Sensex plunges 208 points to close at 25,044, Nifty50 settles at 7610; banking stocks slump

The BSE Sensex and NSE Nifty fell 0.82 per cent and 0.95 per cent on Friday as investors maintained cautious approach ahead of October factory output data due later in the day and November inflation print to be released on Monday. Sensex closed 207.89 points down at 25,044.43, while NSE Nifty 50 index settled 72.85 points down at 7,610.45.

In the 50-share index, Tata Steel, Hindalco, Infosys, Vedanta and HUL gained between 0.60 per cent and 3.57 per cent. On the other hand, share price of Punjab National Bank, ICICI Bank, YES Bank, Tata Motors and Grasim slid between 2.65 per cent and 4.79 per cent.

Barring the BSE Metal index (up 0.23 per cent) and BSE IT index (up 0.14 per cent), rest all other sectoral indices on BSE closed in red. The BSE Realty index, BSE Bankex and BSE Auto index fell 2.52 per cent, 2.25 per cent and 1.71 per cent, respectively.

Anand James, co head technical research desk, Geojit BNP Paribas Financial Services, said, “The near 2 per cent fall in auto stocks after the National Green Tribunal’s directive, added more legs to the fall which has been on since the start of this month. With several crucial economic data lined up for release both in India as well US, markets are obviously on a risk-off mode. However, despite getting sufficient time to price in the impact of such event risks, markets struggle to find a reason strong and big enough turn the sentiments and the trend on its head.”

Banking stocks slumped after the central bank said it would examine how the sector was dealing with bad debt. Reserve Bank of India Governor Raghuram Rajan said he would look into how the country’s banks are using provisions they were given to help tackle a crippling bad debt burden. All the 10 components of the BSE Bankex fell between 1.30 per cent and 5.15 per cent. Share price of Punjab National Bank, ICICI Bank and YES Bank slid 5.12 per cent, 3.48 per cent and 3.44 per cent to Rs 122.85, Rs 249.65 and Rs 682.60, respectively.

Auto stocks too were under pressure as Delhi government announced that it will seek advancing of the rollout of Bharat Stage VI emission norms in Delhi to 2017 for countering air pollution, while the National Green Tribunal (NGT) ordered that no new diesel vehicles would be registered in Delhi.

There was some buzz in the cement stocks after Competition Appellate Tribunal setting aside Rs 6,316.59 crore penalty imposed on 11 cement firms by CCI on cartelisation charges asked the fair trade regulator to hear the matter afresh. The Tribunal also allowed the cement manufacturers to withdraw the 10 per cent penalty amount already deposited with the CCI.

Market breadth for the day remained negative and advances to declines ratio for Nifty stood at 9:41 for the day. Volumes for Nifty stocks stood at 1,728 lakh against Thursday’s volumes of 1,451 lakh for Nifty stocks.

Asian equity markets ended mostly in red on Friday as plunging crude oil prices and a tumble in China’s yuan to almost 4-1/2-year lows added to worries about receding global growth. A supply glut in oil markets and cooling growth in China, the world’s biggest commodities consumer, have pressured many asset markets ahead of a widely expected hike to US interest rates by the Federal Reserve next week.

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3.30 pm: Sensex closed 207.89 points down at 25,044.43, while NSE Nifty 50 index settled 72.85 points down at 7,610.45.

3.18 pm: Share price of Indraprastha Gas climbed nearly 5 per cent on Friday after media reports that National Green Tribunal said no new diesel vehicles to be registered in Delhi. At 3.18 pm, the share price of IGL, which supplies CNG in Delhi, was trading 3.68 per cent up at Rs 484.85.

Tribunal directs central and state government departments not to purchase any diesel vehicles, reports said.

Reacting on the news, the share price of Mahindra and Mahindra and Ashok Leyland fell 2.50 per cent and 3.09 per cent.

3.08 pm: Bharti Airtel, Tata Communications and Idea Cellular were down 0.69 per cent, 0.99 per cent and 1.82 per cent at Rs 310.40, Rs 401.40 and Rs 132, respectively.

3.03 pm: Shilpa Medicare was trading in green after RBI stated that FIIs/RFPIs can now invest up to 30 per cent of the paid up capital of the company. The scrip was trading 2.77 per cent up at Rs 470.50. Sensex was down 209 points at 25,043. Nifty was down 72.50 points at 7610.80.

2.41 pm: Sensex was down 225.73 points at 25,026. The BSE Midcap index and BSE Smallcap index were 1.19 per cent and 0.95 per cent, respectively. In the smallcap space, Mirc Electronics and Sharon Bio-Medicine were up 18.10 per cent and 13.51 per cent at Rs 16.38 and Rs 31.50, respectively.

2.28 pm: The Asian markets were trading mostly in red; Hang Seng decreased 240.56 points or 1.11 per cent to 21,464.05, Taiwan Weighted decreased 100.28 points or 1.22 per cent to 8,115.89, Jakarta Composite decreased 56.19 points or 1.26 per cent to 4,410.02, Shanghai Composite decreased 20.91 points or 0.61 per cent to 3,434.58, KOSPI Index decreased 3.45 points or 0.18 per cent to 1,948.62 and FTSE Bursa Malaysia KLCI decreased 1.37 points or 0.08 per cent to 1,647.28.

2.14 pm: Sagar Cements shares fell over 2 per cent after the company reported its cement production and sales figures for November 2015 on Thursday post market hours. The cement production for November 2015 stood at 88,660 million tonnes (MT), a drop of 18 per cent, compared to 107,476 MT produced in November 2014. The cement sales for November 2015 stood at 91,115 MT, a drop of 18 per cent, compared to 111,038 MT in November 2014.

2.10 pm: The benchmark BSE Sensex was down 301 points on sustained foreign fund outflows and selling by domestic investors. Meanwhile, RBI RBI Governor Raghuram Rajan said, “We expect up to 0.25 per cent rate cut by US Federal Reserve next week. We are prepared for any eventuality arising out of US Fed decision.”

2.09 pm: Sensex slid 295.83 points to 24956. Nifty was down 96.95 points at 7,586.

1.41 pm: Sensex was down 201.58 points at 25,059. In a major verdict, the Competition Appellate Tribunal on Friday set aside Rs 6,316.59 crore penalty imposed on 11 cement firms by CCI on cartelisation charges and asked the fair trade regulator to hear the matter afresh.

1.11 pm: Havells India shares were trading 0.51 per cent down at Rs 303.80. The company on Thursday announced divestment of majority stake in European
lightings operations Sylvania to Shanghai Feilo Acoustics for nearly 148.8 million euros (about Rs 1,090 crore).

1.00 pm: Sensex fell below 25,000 mark and was trading 284 points down at 24,968. Nifty was at 7,586.

12.52 pm: Shares of SpiceJet were down over 3 per cent after the company has allegedly defaulted on payments towards the Airports Authority of India (AAI). Sensex was down 208.93 points at 25,043. Nifty was down 71.70 points at 7,611.

12.22 pm: Sensex was down 170 points at 25,081. Crude oil prices remained at levels not seen since early 2009 on Friday as output in the Middle East continued to rise despite an already huge global glut, with analysts saying the price outlook for the rest of the year and into 2016 remained weak. Cairn India was down 0.40 per cent at Rs 126.

11.52 am: Tata Power’s Joint Venture (JV) – 120 MW Itezhi Tezhi Hydro Power Project in Zambia, has received Clean Development Mechanism (CDM) approval from United Nations Framework Convention on Climate Change (UNFCCC). Itezhi Tezhi Power Corporation (ITPC) is a joint venture with Zambian parastatal utility ZESCO (ZESCO), a special purpose vehicle which has been set to build and operate a 120 MW hydro power plant in Itezhi Tezhi district on Kafue River in Zambia. ITPC is the first project in Zambia to get the CDM approval from UNFCCC. The share price of Tata Power was down 0.32 per cent at Rs 62.40. The scrip opened at Rs 62.60 and had touched a high and low of Rs 63.20 and Rs 62.35, respectively, in trade so far.

11.45 am: Sensex was down 120.92 points at 25,131. Metal stocks such as Jindal Steel, Hindalco and Vedanta were up 3.09 per cent, 0.92 per cent and 0.72 per cent, respectively.

11.26 am: Domestic passenger car sales rose 10.39 per cent to 1,73,111 units in November from 1,56,811 units in the same month a year ago. Motorcycle sales rose 1.58 per cent to 8,66,705 units last month from 8,53,257 units a year ago, according to the data released by the Society of Indian Automobile Manufacturers (Siam). The BSE Auto index was down 0.12 per cent at 18,110.75. The BSE Sensex was down 55 points at 25,197. Nifty was down 25.90 points at 7,657.

11.16 am: Titan Company share price gained as much as 4.21 per cent in the morning trade on Friday after the company infomed BSE that the Reserve Bank of India has permitted foreign institutional investors (FIIs) to invest upto 35 per cent of the paid up capital under the Portfolio Investment Scheme. The scrip was trading 0.74 per cent up at Rs 365.40. Sensex was down 44 points 25,208.

10.36 am: Meanwhile, GMR Infrastructure informed BSE that the management committee of the board of directors of the company has approved the allotment of foreign currency convertible bonds to Kuwait Investment Authority as per the terms disclosed in the Company’s announcement dated December 04, 2015. The share price of the company was trading 0.32 per cent up at Rs 15.85.

10.25 am: Benchmark indices BSE Sensex and NSE Nifty were marginally down 20.22 points and 5.20 points at 25,232 and 7,678.  Stock brokers said trimming of positions by cautious participants ahead of key economic data — industrial production (IIP) numbers for October — to be released later in the day, weighed on sentiments.

10.11 am: Healthcare services major Narayana Hrudayalaya Ltd on Thursday fixed the price band between Rs 245 and Rs 250 for its initial public offer (IPO), which will
hit the capital market on December 17. Sensex was down 51 points at 25,200.

9.50 am: The rupee depreciated by 9 paise to 66.80 against the US dollar in early trade today due to appreciation in the American currency overseas with the Fed meeting coming within a week and US monetary policy expected to be tightened.

9.46 am: Cipla has received an approval for transfer of the consumer healthcare business of the company to Cipla Health on a going concern basis by way of a slump sale for a lump sum consideration of Rs 16 crore. The board of directors at their meeting held on December 10, 2015 has approved for the same. Cipla Health is a newly incorporated subsidiary of the company and was incorporated on August 27, 2015. It will focus its business activities in the consumer healthcare space. The consumer healthcare business to be transferred to Cipla Health includes the scope of the business as approved on July 09, 2015, along with certain additional business. The share price of Cipla was up 0.78 per cent at Rs 640.15.

9.23 am: Sensex was down 51.73 points at 25,196. Share price of Texmaco Rail and Engineering were up 6.58 per cent at Rs 147.30. The share price of the company jumped after it informed BSE on Thursday post market hours that a four-company consortium of Texmaco Rail & Engineering, Kolkata, Hitachi Ltd, Mitsui & Co and Hitachi India, a Hitachi subsidiary has won a contract for the design and construction of Signal and Telecom works – STP5, a part of the dedicated freight corridor traversing India’s biggest industrial cluster between Delhi and Mubai from the Dedicated Freight Corridor Corporation of India. The sector covered by the contract, which is worth a total of approx Rs 1,800 crore will cover 915 km distance between Rewari in the State of Haryana and Vadodara in the State of Gujarat.

9.21 am: In the NSE Nifty50 index, Tata Steel, Hindalco, Vedanta, HUL and Bosch were up between 0.50 per cent and 2.10 per cent. On the other hand, ITC, TCS, Mahindra & Mahindra, HCL Tech and Bharti Airtel were down between 0.45 per cent and 0.60 per cent. Nifty was marginally down 2 points at 7,681.25.

9.16 am: Shares of Maruti Suzuki will remain in focus on Friday as the nation’s biggest carmaker by sales, plans to raise prices of its cars by up to Rs 20,000, starting January 1, to offset cost increases and unfavourable foreign exchange rates. Shares of Maruti Suzuki were up 0.34 per cent at Rs 4511.80. Sensex was marginally down 14 points at 25,238.

9.15 am: The BSE Sensex and NSE Nifty opened on a flat note to cautious note on Friday tracking Asian markets. Sensex opened 29.45 points up at 25,281, while NSE Nifty opened 16.30 points up at 7,699.60.

Asian shares slumped on Friday, on track for a weekly loss as plunging crude prices heightened fears about receding global growth, while China’s yuan hit its weakest level in more than four years.

A supply glut in oil markets and cooling growth in China, the world’s biggest commodities consumer, have pressured many asset markets ahead of a widely expected hike to US interest rates by the Federal Reserve next week.

Back home, domestic shares rebounded from an oversold position on Thursday to rise for the first time in seven days as the benchmark BSE Sensex perked up by more than 216 points on value-buying in recently beaten-down commodity stocks, led by Reliance Industries, Hindalco and Tata Steel.

The initial public offerings of drug maker Alkem Laboratories and diagnostic chain Dr Lal PathLabs elicited robust investor response, with 44.23 times and 33.31 times over subscription, respectively, on the last day of bidding on Thursday.

(With agency inputs)