The BSE Sensex and NSE Nifty slid nearly 1 per cent on Thursday as investors continued to book profit in the recent outperformers ahead of result season which is expected to remain weak. Sentiments also remained under pressure after data showed that foreign institutional investors sold shares worth Rs 493.56 crore on Wednesday. Sensex closed 215 points down at 24,685.42, while Nifty 50 settled 67.90 points down at 7,546.45.
In the 50-share index, BHEL, Coal India, Lupin, Aurobindo Pharma and Dr Reddy’s Labs gained between 0.64 per cent and 3.96 per cent. On the other hand, Tata Power, Adani Power, Maruti Suzuki and Larsen and Toubro slid between 2.61 per cent and 4.15 per cent.
For the financial year ended March 2016, BHEL on Thursday reported net loss of Rs 877 crore (provisional) in FY2015-16 against net profit of Rs 1,419 crore last year.
Next week, cement makers ACC Ltd and Ambuja Cements Ltd, and software services provider Infosys are due to report their earnings results.
“On the earnings front, it’s not like we are going to see a robust turnaround. So from a short to medium-term perspective, for those who have low risk appetite, I think it is prudent to book profits,” said, Gaurang Shah, vice-president at Geojit BNP Paribas.
Among day’s major market moving events, shares of housing finance major – HDFC Ltd corrected by 3.3% intraday on NSE after company announced that it is going to make an additional provision (one-time) of Rs 450 crores in the March quarter to create an additional buffer for any unexpected risk in the future.
Shares of Maruti Suzuki continued to remain under pressure after a stronger Japanese Yen. Maruti slipped by 2.81 per cent in today’s session owing to cues from Japanese Yen’s strength against the greenback. Its believed that every 1 per cent gain in Yen leads to a 0.2 per cent decline in Maruti’s margins.
Barring the BSE Oil & Gas index and BSE Healthcare index, rest all other sectoral indices on the BSE ended the day in red.
Asian equity markets ended mostly higher on Thursday on surge in oil prices and easing concerns about an April US interest rate increase following cautious comments by policy makers in the US Federal Reserve minutes. Japanese stocks edged up, snapping a seven-day losing streak as buying in defensive stocks offset weakness in exporters which lost ground on the yen’s strength. The yen held at an 18-month high against the dollar after the Fed’s March meeting minutes confirmed the dovish bias of US policymakers. However, China stocks ended lower as investors awaited a slew of Chinese economic data and stayed cautious on signs of increasing default risks in the country’s corporate bond market.
3.30 pm: Sensex closed 215 points down at 24,685.42, while Nifty 50 settled 67.90 points down at 7,546.45.
3.11 pm: Sensex was down 222 points at 24,678. Nifty was trading 69.65 points down at 7544.70. More than a decade after it declined to take a stake in Nagarjuna Group’s refinery in Tamil Nadu, state-owned Indian Oil Corp (IOC) is looking at buying equity stake in its six million tonnes a year Cuddalore refinery. Shares of IOC were trading 0.06 per cent up at Rs 410.95.
2.35 pm: Bharat Heavy Electricals Ltd (BHEL) shares gained as much as 5.77 per cent on Thursday after it informed bourses that it has recorded the highest-ever commissioning of projects in its history and the highest order booking in the past five years in 2015-16. At 2.35 pm, shares of BHEL were trading 4.12 per cent up at Rs 118.70. READ MORE
1.52 pm: Housing Development Finance Corporation (HDFC) shares fell as much as 3.09 per cent on Wednesday after it informed bourses that it will make an additional one-time special provision of Rs 450 crore in the quarter ended March 31. READ MORE
1.33 pm: NMDC shares were trading 1.18 per cent up at Rs 102.75. The company has retained its Navratna status after the annual financial performance review by the Inter Ministerial Committee (IMC). The Navratna tag is crucial for NMDC for its modernisation and expansion plans as it lends flexibility to the management in taking decisions. On a scale of 100, NMDC scored 79 points. For the status, minimum score is 60.
1.22 pm: Nifty Advances and Declines
1.12 pm: Tata Power shares dropped as much as 9 per cent, while Adani Power declines up to 11.69 per cent on reports that a tribunal has rejected a power regulator order that allows these power companies to charge higher prices from procurers than agreed upon for electricity produced from their plants at Mundra in western India. Tata Power and Anani Power was trading 3.53 per cent and 2.92 per cent down at Rs 64.30 and Rs 33.20, respectively. Sensex was down 122 points at 24,778.
12.37 pm: The country’s largest automobile company Tata Motors, which has been badly hit by the Supreme Court ban on selling high-end diesel vehicles in the NCR, is planning to down-size its diesel engines to skirt the issue. Shares of Tata Motors were trading 0.65 per cent up at Rs 379.65. Sensex was down 139.33 points at 24,761.
12.25 pm: PC Jeweller will raise up to Rs 427 crore from DVI Fund Mauritius through debentures. The proceeds will be utilised as capital expenditure for future expansion. Shares of PC Jeweller 0.44 per cent down at Rs 353.10. Sensex was down 108.24 points at 24,792. Nifty was down 23.80 points at 7,590.
12.00 pm: Sensex was down 98.74 points at 24801.89. Sobha Ltd shares were trading 3.49 per cent up at Rs 280. JM Financial maintained ‘Buy’ rating on Sobha with target price of Rs 350. The brokerage house believes pickup in demand leading to execution of key land parcels in Bangalore (Hoskote) will act as a key trigger. Nifty was trading 25.35 points down at 7,589.
11.30 am: After completing the Rs 4,300 crore buy back of shares, Hindustan Aeronautics Ltd (HAL) plans to hit the market with an initial public offering by 2016-end along with 10 per cent government stake sale.
11.19 am: Future Retail (FRL) shares climbed over 5 per cent intraday after it informed bourses that an asset management firm SSG Capital will acquire 40 per cent stake in Future Supply Chain Solutions (FSC) from existing shareholders, including Future Retail, for Rs 580 crore. READ MORE
Sensex was down 137 points at 24,762.
10.47 am: Maruti Suzuki India shares plunged as much as 3.40 per cent in the morning trade on Thursday after Yen hits fresh 17-month high against dollar on Thursday.
10.28 am: Meanwhile, Havells and Biocon hit their fresh 52-week high of Rs 332.70 and Rs 544.70. Sensex was down 210.47 points at 24690.16.
10.27 am: Rupee strengthened by 14 paise to 66.52 against the US dollar in early trade on fresh selling of the American currency by exporters.
10.25 am: Out of 12 stocks in the Nifty Bank index, only Axis Bank (up 0.69 per cent) and YES Bank (up 0.02 per cent) were trading in green. Bank of India and Canara Bank were down 1.94 per cent and 1.35 per cent respectively.
10.21 am: Sundram Fasteners shares soared as much as 10 per cent in the early trade on Thursday after the company announced that it has restructured its international operations to maximise revenue potential and shareholders’s value. It has created a new subsidiary called Sundram International Ltd, based in United Kingdom. READ MORE
10.08 am: Brokers said trimming of positions by participants ahead of earnings season, weak trend at other Asian markets despite the release of minutes from the Federal Reserve’s latest meeting showing policymakers broadly agree US interest rate should remain low, dampened trading sentiments. The 30-share index was down 236.40 points, or 0.95 per cent, at 24664.23.
9.37 am: Sensex was down 159 points at 24,741.63. Nifty was down 36.60 points at 7,577.75. Nava Bharat Ventures has entered into an agreement for renewal of conversion arrangement of Chrome Ore into Ferro Chrome, with Tata Steel for a period of 4 years commencing from April, 2016, to produce up to 70,000 MT of High Carbon Ferro Chrome per annum at its Odisha Ferro Alloy Plant. Shares of Nava Bharat were trading 1.91 per cent up at Rs 165.40.
9.20 am: Sensex was down 93.20 points at 24807.43. Nifty breached the psychological mark of 7,600 and was trading 22.05 points down at 7592.30.
9.16 am: Sensex was trading 68.58 points down at 24832.05. Nifty was down 11.30 points at 7603.05. Ashoka Buildcon shares were trading 15 per cent down at Rs 115.60.
9.10 am: As per provisional figures, foreign institutional investors (FIIs)/ Foreign Portfolio Investors (FPIs) sold shares worth net Rs 493.56 crore on 6th April 2016. Domestic institutional investors bought shares worth Rs 258.68 crore on that day.
8.43 am: The BSE Sensex and NSE Nifty are likely to open on a flat note with negative bias on Thursday tracking Nifty futures on the Singapore Stock Exchange (SGX Nifty) and mixed global markets.
At 8.24 am (IST), SGX Nifty was trading 12 points down at 7,622.
Asian peers, Hang Seng, Nikkei and Shanghai were down by 0.13 per cent, 0.25 per cent and 0.91 per cent, respectively.
The Dow had ended Wednesday 0.64 per cent higher, while the S&P 500 gained 1.05 per cent and the Nasdaq 1.59 percent.
Back home, market benchmark Sensex on Wednesday inched up by 17 points to 24,900.63 on value-buying in beaten-down stocks amid mixed global cues.
Shares of Future Retail and Mandhana Industries will remain in focus on Thursday. SSG Capital Management is investing up to Rs 580 crore to acquire 40 per cent stake in Future Supply Chain Solutions Ltd (FSC) from the existing shareholders of the company at a valuation of up to Rs 1,450 crore. This will include 14 per cent stake to be acquired from Future Retail and the management team collectively, and 26 per cent from another minority shareholder SKC 1 ltd.
(With agency inputs)