The BSE Sensex snapped 6-day rally on Thursday on account profit booking amid mixed cues from global counterparts. Investors also remained cautious ahead of Index of Industrial Production (IIP) data for January scheduled to be released on Friday.
The 30-share index closed 170.62 points down at 24623.34, while Nifty 50-settled 45.65 points down at 7,486.
In the 50-share pack, Cairn India, Hindalco, HDFC, Asian Paints and Maruti Suzuki gained between 1.35 per cent and 3.48 per cent. On the other hand,Reliance Industries (RIL), BHEL, Infosys, GAIL and Bank of Baroda slid between 2.47 per cent and 3.13 per cent.
The sentiments also remained under pressure after International Monetary Fund (IMF) stated that the government must prioritise clean-up of its banks balance sheets and tackle corporate debt overhang, additionally cautioning against the risk of potential capital outflows. IMF warned of further downward revision to global growth estimates at upcoming spring meetings, calling for policymakers to adopt a more comprehensive plan to strengthen growth prospects.
Barring the BSE Metal index (up 0.36 per cent), rest all other sectoral indices on BSE closed in red. The BSE Capital Goods index slid the most — 1.70 per cent, followed by BSE IT index (down 1.33 per cent), BSE TECk index (down 1.21 per cent), BSE Oil & Gas index (down 1.05 per cent) and BSE Realty index (down 1.04 per cent).
Vinod Nair, head, fundamental research, Geojit BNP Paribas Financial Services, said, “The market capped the winning streak as anxiety over ECB policy meet led to profit booking. The ECB is expected to provide a stimulus and as per the size of the QE, it will generate a positive impact in the sagging economy. Additionally, concerns over Chinese economy and swing in oil price are adding volatility to the market.”
Among day’s major market moving events, shares of IT bluechip – Infosys remained in action after market reports that the promoters have offloaded 75 lakh shares in a block deal on the bourses. The shares were trading down by more than 3.3 per cent intraday. Biggest of the lot were sold by the promoter S Gopalakrishnan (55 lakh shares).
Shares of two-wheeler major – Hero Motocorp too remained in action today after the company declared an interim dividend of Rs 40 per equity share of Rs 2 each for the FY 15-16. Hero MotoCorp reported a 13.6 per cent rise in sales at 5,50,992 units in Feb 2016 as against 4,84,769 units in February last year. Shares of Hero MotoCorp settled 0.17 per cent down at Rs 2,812.10.
Airline stocks Jet Airways, SpiceJet and InterGlobe Aviation shares remained in news on Thursday on reports of slash in aviation turbine fuel or jet fuel price. Jet Airways and InterGlobe Aviation shares closed 0.71 per cent and 0.71 per cent down at Rs 536.20 and Rs 805.50, respectively. SpiceJet shares gained 0.39 per cent to Rs 64.05.
Overall market breadth for the day remained negative and advances to declines ratio for Nifty stood at 18:32 for the day. Volumes for Nifty stocks stood at 2,315 lakh against Wednesday’s volumes of 2,526 lakh for Nifty stocks.
Asian equity markets ended mixed on Thursday, as traders digested another round of Chinese data, as well as interest rate decisions from central banks in New Zealand and South Korea. The Reserve Bank of New Zealand delivered a surprise cut in interest rates, citing a weakening global outlook and tepid inflation expectations, the Bank of Korea and Malaysia’s central bank left their key interest rates unchanged as expected.
Chinese stocks ended lower on fading hopes of imminent stimulus measures as investors interpreted data showing consumer inflation rising faster than forecasted as being largely negative for an economy struggling to find momentum. Japanese stocks rose for the first time in four days after a bounce in oil prices overnight strengthened risk appetite, while exporters benefited from a weaker yen and expectations of further easing from the European Central Bank. Hang Seng and Shanghai closed down by 0.06 per cent and 2.02 per cent. Nikkei advanced 1.26 per cent to 16,852.35.
Markets through the day
3.30 pm: The BSE Sensex closed 170.62 points down at 24,623.34, while Nifty 50-settled 45.65 points down at 7,486.
3.13 pm: Godrej Properties announced the launch of Phase 2 of its flagship project, The Trees at Vikhroli in Mumbai. Godrej Properties shares were trading 0.23 per cent up at Rs 278.90. Sensex was down 182 points at 24,612.
3.05 pm: Shares of Unichem Laboratories further surged by over 2 per cent on Thursday following the USFDA nod for generic Quetiapine Fumarate tablets used for the treatment of schizophrenia and bipolar disorder. Meanwhile, Concor share sale’s retail portion fully subscribed.
2.47 pm: Investors maintained a cautious approach ahead of Index of Industrial Production (IIP) data for January scheduled to be released on Friday. Sensex was trading 189.30 points down at 24,604.
2.33 pm: Golden Tobacco shares were trading 15.09 per cent up at Rs 41.90.
2.05 pm: Sensex was down 129 points at 24,664. Dishman Pharmaceuticals and Chemicals informed that the board of the company at its meeting held on March 10, 2016, has declared an interim dividend of Rs 2 (i.e. at the rate of 100%) per equity share on 80,697,136 equity shares of Rs 2 each of the company for the financial year 2015-2016. The interim dividend shall be paid to the members entitled thereto, on and from March 22, 2016. Shares of Dishman Pharma were trading 2.03 per cent down at Rs 365.15.
1.59 pm: Sectorwise, the BSE Capital Goods index was down 1.40 per cent, followed by BSE IT index (down 1.37 per cent) and BSE TECk index (down 1.28 per cent). On the other hand, BSE Metal index and BSE Consumer Durables index were up 1.11 per cent and 0.50 per cent, respectively.
1.38 pm: Sensex was trading 254 points down at 24,545. Upstream oil companies edged higher in the trade with Union Cabinet clearing new Hydrocarbon Exploration and Licencing Policy. The new policy contains several norms that will smooth the process of licencing to exploration, by steps such as offering a uniform licence for all fuels such as natural gas, crude oil or shale, and by streamlining revenue and production sharing models.
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1.02 pm: Sensex was down 279 points at 24,514. Gruh Finance informed that the company has on March 9, 201 6, allotted 15,510 equity shares of Rs 2 each, pursuant to exercise of stock options by employees. Post the above allotment, the paid-up equity share capital of the company would stand at Rs 72,73,63,480 consisting 36,36,81,740 equity shares of Rs 2 each. Gruh Finance was trading 0.74 per cent down at Rs 233.50.
12.48 pm: Kalpataru Power Transmission informed that the company has fixed March 22, 2016 as the record date for the purpose of payment of interim dividend, if declared. Shares of Kalpataru Power Transmission were trading 0.29 per cent down at Rs 186.45. Sensex was down 293 points at 24,500.
12.32 pm: Sensex was trading 304.50 points at 24,489.46, while NSE Nifty was trading 79.05 points down at 7,452.75.
12.15 pm: In a boost to firms like ONGC and Reliance Industries, the Cabinet on Thursday approved a new price formula for their undeveloped gas discoveries in difficult areas, which will lead to a near-doubling of rates. Shares of Cairn India, ONGC and Petronet LNG were trading up 3.62 per cent, 0.44 per centa nd 0.83 per cent at Rs 141.65, Rs 206 and Rs 248.15, respectively. Sensex was trading 255.77 points down at 24,538.19, while NSE Nifty was trading 62.70 points down at 7,469.10.
12.04 pm: Metal stocks gained on reports the Union Cabinet clears amendment to the Mines and Minerals (Development and Regulation) (MMDR) Act. Hindalco was trading 4.25 per cent up, followed by Jindal Steel (3.08 per cent), Vedanta (up 2.33 per cent) and SAIL (up 2.01 per cent). Sensex was down 216 points at 24,577.
11.42 am: Sensex was down 217 points at 24,577. Meanwhile, Cabinet cleared amendment to the MMDR (Mines and Minerals Development and Regulation) Act.
11.34 am: Meanwhile, Jindal Steel & Power (JSPL) has informed that the company has fixed March 19, 2016 as the record date for the purpose of payment of interest and redemption of NCD. Shares of JSPL were trading 3.23 per cent up at Rs 67.10.
In a BSE filing on Wednesday, JSPL said, “Conisering negative financial results in the past 12 months, company has been working with all banks/ institutions towards various options including 5/25 scheme to meet all obligations.”
11.24 am: Reliance Infrastructure shares strengthened as its arm got 12 industrial licences from DIPP. The scrip was trading 0.70 per cent up at Rs 519.15. Department of Industrial Policy and Promotion (DIPP) has approved 12 industrial licences to Reliance Defence, an arm of Reliance Infrastructure, for manufacturing of a wide range of defence equipment. The licence approval by the DIPP for strategic business units (SBUs) of the company is aimed at addressing defence programmes in India and overseas. Sensex was down 245 points at 24,548.
11.01 am: Sensex plunged further and was trading 262 points down at 24,532.
10.55 am: Sensex was down 211 points 24,582. China stocks were down over 0.50 per cent on Thursday as investors interpreted data showing consumer inflation rising faster than forecasted as being largely negative for an economy struggling to find momentum.
10.41 am: Sensex was trading 183.57 points down at 24,610. Infosys shares slipped by as much as 3 per cent in early Thursday trade following the two co-founders coming under the promoter category, S Gopalakrishnan and S D Shibulal deciding to sell 75 lakh shares through multiple block deals.
10.38 am: Corporation Bank gained on plan to raise funds up to Rs 1,000 crore. The scrip was trading 1.35 per cent up at Rs 41.40.
10.11 am: Nifty was trading 50.90 points down at 7,482. Market experts believe that apart from profit-booking in recent gainers, a mixed trend at other Asian markets affected market sentiments in today’s trade.
10.02 am: Sensex plunged 171.10 points to 24622 on profit booking. Nifty was trading 48.50 points down at 7,483. Just Dial shares were trading over 5 per cent up at Rs 692.50.
9.53 am: The rupee edged higher by 8 paise to 67.13 against the US dollar in early trade on Thursday at the Inter-bank Foreign Exchange market on increased selling of the US currency by exporters and banks.
9.46 am: Sensex was down 114.23 points points at 24,679. Credit Suisse downgraded Indian shares to “Underweight” from “Overweight” and said that India will experience “modest deterioration” in external position, added valuations are at “unjustifiable” premiums, while earnings revisions are most negative across emerging markets.
9.32 am: Shares of Dewan Housing Finance Corporation were trading 3.53 per cent up at Rs 183.55. The company has received an approval to raise funds up to Rs 5,100 crore, subject to market conditions, by way of a secured or unsecured debt issue by means of a private placement or listed on any offshore or onshore Stock Exchanges. The board of directors at its meeting held on March 09, 2016 has approved for the same. Sensex was down 65 points at 24,728.
9.16 am: Sensex was down 53.39 points, or 0.22 per cent, at 24,740.57. Nifty was quoting 2.85 points down at 7,528.95.
9.15 am: BSE Sensex opened 21.74 points, or 0.09 per cent, up at 24815.70, while NSE Nifty 50 index advanced 13.55 points, 0.18 per cent, at 7,545.35. Bajaj Auto on Wednesday informed bourses that the board of the company has considered and declared an interim dividend at the rate of Rs 50 per equity share of Rs 10 each (i.e. 500 per cent), for the financial year ending March 31, 2016.
8.48 am: Benchmark indices BSE Sensex and NSE Nifty are likely to open higher on Thursday tracking Nifty futures on the Singapore Stock Exchange (SGX Nifty) and firm global markets.
At 8.28 am (IST), SGX Nifty was trading 17 points, or 0.23 per cent, up at 7,551.
Asian stock markets were trading in green in the morning trade on Thursday after New Zealand surprised markets with a rate cut, keeping investors primed for more stimulus from the European Central Bank later in the day as global policy makers step up efforts to support their wobbly economies. Hang Seng and Nikkei were up by 0.62 per cent and 0.98 per cent, respectively.
Wall Street stocks gained on Wednesday as the strong recovery in oil prices sent energy shares sharply higher. The S&P energy index rose 1.5 per cent.
The Dow Jones industrial average ended up 36.26 points, or 0.21 per cent, to 17,000.36, the S&P 500 gained 10 points, or 0.51 per cent, to 1,989.26 and the Nasdaq Composite added 25.55 points, or 0.55 per cent, to 4,674.38.
Back home, the winning run for markets continued for the sixth straight session on Wednesday, with the BSE Sensex reversing all its losses to close about 135 points higher at 24,793.96 — a 5-week high — on continued expectations that RBIwould bring down the policy rate.
The 50-share index NSE Nifty went past the crucial 7,500-mark and closed higher by 46.50 points, or 0.62 per cent, at 7,531.80.
Shares of Coal India and BHEL will remain in focus on Thursday. Amid a strike call by Coal India worker unions, the company management is likely to meet the protesting unions next week over the issue.
BHEL on Wednesday informed stock exchanges that credit rating agency Crisil has downgraded its ratings on the long-term bank facilities to AA+/ Negative from AAA/Negative. The downgrade reflects Crisil’s belief that BHEL’s business risk profile will remain constrained over the medium term by continued weak profitability and stretch in working capital cycle.
[Source:- The Financial Express]