Nifty ends at 7847 on April F&O expiry, Sensex cracks 461 points

28 Apr 2016

3:30 pm Market closing: The market has ended with severe cuts as global markets were down reacting to Bank of Japan holding rates steady and F&O expiry added pressure. The Nifty ended April Future and Options (F&O) at 7847.25, down 132.65 points or 1.7 percent from previous close. The Sensex closed down 461.02 points or 1.8 percent at 25603.10. About 857 shares have advanced, 1662 shares declined, and 168 shares were unchanged.

TCS, Lupin and Axis Bank were top gainers while Hindalco lost 5 percent. HDFC, Maruti, ITC and M&M were other laggards in the Sensex.

3:10 pm Market check: The Sensex is down 457.07 points or 1.7 percent at 25607.05, and the Nifty slips 130.70 points or 1.6 percent at 7849.20. About 775 shares have advanced, 1683 shares declined, and 149 shares are unchanged.

2:55 pm Result: Kajaria Ceramics posted 27.83 percent rise in consolidated net profit at Rs 66.04 crore for the fourth quarter ended March 31, 2015-16.

The company had posted a net profit of Rs 51.66 crore during the same period of the previous fiscal.

Net sales of rose to Rs 655.12 crore for the fourth quarter, up 11.94 percent, as compared to Rs 585.23 crore in the same period a year ago, Kajaria Ceramics Ltd said in a BSE filing. For the entire 2015-16 fiscal, Kajaria posted consolidated net profit of Rs 229.2 crore as compared to Rs 175.6 crore in the previous fiscal.

Net sales of the company rose to Rs 2,408.81 crore for the fiscal year 2015-16, as against Rs 2,177.51 crore during the previous year.

2:30 pm Tata Steel: is not prepared to split up its main British assets, such as its Port Talbot steel plant, as part of a plan to divest its UK steelmaking operations, UK CEO Bimlendra Jha told a committee of lawmakers on Thursday.

"We would not deal with ... somebody saying leave alone Port Talbot and give us the rest - that is not a solution that's acceptable," said Jha. He added that the company might consider selling off small independent assets individually.

The market has extended losses with the Nifty drifting away from the 8000 level. The Sensex is down 335.17 points or 1.3 percent at 25728.95, and the Nifty is down 96.10 points or 1.2 percent at 7883.80. About 814 shares have advanced, 1580 shares declined, and 158 shares are unchanged.

TCS, Bharti Airtel, Lupin and Coal India are gainers while Hindalco, M&M, BHEL, ITC and HDFC are losers in the Sensex.

The Japanese yen has seen a constant appreciation and has gone up to 108 to a US dollar. But, Hartmut Issel, Head Equity & Credit, APAC, UBS Wealth Management, said the yen is bound to weaken. Talking to CNBC-TV18, he said all the macro economic data point to an easing by Bank of Japan (BoJ).

In view of the decisions taken by the BoJ on holding off stimulus and keeping rates unchanged, Hartmut feels this may lead to a rate hike by the Federal Reserve by September.

1:55 pm Result poll: Net profit of ICICI Bank is likely to rise 6.6 percent to Rs 3115.1 crore in January-March quarter from Rs 2922.1 crore in corresponding quarter last fiscal. According to a CNBC-TV18 poll, the private lender's net interest income may grow 9.6 percent at Rs 5565.2 crore in Q4 compared to Rs 5079.5 crore in year-ago period.

1:30 pm Market outlook: Rashesh Shah, Chairman & CEO Of Edelweiss Financial Services said the tide is beginning to turn for India. "Consumer spending is back and so is credit growth," he said. The asset quality review kicked off by the Reserve Bank of India last year will bear fruits soon, he said. In the next two quarters or so, investors will have a handle on the process of bad loans that are being cleaned up. There has been positive demand for bad loans from asset reconstruction companies (ARCs). Edelweiss Asset Reconstruction Company itself has bought bad loans worth Rs 45,000 crore from banks over the last four years, taking a 50 percent haircut on them.

The Sensex is down 256.17 points or 0.9 percent at 25807.95 and the Nifty slips 73.90 points or 0.9  percent at 7906. About 834 shares have advanced, 1477 shares declined, and 141 shares are unchanged.

TCS, Coal India, Bharti and Lupin are top gainers while Hindalco, BHEL, ITC and HDFC are losers in the Sensex.

The Japanese yen has seen a constant appreciation and has gone up to 108 to a US dollar. But, Hartmut Issel, Head Equity & Credit, APAC, UBS Wealth Management, said the yen is bound to weaken. Talking to CNBC-TV18, he said all the macro economic data point to an easing by Bank of Japan (BoJ).

In view of the decisions taken by the BoJ on holding off stimulus and keeping rates unchanged, Hartmut feels this may lead to a rate hike by the Federal Reserve by September.

12:55 pm International results: Deutsche Bank posted a 58 percent drop in net profit in the first quarter, to 236 million euros (USD 267 million) compared to the same period last year.

The group posted a revenue decline of 22 percent year-on-year to 8.1 billion euros which it said "reflected a challenging environment and the impact of strategic decisions to downsize and exit certain businesses."

In its core business, revenue dropped 15 percent in its corporate and investment banking division and 23 percent in its global markets unit. It said 2016 would be the "peak year for its restructuring efforts."

12:30 pm Market bleeds: The Sensex is down 271.98 points or 1 percent at 25792.14 and the Nifty slips 82.35 points or 1 percent at 7897.55. About 848 shares have advanced, 1407 shares declined, and 147 shares are unchanged.

Lupin, TCS and Bharti are top gainers while Hindalco, BHEL, M&M, ITC and HDFC are losers in the Sensex.

The market is still reeling under heavy selling pressure. The Sensex is down 190.88 points or 0.7 percent at 25873.24 and the Nifty is down 55.65 points or 0.7 percent at 7924.25. About 902 shares have advanced, 1294 shares declined, and 147 shares are unchanged.

Bharti Airtel, Lupin, Tata Steel, TCS and Coal India are top gainers while BHEL, M&M, Hindalco, HDFC and Tata Motors are losers in the Sensex.

Meanwhile, Japanese shares sold off and the yen surged against the dollar Thursday after the Bank of Japan's (BOJ) decision to keep monetary policy steady disappointed a section of the market betting on further stimulus.

Chinese mainland markets retreated, with the Shanghai composite down 0.68 percent, while the Shenzhen composite dropped 1.04 percent.

11:55 am Roads: The government plans to make it mandatory to set aside 1 percent of total cost of any highway project for road safety, Union Minister Nitin Gadkari said.

India witnesses as high as 5 lakh road accidents per annum in which 1.5 lakh people die and another 3 lakh are crippled.

"We have prepared a policy for setting aside one percent of the total project cost of any highway project for road safety issues. Government is likely to approve it soon," Road Transport and Highways Minister Gadkari told PTI.

"If cost of construction is Rs 1,000 crore then one percent comes to Rs 10 crore. We will use those Rs 10 crore for road safety issues that include fixing accidental spots, installing cameras and lights and on other such issues," the minister said.

11:45 Asia bleeds: Japanese shares sold off and the yen surged against the dollar Thursday after the Bank of Japan's (BOJ) decision to keep monetary policy steady disappointed a section of the market betting on further stimulus.

The benchmark Nikkei 225 was down 3.24 percent, compared to a 1.41 percent gain before the decision. The Topix index fell 2.15 percent.

The yen moved sharply higher, with the dollar/yen pair dropping 2.10 percent to 109.11, compared with the 111 level it traded at before the decision.

11:25 am Sharp fall: There is a sudden sharp fall in market as the Nifty spirals down. The Sensex is down 223.73 points or 0.9 percent at 25840.39, and the Nifty is down 65.70 points or 0.8 percent at 7914.20.  About 845 shares have advanced, 1241 shares declined, and 143 shares are unchanged.

Auto, FMCG and IT stocks are under huge pressure.

11:10 pm Market check: The Sensex is down 105.45 points or 0.4 percent at 25958.67, and the Nifty is down 35.20 points or 0.4 percent at 7944.70. About 970 shares have advanced, 1039 shares declined, and 122 shares are unchanged.

The market is still struggling as April Futures & Options expiry draws closer. The Sensex is down 62.18 points at 26001.94, and the Nifty down 16.35 points at 7963.55. About 1032 shares have advanced, 952 shares declined, and 127 shares are unchanged.

Bharti, TCS, Tata Steel, ONGC and HDFC Bank are gainers while BHEL, ITC, M&M, GAIL and Tata Motors are losers in the Sensex.

Oil prices dipped in Asia today as traders took profits after costs hit a new high for the year in response to falling US crude production.

Prices surged to 2016 peaks for the second straight day yesterday after the Federal Reserve left interest rates unchanged but appeared less concerned about global conditions, opening the door a crack to a rate hike in June.
 
Prices have started to recover after falling to the lowest level since 2003 in February amid signs of easing oversupply and falling US output.

10:30 am Outlook: Japanese central bank, the Bank of Japan kept reserves deposit rates unchanged, but trimmed real GDP growth forecast for FY17 to 1.2 percent from 1.5 percent earlier. The real GDP growth forecast for FY18 has been cut to 0.1 percent from 0.3 percent earlier. Geoff Lewis, Senior Strategist, Manulife Asset Management, tells CNBC-TV18, there could be a knee-jerk reaction in global markets to the GDP growth downgrade. However, the impact is likely to be limited because Japan has not contributed to the global economy for some time now. Lewis says the relative weakening of the dollar should limit downside in emerging markets.

The market is still flat as the Sensex is up 27.72 points or 0.1 percent at 26091.84. The Nifty is up 11.25 points or 0.1 percent at 7991.15. About 1051 shares have advanced, 609 shares declined, and 105 shares are unchanged.

Bharti, Cipla, HDFC Bank, Axis Bank and Coal India are top gainers while ITC, BHEL, Maruti, Infosys and GAIL are losers in the Sensex.

Crude futures pulled back from 2016 highs as traders locked in profits after April's sharp rally, but analysts said falling US production and strong investor appetite could push prices higher.

The price dip came after both crude benchmarks hit 2016 highs the previous day in what has been one of the steepest price rises in recent years. Both Brent and WTI have rallied more than 70 percent since their respective 2016 lows in January and February.

Analysts said falling output in the United States and a weak dollar were pushing prices up and attracting investors.

9:55 am Pharma: Ahemdabad based Torrent Pharma is recalling 20,952 cartons of Telmisartan tablets used for treatment of hypertension in US manufactured at its Indrad facility due to presence of 'foreign substance' in them.

The tablets in the strength of 80 mg are made by Torrent for its US arm Torrent Pharma Inc, the latest US Food and Drug Administration (USFDA) enforcement report said.

Torrent is recalling the tablets in a firm initiated ongoing nationwide Class III recall on account of "presence of foreign substance: product complaint for the presence of foreign matter identified as silicone within the tablet", US health regulator said.

9:30 am International markets: Speaking to CNBC-TV18, Ian Hui, Global Market Strategist, JP Morgan Asset Management, said he was positive that there won't be a rate hike in June when the Federal Open Market Committee meets again. The US sees less risk in global markets, he said, as it seems intent on keeping lower rates for long. As a result, there will be more flows into emerging markets, he added. Hui's outlook for India is a bit mixed. While he agrees that the February Budget has been received well, corporate earnings haven't really panned out well , Hui said. He is keeping his fingers crossed that the Goods and Services Tax Bill is rolled out.

The market has opened lower on April Future & Options expiry day as global cues weigh on India. The Sensex is down 20.47 points at 26043.65 and the Nifty is down 11.45 points at 7968.45. About 292 shares have advanced, 163 shares declined, and 35 shares are unchanged.

Bharti Airtel, Cipla, ONGC, Sun Pharma and Coal India are top gainers in the Sensex while Maruti, Infosys, ITC, HDFC and Reliance are losers.

HCL Tech has disappointed the street with its January-March quarter results. It posted Q3 net profit at Rs 1926 crore up 0.3 percent from Rs 1920 crore in last quarter. Rupee revenue climbed 3.4 percent at Rs 10698 crore against Rs 10341 core on sequential basis. In dollar terms, revenue was up 1.3 percent at USD 1587 million against USD 1566.1 million quarter-on-quarter.

The Bank of Japan (BOJ) left monetary policy steady, surprising several market players who were widely expecting a hefty dose of stimulus. The central bank maintained its negative 0.1 percent deposit rate and its 80 trillion yen base money target. However, it did leave the door open to additional easing steps and said it will provide loans at zero interest rates to areas impacted by the recent Kyushu earthquakes.

The decision sent the dollar-yen currency pair tumbling more than 2 percent to the 109 handle.

Also the Federal Reserve kept its benchmark interest rate unchanged citing slower growth in the US economy even as the labor market strengthens. The Fed stuck to its stance that US monetary policy will tighten only gradually and gave no hint as to whether it could lift the short-term federal funds rate at its next meeting in June.

The Indian rupee has opened at 66.39 per dollar up 0.13.

Mohan Shenoi, Kotak Mahindra Bank said, "The US Fed kept its policy rates on hold due to domestic and external factors. Currency markets were stable overnight as FOMC announcement was broadly in-line with market expectations. We expect the USD-INR pair to trade in a range of Rs 66.35-66.65/USD today."