Sensex gains 157 points on F&O expiry, Nifty settles above 7,940; Cadila Healthcare falls nearly 15%

By: | Updated: December 31, 2015 4:55 PM

The BSE Sensex and NSE Nifty closed in green on Thursday. Sensex closed 157.51 points up at 26,117.54, while Nifty settled 50.10 points up at 7,946.35.

BSE Sensex, NSE Nifty, Stock market todayThe BSE Sensex and NSE Nifty closed in green on Thursday. Sensex closed 157.51 points up at 26,117.54, while Nifty settled 50.10 points up at 7,946.35. (Photo: Reuters)

The BSE Sensex and NSE Nifty closed in green on Thursday on the the back of buying in front line blue chip counters. Sensex closed 157.51 points up at 26,117.54, while Nifty settled 50.10 points up at 7,946.35. However, volatility was at a higher side during last leg of session as F&O traders rolled over their positions to next month contracts.

Traders turned optimistic as India outpaced China as the world’s fastest growing economy in 2015 and is expected to clock 7-7.5 percent growth in the New Year provided the reform momentum continues and the business environment improves.

In the 30-share index Sensex, HDFC, Coal India, Infosys, Bajaj Auto and Bharti Airtel gained between 1.13 per cent and 2.55 per cent. On the other hand, Axis Bank, Hero MotoCorp, Dr Reddy’s Labs, ICIC Bank and Larsen & Toubro slid between 0.50 per cent and 1.25 per cent.

Shreyash Devalkar, fund manager, equities, BNP Paribas Mutual Fund said, “Buying interest by domestic participants kept market sentiments upbeat on Thursday.”

Gaurav Jain, director, Hem Securities, said, “Markets shut the last day of 2015 and expiry day of December series on a positive note. Further, Finance Minister’s wishlist for the new year listing his top priorities as rolling out the long-delayed GST, rationalising direct taxes, ensuring further ease of doing business and putting more money for social and physical infrastructure boosted the confidence of the street.”

Barring the BSE Consumer Durables index (down 0.21 per cent), BSE Healthcare index (down 0.15 per cent), BSE Bankex (down 0.09 per cent) and BSE Capital Goods index (down 0.08 per cent), rest all other sectoral indices ended with gains. The BSE Realty index gained the most — 1.52 per cent, followed by BSE Telecom index (up 1.35 per cent) and BSE TECk index (up 1.18 per cent).

Market breadth for the day remained positive and advances to declines ratio for Nifty stood at 31:18 for the day. Volumes for Nifty stocks stood at 1,554 lakh against Wednesday’s volumes of 1,100 lakh for Nifty stocks.

In a scrip specific development, Cadila Healthcare fell nearly 15 per cent after the drugmaker said it received a US Food and Drug Administration warning for violating manufacturing standards at two of its production facilities. The share price of the company closed 14.89 per cent down at Rs 327.80.

Jet Airways rose 6.84 per cent while Godrej Consumer Products gained more than 3 percent after they were included in the NSE derivatives markets.

Shares of Lanco Infratech gaind over 3 per cent after the company’s board approved the issuance of compulsory convertible debentures (CCD) worth Rs 350 crores to IDFC Bank on a preferential basis.

Minister of State for Petroleum & Natural Gas Dharmendra Pradhan said that Compressed Natural Gas (CNG) in the National Capital Region (NCR) will be sold at concessional rates during odd hours of the day to reduce the rush at CNG pumps.

On the global front, European markets were trading in red in early deals tracking weak US cues and a weak trend in Asia ahead of the impending New Year’s holiday. Trading volume remained thin as many European markets remained close today for New Year’s Eve. Asian markets ended mostly in red as the slide in oil prices and a firmer dollar on concerns about slower global growth sapped investors’ appetite for risk.

Asian Indices Last Trade              Change in Points Change in %   
Shanghai Composite 3,539.18 -33.69 -0.94
Hang Seng 21,914.40 32.25 0.15
Jakarta Composite
KLSE Composite 1,692.51 -0.63 -0.04
Nikkei 225
Straits Times 2,882.73 -2.78 -0.1
KOSPI Composite
Taiwan Weighted 8,338.06 58.07 0.7


Markets through the day

3.30 pm: BSE Sensex and NSE Nifty bid-adieu ‘2015’ on a bullish note on Thursday. It was a decent finish to the sluggish year of trade during which the key indices declined by 5 per cent (Sensex) and 4 per cent (Nifty). Sensex closed 157.51 points up at 26,117.54, while Nifty settled 50.10 points up at 7,946.35.

3.00 pm: Domestic equity markets continued their firm trade in late afternoon session on account of buying in front line blue chip counters. Sensex was up 120 points at 26,080. Nifty was trading 47 points up at 7,943.

2.25 pm: Ramco Cements is reportedly planning to setup a 0.9 Mta cement grinding plant at Choudwar, district Cuttack, Odisha. The estimated cost of the project is Rs 406 crore ($61.21 million). The project has received clearance from the Government of Odisha, with construction set to commence in Q1 2016. The share price of Ramco Cements were trading 6.23 per cent up at Rs 401. Sensex was up 88 points at 26,046. Nifty was up 26.95 points 7,923.20.

1.46 pm: Sensex was up 33 points at 25,993. ONGC was trading 1 per cent down at Rs 237.55.

1.30 pm: Shares of Petronet LNG were up 3.44 per cent at Rs 255.95. The scrip gained on reports that Qatar agreed to lower gas prices for India. According to PTI, LNG prices to fall by about $5.50 per mmBtu after Qatar agrees to reflect slump in energy rates in India gas deal.

1.25 pm: HDFC and HDFC Bank were trading 1.11 per cent and 0.74 per cent up at Rs 1,246.85 and Rs 1082.05.

1.13 pm: Shares of SJVN surged over 5 per cent in the after noon trade. Sensex was marginally up 11 points at 25,971.

12.57 pm: Traders were seen piling up position in Realty, TECK, IT and Power stocks, while selling was witnessed in Capital Goods, Consumer Durables and Oil & Gas sector stocks. The benchmark index Sensex was up 35.53 points at 25,995.

12.44 pm: Prakash Steelage shares gained as much as 12 per cent on Thursday after the stainless steel tubes and pipes manufacturer on Wednesday said that Spain’s Tubacex SA has completed acquisition of a majority 67.5 per cent stake in its seamless stainless steel tubes division. Prakash Steelage had entered into a joint venture (JV) agreement with the Spanish stainless steel maker in February, 2015. Prakash Steelage shares were trading 7.13 per cent up at Rs 151 in the afternoon trade.

12.35 pm: SpiceJet shares were trading nearly 3 per cent up at Rs 74.80. The aviation player has received its shareholders’ approval to raise funds worth up to Rs 5,000 crore through various instruments. The company is likely to use this fund to expand its fleet. Currently, the company has some 41 planes in its fleet, including 25 Boeing 737s, 14 Bombardier Q400s and two leased Airbus 320 family.

12.31 pm: INOX Leisure informed that it has commenced the commercial operations of a Multiplex Cinema Theatre, taken on Lease basis, and located at Sobha City Mall, Thrissur with effect from December 31, 2015. The said Multiplex Cinema Theatre has 6 screens and 1,368 seats. INOX, along with Satyam Cineplexes Limited, is now present in 57 cities with 105 multiplexes, 413 screens and a total seating capacity of 107,576 seats across India. The share price of INOX Leisure was trading 0.86 per cent up at Rs 240.50.

12.03 pm: Sensex was up 45.36 points at 26,005. The BSE Midcap and BSE Smallcap index were up 0.03 per cent and 0.34 per cent, respectively. Sentiments got some support with the report that foreign portfolio investors (FPIs) bought shares worth a net Rs 152.20 crore on December 30, 2015. Besides, short-covering by speculators in view of December monthly expiry in the futures and options space also supported the upside.

11.39 am: Indian rupee, after making a weak start, recouped a lot of ground and was trading strong against dollar on Thursday on the back of positive local equities. Indian rupee has also derived some support from falling oil prices and ensuing mitigation of India’s current account deficit. However, month end dollar demand from banks and importers and lack of directional cues from currency markets globally weighed on the sentiment. Currency markets in most of Asia and Europe were shut for the day on account of New Year’s Eve. On the global front, the dollar edged down against the yen in quiet trade Thursday as investors turned attention to the pace of further Federal Reserve interest rate increases and the health of the US economy.

11.24 am: The market breadth on BSE was positive, out of 2,289 stocks traded, 1,246 stocks advanced, while 854 stocks declined on the BSE.

11.11 am: Shares of Jindal Steel and Power were trading 2.22 per cent up at Rs 96.80. The BSE Metal index was up 0.16 per cent at 7,350.65.

10.44 am: Cadila Healthcare shares fall over 15 per cent in the morning trade on Thursday after the pharma company informed stock exchanges that it has received a warning letter from the US FDA relating to its Moraiya formulation facility and Ahmedabad API facility (Zyfine). Sensex was up 13 points at 25,973.

10.08 am: Shares of Nitco were trading 10.22 per cent up at Rs 50.70 in the morning trade. Sensex was up 25 points at 25,985. Nifty was up 8.25 points at 7,904.

9.46 am: The rupee weakened 6 paise to quote at 66.45 against the dollar in early trade today on increased month-end demand for the American currency from importers and banks.

9.45 am: Shares of JMT Auto were trading nearly 5 per cent down at Rs 86. Troubled auto components maker Amtek Auto has pledged its entire stake of nearly 71 per cent
in group firm JMT Auto with IL&FS Trust Company.

9.25 am: In the 30-share index, Dr Reddy’s Lab, Coal India, Infosys, Lupin, HDFC Bank, HDFC and Tata Motors were up between 0.35 per cent 0.99 per cent. Sensex was up 6.91 points at 25,966.

9.15 am: Sensex and Nifty opened 20.83 points and 1.55 points up at 25,980 and 7,897.80.  Today is the last trading session of December contracts in the derivatives segment.

9.00 am: For a list of stocks that could see some market action today click here

8.38 am: The BSE Sensex and NSE Nifty are likely to open on a flat note on Thursday tracking SGX Nifty and Asian markets. At 8.16 am (IST), SGX Nifty was marginally up 4 points, or 0.05 per cent, at 7,913.

Volatility can be expected in the latter part of the trade due to F&O expiry as traders will roll over positions to the January series. There will be some cautiousness in the markets with the head of the International Monetary Fund (IMF) Christine Lagarde stating that global economic growth will be “disappointing” next year. She said the prospect of rising interest rates in the US and an economic slowdown in China were contributing to uncertainty and a higher risk of economic vulnerability worldwide.

Asian peers, Hang Seng was up 0.14 per cent at 21,913.79, while Shanghai was down 0.14 per cent at 3,568.04.

Losses in energy stocks weighed on Wall Street on Wednesday, where the Dow ended down 0.66 per cent. The S&P 500 fell 0.72 per cent and the Nasdaq 0.82 per cent.

Domestic equity markets on Wednesday failed to make good use of the early momentum in a fluctuating trade as the benchmark Sensex broke below the psychological 26,000-mark by falling over 119 points amid profit-booking and a mixed global trend. The broader NSE Nifty too cracked below the 7,900-level. The 50-share index closed lower by 32.70 points, or 0.41 per cent, at 7,896.25.

Shares of GIC Housing Finance and Amtek Auto will remain in focus on Thursday. GIC Housing Finance on Wednesday said it will acquire up to 16 per cent stake in LIC Nomura Mutual Fund Asset Management Company for Rs 22.68 crore.

Auto components maker Amtek Auto has pledged its entire stake of nearly 71 per cent in group firm JMT Auto with IL&FS Trust Company (ITCL). Amtek Auto has pledged 18,07,06,100 shares of JMT Auto, constituting 71.73 per cent stake, with the ITCL on December 29, JMT Auto on Wednesday said in a regulatory filing.

(With agency inputs)

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