The BSE Sensex and NSE Nifty snapped four-day winning streak on Friday on account of selling in front line blue chips stocks taking cues from global counterparts.
The BSE Sensex and NSE Nifty snapped four-day winning streak on Friday on account of selling in front line blue chips stocks taking cues from global counterparts. Sensex closed 284.56 points down at 25,519.22, while Nifty settled 82.40 points down at 7,761.95.
There was some resistance till noon and the markets traded in range but afterwards the choppiness increased and bourses started declining with the government in its mid-year Economic Review stated that the Indian economy is likely to grow at 7-7.5 per cent in fiscal 2015-16 down from 8.1-8.5 per cent estimated in February, while retail inflation is expected at 6 per cent. Though, the report also reiterated government would meet its fiscal deficit target of 3.9 per cent and revenue deficit target of 2.8 for this year.
In the 50-share index, Adani Ports, Idea Cellular, Power Grid, Asian Paints and Ambuja Cements gained between 0.55 per cent and 1.84 per cent. On the other hand, Vedanta, Ultratech Cements, Bajaj Auto, State Bank of India and Infosys slid between 1.90 per cent and 3.20 per cent.
Among the sectoral indices on BSE, the BSE IT index plunged the most — 1.31 per cent, followed by BSE TECk index (down 1.07 per cent), BSE Metal index (down 0.89 per cent). The BSE Consumer Durables index and BSE Power index gained 1.01 per cent and 0.13, respectively.
Dipen Shah, senior vice-president and head of private client group research, Kotak Securities, said, “Markets ended a volatile week with losses on Friday. The weak US markets likely impacted sentiments and the markets failed to hold on to Thursday’s gains. The US Fed hike has had little impact on the markets globally, with the event largely discounted early on. The cautious outlook for FY17 by the Chief Economic Advisor on Friday likely impacted sentiments.”
IT sector stocks after showing some resilience in last session fell on Friday after the US Congress doubled the ‘outsourcing fee’ imposed on highly qualified IT professionals to $ 4,000 on certain categories of H-1B visas and $ 4,500 on L-1 visas to fund a 9/11 healthcare act and biometric tracking system. The new H-1B and L-1 visa fee increase is for a period of 10 years as against a previous provision of five years.
The BSE Bankex lost 0.88 per cent after the Reserve Bank of India released the final guidelines on computing interest rates on advances based on the marginal cost of funds. The guidelines come into effect from 1 April 2016. RBI has said that the marginal cost pricing of loans will help the banks become more competitive and enhance their long run value and contribution to economic growth.
In the scrip specific development, Take Solutions settled 5.54 per cent down after the company issued revenue warning over Chennai floods. Strides Shasun closed 0.42 per cent up after the company reportedly launched a share sale to raise up to Rs 1,500 crore.
Asian equity markets closed in red on Friday after Wall Street suffered a setback overnight and fresh signs of inventory buildup put further downward pressure on the already low prices.
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Markets through the day
3.30 pm: Sensex closed 284.56 points down at 25,519.22, while Nifty settled 82.40 points down at 7,761.95.
3.12 pm: Container Corporation shares gained over 1 per cent on plans to set up two new Multi Modal Logistics Parks at Tehi in Madhya Pradesh and Barhi in Haryana. The project costs of around Rs 174 crore and Rs 346 crore, respectively. The company’s board gave approval for the same at the meeting held on December 16, 2015. Sensex was down 309 points at 25,494. Nifty was down 88 points at 7,756.
2.50 pm: Diamond Power Infra bagged an order from Power Grid. The share price of Diamond Power Infra was trading 5.17 per cent up at Rs 44.75.
2.22 pm: Market breadth on the BSE was positive; there were 1313 shares on the gaining side against 1,254 shares on the losing side while 211 shares remain unchanged. Sensex was down 157 points at 25,646.
2.10 pm: Meanwhile, the government on Friday lowered the economic growth forecast for the current fiscal to 7-7.5 per cent from previously projected 8.1-8.5 per cent mainly because of lower agricultural output due to deficit rains. Sensex was down 172 points at 25,631.
2.05 pm: The share price of Mukta Arts were up 2.96 per cent at Rs 53.85. Mukta Arts’ division – Mukta Cinemas screen count has reached to 36. The company after opening a 2 screen multiplex at Rajpipla on Diwali Day, a 3 screen multiplex at Meerut has become operational on December 18, 2015 with the films ‘Dilwale’ and ‘Bajirao Mastaani’.
1.30 pm: Reliance Capital Trustee Company has bought 1.85 per cent stake, valued at over Rs 21 crore at the current market prices, in GIC Housing Finance. Following the acquisition, Reliance Capital Trustee, which held 6.01 per cent in the company earlier, now holds 7.87 per cent in GIC Housing Finance. GIC Housing Finance offers loans on fixed and floating basis. Apart from this, it is having Flexi- Fixed, Step Up/ Step Down schemes and mortgage loans. The share price of GIC Housing was trading 0.79 per cent up at Rs 217. Sensex was down 206.66 points at 25,597. Nifty was down 64.50 points at 7,779.85.
12.48 pm: Sensex was down 128.80 points at 25,674. Sobha shares gained after it announced the launch of its first commercial project ‘Sobha City Mall’ at Puzhakkal in Thrissur, Kerala. Sobha shares were trading 1.87 per cent up at Rs 316.50.
11.57 am: Stocks of IT majors like Infosys, TCS and Tech Mahindra were trading in negative terrain on Friday after the US Congress doubled a special fee on the popular H-1B and L-1 visas raising it up to $4,500 to fund a 9/11 healthcare act and biometric tracking system that will hit Indian IT companies. The Indian IT companies will take a hit of $400 million annually with the hike in H-1B and L-1 visas. Infosys, TCS and Tech Mahindra were trading 1.36 per cent, 1.04 per cent and 1.10 per cent down at Rs 1091.90, Rs 2414.95 and Rs 524.00, respectively. Sensex was trading 148.92 points down at 25,654.86. NSE Nifty was trading 43.55 points down at 7,800.80.
11.32 am: Bajaj shares were trading 1.35 per cent down at Rs 2490 tracking Argentina’s peso that plummeted 26.5 per cent after the country lifted currency controls. Bajaj Auto gets nearly 20 per cent of its revenue from exports to Latin America and Argentina is a key market for the auto company in terms of exports. Sensex was trading 141.29 points down at 25,662.49. Similarly, Nifty was trading 42.40 points at 7,801.95.
11.00 am: Mining conglomerate Vedanta on Thursday said its arm Sesa Goa may suspend iron ore mining in Goa due to the ongoing dispute between the firm and truck operators. The share price of Vedanta as trading 2.47 per cent down at Rs 85. Sensex was down 151 points at 25,651.
10.47 am: In the 50-share index, NTPC, HUL, BPCL, Adani Ports and Cipla gained between 0.58 per cent and 1.35 per cent. On the other hand, Vedanta, Bajaj Auto, Ultratech Cements, ONGC and Ambuja Cements were down between 1.30 per cent and 2.25 per cent. NSE Nifty50 index was down 40.75 points at 7,803.60.
10.36 am: Coffee Day share price gained as much as 2 per cent after Citi initiates coverage with ‘Buy’ recommendation. Sensex was down 111.91 points at 25,691. Nifty was down 29.15 points at 7,815.
10.26 am: Jyoti Ltd has won the prestigious order worth Rs 139 crore from DRN Infrastructure, Hubli, Karnataka for design, manufacturing, supply, erection, testing and commissioning of 5 Nos. Metallic Volute Pumps along with allied Mechanical, electrical and instrumentation equipment, 220 KV Sub-Station, Tools-Tackles, Spares for TubchiBableshwar Lift Irrigation Scheme under Karnataka Neeravari Nigam. The share price price of Jyoti Ltd was trading 14.78 per cent up at Rs 71.45. Sensex was down 74.56 points at 25,729.
10.13 am: Sensex was down 88 points at 25,715.77. Nifty was down 31.60 points at 7,812.70.Brokers said that apart from profit-booking in recent gainers, weak trend at other Asian bourses, tracking overnight losses at the US markets, mainly influenced the sentiment.
10.00 am: TAKE Solutions share price fell as much as 3.45 per cent in the early trade on Friday after the IT major on Thursday post market hours said that the recent floods in Chennai will impact its revenue and margins for the quarter ended December 31, 2015.
9.34 am: The rupee depreciated 10 paise to 66.52 against the US dollar in early trade on Thursday at the Interbank Foreign Exchange due to appreciation of the American currency in global markets. Sensex was down 40.10 points at 25,763. Nifty was down 13 points at 7,831.30.
9.17 am: Sensex was down over 70 points at 25739. Nifty was down 23.75 points at 7820.60. Stocks of Eros International were trading over 2 per cent up at Rs 265.65 following the release of the Bollywood movie Bajirao Mastani, for which Eros International is a distributor.
9.15 am: The BSE Sensex and NSE Nifty opened in red on Friday tracking weak global cues. Sensex opened 39.11 points down at 25764.67, while Nifty opened 15.45 points down at 7,828.90.
Asian shares took their cue from Wall Street and slipped on Friday, but were still on track for gains in a week marked by a depreciating yuan in China and the first US interest rate hike in nearly a decade.
Wall Street dropped on Thursday as crude oil futures continued to wallow at multi-year lows against a backdrop of oversupply as well as a stronger dollar following the US Federal Reserve’s widely anticipated tightening on Wednesday.
Back home, taking the US Fed rate hike as a sign of confidence, the benchmark Sensex on Thursday climbed for the fourth straight day as it closed over 309 points up at 25,803.78 — its biggest single-day gain in about a month.
The 50-share NSE Nifty recaptured the 7,800-mark by surging 93.45 points, or 1.21 per cent, at 7,844.35.
Maruti Suzuki will remain in focus on Friday as the car maker on Thursday post market hours announced receipt of approval from its minority shareholders to let its Japanese parent Suzuki invest and own upcoming plant in Gujarat, where a total investment of Rs 18,500 crore has been envisaged in the long term.
TAKE Solutions will also remain in focus as the IT firm on Thursday said the recent floods in Chennai will impact its revenue and margins for the quarter ended December 31, 2015.