Nifty ends below 7750, Sensex sheds 207 points on global pressure

03 May 2016

The market ended lower as selling pressure gripped Dalal Street intraday after benchmark indices saw some smart buying.  Weak European markets made domestic investors nervous while banks, IT and infra stocks skid . The Nifty ended below the 7750-level, losing 58.90 points or 0.7 percent at 7747 while the Sensex slipped 207.27 points or 0.8 percent at 25229.70.

EU has cuts euro zone growth and inflation forecasts which dragged markets in the region. The European Comission now sees euro zone GDP in 2016 at 1.6 percent from a previous forecast of 1.7 percent growth. It also lowered its 2017 forecast to 1.8 percent from 1.9 percent.

European Commissioner Pierre Moscovici said that there would be "stable growth" this year but that the recovery could be faster.

However, there is some good news for Indian investors as the International Monetary Fund has retained its growth forecast for India this year at 7.5 percent, largely driven by private consumption even as weak exports and sluggish credit growth weigh on the economy.

India's growth momentum is expected to be underpinned by private consumption, which has benefited from lower energy prices and higher real incomes, IMF said and called on the policymakers to speed up the structural reform implementation.

Sachin Shah, Fund Manager at Emkay Investment Managers feels there are some green shoots visible in urban demand but India's GDP is heavily dependent on semi-urban and rural demand, where uptick is still awaited. "Probably in second half of FY17 we will see demand come back from semi-urban and rural segments," he says.

Stock specifically, Bharti Airtel, HDFC, Tata Motors and Tata Steel were top gainers. Coal India, BHEL, ICICI Bank, Lupin and TCS were major losers in the Sensex. About 1160 shares have advanced, 1475 shares declined, and 147 shares are unchanged.

Meanwhile, the Finance Ministry has told Parliament that public sector banks have exposure to nearly 7700 wilful defaulters who owe the system a staggering Rs 66000 crore as of December 2015. SBI group has 1700 defaulters owing Rs 18,600 crore. Among individual banks too, SBI leads the pack with a total exposure of Rs 11700 crore followed by PNB with Rs 10800 crore.

3:30 pm Market closing: After a choppy trading session, the market has ended lower. The Nifty has ended below 7850, down 58.90 points or 0.7 percent while the Sensex slipped 207.27 points or 0.8 percent at 25229.70.

Coal India, BHEL, Lupin, ICICI Bank and TCS were losers in the Sensex while Bharti, HDFC, Tata Steel, Tata Motors and L&T are gainers in the Sensex.

3:00 pm Gold check: Gold prices recovered by Rs 50 to Rs 30,250 per 10 grams at the bullion market today, tracking a firm trend overseas amid fresh buying by jewellers.

However, silver remained under pressure and shed another Rs 100 to Rs 41,600 per kg.

Traders said a firm trend globally where gold rose on speculation that the US central bank will be slow to tighten policy further, bolstered the metal's appeal, which also hit dollar. Pick up in buying by jewellers to meet retailers' demand for the ongoing wedding season, also supported the upside, traders added.

2:55 pm Market outlook: Reacting to today's sharp fall in the Indian indices, market expert, Ashwani Gujral said that this is a correction followed by the sharp 1100 points rally in the Nifty.

He said that if no global market is rallying then our markets won't respond to any good news as well.

In the same interview, Deven Choksey said that the drop in the market index will open lot of opportunities to buy and this is fall is nothing but an overdue correction.

Jai Bala of cashthechaos.com said that there are two short term possibilities from this point, either the market will end this correction at 7690 or there will be a deeper correction till the 7400 mark.

2:45 pm Market outlook: There are some green shoots visible in urban demand but India's GDP is heavily dependent on semi-urban and rural demand, where uptick is still awaited, says Sachin Shah, Fund Manager at Emkay Investment Managers.

"Probably in second half of FY17 we will see demand come back from semi-urban and rural segments," he says

Shah sees a pick-up in the pace of execution of infrastructure projects, particularly roads, which in turn will boost demand for cement. Earlier on Tuesday, CNBC-TV18 reported quoting sources, that cement prices in Andhra Pradesh and Telangana have been hiked by Rs 40-50 per bag.

2:30 pm Tata Steel: Metals group Liberty House will submit a letter of intent to buy the British assets of Tata Steel, a spokeswoman said, in the first concrete bid since the Indian conglomerate put the business up for sale, threatening thousands of jobs.

India's Tata group announced plans to sell its entire UK steel operation in March, leaving the government battling to save an industry that has been hurt by cheap Chinese imports, soaring costs and weak demand.

Keen to avoid the loss of 10,000 jobs, the government has offered hundreds of millions of pounds in support to potential buyers, including the option of it taking a 25 percent stake in the firm alongside other buyers.

The market continues to slip further. The Sensex is down 137.96 points or 0.5 percent at 25299.01 and the Nifty slips 43 points or 0.5 percent at 7762.90. About 1196 shares have advanced, 1242 shares declined, and 167 shares are unchanged.

Bharti Airtel, Tata Motors, Adani Ports, L&T and Tata Steel are top gainers in the Sensex while Coal India, Lupin, Infosys, HUL and TCS are losers.

The Indian IT infrastructure market will increase marginally to USD 1.93 billion this year whereas by 2020, it is likely to grow to USD 2.13 billion, Gartner said today.

The IT infrastructure market includes server, storage and enterprise networking equipment. In 2015, the market stood at USD 1.90 billion.

"The Indian IT infrastructure market will total USD 1.9 billion in 2016, a 1 percent increase from 2015," Gartner said. Indian enterprises will continue to focus on optimising their infrastructure and operations budgets in 2016, it added.

1:55 pm Result: FMCG major Godrej Consumer Products (GCPL) reported 16.75 percent rise in consolidated net profit at Rs 310.07 crore for the fourth quarter ended March 31, 2015-16.

The company had reported a net profit of Rs 265.57 crore in the corresponding period of the previous financial year, 2014-15.

During the period under review, the company's net sales stood at Rs 2,266.06 crore, up 8.80 percent, against Rs 2,082.61 crore in the year-ago period, GCPL said in a BSE filing.

For the entire 2015-16, GCPL's net profit was Rs 1,119.41 crore, compared with net profit of Rs 907.12 crore in the previous fiscal year.

1:40 pm European market: European stocks trade lower dragged down by mining and auto stocks as earnings from major banks including UBS and Commerzbank disappointed investors.

European sentiment failed to get a lift from some of Asia's gains overnight; markets traded mostly higher despite a disappointing manufacturing purchasing manager's index (PMI) from China.

1:25 pm Market extends losses: The Sensex is down 163.10 points or 0.6 percent at 25273.87, and the Nifty slips 49.20 points or 0.6 percent at 7756.70. About 1192 shares have advanced, 1207 shares declined, and 159 shares are unchanged.

Coal India, Sun Pharma, Lupin, ITC and Infosys are losers in the Sensex.

The market is struggling under selling pressure as the Sensex is down 41.42 points or 0.2 percent at 25395.55. The Nifty is down 12.75 points or 0.2 percent at 7793.15. About 1314 shares have advanced, 1071 shares declined, and 142 shares are unchanged.

Bharti Airtel, Adani Ports, Tata Motors, L&T and Tata Steel are gainers while Coal India, Sun Pharma, Lupin and Dr Reddy's Labs were losers in the Sensex.

Sachin Shah, Fund Manager at Emkay Investment Managers feels there are some green shoots visible in urban demand but India's GDP is heavily dependent on semi-urban and rural demand, where uptick is still awaited, says

Shah sees a pick-up in the pace of execution of infrastructure projects, particularly roads, which in turn will boost demand for cement. Earlier on Tuesday, CNBC-TV18 reported quoting sources, that cement prices in Andhra Pradesh and Telangana have been hiked by Rs 40-50 per bag.

12:50 pm Exclusive: Diageo is in initial talks to hike stake in United Spirits (USL) most likely via multiple open market transactions, reports CNBC-TV18 quoting sources.

Currently, Diageo holds 55 percent stake in USL and the company is considering increasing it to 72 percent over the next 1-2 years, sources say.

Diageo gained complete control of the board of USL post the exit of Vijay Mallya, but seeks to protect its shareholding by hiking stake.

12:40 am Market check: The Sensex is down 22.43 points or at 25414.54 and the Nifty is down 3.90 points at 7802. About 1434 shares have advanced, 926 shares declined, and 142 shares are unchanged. Sun Pharma, Lupin, Coal India, TCS and Dr Reddy's are losers in the Sensex.

Bharti, Tata Motors, Adani Ports, L&T and Tata Steel are gainers.

12:30 pm Deal: Insurer Aviva said it had purchased an additional 23 percent share in Aviva Life Insurance Company India Limited from joint venture partner Dabur Invest Corp.

The acquisition, which takes Aviva's stake to 49 percent, followed a recent regulatory change in India. It will have a neutral impact on Aviva's net assets, the company said in a statement.

Aviva India contributed 36 million pounds (USD 52.96 million) to Aviva's net assets in 2015 and 4 million pounds to profits, it added.

The Sensex is up 118.79 points or 0.5 percent at 25555.76, and the Nifty is up 39.85 points or 0.5 percentat 7845.75. About 1487 shares have advanced, 785 shares declined, and 146 shares are unchanged.

Auto, banks, infra and metals are gainers. Adani Ports, Tata Motors, Bharti Airtel, L&T and Tata Steel are top gainers while Sun Pharma, Lupin, Dr Reddy's Labs, Coal India and TCS are losers in the Sensex.

Gold prices moved down by 0.30 percent to Rs 30,204 per 10 ten grams in futures trading as participants booked profits at prevailing higher levels even as the precious metal glittered overseas. Analysts attributed the fall in gold futures to profit-booking by traders at existing levels but a firm trend overseas on speculation that the US central bank will be slow to tighten policy further, bolstering the metal's appeal as the dollar sagged.

11:30 am Boardroom: Properties situated outside large cities have been a driving force for home financier HDFC , Vice Chairman and CEO Keki Mistry says. In an interview with CNBC-TV18, Mistry outlined what the typical loan for the company looked like. "Our average ticket size is about Rs 25 lakh and our loan-to-value ratio is typically at 60 percent. So the average price of the house we finance is around Rs 38 lakh -- something you won't find in large cities," he said. The HDFC chief was talking in the backdrop of the company's robust fourth-quarter numbers, in which its net profit grew 40 percent year-on-year.

The market has cooled off from early gains as the Sensex is up 141.12 points or 0.5 percent at 25578.09. The Nifty is up 44.35 points or 0.6 percent at 7850.25. About 1431 shares have advanced, 650 shares declined, and 128 shares are unchanged.

L&T and Bharti are up 3 percent each while other gainers in the Sensex are Adani Ports, Tata Motors and NTPC. Losers in the Sensex are Sun Pharma, Coal India, Lupin, HUL and Dr Reddy's.

Oil prices rebounded in Asia today but nagging worries about excess supplies kept them below 2016 highs after data showed Iran and Iraq increasing output.

The commodity has rallied for four straight weeks thanks to a weaker dollar and hopes that the world economy is slowly turning positive.

Adding to demand concerns, data showed factory activity in world number two economy and top energy consumer China slowed in April, leading to worries that a recent spate of upbeat indicators may have been a blip.

10:50 am Market cools off: The Sensex is up 157.21 points or 0.6 percent at 25594.18, and the Nifty up 49.65 points or 0.6 percent at 7855.55.
About 1412 shares have advanced, 619 shares declined, and 122 shares are unchanged.

10:30 am Jet fuel price: Domestic airlines body FIA is likely to meet Petroleum Minister Dharmendra Pradhan today over the alleged "opaque" pricing of jet fuel by oil marketing firms and seek government's intervention in resolving the issue. The Federation of Indian Airlines (FIA) during the proposed meeting is also expected to raise other related issues, including oil companies alleged failure to bring down ATF prices in line with the reduction in crude prices since 2014, sources said. Any upward or downward revision in aviation turbine fuel prices directly impacts air fares as fuel costs account for over 40 per cent of an airline's operating cost.

The market has managed to keep early morning upmove ticking. The Sensex is up 232.74 points or 0.9 percent at 25669.71, and the Nifty is up 73.10 points or 0.9 percent at 7879. About 1340 shares have advanced, 457 shares declined, and 87 shares are unchanged.

Tata Motors, Bharti Airtel, Adani Ports, NTPC and L&T are gainers while GAIl, Coal India, Sun Pharma and TCS are losers in the Sensex.

Oil prices dipped on signs that production in the Middle East is continuing to rise, countering falls in US output and threatening to keep a global supply overhang in place for longer.

Gold nursed small overnight losses, but the metal wasn't too far from a 15-month high on dollar weakness and as assets of the biggest bullion fund rose to their highest in over two years. Gold has risen sharply in recent days after the dollar slumped on the Federal Reserve's cautious stance towards higher US rates and as the yen soared after the Bank of Japan stood pat on policy last week.

9:55 am Boardroom: Properties situated outside large cities have been a driving force for home financier HDFC, Vice Chairman and CEO Keki Mistry says.

In an interview with CNBC-TV18, Mistry outlined what the typical loan for the company looked like. "Our average ticket size is about Rs 25 lakh and our loan-to-value ratio is typically at 60 percent. So the average price of the house we finance is around Rs 38 lakh -- something you won't find in large cities," he said.

The HDFC chief was talking in the backdrop of the company's robust fourth-quarter numbers, in which its net profit grew 40 percent year-on-year.

He also said he expects margin to dip slightly going forward as falling interest rates and higher leverage weigh, but said the latter would result in increasing return on equity.

9:45 am Big bull: Rakesh Jhunjhunwala, Partner at Rare Enterprises, said markets have been looking up of late. But they have mellowed somewhat from the time Narendra Modi took over as the prime minister. "It is a good thing that optimism has come down from high levels. Now, there will be growth," he said, speaking to CNBC-TV18. The ace investor is positive that India is set to grow at 9 percent. The country is ready for the next leap, he said. He added that he will be surprised if Nifty re-tests 7200 levels. His main worries included Brexit, but now he believes the chances of the English walking out of the 26-member European Union are slim.

9:24 am Market rises: The Sensex is up 218.54 points or 0.9 percent at 25655.51, and the Nifty is up 65.90 points or 0.8 percent at 7871.80. About 930 shares have advanced, 244 shares declined, and 54 shares are unchanged.

Adani Ports, Tata Motors, Hindalco, HDFC and Bharti Airtel are top gainers while Sun Pharma, Coal India and Dr Reddy's Labs are losers in the Sensex.

After few days of struggle, the market has opened in green on Tuesday. The Sensex is up 79.22 points or 0.3 percent at 25516.19, and the Nifty is up 18.90 points or 0.2 percent at 7824.80. About 396 shares have advanced, 105 shares declined, and 35 shares are unchanged.

GAIL, Hero MotoCorp, Tata Motors, Adani Ports and Hindalco are top gainers while Dr Reddy's Labs, ICICI Bank, HUL, Bharti and Sun Pharma are losers in the Sensex.

The Indian rupee opened higher by 9 paise at 66.35 per dollar on Tuesday against previous close of 66.44.

Ashutosh Raina of HDFC Bank said, "A weakening USD, with dollar index touching 92.54 levels, fully retracing the rally since China FX move last year, have steadily boosted global stock markets and resulted in return of some risk-on sentiment."

The yen held steady at around 106 per dollar, close to its strongest level since October 2014, meanwhile the euro rise to 1.15 against the dollar.

Asian stocks turned higher after a positive lead from Wall Street overnight, with Australia's shares shaking off early losses. Japan's markets are closed Tuesday due to the Constitution Day holiday. The Nikkei 225 finished down 3.11 percent on Monday, weighed by a surge in the yen against the dollar.

US stocks rose, rebounding from losses last week, as financials gained with Berkshire Hathaway and weakness in the dollar eased worries about earnings for multinationals.

The Nasdaq snapped a seven-session losing streak, though Apple fell for an eighth straight session, its longest run of losses since mid-1998.