Domestic equity indices BSE Sensex and NSE Nifty ended in red on Tuesday on account of profit-booking and weak Asian markets, even as retail inflation fell to a three-month low in February. Investors maintained a cautious approach ahead of the two-day meeting of the US Federal Reserve’s Federal Open Market Committee that begins on Tuesday.
Sensex closed 253.11 points, or 1.02 per cent, down at 24,551.17, while Nifty 50 index settled 78.15 points, or 1.04 per cent, down at 7,460.60.
In the 50-share index, State Bank of India (SBI), Bank of Baroda, Punjab National Bank, Bosch and Tata Steel gained between 1.10 per cent and 1.83 per cent. On the other hand, Lupin, HDFC, ZEEL, Dr Reddy’s Labs and ITC slid between 2.53 per cent and 7.72 per cent.
Sectorwise, the BSE Healthcare index slid 3.01 per cent, followed by BSE FMCG (down 1.54 per cent), BSE TECk (down 0.93 per cent) and BSE IT (down 0.85 per cent). On the other hand, BSE Bankex and BSE Oil & Gas gained 0.36 per cent and 0.29 per cent, respectively.
Sanjeev Zarbade, vice president, private client group research, Kotak Securities, said, “The Sensex closed 253 points down on negative global cues. Markets came under selling pressure after the Bank of Japan refrained from introducing new stimulus measures at its latest policy meeting. The Japanese central bank issued a warning on inflation expectations and offered a more negative view of the country’s economy. Investors now look forward to the Fed meeting, wherein although it is largely expected to hold raising rates, its comments on economic outlook and inflation would be closely watched.”
In scrip specific development, Lupin shares plunged 8 per cent intraday on Tuesday after USFDA gave 9 observations relating to inadequacy and adherence to operating norms for its manufacturing plant in Goa.
Procter & Gamble Hygiene & Health Care closed 1 per cent down after the company announced that it has stopped sale and manufacturing of its popular brand Vicks Action 500 Extra.
Hectic buying activity was witnessed in sugar stocks on the back of rising sugar prices in the international markets. Balrampur Chini and Dhampur Sugar Mills closed 3.51 per cent and 12.37 per cent up at Rs 98.80 and Rs 83.55.
Asian equity markets ended mostly in red on Tuesday as oil prices fell again on oversupply concerns and the Bank of Japan preferred to stand pat on rates after its surprise January decision to adopt negative interest rates.
Markets through the day
3.30 pm: Sensex closed 253.11 points, or 1.02 per cent, down at 24,551.17, while Nifty 50 index settled 78.15 points, or 1.04 per cent, down at 7,460.60.
3.14 pm: Meanwhile, I-T Department slapped Rs 18,800 cr tax demand on UK’s Cairn Energy; demand included Rs 8,600 cr in interest back dated to 2007. Back home, shares of Cairn India were trading 1.38 per cent down at Rs 149.55.
2.48 pm: Bond yields traded lower on Tuesday as investors turned optimistic after data showing headline retail inflation eased in February gave rise to expectations for a cut in the central bank’s key policy rate next month. India’s headline retail inflation, which the Reserve Bank of India (RBI) closely tracks to set its interest rate policy, eased to 5.18 per cent in February compared with 5.69 per cent in January and 5.37 per cent a year ago. Some support also came with the report that RBI’s plan to buy bonds worth up to Rs 15,000 crore through an open market operation (OMO) on Thursday. Sensex was trading 224 points down at 24,579.
2.09 pm: Stocks related to gold and jewellary space remained under pressure, as the Finance Minister Arun Jaitley has refused to roll back a 1 per cent excise duty on non-silver ornaments proposed in the Budget. Shares of Tribhovandas Bhimji Zaveri were trading 0.19 per cent down at 51.55. Sensex was down 265 points at 24,549.
2.00 pm: The 30-share index was trading 251 points down at 24552, while the 50-share index was down 69.10 points at 7,469.
1.24 pm: Crompton Greaves shares plunged over 20 per cent intraday to Rs 40.30 on NSE on the back of proposed demerger plan of the firm’s consumer products business comes into effect from Tuesday. Sensex was trading 214 points down at 24,590. Nifty was down 63.75 points at 7,475.
12.54 pm: Adani Enterprises informed bourses that the company at its meeting held on March 15, 2016, has considered and declared Interim Dividend of Re 0.40 per equity share (i.e. 40 per cent) of Re 1 each of the company for the financial year 2015-16. The dividend shall be payable on and from March 28, 2016 and will be paid within the timelines stipulated under the Companies Act, 2013. Shares of Adani Enterprises were trading 1.67 per cent up at Rs 66.90. Sensex was trading 183 points down at 24,621.
12.37 pm: Indian Oil Corporation shares were trading 1.08 per cent up at Rs 389. Vakrangee has entered into a tie-up with Indian Oil Corporation (IOC), India’s largest commercial enterprise for setting up Vakrangee Kendra at its retail outlets (distribution network). This tie up would drastically increase the customer touch points at the Vakrangee Kendra and ensure a boost in its core objective i.e. Financial Inclusion, providing Digital India services, Social Inclusion, Employment Generation and Skill Development.
12.16 pm: Sensex was down 178.52 points at 24,625.
11.47 am: Adani Ports and Special Economic Zone informed BSE that the board of the company at its meeting held on March 15, 2016, has considered and declared interim dividend of Rs 1.10 per equity share (i.e. 55 per cent) of Rs 2 each of the company for the financial year 2015-16. The dividend shall be payable on and from March 28, 2016 and will be paid within the timelines stipulated under the Companies Act, 2013. Shares of Adani Ports were trading 0.82 per cent down at Rs 230.05.
11.33 am: GSFC rallied as much as 4.6 per cent on plan to finance Canadian mine project. The scrip was trading 2.48 per cent up at Rs 66.10. Sensex was down 161 points at 24,642.
10.58 am: Sensex was trading 127.04 points down at 24,677. Asian equity benchmarks were trading lower on Tuesday, as investors braced for policy decisions from major central banks this week, with all eyes on the Bank of Japan’s decision later in the day after it stunned markets in January by adopting negative interest rates. Chinese stocks fell, led by commodity producers, after energy prices declined and policy makers were seen planning a tax on foreign-exchange transactions.
10.35 am: OCL India has informed that the Board of Directors of the company has, through circular resolution effective March 15, 2016, declared an interim dividend for the Financial Year 2015-16 of Rs 4 per equity share of Rs 2 each (i.e, 200 per cent). Shares of OCL India were trading 0.29 per cent down at Rs 408.50.
10.20 am: Online shopping portal Infibeam Incorporation will hit the capital markets on March 21 to mop-up Rs 450 crore through an initial share plan, becoming the first e-commerce firm to tap the IPO route. Sensex was trading 151 points down at 24,652. Nifty was down 45.95 points at 7,492.
10.13 am: Sensex was down 130 points at 24,674. Brokers said sentiment turned weak despite retail
inflation falling to a three-month low of 5.18 per cent in February after rising for five months in a row as food prices including vegetables, pulses and fruits became less costly. A weak trend in other Asian markets and profit-booking after recent gains also weighed on the sentiment here, they added.
10.09 am: The rupee weakened by 15 paise to quote at 67.26 against the dollar in early trade at the
Interbank Foreign Exchange market today on increased demand for the American currency from importers and banks amid a lower opening in the domestic equity market. Sensex was trading 110.71 points down at 24693.57. Nifty was down 32.20 points at 7,506.
9.33 am: After surging 20 per cent in Monday’s trade, shares of Sasken Communication Technologies climbed over 10 per cent in the early trade on Tuesday. The company on Monday announced that it has reached a settlement in an ongoing matter pertaining to the unauthorised use of Sasken’s Protocol Stack IP, by a Chinese semiconductor vendor. This settlement brings to an end, the ongoing arbitration and terminates all ongoing obligations of the parties under the relevant agreements. The licensee will pay Saken $45 million as damages/ compensation before March 31, 2016 towards this settlement.
9.26 am: Sensex was trading 64 points down at 24,740. Nifty was down 21.75 points at 7,517. Jindal Steel and Power’s (JSPL) subsidiary company – Jindal Power, has entered into a definitive agreement to divest 4.12 per cent holding in India Energy Exchange (IEX) at an undisclosed amount and is expected to realise the consideration within the current financial year. This step has been taken as a part of the monetisation plan. Shares of JSPL were trading 1.92 per cent up at Rs 60.90.
9.21 am: SpiceJet shares were trading 1.36 per cent up at Rs 59.80. The erstwhile promoters of the low-cost carrier SpiceJet, Kalanithi Maran and the current management led by Ajay Singh have decided to approach the Bombay Stock Exchange (BSE) and the market regulator, Securities and Exchanges Board of India (Sebi), to resolve the dispute related to the issuances of warrants to the former owners of the airline.
9.18 am: In the 50-share index, Lupin was down 6.40 per cent, followed by Sun Pharma (down 1.16 per cent), GAIL (down 1.08 per cent), HDFC (down 1.06 per cent) and ONGC (down 0.91 per cent). On the other hand, Asian Paints and SBI were trading higher by 0.86 per cent and 0.82 per cent.
9.15 am: Benchmark indices BSE Sensex and NSE Nifty opened on a flat note on Tuesday. Sensex opened 27.76 points up at 24,832.04, while Nifty 50 index opened 2.90 points down at 7,535.85.
9.06 am: Procter & Gamble Hygiene and Health Care will remain in focus on Tuesday as the company on Tuesday informed BSE that it has discontinued manufacture and sale of all SKUs of Vicks Action 500 Extra with immediate effect.
8.39 am: Domestic equity indices BSE Sensex and NSE Nifty are likely to open on a flat-to-cautious note on Tuesday tracking Nifty futures on the Singapore Stock Exchange (SGX Nifty) and bleak Asian markets.
At 8.25 am (IST), SGX Nifty was trading 8 points, or 0.11 per cent, up at 7,554.50.
Asian stocks retreated on Tuesday and the dollar firmed as investors braced for policy decisions from major central banks this week, with all eyes on the Bank of Japan’s decision later in the day after it stunned markets in January by adopting negative rates. Hang Seng, Nikkei and Shanhgai were down 0.48 per cent, 0.04 per cent and 0.59 per cent, respectively.
Wall Street closed little changed in light trading on Monday as consumer discretionary gains countered losses in energy shares and investors laid low ahead of a US Federal Reserve meeting. The Dow Jones industrial average closed up 15.82 points, or 0.09 per cent, to 17,229.13, the S&P 500 lost 2.55 points, or 0.13 per cent, to 2,019.64 and the Nasdaq Composite added 1.81 points, or 0.04 per cent, to 4,750.28.
The 30-share Sensex on Monday settled 86.29 points or 0.35 per cent higher at
24,804.28, its highest closing since February 1. The NSE Nifty ended 28.55 points or 0.38 per cent higher at 7,538.75 after moving in a range 7,583.70 to 7,515.05.
Shares of Coal India (CIL) will remain in focus on Tuesday. State-owned CIL on Monday said it has crossed half-a-billion tonnes of coal production for the first
time in a fiscal.