Sensex, Nifty end flat on F&O expiry; Bharti Airtel, Idea Cellular, Reliance Comm shares fall

By: | Updated: January 28, 2016 4:48 PM

The BSE Sensex and NSE Nifty closed on a flat note with marginal losses on the last day of derivatives expiry for January series.

Sensex, Nifty, BSE, NSEThe BSE Sensex and NSE Nifty closed on a flat note with marginal losses on the last day of derivatives expiry for January series.

The BSE Sensex and NSE Nifty closed on a flat note with marginal losses on the last day of derivatives expiry for January series. Sensex closed 22.82 points down at 24,469.57 on Thursday, while Nifty settled 13.10 points down at 7424.65.

Around 30 stocks ended the week in red in the 50-share index with shares of Idea Cellular tanked the most —4.47 per cent, followed by Larsen & Toubro (down 3.03 per cent), Bharti Airtel (down 2.96 per cent), Punjab National Bank (down 2.45 per cent) and Adani Ports (down 2.37 per cent). 

On the other hand, Vedanta, Cairn India and Power Grid gained 5.64 per cent, 4.51 per cent and 4.05 per cent, respectively.

Sectorwise, the BSE Telecom index and Capital Goods fell 2.41 per cent and 1.72 on Thursday. The BSE FMCG and Oil & Gas index gained 1.50 per cent and 1.17 per cent.

Gaurav Jain, director, Hem Securities, said, “Indices continue to trade rangebound amid lack of fresh cues and lacklustre earnings. The Federal Reserve kept the interest rates unchanged in its meet last night and acknowledged that the US economy was slowing down and expiry of derivative contracts weighed on the sentiments of the street.”

In scrip specific development, telecom stocks Bharti Airtel, Idea Cellular and Reliance Communications remained under pressure after the Telecom Regulatory Authority of India (TRAI) proposed auction of 700 MHz spectrum at a reserve price of Rs 11,485 crore per MHz. This is the highest reserve price fixed for a band ever since the process for spectrum auction started nearly five years ago. Shares of Bharti Airtel, Idea Cellular and Reliance Communications closed 2.32 per cent, 4.08 per cent and 1.43 per cent down at Rs 291, Rs 104.75 and Rs 62.15, respectively.

Power Grid rallied nearly 4 per cent after the company reported  better than expected Q3 numbers. The company cheered market players with a 31 per cent growth in its standalone net profits at Rs 1,613 crores, led primarily by a 23 per cent jump in revenues from its transmission business.

JustDial failed to meet market expectations with a 16 per cent fall in its net profits year on year. The company reported a net profit of Rs 26.99 crore against Rs 32.14 crores in the same quarter the previous fiscal. Shares of the company closed 8.50 per cent down at Rs 717.95.

Elecon, Gabriel, Astec, Advanta, DEN, Bharat Gear, Care Rating, IRB, LT, Nelco, PVR, Indoco, PVR, Pidilite, Orient Paper, Jay Shree Tea, TVS Motor, Saregama, Praj Industries, Philip Carbon, UPL, Therma, Suzlon, Siemens, V-Guard and Kokuyo Camlin may announce their earnings on Friday.

Asian equity markets ended mostly higher on Thursday, despite a poor lead from Wall Street after the Federal Reserve warned of slowing growth. Hong Kong shares closed higher after the People’s Bank of China pumped the largest amount of cash into the financial system in nearly three years in a bid to prevent a possible cash crunch ahead of the week-long Lunar New Year starting on February 8. However, China stocks slumped again to a fresh one-year low as panic selling resumed. Japanese stocks fell in choppy trade, with volatility in oil prices and fears of a global slowdown continuing to hurt sentiment, while cautious investors looked forward to the conclusion of the Bank of Japan’s policy meeting on Friday.

Asian Indices Last Trade              Change in Points Change in %   
Shanghai Composite 2,655.66 -79.9 -2.92
Hang Seng 19,195.83 143.38 0.75
Jakarta Composite 4,602.83 19.2 0.42
KLSE Composite 1,634.53 2.99 0.18
Nikkei 225 17,041.45 -122.47 -0.71
Straits Times 2,562.45 16.27 0.64
KOSPI Composite 1,906.94 9.07 0.48
Taiwan Weighted 7,905.10 55.27 0.7

Data Source: Ace Equity

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Markets through the day

3.30 pm: Benchmark indices remained volatile on F&O expiry on Thursday and ended the session slightly in red as sentiment remained weak in the absence of any positive trigger amid sustained capital outflows by foreign funds. Sensex closed 22.82 points down at 24,469.57 on Thursday, while Nifty settled 13.10 points down at 7424.65.

3.21 pm: Meanwhile, UBS analyst Gautam Chhaochharia sounds a note of caution about prospects for retail interest in Indian markets. In his report, ‘India Market Strategy, local retail inflows at risk?’ published on 27 January 2016, he points to the recent moderation in net inflows into equity mutual funds. In December 2015, net inflows were US$0.8 billion, and whilst that is a positive number, it is the lowest level in 18 months. Sensex was down 14.87 points at 24,477.52.

3.15 pm: The cash market segment of India’s leading stock exchange National Stock Exchange of India Limited (NSE) has witnessed healthy participation from clients across the nation. A 6 per cent increase in active clients’ participations was recorded in the year 2015. Majority of this additional participation has come from the western region of the country. Besides conventional places, data associated with some of the cities like Bangalore and Rajkot have shown significant growth. 

3.00 pm: Jindal Stainless (Hisar) shares were trading 5 per cent down at Rs 34.20 on the National Stock Exchange. Jindal Stainless (Hisar) marked a new beginning on Thursday by listing on the National Stock Exchange(NSE) and Bombay Stock Exchange(BSE) with the signature ‘bell ringing’ ceremony at NSE.

2.07 pm: Shares of Havells India were quoting 1.17 per cent up at Rs 303.50. The company on Wednesday reported 3.92 per cent rise in its net profit at Rs 120.77 crore for the quarter ended December 31, 2015 as compared to Rs 116.21 crore for the same quarter in the previous year. The company’s total income has increased by 8.07 per cent to Rs 1357.68 crore for the quarter under review from Rs 1256.29 crore for the corresponding quarter of the previous year. Sensex was up 50.51 points at 24,542. Nifty was up 15.45 points at 7,453.

2.03 pm: Sun Pharma Advanced Research Company (SPARC) shares were trading 1.52 per cent up at Rs 314.80. The company has received Securities and Exchange Board of India’s (Sebi’s) approval to raise up to Rs 250 crore through a rights issue. The company, which filed draft papers on September 18, 2015 seeking clearance from the markets regulator to raise funds through a rights issue, obtained the approval on January 22, 2016. The company will issue equity shares ‘aggregating up to Rs 25,000 lakh to its existing equity shareholders on a rights basis. In a rights issue, shares are issued to existing investors as per their holding at a pre-determined price and ratio.

1.37 pm: Power Grid Corporation stocks were trading 3.25 per cent up at Rs 142.90 after it said it would invest about Rs 328 crore in ramping up two transmission projects. Sensex was trading 25.62 points up at 24,518.01. NSE Nifty was trading 11.25 points up at 7,449.00.

1.20 pm: Tata Coffee shares were trading 1.50 per cent higher at Rs 98.20 after the company posted a 66 per cent increase in consolidated net profit at Rs 30.5 crore for the third quarter ended December 2015.

12:44 pm: The BSE Telecom index was up 1.81 per cent while markets retained lacklustre mood. Sensex was trading 26.44 points up at 24,465.95.

12:02 pm: Neyveli Lignite Corporation shares were trading 5.75 per cent down at Rs 71.35 after the company reported 84.6 per cent plunge in net profit to Rs 47.61 crore for the quarter ended December 31, 2015. Sensex was trading 20.49 points down at 24,471.90. nIFTY50 was trading 5.80 points down at 7,431.95.

11.36 am: Housing Development Finance Corp (HDFC) shares were trading 1.17 per cent down at Rs 1154.00 after it reported an 11 per cent rise in consolidated net profit at Rs 2,419 crore for the December quarter, driven by an uptick in commercial lending and better performance by subsidiaries. Sensex was trading 14.12 points down at
24,478.27. NSE Nifty was trading 0.55 points down at 7,437.20.

11.04 am: Local search engine Justdial shares were trading 7.49 per cent down at Rs 725.90 after it reported a 16 per cent decline in net profit at Rs 27 crore for the quarter ended December due to a sharp increase in expenses. Sensex was trading 9.93 points up at 24,502.32. NSE Nifty was trading 4.45 points up at 7,442.20.

10.53 am: Essar Oil shares were trading 0.10 per cent up at Rs 259.50. NSE has decided to
suspend trading in securities of Essar Oil from February 10 on account of the company delisting from the bourses. Sensex was down 1.27 points at 24,491.12.

10.31 am: Punj Lloyd shares surged as much as 8.7 per cent on Thursday after the company announced that its joint venture with Limak (50-50 share) has won Rs 2,780 crore TANAP gas pipeline contract in Turkey. 

10.01 am: Sensex was down 16.37 points at 24476.02. Nifty was down 4.40 points at 7,433. Today being the last trading session of the January futures and options expiry, winding-up of positions and profit-booking at select stocks took their toll.

9.53 am: Shares of Engineers India (EIL) fell as much as 5 per cent in the early trade on Thursday after the government said that it will sell 10 per cent of its stake in the company on Friday, which is likely to fetch over Rs 690 crore to the Exchequer. Sensex was down 12 points at 24,479.

9.51 am: Extending losses for the third session, the rupee weakened another 14 paise to a fresh
29-month low of 68.19 against the dollar in early trade following month-end demand from importers and banks amid a strengthening American currency overseas.

9.30 am: Meanwhile, OnMobile Global Ltd informed BSE that the company has secured a 3 year deal with Reliance Communications to provide Ringback Tones to its customers on GSM and CDMA networks across India. Shares of OnMobile Global were trading 1.58 per cent up at Rs 122.30.

9.28 am: IDFC Bank shares were trading 2.18 per cent up at Rs 51.65. In its first quarterly numbers, IDFC Bank on Wednesday posted Rs 242.16 crore profit for the three months ended December 31, 2015. The bank started operations in October last year, making this the first ever declared result of the bank. It was carved out of infrastructure lending firm IDFC Ltd after getting the banking licence from RBI.

9.21 am: In the 50-share index, HDFC, Idea Cellular, Bharti Airtel, Maruti Suzuki and Kotak Mahindra Bank were down between 0.76 per cent and 1.70 per cent. On the other hand, Power Grid, Cairn India, GAIL, NTPC and Tech Mahindra were up between 0.87 per cent and 2.30 per cent. Nifty was up 4.45 points, or 0.06 per cent, at 7,442.20. Sensex was trading 8.91 points up at 24,501.

9.16 am: Sensex was down 67.41 points at 24,424. IndiGo shares were trading 0.29 per cent up at Rs 935.50. Budget carrier IndiGo has added eight new flights in its pan-India network, which will take the total number of daily flights operated by the airline to 679.

9.15 am: Benchmark indices BSE Sensex and NSE Nifty opened on a flat note on Thursday tracking mixed global cues. Sensex opened 10.53 points down at 24,481.86, while NSE Nifty opened 11.25 points down at 7,426.50.

9.06 am: As per provisional figures, foreign institutional investors (FIIs)/ foreign portfolio investors (FPIs) sold shares worth net Rs 366.93 crore on 27 January 2016. Domestic institutional investors bought shares worth Rs 499.99 crore on that day.

9.03 am: Maruti Suzuki India, Bharti Airtel, ICICI Bank, Vedanta, Dabur India, Apar Ind, Alembic, Glenmark Pharma, HCC, Muthoot Finance, Titan, Sterlite Tech, Syndicate Bank and Vimta Labs to announce their results today.

8.42 am: The BSE Sensex and NSE Nifty may remain volatile on Thursday due to the expiry session of the January F&O series. Traders will be settling their positions and rolling over to next series.

Sensex, which had gained 523.74 points in the previous two sessions, edged higher by 6.44 points, or 0.03 per cent, at 24,492.39 on Wednesday. On the other hand, the NSE Nifty index closed higher by 1.60 points, or 0.02 per cent, at 7,437.75.

Shares of HDFC will remain in focus on Thursday. HDFC on Wednesday post market hours reported a rise of 11.03 per cent in consolidated net profit at Rs 2,419 crore for the third quarter ended December 31. HDFC’s net profit in the October-December period of the previous fiscal stood at Rs 2,179.01 crore.

Asian shares pushed back into the black on Thursday as investors dipped their toes back into equities and demand for safehaven assets such as the yen and sovereign bonds faded. Hang Seng and Nikkei were up by 0.40 per cent and 0.19 per cent respectively.

On Wall Street, the Dow had ended Wednesday with losses of 1.38 per cent, while the S&P 500 fell 1.09 per cent and the Nasdaq shed 2.18 per cent.

The Federal Reserve made no change to monetary policy on Wednesday, a month after raising interest rates for the first time in nearly a decade. In keeping the benchmark interest rate near 0.25 per cent, the Federal Open Market Committee acknowledged economic weakness overseas, particularly China, is a threat to the US recovery.

(With agency inputs)

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