharmaceutical shares were trading 1.80 per cent up at Rs 849.35 after the company and its subsidiaries launched Imatinib Mesylate Tablets (therapeutic equivalent to Gleevec for indications approved by the FDA) in US market. Sun Pharma’s subsidiary received final approval for Imatinib Mesylate from FDA in December 2015. Sensex was trading 269.91 points down at 269.91. NSE Nifty was trading 79.55 points down at 7,376.00.

11.29 am: India’s services sector activity touched a 19-month high in January driven by strengthening underlying demand and improved weather conditions, a monthly survey showed on Wednesday. The Nikkei Business Activity index climbed to a 19-month high of 54.3 last month from 53.6 in December, pointing to a marked expansion of activity across the sector. Sensex was trading 236.47 points down at 24,302.53. Nifty50 was trading 70.25 points down at 7,385.30.

11.13 am: India’s largest realty firm DLF shares were trading 1.77 per cent up at Rs 95.00 after it reported 24 per cent rise in its consolidated net profit at Rs 163.95 crore for the quarter ended December on higher sales and one-time gain from stake sale in two projects to Singapore’s sovereign wealth fund GIC. Sensex was trading 264.85 points at 24,274.15. NSE Nifty was trading 83.80 points down at 7,371.75.

10.58 am: Majesco Ltd shares were trading 1.05 per cent up at Rs 575.00 after it reported its first quarterly profit on Tuesday. Sensex was trading 235.37 points down at 24,303.63. NSE Nifty was trading 69.90 points down at 7,385.65.

10.31 am: Oil futures extended losses into a third session in Asian trade on Wednesday, as US crude stocks last week surged to more than half a billion barrels and as Iran plans to boost exports from March. Brent for April delivery had dropped 17 cents to $32.55 a barrel as of 0344 GMT, after settling down $1.52, or 4.4 per cent. US crude, also known as West Texas Intermediate (WTI) , fell 15 cents to $29.73, having ended the previous session down $1.74, or 5.5 per cent. Sensex was trading 232.47 points down at 232.47. NSE Nifty was trading 71.75 points down at 7,383.80.

10.13 am: Crompton Greaves shares hit their 52-week low and were trading 24.18 per cent down at Rs 126.70 after it posted a consolidated net loss of Rs 107.03 crore in the quarter ended on December 31, 2015. Sensex was trading 219.02 points down at 24,319.98. NSE Nifty was trading 63.45 points down at 7,392.10.

10.02 am: Indian rupee broke below the 68-mark by depreciating 28 paise to trade at 68.26 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. This was the third consecutive day of fall. Sensex was trading 204.58 points down at 24,334.42. NSE Nifty was trading 55.25 points down at 7,400.30.

9.45 am: Jet Airways shares were trading 1.48 per cent up at Rs 610.70 after the Jet JetPrivilege, the award-winning loyalty and rewards management programme and frequent flyer programme of Jet Airways, entered into a reciprocal frequent flyer partnership with FlyerBonus, the loyalty scheme of Bangkok Airways. Sensex trades 168.83 points down at 24,370.17. NIfty was trading 55.40 points down at 7,400.15.

9.29 am: Tube Investments Ltd shares were trading 1.98 per cent up at Rs 415.10 after the Murugappa Group firm reported a 27.9 per cent rise in consolidated net profit at Rs 111.50 crore for the quarter ended December. The city-based company had posted net profit of Rs 87.14 crore during the corresponding period last fiscal. Sensex was trading 201.20 points down at 24,337.80. NSE Nifty was trading 70.20 points down at 7,385.35.

9.15 am: Sensex plunged over 200 points in opening trade and was trading 258.69 points down at 24,280.31. NSE Nifty was trading 83.60 points down at 7,371.95. Stocks of Birla Corporation were down 2.44 per cent at Rs 377.75 after the  flagship firm of the M P Birla Group, on Tuesday said it will take legal action against Lafarge India over the firm’s “inability” to go aheadwith the deal to sell its Jojobera and Sonadih cement plants.

8.34 am: The BSE Sensex and NSE Nifty are likely to open on a weak note on Wednesday tracking SGX Nifty and global markets.

At 8.32, SGX Nifty was down 0.95 per cent at 7,396.50.

Asian shares tumbled on Wednesday as oil prices dropped for a third day, prompting investors to seek shelter in safe-haven assets and lifting bonds and gold to multi-month highs. The MSCI’s broadest index of Asia-Pacific shares outside Japan fell 2.1 percentled by a 3.0 per cent fall in Hong Kong shares. Japan’s Nikkei lost 3.4 per cent, wiping out almost all of its gains made after the Bank of Japan had announced the introduction of negative interest rates on Friday. Overnight, the US S&P 500 index fell 1.9 per cent.

US stocks dropped on Tuesday after another steep fall in oil prices and a disappointing spending forecast from Exxon Mobil.

On Tuesday, Reserve Bank’s dovish stand on policy rates today failed to soothe jittery investor nerves, which were hit by a fresh slide in crude oil prices, as the market benchmark Sensex plummeted by 286 points to close at 24,539. The NSE Nifty also broke below the 7,500-mark by falling 100.40 points or 1.33 per cent to 7,455.55. Intra-day, it shuttled between 7,576.30 and 7,428.05.

Stocks of India’s largest realty firm DLF will be in focus as the company on Tuesday reported 24 per cent rise in its consolidated net profit at Rs 163.95 crore for the quarter ended December on higher sales and one-time gain from stake sale in two projects to Singapore’s sovereign wealth fund GIC.

(With agency inputs)

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