Nifty gives up gains at close; HCL Tech down 12.6%

01 Oct 2015

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The BSE Sensex relinquished most of its gains to close marginally higher at 26227 and the Nifty ended marginally down at 7946.10.

The BSE midcap and smallcap index were far more robust unlike their larger peers. However, the indices closed marginally higher.

For most part of the day the larger market traded flat-to-positive although it opened by testing the 8000 level as overnight US stocks ended higher. Lupin closed the day top grosser on the Sensex with over 4 percent gains. Other contributors to the 30-stock index were Infosys, Reliance, Larsen and TCS.

IT services firm HCL Technologies stuck out as the biggest Nifty loser after it sounded revenue alarm owing to adverse currency movement and issues with a client in the public services vertical.Maruti was another big loser following lower-than-expected September vehicle sales.

Ultratech Cement and Sun Pharma saw handsome gains on the Nifty.

Banking stocks added to the injury as heavyweights HDFC Bank, HDFC and ICICI Bank fell much as 5.8 percent and 5 percent.

Suven Life (up 7.3 perent), RCF , Delta Corp and Bharti infratel and HCC were big midcap gainers.

Auto sector was more active but the September sales were a mixed bag. The month gone by saw strong MHCV sales but muted passenger vehicles growth and steep fall in tractor sales due to dip in rural demand.

At 3.15pm: Mahindra's auto sells
Mahindra and Mahindra's September domestic tractor sells stood at 17,052 units versus 27,321 units. The company sold total 18,087 units versus 28,739 units. The company's exports stood at 1,035 units versus 1,418 units, Y-o-Y.

At 3:00pm Market check
Benchmark indices were little changed over the last half an hour of trade. The Sensex is up 58.99 points at 26213.82, while the Nifty is flat at 7949. About 1349 shares have advanced, 1244 shares declined, and 119 shares are unchanged.

The rupee was quoting at 65.61 to the dollar, down 3 paise over its previous close.

Brent crude was trading at USD 48.26/barrel, down USD 0.34 or 0.7 percent over its previous close.

At 2.40pm: Hero Motocorp sales numbers
Hero Motocorp's total September auto sells number stood at 6.06 lakh units versus 6.04 lakh units, Y-o-Y.

At 2.25 pm: Europe check
European markets were trading firm. CAC is up 60 points at 4515, FTSE up 92 points at 6153, and DAX up 58 points at 9719.

At 2:00 pm: Market Check
The Nifty gave up all its gains as it slipped into red in the afternoon trade. Earlier, in the morning it touched 8000 level and stayed between 7950 and 7990 level for most part.

The Sensex is up 38.24 points at 26193.07, and the Nifty is down 7.70 points at 7941.20. About 1316 shares have advanced, 1194 shares declined, and 112 shares are unchanged.

HCL Technologies, Gail, BHEL, Maruti Suzuki, Vedanta and HDFC were the losers on the indices, while top gainers includes Lupin, Sun Pharma, TCS, Dr Reddy's and Ambuja Cements.

Allahabad Bank has cut its base rate by 25 bps to 9.7 percent effective October 5, 2015.

Benchmark indices were firm in noon trade with the Sensex up 102 points at 26257, and the Nifty up 14 points at 7964. Both indices are off their highs for the day. The Nifty had crossed the psychological 8000-mark earlier in the session but could only as far as 8008.

Brokers said bull traders were wary of buying aggressively at higher levels because of sustained selling by foreign institutional investors.

Much of the rally over the last couple of sessions has fuelled by short covering of positions, and is unlikely to sustain if FIIs continue to offload shares.

FIIs net sold USD 2.6 billion of stocks during the September quarter; the highest since the December quarter of 2008 when they sold USD 3.3 billion of shares.

Pharma, FMCG, power and capital goods shares were firm, while auto, realty and metal shares were struggling.

''You will have largecap lead the market from the current rangebound situation which we have seen from the last six-eight months which is 7,500-8,500, possibly the largecaps will lead the market out of this range and then midcaps will obviously follow,'' Ratnesh Kumar, independent market analyst, told CNBC-TV18 earlier in the day.

In second line sectors, fertilizer shares rallied as the reduction in gas prices will improve cash flows and slightly add to the bottomlines.

Sun Pharma, Lupin, Wipro and TCS led gainers in the Sensex, up around 2 percent each.

Sentiment for the IT sector in general was not dampened by HCL Tech's profit warning. HCL shares , however continued to be under pressure and were down 11 percent.

Among other big losers, Maruti shares were down around 2 percent after the company's September sales grew a tepid 3.7 percent, weighed down by a 27 percent decline in exports.

The sharp descent seen after a smashing opening was arrested in the afternoon trade. The market stayed rangbound as traders dithered from taking any position ahead of the long weekend. At 12 pm, the Sensex was 109.61 points higher at 26264.44, and the 50-stock Nifty held its head above the 7,950 level supported by tech heavyweights TCS and Wipro as well as pharma giants like Sun Pharma, Lupin and Dr Reddy's. All stocks were up between 1.65 percent and 2.6 percent on the Sensex.

The September auto sales report propelled Ashok Leyland higher by 2 percent as the company reported good numbers. Bajaj Auto also was trading at high point of the day. M&M, Bosch, Eicher Motors, Hero Motocorp and Motherson Sumi were notable gainers in the sector while Maruti, Tata Motors were big losers.

Maruti Suzuki disappointed investors as it reported a dent in its annual exports figures and grew only in single digits. The company's total sales Y-o-Y was higher by 3.7 percent at 1.13 lakh units.

Kotak Mahindra Bank moved up 0.5 percent after it announced cut in its base rate by 25 bps to 9.5 percent w.e.f October 5. The bank, which has lowered its deposit rates as well, told CNBC-TV18 that it expects credit growth of 15-20 percent for the full year. State Bank of Bikaner and Jaipur (SBBJ) also lowered rates.  

Meanwhile, banking stocks like SBI, ICICI Bank, IDBI Bank, Canara Bank, PFC and IFCI were in focus on news that state-owned Ratnagiri Gas and Power will be split into two ventures - power and LNG terminal to revive the Dhabol power project. The lenders exposure to the project stands at Rs 8,000 crore and the power plant is expected to need refinancing uner the 5:25 rule.

Jewellery stock Titan was under pressure after a Credit Suisse report indicated that Titan has hinted at a weak quarter on declining jewelry business. The stock, however, recovered from its lows and was trading 1.21 percent higher.

HCL Tech continues to struggle after the company issued revenue warning due to adverse currency movement and issues with a client in the public services vertical.
The midcaps have outperformed marginally and was trading flat.

After beginning the day with great confidence amid a firming trend in other Asian markets following overnight gains on the Wall Street, benchmark indices fell victim to profit booking. At 11 am, the Sensex stocks came off sharply from their morning highs. The index was trading only 0.08 percent higher at 26176.80 while the Nifty lost its initial proximity to the 8000 level and precariously clung to 7939.50. HCL tech remained biggest drag on the Nifty.

Auto stocks remained in focus as companies prepare to announce their September  sales report card.  Maruti Suzuki, which had run up the previous few sessions was among the top Sensex losers as it reported slight dent in its annual exports and grew only in single digits. The company's total sales Y-o-Y was higher by 3.7 percent at 1.13 lakh units.

Tata Motors, Eicher Motors and Bajaj Auto were other prominent losers in the auto sector while Ashok Leyland, Hero MotoCorp and M&M were gainers.

The banking stocks like SBI, ICICI Bank, IDBI Bank, Canara Bank, PFC and IFCI were in focus on news that state-owned Ratnagiri Gas and Power will be split into two ventures - power and LNG terminal to revive the Dhabol power project. The lenders exposure to the project stands at Rs 8,000 crore and the power plant is expected to need refinancing uner the 5:25 rule.

Separately, IDFC and Gujarat Gas were buzzing as the former begins trading ex-of the bank business now while the latter comes out of trade-to-trade segment. Pharma stock Strides Arcolab was actively trading after it received tentative US FDA nod for HIV drug Ril-Pivi-Rine. The day also saw traders evincing interestin Everyday after it hiked prices by 50 paisa apiece.

Meanwhile a Credit Suisse report indicated that Titan has hinted at a weak quarter on declining jewelry business. Credit Suisse estimates a 20 percent year-on-year dip in the company's jewellery revenues in second quarter.

After the first gush of adrenalin mellowed, benchmark indices Sensex, Nifty settled at slight lower levels though still looked strong with 1271 shares in green against 453 declines and 68 shares maintaing the prior day levels. At 9.38 AM, the Sensex was trading 225 points higher and Nifty moved below the 8000 mark amid buying in IT, pharma and banking stocks.

The 30-share index gained 537.99 points in two succssive sessions owing to bigger-than-expected rate cut of 50 bps to 6.75 percent by the RBI on Tuesday. The RBI also announced other aggressive measures in its monetary policy review which lifted the investor mood.

IT leader Infosys reinforced its position as the top index gainer rising 2.68 percent and Lupin moved up further with 2.29% increase in the stock price.

Telecommunication stocks were trading under pressure and HCL Tech continued to remain top loser.

In the midcap segment, Jubilant Food, Reliance Comm, Vakrangee, Ajanta Pharma gained. High-beta stocks were seen outperforming with healthcare index rising 1.5 percent, capital goods 0.9 percent and power gaing 0.9 percent.

Mirroring Wall Street, key Indian indices Sensex and Nifty jumped 253.69 points to 26408.52, and 57.95 points to 8006.85, respectively. Infosys, Hindalco, Gail, Sun Pharma, Lupin and SBI were early gainers clocking 1.4 percent to 2.3 percent gains. Infact,  Infosys and Lupin hovered around their life-time highs

IT services firm HCL Technologies stuck out as the biggest Nifty loser after it sounded revenue alarm owing to adverse currency movement and issues with a client in the public services vertical. The stock plunged 11.4% at 9.15 AM. However, as the minutes settled, HCL Tech was seen trading with a near 10 percent downtick.

Other prominent losers were Tata Motors, BHEL, Bhart Airtel and Maruti. Maruti has been the top performing stock in the last few sessions and profit taking was on expected lines. The stock slipped 0.35 percent to trade at Rs 4,672.85 per share.

The midcap index to followed in the footsteps of its larger peers, though to a lesser degree. The index opened 0.5 percent up with Jubilant Food, Reliance Comm, Vakrangee, Ajanta Pharma gain as key gainers

Meanwhile, caution was recommended following expectation of somewhat weak manufacturing and a fall on the readings of China's mammoth manufacturing sector.

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