Sensex ends 77 pts down, rupee at all-time low; IT surges
26 Jun 2013
3:55 pm Market closing: The weakness in the currency market seeped into the equity markets. An otherwise quiet session of trade saw the Nifty and Sensex slip in the red after the rupee breached the 60 level mark versus the dollar. The Sensex ended down 77.03 points at 18552.12 while the Nifty shed 27.85 points to close the day at 5581.25.
3:45 pm Index watch: At the end of trading, Bankex lost 1 percent, Metals was down 1.3 percent, Autos fell 1.8 percent, Healthcare was down 1.1 percent and Consumer Durables was weak by 1.1 percent. Meanwhile IT index led by TCS was up 1.6 percent on weak rupee.
Read: Prefer tender method to make buybacks meaningful, says Haldea
3:35 pm Winners and losers: Hero Motocorp (up 3.9 percent), TCS (up 2.8 percent), GAIL , NTPC and Wipro are top gainers in the Sensex. Top losers in the Sensex are Bharti Airtel (down 5.8 percent), M&M (down 4.6 percent), Tata Motors , Jindal Steel and Hindalco .
3:30 pm Market closing: The Sensex ends down 109.33 points at 18519.82, and the Nifty closes at 5581.25, down 27.85 points (provisional).
3:20 pm Management views: Bajaj Auto has recommenced production at its Chakan plant in Maharashtra today, which had stopped operating on Tuesday as workers went on strike. However the company's production per day may drop by 1000 units to 2000 units per day due to the strike, Managing Director Rajiv Bajaj told CNBC-TV18.
Out of 1500 workers at Chakan, around 100-200 employees turned up for work today. Rajiv said that he was not unduly concerned about the Chakan plant strike. The news is material as Chakan contributes close to 25 percent of Bajaj Auto's 2-wheeler capacity.
3:15 pm Alert: Generic drugs maker Dr Reddy's laboratories on Wednesday said it has launched Lamotrigine extended-release tablets in 25mg, 50mg, 100mg, 200mg and 300mg strengths in the US market, following approval by the US Food and Drug Administration.
Dr Reddy's Lamotrigine extended-release tablets are a copy of GlaxoSmithKline's Lamictal XR (Lamotrigine). It is a prescription drug, which together with other medicines is used to treat seizures.
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The market has sunk further as the rupee hits an all-time low of 60 per dollar. The Nifty too slips below the 5600 and is currently at 5590.70, down 18.40 points. The Sensex is down 71.87 points at 18557.28.
Banking, metals, auto, healthcare stocks are dragging the indices. Technology stocks, meanwhile, are going strong on weak rupee.
Dealers say rupee at all-time low as banks' stop losses triggered, reports Cogencies.
It depreciated by 7 percent in month of June and 12 percent since May 1.
Claudio Piron, Head of Emerging Asia FX & Fixed Income Strategy, Bank of America expressed concerns about the weakness in Indian currency.
Piron sees rupee touching 61-62 against dollar in the short term. "However, I think that would only last for a couple of months and then we will resume an improvement, because in longer term the Indian rupee, the fundamentals and the current account position will start to improve," he added.
02:59pm Indian equity benchmarks lost ground amid choppy trade, after the Indian rupee breached 60 level on dollar demand.
Rupee depreciated by 56 paise to 60.22 per dollar. The BSE Sensex is down 73.30 points at 18555.85, and the Nifty is down 22.05 points at 5587.05.
Claudio Piron, Head of Emerging Asia FX & Fixed Income Strategy, Bank of America expressed concerns about the weakness in Indian currency.
Piron sees rupee touching 61-62 against dollar in the short term. "However, I think that would only last for a couple of months and then we will resume an improvement, because in longer term the Indian rupee, the fundamentals and the current account position will start to improve," he added.
Also read: EMs look attractive; weak currencies to help: Aberdeen AMC
Declining shares outnumbered advancing ones by 1290 to 922 on the Bombay Stock Exchange.
Precious metals too are under pressure; gold futures fell below Rs 26,000 per 10 gram while silver dropped below the Rs 40,000 per kg on the MCX .
02:40pm L&T Finance Holdings jumped over 3 percent as the company will consider applying for bank license on Friday, reports CNBC-TV18 quoting cogencis' sources.
Indian rupee is moving towards the 60 mark; it depreciated by 27 paise to 59.93 per dollar.
02:35pm Liquor producer Tilaknagar Industries said it would double Shrirampur unit capacity by October, reports CNBC-TV18 quoting cogencis. Shrirampur unit capacity stands at 1.25 lakh cases per month.
Jewellery manufacturer Rajesh Exports has reducted its FY14 sales and net profit growth forecast to 10 percent from 25 percent, reports CNBC-TV18 quoting Reuters. The stock is down more than 3 percent.
02:25pm Expert talks on market
The worst for the Indian macros is over , says Sandip Sabharwal of Prabhudas Lilladher, citing falling gold and crude prices.
"I would believe that the downside risk from the current levels should be limited but the upside also does not seem to be very huge given the fact that on the ground activity in the economy still remains subdued," he told CNBC-TV18 in an interview.
Meanwhile, defensives continue to outperform, despite the fact that the valuation differential between defensives and the rest of the market has kept on increasing.
02:15pm Equity benchmarks remained flat to positive amid choppy trade, despite the rally seen in European markets. France's CAC and Germany's DAX gained more than 1.2 percent while Britain's FTSE rose nearly one percent after a better-than-expected economic reports from US and Germany.
The BSE Sensex is up 23.00 points at 18652.15, and the Nifty is up 10.40 points at 5619.50 ahead of June expiry.
Shares of TCS and Hero Motocorp topped the buying list, rising more than 2.5 percent followed by state-owned NTPC and GAIL with 2.3 percent gains.
Index heavyweights ITC and Reliance Industries rose by 1.5 percent and 0.7 percent, respectively.
However, commercial vehicle major Tata Motors plunged 3 percent and utility vehicle maker Mahindra & Mahindra lost 3.5 percent.
1:50 pm Technology stocks gain: IT stocks surged on positive economic data in the US with TCS (up 2.42%), HCL Technologies (up 1.04%), Infosys (up 0.84)% and Wipro (up 0.38%) on buyers' radar.
Rupee's weakness also boosted technology stocks. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports. The rupee was hovering at 59.84 against the dollar, weaker than Tuesday's close of 59.66/67. The rupee hit record low 59.98 against the dollar in intraday deals on 20 June 2013 as global investors pulled out of emerging markets broadly amid concerns over the reduction of a US programme that has injected billions of dollars into the global financial system.
1:40 pm buzzing: Shares of Mumbai-based Elder Pharmaceuticals jumped 5 percent to hit the upper circuit limit of Rs 309.50 on NSE on Wednesday after a report in the Economic Times paper said global pharma majors like Sanofi Aventis , Novartis and GlaxoSmithKline were in the race to buy-out the debt ridden company's domestic formulations business.
While Sanofi and GSK have put in non-binding bids, Novartis has signed a non-disclosure agreement, the report said, adding that even a few private equity players planned to join the bidding process.
1:30 pm Expert views: Indian currency's sharp fall to life time lows is worrying the government as it would worsen the current account deficit (CAD) situation, but Pashupati Advani of NBIE feels India is looking attractive because of the depreciating rupee.
However, given the way market has fallen over the last few days, it is wise to stay out and start buying only when the Nifty starts rising, he recommends.
"Though some people are looking at nibbling at the market, but there is no real serious bottom fishing now as seen last time when the Nifty came down to 5700," he tells CNBC-TV18 in an interview .
He expects the market to perform better in July as inflows from HUL open offer would bring almost USD 5 billion to India. He says, one can look at buying high beta stocks when the market is on its way up. He is positive on cement stocks and likes Crompton Greaves from the capital goods space.
On the flip side, he suggests staying away from IT stocks now as they are likely to feel the heat of US Immigration Bill. One should also avoid telecom stocks now.
1:20 pm Alert: Ashoka Buildcon will issue bonus shares on July 4. The board had approved bonus issue in ratio of 1:2. The stock is up 5.6 percent on the BSE.
Expert views: Rupee fall to impact Q1 earnings, invest in IT, says Ajay Bodke
The Nifty is comfortable above 5600 led by power, IT and infrastructure stocks. The Nifty is up 11.20 points at 5620.30 while the Sensex adds 22.56 points at 18651.71. The mid and small caps show relatively better traction.
Some stocks in news- NTPC rallies after it resolves its public spat with Coal India and agreed to sign fuel-supply agreements (FSAs). Bharti slumps ahead of the spectrum EGoM. Bajaj Auto is under pressure as workers at their Chakan plant have gone on strike demanding permanent employment for some and ESOPs for the workers.
Meanwhile it's a mixed session across Asia, Japan is down nearly a percent but the Hong Kong and Taiwanese markets are up over a percent. Europe opens on a cautious note and in commodities gold drops to 3-year lows below 1250.
12:55pm Among midcaps, Religare Enterprises , IRB Infrastructure, Videocon Industries , Muthoot Finance and Motilal Oswal are top gainers, rising 4-6.5 percent while losers are India Cements , Den Networks , Emami and Crompton Greaves that fell 5-6 percent. Gitanjali Gems is the top midcap loser, falling another 10 percent after a plunge of 40 percent in previous two sessions.
12:50pm Claudio Piron, Head of Emerging Asia FX & Fixed Income Strategy, Bank of America Merrill Lynch expects respite in currencies to continue only for 2-3 weeks.
Indian rupee is trading at 59.83 per dollar, down by 17 paise compared to previous day's closing value of 59.66.
According to Piron, the Reserve Bank of India (RBI) is trying to protect 59/dollar level. Rupee may head to 61-62 per dollar levels, he adds.
Piran says flows will return to Indian markets after RBI cuts interest rates further. Foreign institutional investors have sold more than Rs 10,500 crore worth of equity shares since June 11.
Also Read - EMs look attractive; weak currencies to help: Aberdeen AMC
12:40pm European markets too are lacklustre in early trade on Wednesday, after witnessing one percent gains in previous session.
Back home, Ashoka Buildcon shares surged 11 percent as the board of directors of the company will consider stock split on July 4. It will also mull bonus issue in ratio of 1:2.
Jaypee Infratech's promoter has created additional pledge of 3 crore shares. The stock is marginally up.
12:30pm Indian equities continue to move around its previous closing values within a tight range of 5600-5635 on the Nifty, but the broader markets especially midcaps lost early gains.
The BSE Sensex is up 8.25 points at 18637.40, and the Nifty is up 4 points or at 5613.10.
The BSE Midcap Index is down 0.13 percent while Smallcap gained 0.24 percent. Declining shares outpaced advancing ones by 1046 to 963 on the Bombay Stock Exchange.
Shares of telecom operator Bharti Airtel shed all its Tuesday's gains today, losing more than 5 percent.
12:00 am Deal win: Outsourcing company iGate Corporation today said it has bagged a major five-year contract worth over USD 100 million (about Rs 598 crore) for providing global infrastructure services for insurance major MetLife, Inc, reports PTI.
The US-based IT solutions firm has been providing services to the global insurance giant for the last 10 years across North America, EMEA and Asia-Pacific. The present deal includes providing complex and mission critical services.
11:50 am Winners: TCS (up 2.3 percent), GAIL (up 1.7percent), NTPC , L&T and Tata Power are top losers in the Sensex.
11:40 am Mover: Reliance Capital gains around 5 percent in trade today on reports that the company plans to spin off its consumer lending business into a new unit and sell the minority stakes to Sumitomo Mitsui Trust Bank and Nippon Life Insurance. Also Reliance Capital will apply for a banking license.
11:30 am Buzzing: Videocon is up over 5 percent after the management told CNBC-TV18 that the Mozambique stake sale proceeds will accrue to the listed company and the money will be used to retire debt and reward shareholders.
11:25 am Mangement speaks: Ending a long drawn battle over coal quality issue and payment method, India's leading power generator, NTPC has agreed to sign the fuel supply agreement (FSA) with Coal India .
Speaking to CNBC-TV18 , NTPC chairman Arup Roy Chowdhury said that the company would sign the FSA as early as Friday once CIL board clears the agreement.
NTPC board has now given a thumbs up to signing FSA with the country's largest coal miner and has said that the company will make payment based on the quality of coal.
11:20 am Buzzing: Profit-booking is seen in Crompton Greaves as the stock falls 4.4 percent. It surged 10 percent yesterday on news that the board will meet on Friday, June 29, to consider buyback of shares.
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The market is off the day's high and is completely as the Nifty is down 0.80 points at 5608.30 while the Sensex is down 19.34 points at 18609.81.
Capital goods and power stocks are lending support to the indices while auto stocks are growing weak.
NTPC is up 2 percent as the company has resolved its public spat with Coal India over quality and payment terms, and agreed to sign fuel-supply agreements (FSAs). Coal India's board is scheduled to consider the fuel pact today, after which the final agreement will be signed.
10:55am Venugopal Dhoot of Videocon said the company applied for banking license on Tuesday. "We have seen strong interest from potential banking investors." Shares rallied 6 percent.
Diversified conglomerate Videocon sold its 10 percent stake in Mozambique gas field to state-owned ONGC Videsh and Oil India for USD 2.48 billion. Dhoot said brazilian oil & gas assets valued at over Rs 40,000 crore and all of Mozambique proceeds would accrue to listed company.
"We will use money to retire debt and reward shareholders. We are also looking for special dividend, bonus in next EGM," he added.
10:50am The NSE Nifty is hovering around the 5610 level ahead of expiry of June series. The BSE Sensex is down 4.40 points at 18624.75, and the Nifty is up 3.30 points at 5612.40.
Indian currency's sharp fall to life time lows is worrying the government as it would worsen the current account deficit (CAD) situation, but Pashupati Advani of NBIE feels India is looking attractive because of the depreciating rupee. Rupee fell by 20 paise to 59.86 per dollar.
However, given the way market has fallen over the last few days, it is wise to stay out and start buying only when the Nifty starts rising, he recommended.
10:40am ING Vysya Bank trimmed gains to 0.4 percent from 2.4 percent. The bank will issue 1.44 crore shares to qualified institutional buyers at price range of Rs 606-612/share. The bank will raise approximately Rs 880 crore.
The bank will also issue 1.56 crore shares at Rs 611.11 or higher on preferential basis to parent company to raise Rs 950 crore.
Shree Ganesh Jewellery shares surged 5 percent as the board of directors of the company will consider issue of equity shares on preferential basis on June 27. The jewellery manufacturer may issue equity shares to non promoters/foreign investors.
10:25am Among midcaps, Videocon Industries shares rallied over 6 percent after it sold its 10 percent stake in Mozambique gas field to ONGC Videsh and Oil India for USD 2.48 billion. The company is also planning to enter into banking sector.
IRB Infrastructure rebounded with 4 percent gains, after a 11 percent fall witnessed in previous session.
Gitanjali Gems shares are locked at 10 percent lower circuit, continuing fall for the third consecutive session after the string of restrictions on gold imports by the RBI over the last month is seen hurting profit margins of these companies. Exchanges lowered circuit limit for the stock from 20 to 10 percent.
10:15am Equity benchmarks are trading marginally higher amid volatility and broader markets bounced back after getting butchered in previous sessions.
The BSE Sensex is up 20.27 points at 18649.42, and the Nifty is up 15 points at 5624.10.
Advancing shares outnumbered declining ones by 730 to 522 on the Bombay Stock Exchange.
Bharti Airtel , which was the top gainer on Sensex on Tuesday, is the biggest loser today, falling 4 percent.
Oil & gas stocks continue their uptrend with Reliance Industries gaining more than one percent. ONGC rose 0.6 percent and GAIL rallied 2 percent.
Technology shares are on buyers' radar as the Indian rupee is moving towards record low of 60 per dollar. It is trading at 59.84 per dollar, down 18 paise. TCS and Infosys gained 0.7-0.9 percent.
Commercial vehicle maker Tata Motors extended gains by 2.34 percent to Rs 275.
Two-wheeler maker Bajaj Auto fell 1.5 percent after the company received notice from workmen's union of Chakan plant proposing stoppage of work from June 28.
10 am Gold update: Gold hit a near-three year low on Wednesday , falling for a seventh session out of eight, as strong US economic data boosted stocks and supported the Federal Reserve's plan to scale back its bond purchases in the next few months.
Bullion prices have been sliding since Fed Chairman Ben Bernanke laid out a strategy last Wednesday to wind down the bank's USD 85 billion monthly bond purchases on the back of a recovering economy.
9:50 am Rupee check: Dealers say RBI is seen selling dollars via PSU banks at Rs 59.90 per dollar levels, reports Reuters.
9:47 am Market check: The Sensex is up 40.53 points at 18669.68, and the Nifty is up 18.50 points at 5627.60.
9:35 am Buzzing: Trouble for Bajaj Auto brews up, the company's workers union at the Chakan plant have called for a strike on the June 28. CNBC-TV18 learns that workers are unhappy over the management refusing to allot shares at a discounted price. Bajaj Auto is at Rs 1,771.40, down Rs 28.50, or 1.58 percent on the BSE.
9:20 am Gainers: NTPC (up 2 percent), Tata Power , BHEL , Reliance and GAIL are gianers in the Sensex.
Read what Udayan Mukherjee says about the market
The market has opened on a flat note as the Sensex is up 33.22 points at 18662.37. The Nifty adds 18.85 points to open at 5627.95. About 195 shares have advanced, 66 shares declined, and 27 shares are unchanged.
Indian rupee depreciated by 8 paise to 59.74 per dollar on Wednesday as against previous day's closing of 59.66 per dollar.
Himanshu Arora of Religare feels the Indian rupee may strengthen slightly against the dollar on speculation that RBI may intervene and stop the rupee fall to 60/USD.
According to him, "The range for the day is seen between 59.48-59.80/USD."
Asian markets were mixed in morning trade on Wednesday. The People's Bank of China (PBOC) reassured and soothed the market saying the overall liquidity in domestic banks is abundant. The Chinese market had hit lows of 2009 on concerns of stress in the Chinese banking system.
"There is some attempt of a pullback across global asset classes, but it is not a very convincing one. Today, Asia is losing its nerve after initial move up and China is quite volatile. Our market may also attempt at a pullback today, like it did yesterday," says CNBC-TV18's managing editor Udayan Mukherjee.
According to technical analyst Sudarshan Sukhani, market is likely to be choppy till this series expires.
US markets posted gains across the board, erasing most of their losses from the previous day's sell-off, as a batch of better-than-expected economic reports trumped worries over a credit crunch in China.
In key data to watch out for, the US GDP growth expectation for the first quarter is seen unchanged after it was nudged lower to an annualized rate of 2.4 percent compared to the initial estimate of 2.5 percent and compared to a fourth quarter rise of 0.4 percent.
Brent crude was almost flat around USD 101 pre barrel level. From precious metals space, gold slipped to USD 1275 an ounce.