Nifty ends below 7000, Sensex weak; Tata Motors up 8%
12 Feb 2016
3:30 pm Market closing: The market has posted biggest weekly losses since July 2009. The Sensex ended up 34.29 points or 0.1 percent at 22986.12 and the Nifty was up 4.60 points at 6980.95. About 898 shares have advanced, 1684 shares declined, and 133 shares are unchanged. Tata Motors, Bharti Airtel, M&M, Axis Bank and NTPC are top gainers while BHEL, Adani Ports, ONGC, Hindalco and L&T were losers in the Sensex.
3:00 pm FM's balms: Attributing the recent crash in stock market to global factors, Finance Minister Arun Jaitley today said there was no need for "exaggerated panic" and investors should keep the economy's inherent strength in mind while investing. The Finance Minister said the government will continue to pursue policies to support growth amid global slowdown.
"... it would be a part of prudent investment reaction that the inherent strengthen of Indian economy is kept in mind by investors rather than react disproportionately to what the global developments are," Jaitley said.
2:30 pm Earnings: Andhra Bank today reported a 82.91 percent plunge in net profit at Rs 34.46 crore for the third quarter ended December 31, on higher bad loans. The bank's net profit was Rs 201.71 crore in the corresponding October-December quarter of 2014-15.
Total income increased to Rs 4,801.4 crore for the quarter from Rs 4,540.61 crore for the quarter ended December 31, 2014, it said in a BSE filing.
Provisions for bad loans were raised to Rs 905.56 crore for the quarter ended December, up from Rs 541.52 crore kept aside in the same quarter of the previous fiscal. The gross non-performing assets (NPAs) or bad loans stood at 7 per cent of the gross advances during the quarter as against 5.99 per cent a year ago.
2:00 pm Market Check
The market recouped losses in afternoon trade with the Sensex gaining nearly 350 points from day's low. FMCG and select auto stocks gained strength while infra, pharma and oil stocks were under pressure.
The Sensex declined 6.57 points to 22945.26 and the Nifty slipped 5.40 points to 6970.95. The broader markets also trimmed losses with the BSE Midcap and Smallcap indices down over 1 percent.
The market breadth also improved as three shares declined for every share advancing on the BSE.
Tata Motors extended rally, up nearly 8 percent followed by HDFC (up 1.5 percent) and Axis Bank (up 3.6 percent) and ITC (up 1 percent). Mahindra & Mahindra rose 3 percent despite lower-than-expected earnings in Q3.
BHEL remained top loser on Sensex, down 14 percent post bad earnings. L&T, Lupin, ONGC, Adani Ports, Tata Steel and Hindalco Industries were down 2-5 percent.
1:55 pm Result: Healthcare major Apollo Hospitals Enterprise reported 14.96 percent rise in standalone net profit to Rs 109.23 crore for the December quarter. The company had posted a net profit of Rs 95.01 crore for the corresponding period of the previous fiscal, Apollo Hospitals Enterprise said in a BSE filing.
Standalone total income from operations rose to Rs 1,380.52 crore for the quarter under consideration as against Rs 1,182.53 crore for the same period a year ago.
1:30 pm Fuel demand: India's annual fuel demand in January rose at its fastest pace in three months, thanks to higher gasoline consumption after the country's top court temporarily banned the sale of large diesel cars in its capital city.
The Supreme Court of India imposed the ban in December to combat toxic smog in Delhi, one of the world's most polluted cities, and said it would consider extending the ban to diesel cars with engine capacity of less than 2,000 cc.
Fuel consumption, a proxy for oil demand in Asia's third-largest economy, surged 12.7 percent to 15.71 million tonnes, data from the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry showed.
Carnage in market continues as the Sensex is down 121.90 points or 0.5 percent at 22829.93. The Nifty is down 38.25 points or 0.6 percent at 6938.10. About 452 shares have advanced, 1982 shares declined, and 111 shares are unchanged.
Tata Motors, Axis Bank, NTPC, ITC and Bharti Airtel are top gainers in the Sensex. Among losers are BHEL, Adani Ports, Hindalco, L&T and ONGC.
Domestic passenger car sales fellfor the first time in 15 months after logging a marginally dip to 1,68,303 units in January as against 1,69,527 units in the year-ago period. Motorcycle sales last month, however, increased marginally to 8,72,325 units from 8,68,505 units a year earlier, according to data released by the Society of Indian Automobile Manufacturers (SIAM).
12:59 pm Market trims losses: Equity benchmarks recouped more than half of losses. The Sensex declined 129.72 points to 22822.11 and the Nifty fell 37.40 points to 6938.95.
The market breadth remained weak as about five shares declined for every share advancing on the BSE.
12:45 pm Technical expert: In April last year , a month after the market had topped out at 30,000, renowned technical analyst Vivek Patil put out a bold forecast: that the Sensex could sink to 23,000-22,000 levels.
With his prophecy coming true, he has some more bad news, that the benchmark is likely to find support in the 21,300-22,500 zone but if it breaks, the next target is at 15,000. In an interview with CNBC-TV18, Patil used the NEoWave theory to make his case, saying that the rally -- a Triple Combination Channel rally -- which started from August 2013 lows of 17,449 and topped out at around 30,000 will get support after giving back 60-70 percent of the upside move (translating into a target of 22,500-21,300).
12:30 pm Market Update: The 50-share NSE Nifty breached 6900 level for the first time since May 12, 2014, down 102.50 points or 1.47 percent to 6873.85.
The 30-share BSE Sensex plunged 344.36 points or 1.50 percent to 22607.47..
About seven shares declined for every share advancing on the Bombay Stock Exchange.
Carnage in broader markets continued with the BSE Midcap and Smallcap indices falling 3-4 percent.
12:15 pm Buzzing: Shares of drug firm Wockhardt slumped more than 18 percent on the bourses today after the company reported 82.44 percent decline in consolidated net profit for the third quarter ended December 31.
Wockhardt's net sales during the quarter under review were at Rs 1,075.77 crore, down 22.16 per cent from Rs 1,382.05 crore in the year-ago period, the company had said in a filing.
12:00 pm Market Check
Equity benchmarks extended losses in noon trade with the Sensex falling 193.59 points to 22758.24 and the Nifty down 61.20 points to 6915.15. The market breadth remained weak as about five shares declined for every share advancing on the Bombay Stock Exchange.
The broader markets have seen major fall compared to benchmarks. The BSE Midcap and Smallcap indices were down 2-3 percent.
Tata Motors topped the buying list on Sensex, up 4.7 percent followed by ITC, Axis Bank, M&M and NTPC with more than a percent gain. However, BHEL crashed 11 percent after posting a loss of more than Rs 1,000 crore in Q3. ICICI Bank, L&T, Adani Ports, ONGC, Tata Steel and Hindalco declined 4-6 percent.
Markets in Asia dropped sharply today, with the Nikkei tumbling, after a sell-off on Wall Street as oil remained volatile and concerns about how central banks' easing measures will affect banks' earnings persisted.
Japan's Nikkei 225, which reopened after a public holiday on Thursday, dropped 760.78 points, or 4.84 percent, to 14,952.61, falling for seven of the past eight sessions to its lowest close since October, 2014. The Nikkei 225 has been on a downward spiral in recent days, as the yen rapidly strengthened against the dollar, with the index ending down more than 11 percent for the week.
Crude oil prices jumped more than 5 percent intraday after comments by an OPEC energy minister sparked hopes of a coordinated production cut, yet analysts said such a move remained unlikely and that oversupply would persist. International benchmark Brent crude was trading at USD 31.46 per barrel, up 4.8 percent.
11:55 am Market outlook: The ongoing turmoil in global markets now has to do with more than just problems in China, as new variables like negative interest rates and strengthening yen are getting added to the equation, Madhusudhan Kela, Chief Investment Strategist, Reliance Capital tells CNBC-TV18. And while falling crude prices does help India in a big way, it has a negative impact on global liquidity flow as money is pulled out of financial markets. He sees the Nifty consolidating in a range between 7000 and 7200 and expects some more pain for frontline companies.
11:45 am New IPO: Shares of TeamLease Services were listed at Rs 860 on the National Stock Exchange Friday, up 1.2 percent over issue price of Rs 850 apiece. The stock could not hold early gains due to weak market conditions, down 5.1 percent to hit an intraday low of Rs 806.65 but it managed to claw back immediately. It rallied as much as 20.6 percent to hit day's high of Rs 1024.80. At 10:41 hours IST, it was trading at Rs 1016.70, up Rs 166.7 or 19.6 percent, with volumes of 35,59,509 shares.
11:30 am Result poll: Sun Pharmaceutical Industries' third quarter profit is seen rising 4.4 percent sequentially to Rs 1,157.71 crore and revenue climbing 1.7 percent to Rs 6,955.44 crore, according to analysts polled by CNBC-TV18. Operating profit (earnings before interest, tax, depreciation and amortisation) may increase 1.8 percent quarter-on-quarter to Rs 1,968.5 crore and margin may remain flat at 28 percent in Q3. On yearly basis, profit is likely to jump three-fold due to low base in year-ago period. Profit in Q3FY15 was impacted due to higher tax out flow of Rs 1,028 crore & minority interest of Rs 284 crore and Halol issue & Ranbaxy integration cost. Operating profit may fall 9.1 percent and margin may shrink 270 basis points YoY.
The market is struggling to budge ahead but bears seem to be of full control. The Sensex is down 82.72 points or 0.4 percent at 22869.11, and the Nifty is down 25.10 points or 0.4 percent at 6951.25. About 455 shares have advanced, 1721 shares declined, and 89 shares are unchanged.
Tata Motors, Axis Bank, HDFC, NTPC and TCS are top gainers while BHEL, Hindalco, Tata Steel, ONGC and GAIL are major losers in the Sensex.
Oil surged more than 5 percent in Asia today, a day after tanking towards 13-year lows and following a report suggesting the OPEC producers' club was open to working towards cutting output to stabilise volatile crude markets. Prices for both key contracts dived yesterday in line with a sell-off across global markets as traders grow increasingly concerned about the state of the global economy, and the possibility of a return to recession.
However, analysts moved to temper the optimism, saying concrete action is needed before such speculation becomes a reliable price driver and with a stubborn global supply glut hammering the commodity, any price rally is unlikely to last.
10:59 am Market Update: Equity benchmarks continued to be volatile with the Sensex falling 40.08 points to 22911.75 and the Nifty down 11.50 points to 6964.85.
More than four shares declined for every share advancing on the Bombay Stock Exchange.
10:50 am Market Expert: Back in September 2015 , Saurabh Mukherjea made a forecast for the Sensex falling to 22,000 -- a call that made him somewhat unpopular among investors but which he reiterated several times since. With the Sensex breaking below 23,000, he is continuing to stick with his 22,000 call but says the occurrence of three events will likely make him call a likely bottom to the market.
"I want to see more liquidity in the banking system, a higher recapitalization figure for banks and strength in consumer inflation in developed economies such as US, Eurozone and Japam," Mukherjea, CEO - Institutional Equities, Ambit Capital told CNBC-TV18.
10:40 am Gas subsidy auction: The third reverse e-auction to provide subsidy to buy gas for running stranded power projects and those operating at sub-optimal level is likely to be conducted in a few weeks.
"The third reverse e-auction to provide subsidy for purchasing RLNG (R-Liquefied Natural Gas) imported by GAIL is likely to be conducted in few weeks' time," a source said.
The source said, "The decision in this regard would be taken by a committee headed by an Additional Secretary in the Power Ministry next week. The gas will be supplied during non-monsoon session (April-June)." Another source said, "Government wants to import 10 Million Metric Standard Cubic Meter Per Day (MMSCMD) through GAIL under the Power System Development Fund (PSDF)."
10:20 am Earnings estimates: Sun Pharmaceutical Industries ' third quarter profit is seen rising 4.4 percent sequentially to Rs 1,157.71 crore and revenue climbing 1.7 percent to Rs 6,955.44 crore, according to analysts polled by CNBC-TV18.
Operating profit (earnings before interest, tax, depreciation and amortisation) may increase 1.8 percent quarter-on-quarter to Rs 1,968.5 crore and margin may remain flat at 28 percent in Q3.
On yearly basis, profit is likely to jump three-fold due to low base in year-ago period. Profit in Q3FY15 was impacted due to higher tax out flow of Rs 1,028 crore & minority interest of Rs 284 crore and Halol issue & Ranbaxy integration cost. Operating profit may fall 9.1 percent and margin may shrink 270 basis points YoY.
Analysts expect flat sales on sequential basis due to Halol supply constraints and Ranbaxy integration efforts.
10:00 am Market Check
The market remained under pressure with the Sensex falling 97.65 points to 22854.18 and the Nifty down 33.60 points to 6942.75. The broader markets have fallen more compared to benchmarks.
The BSE Midcap and Smallcap indices plunged nearly 3 percent. The market breadth was pathetic as about five shares declined for every share advancing on the BSE.
TeamLease Services listed at Rs 860 on the National Stock Exchange, higher by Rs 10 compared to issue price of Rs 850 apiece. The stock touched an intraday high of Rs 981.80 and low of Rs 806.65 post listing.
9:55 am Result poll: Nestle India is expected to post a weak October-December quarter (Q4CY15) as Maggi sales will take time to fully recover. According to a CNBC-TV18 poll, net profit is seen down 28.8 percent at Rs 232 crore in Q4 from Rs 326 crore in corresponding quarter last fiscal. During the period, revenue may fall 18.8 percent at Rs 2055 crore against Rs 2531 crore in year-ago period. In Q4, EBITDA is seen down 30.6 percent at Rs 398 crore versus Rs 574 crore while EBITDA margins may stand at 19.4 percent versus 22.7 percent (YoY). In this quarter, the FMCG gaint is expected to show marginal growth from ex-Maggi portfolio as Q4 will record only partial sales from the popular noodles brand. Maggi sales resumed only midway in the quarter.
9:45 am Market outlook: With the Sensex breaking below 23,000, Saurabh Mukherjea, CEO - Institutional Equities, Ambit Capital is continuing to stick with his 22,000 call but says the occurrence of three events will likely make him call a likely bottom to the market. "I want to see more liquidity in the banking system, a higher recapitalization figure for banks and strength in consumer inflation in developed economies such as US, Eurozone and Japan," Mukherjea says.
Investors should focus on capital preservations and said there was no great profit to be made in the near term investing in stocks.
9:30 am Result: Coal India's third quarter profit increased 14 percent year-on-year to Rs 3,718 crore, aided by strong operational performance but lower other income limited growth.
Revenue declined 6.8 percent to Rs 18,971.5 crore in quarter ended December 2015 compared to Rs 17,763 crore in year-ago period. Operating profit (earnings before interest, tax, depreciation and amortisation) surged 46.4 percent year-on-year to Rs 5,092 crore and margin expanded by 600 basis points to 25.6 percent in December quarter.
Other income declined 17 percent to Rs 1,354 crore during the quarter compared to Rs 1,634.4 crore in same quarter last fiscal.
9:24 am Sharp fall: The Nifty has breached 7000, down 8.15 points or 0.1 percent at 6968.20. The Sensex is down 16.36 points or 0.07% at 22935.47, and the Nifty About 437 shares have advanced, 840 shares declined, and 65 shares are unchanged.
After a tumultous ride, the market has opened a bit steady on Friday. The Sensex is up 139.27 points or 0.6 percent at 23091.10, and the Nifty is up 47.30 points or 0.7 percent at 7023.65. About 386 shares have advanced, 286 shares declined, and 35 shares are unchanged.
BHEL, SBI, ONGC, ICICI Bank, Bajaj Auto are major laggards while Axis Bank, HDFC, Coal India, Infosys and Dr Reddy's Labs are losers.
The Indian rupee opened lower by 9 paise at 68.38 per dollar against 68.29 Thursday. The US dollar fell to a 15-month low against the yen, on track for its worst week against the Japanese currency since 2008, as fears of a global economic slowdown and concerns about stress in the banking system, increased demand for safe-havens.
Pramit Brahmbhatt of Veracity said, "Strong positive move in gold and carnage in global as well as domestic equity markets indicate that rupee will continue to depreciate."
Markets in Asia dropped, with the Nikkei tumbling, after a sell-off on Wall Street as oil remained volatile and concerns about how central banks' easing measures will affect banks' earnings persisted.
Japan's Nikkei 225, which reopened after a public holiday on Thursday, dropped 5.1 percent. The Nikkei 225 has been on a downward track in recent days, as the yen rapidly strengthened against the dollar. That's a negative for Japan's stocks as exporters' overseas earnings are pressured by a stronger currency when they're translated back into yen.
Asia's banks and financial stocks remained under pressure, following drops in their Europe and the US counterparts as concerns mounted over their potential performance in a low-growth and low-interest rate environment.