The BSE Sensex and NSE Nifty pared their early gains and ended lower on Tuesday after the International Monetary Fund (IMF) stated that China and Japan’s economies are expected to slow sharply over the next two years.
Domestic equity indices BSE Sensex and NSE Nifty pared their early gains and ended lower on Tuesday after the International Monetary Fund (IMF) stated that China and Japan’s economies are expected to slow sharply over the next two years amid disappointing corporate results. The 30-share index closed 207.27 points down at 25,229.70, while Nifty settled 58.90 points down at 7,747.
In the 50-share index, Aurobindo Pharma, Bharti Airtel, Bharti Infratel, Power Grid and Idea Cellular gained between 1.60 per cent and 4.15 per cent. On the other hand, Coal India, Lupin, BHEL, Ambuja Cements and ICICI Bank slid between 2.44 per cent and 3.72 per cent.
Traders were seen selling in metals, oil and gas, FMCG and banking stocks while buying was witnessed in realty and telecom sector stocks.
Vinod Nair, head of research, Geojit BNP Paribas Financial Services, said, “The market witnessed steep profit booking from the upside due to the weak opening in the European market led by poor results. The further appreciation of the Yen continued to be an overhang in the global market. In India the market is losing its shine after a good start for Q4 results due to disappointing numbers from banks. We are turning cautious ahead the poor set of results likely to hit the market in the latter half of the season.”
The IMF has retained its growth forecast for India this year at 7.5 per cent, largely driven by private consumption even as weak exports and sluggish credit growth weigh on the economy.
In scrip specific development, Aurobindo Pharma shares surged over 4 per cent after the pharma company received USFDA approval for its epilepsy prevention drug Lacosamide. Emmbi Industries advanced 18 per cent after the Department of Scientific and Industrial Research, Government of India, issued Certificate of Registration recognizing Emmbi Innovation Lab an R&D arm of the company as ‘In-House R&D Unit’.
For upcoming trading sessions, Karthik Rangappa, VP-education services, Zerodha, “We anticipate that the markets will continue to go lower and perhaps touch the 7,700 mark this week. However setting up a fresh short trade here would be risky as the underlying market sentiment is still bullish, and the reversals could be sharp. Traders can look to at setting up long trades between 7,675 and 7,700.”
Asian equity markets ended mixed on Tuesday, with China’s Shanghai Composite index ending higher in thin trading following the holiday weekend after President Xi Jinping pledged to maintain the healthy development of the stock market. Investors shrugged off the latest survey from Caixin, which revealed that activity in China’s vast manufacturing sector unexpectedly declined further in April despite government stimulus. The manufacturing PMI fell to 49.4 from 49.7 in March. However, markets in Hong Kong, Malaysia, Singapore and Taiwan fell sharply as trading resumed after a long weekend. The Japanese market was closed on Tuesday for the Constitution Day holiday.
Markets through the day
3.30 pm: The 30-share index closed 207.27 points down at 25,229.70, while Nifty settled 58.90 points down at 7,747.
3.19 pm: ICICI Bank was trading 2.45 per cent down at Rs 221.40. The private sector lender, which posted a massive plunge in net profit in the March quarter on a spike in bad loans, expects the asset quality pain to continue at ‘elevated levels’ this fiscal with the top private lender putting a whopping Rs 44,000 crore more of assets on a watch-list.
3.17 pm: Shares of Eicher Motors were trading 0.28 per cent up at Rs 19,930. Eicher Motors’ motorcycle division has reported a 42 per cent jump in total sales in April 2016 at 48,197 units, as against 33,918 units in the same month last year. During April 2016, the number of motorcycle units exported, increased by 45 per cent to 1,160 units from 800 units in April 2015.
2.55 pm: Sensex was down 212 points at 25,224. Century Textiles & Industries has reported results for the fourth quarter and year ended March 31, 2016. Shares of the company was trading 3.92 per cent down at Rs 613.55 after the company posted a fall of 22.44 per cent in its net profit at Rs 9.16 crore for the quarter ended March 31, 2016 as compared to Rs 11.81 crore for the same quarter in the previous year. Total income of the company has decreased by 2.38 per cent at Rs 2,059.28 crore for quarter under review as compared to Rs 2,109.54 crore for the quarter ended March 31, 2015.
2.28 pm: European shares slipped to a three-week low on Tuesday, with Commerzbank leading decliners after a slump in profits and miners tracking lower metals prices following weak factory data from China. Sensex was trading 162 points down at 25,274.97, while Nifty was trading 42.85 points down at 7,763.05.
1.58 pm: Emmbi Industries shares surged nearly 19 per cent to Rs 81.70. The Department of Scientific and Industrial Research (DSIR), Government of India, issued Certificate of Registration recognizing Emmbi Innovation Lab an R&D arm of Emmbi Industries as ‘In-House R&D Unit’. The certificate is valid from March 22, 2016 to March 31, 2018 meaning three financial years. The Department of Scientific and Industrial Research (DSIR) is a part of the Ministry of Science and Technology, has a mandate to carry out the activities relating to indigenous technology promotion, development, utilization and transfer.
1.43 pm: Sensex was trading 158.84 points down at 25,278.13, while Nifty was down 50.15 points at 7,755.75.
IPO Update: Parag Milk Foods is coming out with an initial public offering (IPO) on May 4 to raise Rs 753-767 crore from the equity market at a price band of Rs 220-227 per equity share.
12.52 pm: Benchmark indices pared their day’s gains and were trading in red in the afternoon trade. Sensex was down 23.66 points at 25,413.31. Nifty was trading 7.90 points down at 7,798.
12.51 pm: Sales figures released by auto companies for the month of April 2016 showed healthy performance, better than expected on year-on-year (yoy) as well as month-on-month (MoM) basis for all segments. Read More: Auto companies cruise in April; Maruti Suzuki, TVS Motors among 5 stocks to bet on
12.19 pm: Aurobindo Pharma shares gained over 4 per cent on USFDA approval for its epilepsy prevention drug Lacosamide. Read More
11.43 am: Tata Motors on Monday reported 9.9 per cent growth in sales at 39,763 units in April compared with 36,190 in the same month last year. Domestic sales of Tata Motors’ commercial and passenger vehicles rose 11 per cent at 35,978 units during the month as against 32,404 in April 2015.
11.36 am: Rupee strengthened against US dollar in early trade on Tuesday on selling of the American currency by exporters amid foreign fund inflows. Further, weakness in dollar against some other currencies overseas and a higher opening in the domestic equity market too supported the rupee. On the global front, the US dollar fell below 106.00 yen for the first time in about 18 months on Tuesday, as the yen surged against the Australian dollar after Australia’s central bank cut interest rates to a record low of 1.75 per cent. Sensex was up 128 points at 25,565. Nifty was up 41.95 points at 7,847.
11.11 am: The 30-share index was trading 138.50 points up at 25575.47, while Nifty was up 46.50 points at 7,852.40.
10.48 am: Atul Auto shares dipped as much as 7.81 per cent in the early trade on Tuesday after the company reported 50.36 per cent drop in sales for the month of April 2016 at 1,242 units as compared to 2,502 units sold in April 2015. Here is why Atul Auto April sales fall in April
10.27 am: Hero MotoCorp shares gained over 1 per cent on Tuesday on reporting 15 percent growth in April sales. The world’s largest two-wheeler manufacturer, commenced the new financial year (FY) 2016-17 with robust six-lakh plus sales and double digit growth in the month of April. Sustaining its performance trajectory in the past few months, Hero sold 612,739 units of two-wheelers in April, registering a sturdy double-digit growth of 15 per cent over the corresponding month last year when the company had sold 533,305 units. Sensex was up 202 points at 25,639.
10.00 am: Shares of private shipyards players such as ABG Shipyard, Reliance Defence and Larsen & Toubro advanced in early trade on Monday after the government on Monday granted infrastructure status to the shipyard industry. Read more
9.39 am: Sensex surged further and was trading 253 points up at 25,690. In the 30-share index, Adani Ports, Tata Motors, Larsen & Toubro, HDFC and NTPC were up between 1.80 per cent and 3.30 per cent.
9.30 am: The BSE Midcap index which outperformed other major indices on Monday was trading 0.63 per cent up at 11235. The BSE Smallcap index was up 0.71 per cent at 11,142. Looking to buy some midcap stocks for your portfolio click here.
9.22 am: Sensex climbed 198.85 points at 25,635 on firm global cues. Nifty was trading 54.60 points up at 7,860.
9.16 am: The government has granted infrastructure status to the shipyard industry, a move that will help the sectoral players get long-term financing at cheaper rates. The move will benefit private shipyards of L&T, Reliance Defence and Engineering and ABG Shipyard. ABG Shipyard was trading higher by 4.28 per cent at Rs 47.55.
9.15 am: The BSE Sensex opened 63.17 points, or 0.25 per cent, up at 25,500.14, while NSE Nifty opened 18.90 points, or 0.24 per cent, up at 7,824.80.
9 am: Following a weak set of numbers for the three months to March, ICICI Bank’s market value fell below that of Kotak Mahindra Bank (KMB) in intra-day trade on Monday. Read More
8.47 am: The BSE Sensex and NSE Nifty are likely to open on a cautious note on Tuesday tracking Nifty futures on the Singapore Stock Exchange (SGX Nifty) and firm global cues.
At 8.24 am (IST), SGX Nifty was down 17 points, or 0.22 per cent at 7,821.50.
Asian stocks snapped a four-day losing streak on Tuesday as an overnight bounce in US shares boosted risk appetite while gold briefly popped to a one-year high on growing expectations of more policy stimulus. Asian peer, Shanghai Composite Index was trading 1.58 per cent up at 2,984.76.
US stocks rose on Monday, rebounding from losses last week, as financials gained with Berkshire Hathaway and dollar weakness eased worries about corporate earnings.
The Dow Jones industrial average closed up 117.52 points, or 0.66 per cent, to 17,891.16, the S&P 500 gained 16.13 points, or 0.78 per cent, to 2,081.43 and the Nasdaq Composite added 42.24 points, or 0.88 per cent, to 4,817.59.
Back home, the 30-share index stayed in the negative zone throughout the day and settled 169.65 points or 0.66 per cent lower at 25,436.97 after touching a low of 25,341.14. This is the weakest closing since April 12.
Tata Motors on Monday reported 9.9 per cent growth in sales at 39,763 units in April compared with 36,190 in the same month last year. Domestic sales of Tata Motors’ commercial and passenger vehicles rose 11 per cent at 35,978 units during the month as against 32,404 in April 2015.
(With agency inputs)