The benchmark BSE Sensex and NSE Nifty pared some of the day’s losses and closed in red for the third consecutive trading session on Monday. The sell-off was triggered by the setback suffered by the BJP-led NDA in Bihar assembly elections. Sensex closed 143.84 points down at 26,121, while Nifty closed 39.10 points down at 7,915.20.
Sensex opened the day at 25,809 and touched a high and low of 26,193.17 and 25,656.90, respectively, in trade on Monday. Similarly, Nifty opened at 7,788.25 and touched a high and low of 7,937.75 and 7,771.70, respectively in trade.
In the 30-share index, Tata Motors, Maruti, ITC and Vedanta gained between 1.50 per cent and 3.90 per cent. However, share price of Sun Pharma, BHEL and Dr Reddy’s Labs declined between 3.40 per cent and 5.85 per cent.
Gaurav Jain, director, Hem Securities, said, “Indices opened in deep red on NDA losing the Bihar elections. Further, worries of a US Fed rate hike next month backed by improved payroll numbers also added fuel to the negative sentiment. However, lower level buying posted sharp recovery on the benchmarks.”
Among the sectoral indices on the Bombay Stock Exchange, the BSE Realty index slid the most — 2.2 per cent, followed by BSE Healthcare index (down 1.31 per cent) and BSE TECk index (down 0.70 per cent). The BSE Consumer Durables index and BSE Auto index gained 2.24 per cent and 1.25 per cent, respectively.
Shares of Jet Airways jumped 5.93 per cent after the company’s chairman Naresh Goyal said on Monday the Indian carrier was ordering 75 Boeing 737 Max aircraft.
Overall market breadth for the day remained mildly negative as advances to declines ratio for Nifty stood at 18:32 for the day. Volumes for Nifty stocks stood at 2,182 lakh, almost in line with Friday’s volumes of 2,262 lakh for Nifty stocks.
On the global front, most of the Asian markets ended in red as odds on the Federal Reserve hiking benchmark rates at its next meeting in December increased after the payrolls data signaled the US labor market is on a solid footing. However, the Chinese and Japanese markets posted strong gains as the Chinese exports posted fourth monthly drop and raised hopes of more stimulus. Overseas shipments dropped 6.9 percent in October in dollar terms. The weakness in yen supported the Japanese market after the dollar jumped to a more than six-month high after data showed the US economy created more jobs than expected in October. The European markets made a mixed start after snapping the previous session on a similar note.
Markets through the day
3.30 pm: Domestic equity markets witnessed a dismal day of trade on Monday in the aftermath of the Bihar state assembly election results. The BSE Sensex and NSE Nifty made a sharp gap-down opening and remained in red throughout the day, making it 10 days of losses in last 11. Sensex closed 143.84 points down at 26,121, while Nifty closed 39.10 points down at 7,915.20.
3.18 pm: Consortium of BPCL and GAIL Gas, subsidiary of GAIL India, has been awarded the authorisation for laying, building, operating and expanding of a City Gas Distribution in the geographical area of Haridwar District by the Petroleum and Natural Gas Regulatory Board established under the PNGRB Act, 2006. Shares of BPCL were up 0.79 per cent at Rs 903.
3.12 pm: Jet Airways was trading 5.27 per cent up at Rs 437.60 on BSE. Naresh Goyal-promoted private carrier Jet Airways will acquire 75 fuel-efficient 737 MAX 8 aircraft from US plane maker Boeing. The decision to buy new single-aisle aircraft as confirmed at the biennial Dubai Airshow on Monday, according to a Boeing release. The deal price was not disclosed in the release. Sensex was down 149 points at 26,115. Nifty was down 44 points at 7,910.
2.54 pm: Shares of GPT Infraprojects jumped over 5 per cent after the company informed BSE that it has bagged two orders aggregating worth Rs 360 crore. Of total, the company has secured order worth Rs 113.34 crore from South Eastern Railway for execution of ROB Flyover between Sankrail and Santragachi Stations of South Eastern Railway. The project is expected to be completed in 24 months. The company has also won order worth Rs 246.50 crore from GMR Infrastructures for manufacture & supply of Railway Concrete Sleepers for their EDFCC Project (A world Bank Funded ProjectPackage) in the State of Uttar Pradesh, India. The project is expected to be completed in 36 months.
2.25 pm: Nifty was down 50.25 points at 7,904. In the 50-share index, Bank of Baroda, Maruti Suzuki and Tata Motors were up between 1.80 per cent and 2.20 per cent.
2.20 pm: Engineering conglomerate Punj Lloyd’s scrip on Monday plunged nearly 14 per cent as the company reported widening of net loss to Rs 283.20 crore for the July-September quarter due to decline in income. Sensex was down 183.44 points at 26,081.
1.40 pm: The aftershocks of the Bihar state assembly election results were still persisting in the markets. The benchmark BSE Sensex and NSE Nifty were down 317 points and 97.30 points at 25,947 and 7,857.
1.27 pm: Essar Oil shares were trading 10.57 per cent up at Rs 204.55 after capital market regulator Sebi gave more time to the promoter of the company to finalise the delisting offer. Sensex was down 312.16 points at 25,953.08. NSE Nifty was trading 92.20 points down at 7,862.10.
12.57 pm: Shares of Oil and Natural Gas Corp (ONGC) fell as much as 3 per cent as the state-run firm reported a 11 per cent drop in September quarter net profit. The scrip was at Rs 248.85 (at 12.57 pm). The BSE Oil & Gas index was down 0.50 per cent at 9,063.61.
12.49 pm: In the Nifty 50 index, Bank of Baroda gained over 5 per cent at Rs 168.65. The stock is among the top Nifty gainers on NSE. Nifty 50 index was down 89.75 points at 7,864.
12.35 pm: Hester Biosciences (HBL), a leading animal health care company, is expanding its footprint in Nepal and Africa to tap the growing vaccine market in the regions. The company is setting up a JV unit in Nepal to manufacture Nigerian strain PPR and other animal vaccines. The manufacturing of this vaccine is banned in India because of the risks of accidentally introducing Nigerian strain in India. The company is also looking at setting up of animal vaccine unit in Africa at an estimated cost of around Rs 80-90 crore. The share price of the company was up 2.42 per cent at Rs 571. Sensex was down 312 points at 25,952.
12.18 pm: Meanwhile, Adani Ports and Special Economic Zone (APSEZ) informed BSE that the company through its subsidiary Adani Kattupalli Port (AKPPL), has entered into an in-principle agreement for strategic acquisition of the Kattupalli Port in Tamil Nadu from L&T Shipbuilding (LTSB), a subsidiary of Larsen & Toubro (L&T).
The above is subject to receiving the necessary approvals from the Government of Tamil Nadu and Central Government, and the port being demerged from LTSB. L&T currently operates both the port and shipyard under a single entity ‘L&T Ship Building’.
While awaiting the necessary approvals, APSEZ through its subsidiary AKPPL has entered into an arrangement to take over the operations of the Port. The share price of APSEZ was down 1.05 per cent at Rs 281.90.
11.55 am: Reliance Power has informed that the Board of Directors of the Company at its meeting held on November 09, 2015, has approved a maiden Interim Dividend of Re 1 (i.e. 10%) per equity share of Rs 10 each. The interim dividend will be paid to the shareholders of the Company on or before December 09, 2015. The share price of Reliance Power was up 1.65 per cent at Rs 49.25. Sensex was down 361.93 points at 25,903.
11.21 am: Shares of Corporation Bank jumped over 1 per cent after the bank reported 17.50 per cent rise in its net profit at Rs 188.60 crore for the quarter ended September 30, 2015 as compared to Rs 160.51 crore for the same quarter in the previous year. The BSE Bankex was down 1.11 per cent at 19,280.29. Sensex was down 1.13 per cent at 25,967.84.
10.54 am: Dena Bank shares were trading 3.01 per cent down at Rs 41.85 after the company reported a fall of 24.85 per cent in net profit at Rs 38.76 crore during July-September quarter of 2015-16. Sensex was trading 312.31 points down at 25,952.93, while NSE Nifty was trading 96.50 points down at 7,857.80.
10.30 am: Sun Pharmaceuticals shares were trading 4.54 per cent down at Rs 767.20 after company’s earning for quarter ending in September failed to meet the street expectations. Sun Pharma reported a 46.02% fall in its consolidated net profit to Rs 1,106.66 crore for the quarter ended September 30, 2015. Sensex was trading 288 points down at 25,976.84. NSE Nifty was 92.35 down at 7,861.95.
10.00 am: All the sectoral indices, led by healthcare, realty and capital goods, were trading in the negative zone with losses up to 2.21 per cent. Sensex was down 402 points, or 1.53 per cent, at 25,862.92.
9.45 am: Sensex was down 387 points at 25,878. Nifty 50 was down 116.10 points at 7,838. Godrej Properties has cut its net debt by 25 per cent to nearly Rs 2,200 crore during the quarter ended September, helped by a big-ticket deal where it sold large office space in Mumbai for Rs 1,479 crore. The Mumbai-based developer plans to further reduce the debt by monetising the commercial assets in Mumbai, Kolkata and Chandigarh. The company has achieved a sales booking of over Rs 3,200 crore in the first half of this fiscal, crossing the Rs 2,681 crore sales booking in the entire 2014-15 fiscal. The share price of Godrej Properties was down 1.06 per cent at Rs 316.40.
9.15 am: Domestic equity market saw a knee-jerk reaction on Monday due to the Bihar state election outcome, where the ruling party in the centre has conceded crushing defeat. Sensex opened 456 points down at 25,809 while Nifty opened 166.05 points down at 7,788.25. Meanwhile, Sensex fell as much as 608 points in opening trade.
Nestle India shares were trading 0.13 per cent up at Rs 6,180. The stocks of the company will be in focus as it informed the bourses before market hours that it has begun rollout of its Maggi noodles from Monday.
Indian rupee was trading 33 paise down in the early trade.
“We could see a knee-jerk reaction on Monday and then a phase of recovery and consolidation over the Diwali-shortened week,” said, K Sandeep Nayak, chief executive officer, Centrum Broking.
Karthik Rangappa, vice president, research & education, Zerodha, said, “We expect the market to stay weak for few more trading sessions. Market’s Friday close of below 8,000 and the election outcome on Sunday are both weighing down on the markets. Long term investors should watch out for stock specific valuations, as they may get attractive if the weakness in the markets persists.”
Asian stocks were mixed, with Japanese and Chinese shares up, while the dollar stood at a 7-month high against peers on Monday after robust US jobs data bolstered expectations of a the Federal Reserve interest rate hike in December.
Data on Friday showed nonfarm payrolls increased 271,000 in October, the largest gain since last December. The US unemployment rate fell to 5 per cent, the lowest since April 2008.
Back home, benchmark indices closed on a flat note on Friday. Sensex closed 38.96 points down at 26,265.24 while Nifty settled the day 1.15 points down at 7,954.30.
(With inputs from agencies)