The BSE Sensex and NSE Nifty opened on a flat note on Wednesday tracking mixed Asian markets.
Domestic equity markets slid more than 1 per cent on Wednesday following rising concerns about India Inc earnings, falling commodity prices and weak global markets. Sensex closed 381.95 points down at 25,482.52, while Nifty 50 index fell 105.75 points at 7,731.80.
In the 50-share index, share price of Hindalco declined the most 5.44 per cent, followed by Infosys (down 3.87 per cent), Tata Steel (down 3.77 per cent), Punjab National Bank (down 3.71 per cent) and Vedanta (down 3.20 per cent). On the other hand, Idea Cellular, Asian Paints, GAIL, BPCL and Coal India gained 3.40 per cent, 1.64 per cent, 1.60 per cent, 1.22 per cent and 0.50 per cent, respectively.
Traders overlooked some big ticket reform measures by the government, as the union cabinet approved 10 per cent stake sale in Coal India, initial public offer of Cochin Shipyards, approved 3 per cent interest subsidy for exports, while empowered roads ministry to revive 34 stalled projects by appropriate measure.
Shreyash Devalkar, fund manager, equities, BNP Paribas Mutual Fund, said, “Key benchmark indices fell sharply in Wednesday’s trade as global stock markets remained cautious following a reemergence of security concerns in Paris as well as elsewhere in Europe.”
Hectic buying activity was witnessed in some sugar stocks on reports that the government is planning to offer a subsidy of Rs 1,200 crore to farmers.
In the scrip specific development, Dishman Pharmaceuticals and Chemicals gained 1.85 per cent on Wednesday after the company clarified in a notice that it has not received any communication or warning from FDA due to Clovis Oncology issue.
Valiant Communications jumped over 14 per cent after the company stated that it has got an order worth Rs 8.03 crore from Power Grid Corporation of India.
Barring the BSE Consumer Durables index (up 0.26 per cent) on the Bombay Stock Exchange (BSE), rest all other sectoral indices ended in red. The BSE IT index, BSE Bankex and BSE TECk index plunged 2.29 per cent, 1.95 per cent and 1.81 per cent, respectively.
Gaurav Jain, director, Hem Securities, said, “A sudden sharp fall shed past two-day gain for the Indian benchmarks on the back of weak global equities. Intensifying geopolitical worries in Europe, weakening of rupee, fall in commodity prices and poor industrial production numbers of USA spoiled the sentiment.”
Foreign investors were seen as extending their selling spree. They have been net sellers in November, selling around $648 million worth of equity shares during the month so far.
Overall market breadth remained weak on the BSE as 1,615 stocks ended with losses, while 1,046 closed with gains.
On the global front, the mood remained somber and impacted the trade back home, as after a lackluster trade of the US markets the Asian markets showed a choppy trade and ended mostly in red, led by the commodities stock after copper and gold prices sank to their lowest levels in at least five years.
Chinese shares ended lower despite encouraging home price data. The Japanese markets that showed good upmove in early trade on weakness in yen, too pared its gains and just managed a positive close. The European markets too made a weak start after a gun-battle broke out in a northern suburb of Paris during an anti-terrorist police operation.
Markets through the day
3.30 pm: Sensex closed 381.95 points down at 25,482.52, while Nifty 50 index fell 105.75 points at 7,731.80.
3.16 pm: Shares of SpiceJet surged around 10 per cent on reports that the budget passenger carrier is planning to buy at least 150 new planes. The company is in talks with aircraft manufacturers to place orders for 100 narrow-bodied aircraft (Boeing 737 MAX or Airbus 320 Neo) and 50 turboprop aircraft. The company is buying large aircraft for metros and larger towns, while small aircraft for smaller regional towns. Currently, the company operates a fleet of 25 Boeing, two Airbus (on wet lease) and 14 Bombardier aircraft. Sensex was down 385 points at 25,479.
2.58 pm: Sensex was down 370 points at 25,491. Nifty was down 106 points at 7,731.35. Hindalco, Tata Steel and Vedanta were down between 2 per cent and 5 per cent.
2.51 pm: Meanwhile, Cabinet approved sale of 10 per cent stake in Coal India. The share price of Coal India was trading 0.65 per cent up at Rs 334.35.
2.19 pm: Sensex was down 345 points at 25,519. Nifty was down 100.35 points at 7,739.95. Shares of State Bank of India (SBI) was down 3.02 per cent at Rs 240.50.
2.12 pm: According to reports, India will pay sugarcane farmers in part for produce that they sell to money-losing mills. Shares of Indian sugar companies have been rising on hopes of government help and stocks of Shree Renuka Sugars, Simbhaoli Sugars and Bannari Amman Sugars shot up further on Wednesday. Last month Reuters reported that India, the world’s biggest consumer and the No 2 producer after Brazil, was considering directly paying millions of cane farmers.
2.01 pm: European shares fell on Wednesday, retreating back from solid gains made in the previous session, as a new fall in the price of copper caused mining stocks to lose ground. Back home, the BSE Metal index was down 1.10 per cent at 7,074.48. Sensex was down 285 points at 25,578.
1.57 pm: Share price of copper companies hit on the Dalal Street after the metal prices on the London Metal Exchange (LME) fell towards six-year low on Wednesday. Hindustan Copper and Hindalco were trading 1.36 per cent and 4.27 per cent down at Rs 54.45 and Rs 77.35 in the afternoon trade. The BSE Metal index was down over 1 per cent at the same time.
1.41 pm: Over 1,400 stocks were down against 1,060 stocks advaced on BSE. Sensex was down 296 points at 25,567.
1.33 pm: Sensex fell further and was down 318 points at 25,545. Nifty was down 92.30 points at 7,745. Shares of Ujaas Energy jumped over 1 per cent after the company informed BSE that it has bagged order worth Rs 36.98 crore from Electricity Department of Daman and Diu for setting up of 6 MW Grid Connected Solar PV Project including 5 years Operation & Maintenance on Turnkey Basis at Diu.
1.24 pm: Triggered by weakness in European markets, benchmark index Sensex declined further and was trading 256 points down at 25,608. Nifty was down 65.10 points at 7772.45.
1.01 pm: Infosys share price fell over 3 per cent intraday on Wednesday and are on track for its fourth consecutive session of falls. The scrip was trading 3.08 per cent down at Rs 1,028.45.
12.52 pm: The BSE Midcap index and BSE Smallcap index were up 0.10 per cent and 0.16 per cent. However, Sensex was down 0.37 per cent. In the smallcap space, shares of SpiceJet, Lanco Infratech and Excel Industries were up 11.77 per cent, 12.23 per cent and 12.03 per cent, respectively.
12.19 pm: Domestic equity markets continued to trade lower in noon session despite a firm trend in other Asian markets, due to profit-booking by investors after recent gains. Depreciation in Indian rupee against dollar also weighed down sentiments. Sensex was down 82.71 points at 25,783.54. Nifty was down 16.85 points at 7,820.
11.55 am: Sensex was down 28.66 points at 25835.81, while Nifty was down 7.95 points at 7829.60. In the 50-share index, Coal India, NTPC, Asian Paint, GAIL and Bharti Airtel were up between 1.25 per cent and 1.75 per cent. On the other hand, Infosys, HCL Technologies, Dr Reddy’s Labs, Adani Port and Vedanta were down between 1.05 per cent and 2.05 per cent.
11.22 am: Sun Pharmaceutical launched its Volini Spray with 360 degree technology and hinted at consolidation of its consumer healthcare business across five major brands. Under the Consumer healthcare business, Sun Pharma has five major brands of Revital, Volini, Pepfiz, Garlic Pearls and Olesan Oil and expects to expand their market presence. The share price of Sun Pharmaceutical was trading 0.01 per cent up at Rs 753.40.
11.08 am: Meanwhile, Raymond informed BSE that it has infused Rs 61.68 crore in Raymond Luxury Cottons (RLCL) by subscribing to the further issue of equity shares comprising 6,16,80,000 equity shares of Rs 10 each. RLCL has allotted the equity shares and the investment of the company in the equity share capital of RLCL now stands at Rs 127.68 crore constituting 75.69% of the equity capital. Raymond shares were trading 0.85 per cent down at Rs 412.25. Sensex was down 69.62 points at 25,794.
10.44 am: The 30-share barometer Sensex edged lower by 32.46 points or 0.13 per cent to 25,831 with indices led by IT, teck and realty leading the fall. The index had risen 253.94 points in the last two days.
10.02 am: Brokers said that apart from profit-booking in recent gainers, absence of any positive cues mainly dragged the indices down but a firming trend at other Asian markets, taking lead from overnight gains at the US markets, capped losses. Sensex shed 54 points in the morning trade, while Nifty was down 14.70 points at 7,822.85.
9.43 am: The rupee depreciated by 14 paise to 66.17 against the dollar at the Interbank Foreign Exchange in early trade on Wednesday on buying of the US currency by importers.
9.23 am: Shares of Dishman Pharmaceuticals climbed as much as 5.5 per cent on Wednesday after the company on Tuesday (post market hours) clarified that it has not received any USFDA warnings or any communication whatsoever due to Clovis issue.
9.21 am: Shares of Jet Airways, IndiGo and SpiceJet will remain in focus on Wednesday as Competition Commission on Tuesday slapped penalties totalling Rs 258 crore on these aviation companies for cartelisation in fixing fuel surcharge for transporting cargo. Jet Airways, IndiGo and SpiceJet were down 3 per cent, 1.67 per cent and 0.69 per cent, respectively. Sensex was down 20.91 points at 25,843.56
9.15 am: The BSE Sensex and NSE Nifty opened on a flat note on Wednesday tracking mixed Asian markets. Sensex opened 26.76 points, or 0.10 per cent, down at 25837.71. Nifty opened 14.40 points, or 0.18 per cent, down at 7823.15
Wall Street shares ceded earlier gains to end almost flat on Tuesday after German authorities called off a soccer game which German Chancellor Angel Merkel was due to attend, citing threats of bombing, sparking fears of another attack coming only days after the deadly assault in Paris. Dow Jones Industrial Average closed 0.04 per cent up at 17,489.50.
Back home, Sensex on Tuesday jumped over 104 points to 25,864.47, helped by value-buying in beaten-down stocks and a firm global trend after concerns about impact of Paris attacks receded. Nifty closed 30.95 points up at 7,837.55.
(With inputs from agencies)