Nifty, Sensex end 1% lower; Coal India, Maruti, Reliance gain
10 Feb 2016
3:30 pm Market closing: The market has ended lower. The Sensex ended down 262.08 points or 1.1 percent at 23758.90 and the Nifty down 82.50 points or 1.1 percent at 7215.70. About 638 shares have advanced, 2010 shares declined, and 109 shares are unchanged. L&T, Coal India, Maruti, Reliance and Tata Steel were top gainers while Tata Motors, SBI, Hindalco, Cipla and Adani Ports were losers in the Sensex.
3:15 pm Result: India Cements today posted a standalone net profit of Rs 5.46 crore for the third quarter ended December 31, 2015-16.
It had posted a net loss of Rs 11.68 crore in the October -December quarter of last fiscal, 2014-15, the company said in a BSE filing. Net sales of the company declined to Rs 929.61 crore during the third quarter of the current fiscal, as against. Rs 1,035.91 crore in the year-ago period.
"Consequent to the hiving off the franchise of IPL, the figures of the current quarter are not comparable with those of the previous quarter/year," India Cements said.
2:45 pm Market check: The Sensex is down 146.71 points or 0.6 percent at 23874.27, and the Nifty down 52.15 points or 0.7 percent at 7246.05.
About 550 shares have advanced, 1999 shares declined, and 119 shares are unchanged.
2:30 pm IPO: The initial public offer (IPO) of software provider Quick Heal Technologies has been oversubscribed 1.81 times till afternoon on the last day of the offer today.
The Rs 451-crore IPO received bids for 1.83 crore shares against the total issue size of over 1 crore shares, data available with the NSE till 1300 hrs showed.
Quick Heal has already raised Rs 133.9 crore through issue of shares to 10 anchor investors.
The company has fixed the price band at Rs 311-321 for its IPO.
The IPO, which would close today, consists of fresh issue of Rs 250 crore and an offer for sale of about 62.70 lakh equity shares by promoters Kailash Sahebrao Katkar and Sanjay Sahebrao Katkar, as well as Sequoia Capital India Investment Holdings III.
The Sensex is down 317.69 points or 1.3 percent at 23703.29, and the Nifty is down 101.95 points or 1.4 percent at 7196.25. About 445 shares have advanced, 2050 shares declined, and 99 shares are unchanged.
Infosys, M&M, Reliance and Sun Pharma are top gainers while Hindalco, Tata Motors, Adani Ports, SBI and Dr Reddy's Labs are losers in the Sensex.
European equities seesawed in early trade, as investors look towards Federal Reserve Chair Janet Yellen's testimony in front of Congress amid mounting concern over the health of the global economy. Amid increasing concern over the global economy as well as market volatility, there has been doubts over the ability for the Fed to raise interest rates this year, according to analysts.
1:50 pm Market update: The Nifty below 7200 for first time since May 30, 2014. The Sensex is down 322.10 points or 1.34 percent at 23698.88, and the Nifty is down 102.10 points or 1.40 percent at 7196.10. About 493 shares have advanced, 1974 shares declined, and 104 shares are unchanged.
1:30 pm Fuel price: Kerosene prices will rise by 17 paisa after the government raised commission paid to wholesale dealers. Commission paid to wholesale dealers, who are given licence under Form XV, has been raised from Rs 536.09 per kilolitre (KL) to Rs 714.18 per kl, an increase of Rs 178.09 per kl or Rs 0.17 per litre.
For wholesale dealers other than From XV, the commission has been hiked from Rs 475.58 per kl to Rs 649.16 per kl, an increase of R 173.58 per kl or Rs 0.17 per litre, the Oil Ministry said in an order.
The Sensex is down 206.67 points or 0.9 percent at 23814.31, and the Nifty down 68.90 points or 0.9 percent at 7229.30. About 550 shares have advanced, 1845 shares declined, and 118 shares are unchanged.
Reliance, Infosys, L&T, Sun Pharma and Coal India are top gainers while Tata Motors, Hindalco, Adani Ports, Dr Reddy's and SBI are losers in the Sensex.
Market experts believe it is more to do with the technicals than fundamentals. However, the fall is likely to keep the investors on tenterhooks, says Deven Choksey of KR Choksey Investment.
According to him the corporate earnings reported so far were not too disappointing and in fact some of the managements were confident on their future outlook. However, Vaibhav Kapoor of IL&FS believes corporate earnings were flat and have not seen any growth.
Kapoor thinks the market correction is more to do with what is happening globally in US, China and the rest of the world. So a lot depends on how global markets react. Today, market will look forward to Janet Yellen's testimony to the US parliament which could have some bearing for the market in the short-term.
12:55 pm Budget: Weeks before it presents Budget for the next fiscal, the government on Wednesday said it will achieve the tax revenue target for the current year with larger-than- budgeted indirect tax collections making up for a possible shortfall in direct taxes. After two successive years of revising downward the tax revenue target, fiscal 2015-16 which ends on March 31 is likely to see tax revenue target of Rs 14.49 lakh crore being met.
"We are likely to exceed the collection in Indirect Tax by about Rs 40,000 crore in the current year. On the whole, we are optimistic of close to 100 percent achievement of overall tax revenue target of the year," Revenue Secretary Hasmukh Adhia tweeted.
12:45 pm Dairy business: Britannia Industries is gearing up for a full-fledged play in the estimated Rs 85,000 crore Indian dairy market as part of its overall strategy to be a total food company. The company will seek board approval within a couple of months for its expansion in dairy segment, which could entail a minimum investment of Rs 300 crore in the initial phase.
"We want to be a total food company and to be a total food company, we can't ignore the large dairy segment. The dairy segment in India is almost Rs 85,000 crore," Britannia Industries Managing Director Varun Berry said. Elaborating on why it made sense to be a full-fledged player in the dairy segment, he said, "We sell dairy products worth Rs 400 crore and for our bakery business we buy dairy products worth Rs 300 crore. Overall, the consumption and sales is almost Rs 700 crore, which is a fairly large number."
12:30 pm International markets: David Mann, Head Asia Economic Research at Standard Chartered believes that while the dovishness in Federal Reserve's chairwoman Janet Yellen's speech today might bring some respite for global markets. Speaking to CNBC-TV18, Mann says there are no expectations of a rate hike by the Federal Reserve anytime soon. However, he expects expects a rate cut by the Federal Reserve in December 2016. He further adds that the US economy is on a brink of technical recession over next 12 months. Mann says there is extreme stress in the financial markets. The current market is all about capital preservation, he says adding that one could look at fixed income opportunities and less volatile currencies.
The market is reeling under as the Sensex is down 192.26 points or 0.8 percent at 23828.72. The Nifty slips 67.65 points or 0.9 percent at 7230.55. About 491 shares have advanced, 1812 shares declined, and 110 shares are unchanged.
Infosys, Reliance, Sun Pharma are top gainers in the Sensex. Among losers are Hindalco, Adani Ports, Tata Motors, Dr Reddy's and Tata Steel.
Brokers said sentiment remained weak as participants indulged in offloading their positions, tracking a weak trend in Asian region following overnight losses in the US market as investors grappled with weakness in overseas equity markets and another drop in oil prices. In the Asian region, Japan's Nikkei lost 2.40 percent in early trade, while China's Shanghai Composite index and Hong Kong's Hang Seng remained closed for a public holiday.
11:55 am Telecom minister: Stating that Internet cannot be allowed to be monopoly of few, Telecom Minister Ravi Shankar Prasad today slammed Facebook's Free Basics programme and said such differential pricing modes are "plainly not acceptable". The minister said the Trai's order on differential pricing for data services has enhanced India's image in the Net community world over and established its maturity. "We are expanding digital India into nook and corner of the country, and taking extraordinary steps to empower the people through technology, to create a knowledge economy. The very concept of differential pricing on data, whether it is Free Basics or any other mode, is plainly not acceptable," Prasad told PTI.
11:45 am Boardroom: Anil Sardana, CEO & MD Of Tata Power in an interview to CNBC-TV18 spoke about the third quarter performance, generation at Mundra and Arutmin mine stake sale. He said the company was getting closer to the Arutmin mine stake sale and is likely to be completed in six months. The price would stay at USD 510 million, he said.
Tata Power's operational performance was quite ahead of estimates in the third quarter on Friday. Consolidated profit plunged 87.6 percent year-on-year to Rs 24.5 crore in Q3, hit by regulatory expenses of Rs 601 crore and exceptional loss of 187.15 crore. Forex loss and lower other income also impacted bottomline.
11:30 am IPO: The initial public offer of software provider Quick Heal Technologies was subscribed 77 percent on the second day of the offer. The Rs 451-crore IPO received bids for 78,35,850 shares against the total issue size of 1,01,37,557 shares, data available with the NSE till 1700 hours showed. The portion reserved for qualified institutional buyers (QIBs) was subscribed 27 percent, while non institutional investors received 10 percent subscription. On the other hand, retail investors portion was oversubscribed 1.38 times, according to the NSE data. Quick Heal has already raised Rs 133.9 crore through issue of shares to 10 anchor investors.
Selling pressure continues on Dalal Street ahead of Union Budget on February 29. The Sensex is down 222.14 points or 0.9 percent at 23798.84 and the Nifty is down 70.35 points or 0.9 percent at 7227.85. About 390 shares have advanced, 1655 shares declined, and 93 shares are unchanged.
Hindalco, Tata Motors, Adani Ports, Dr Reddy's Labs and ICICI Bank are top losers while Infosys, Reliance, Sun Pharma and HUL are gainers in the Sensex.
Gold prices drifted by 0.51 percent to Rs 28,291 per 10 ten grams in futures trade as speculators indulged in profit-booking at prevailing levels, even as metal strengthened overseas. Analysts attributed the fall in gold futures to profit-booking by participants at existing levels.
A firming trend overseas where gold traded near a seven-month high as investors assessed the outlook for the US monetary policy amid swings in financial markets and concern that global growth is slowing, capped the fall, analysts said.
10:55 am Fund raising: State-owned IDBI Bank raised Rs 1,000 crore from bonds on private placement basis to fund infrastructure projects. IDBI Omni Infrastructure Bonds 2015-16 Series III are unsecured, non-covertible redeemable bonds, the bank said in a statement.
The 10-year bonds will have coupon rate of 8.80 percent, it added.
10:45 am Gold discounts: Indian gold traders say they are struggling to draw buyers despite offering record discounts over rallying international prices, as consumers wait to see if rates can fall further after the federal budget this month.
The bullion industry expects the government to cut the record 10 percent import duty on gold in the annual budget for 2016/17 that will be presented on Feb. 29, potentially boosting supply and driving domestic prices lower.
Indian gold prices also swung into deep discounts before the last budget, when the government surprised the market with no cut in duty on the metal. India is the world's second biggest gold consumer.
10:30 am Market outlook: The Indian market has been caught in a global storm that has engulfed equities but seasoned analysts are advising that investors should stay the course and not jump out of stocks.
"The Indian economy is fundamentally strong. While we may see panic for the next few months, investors will come back," Edelweiss CEO Rashesh Shah told CNBC-TV18. He added that the market would also take cues from the Union Budget, which the government must ensure is reform-oriented and kickstarts consumption.
Valuations-wise, the Indian market has reverted to its historical average, said Sanjay Mookim of Bank of America-Merrill Lynch. "We expect earnings to grow 12 percent next fiscal, thanks to a modest consumption-led recovery."
10:15 am World news: Markets are tensed up ahead of testimony from Fed Chair Janet Yellen, who is expected to attempt to balance the central bank's stated goal of raising interest rates against the risks of a weaker global economy.
Yellen is scheduled to testify on the economy before congressional committees Wednesday and Thursday. She is likely to be asked about everything from rate hikes to banking reform. But her bigger audience will be world financial markets, rattled by the fact that the Fed's forecast continues to show rate hikes as markets gyrate over fears of a weakening world outlook and divergent central bank maneuvering.
Mayhem in market continues as selling pressure intensifies led by banks, capital goods, pharma and metals. Both the benchmark indices are down 21 percent from record highs. The Sensex is down 193.01 points or 0.8 percent at 23827.97 and the Nifty is down 59 points or 0.8 percent at 7239.20. About 406 shares have advanced, 1315 shares declined, and 73 shares are unchanged.
Tata Motors, Adani Ports, Dr Reddy's Labs, ICICI Bank and Axis Bank are major laggards in the Sensex. Infosys, HUL and TCS are gainers in the Sensex.
Asian equity markets remained wobbly after being hit hard early in the week by worries about the health of the euro zone banking sector, with very accommodative monetary policy seen crimping bank profits and their ability to repay debt.
Trouble for equities has meant a boon for government bonds, with the Japanese government bond 10-year yield at minus-0.035 percent after dropping into the negative for the first time on Tuesday. The US Treasury benchmark yield stood near a one-year trough and the 10-year German bund yield was at its lowest in 10 months.
9:50 am Market check: The Sensex is down 220.48 points or 0.9 percent at 23800.50, and the Nifty is down 68.35 points or 0.9 percen at 7229.85. About 388 shares have advanced, 1193 shares declined, and 63 shares are unchanged. Tata Motors, Adani Ports, ICICI Bank, Dr Reddy's, BHEL are major losers.
9:40 am FII view: Tobias M Levkovich of Citi said, "It feels more like 2011-2012 than 2008. Fears in Europe are stoking additional concern in the US. The banking woes across the bond and sharply weaker equity markets in periphery countries like Greece and Italy appear to be generating new anxiety in the US."
"Terms like 'counterparty risk' and 'potentially new European bank equity capital needs to offset write-offs' are coming to the fore when chatting with investors."
"The percent of stocks down 30 percent or more off of their 52-week highs now match 2011-2012 levels, suggesting that rolling bear markets beneath the index surface are quite severe," he added.
9:30 am Market slips further: The Nifty slips below 7250. The 50-share indices was down 42.05 points or 0.6 percent at 7256.15. The Sensex is down 147.40 points or 0.6 percent at 23873.58. About 454 shares have advanced, 807 shares declined, and 65 shares are unchanged.
Infosys, HUL, HDFC Bank, NTPC and Reliance are top gainers in the Sensex.
The market has once again opened lower with Bank Nifty hitting fresh 52-week low. The Sensex is down 129.36 points or 0.5 percent at 23891.62, and the Nifty slips 35.25 points or 0.5 percent at 7262.95. About 197 shares have advanced, 444 shares declined, and 34 shares are unchanged.
Tata Motors, ICICI Bank, Dr Reddy's Labs, Lupin and ONGC are major losers while Infosys, Hindalco, HDFC Bank, HUL and Maruti are top gainers.
The Indian rupee opened flat at 67.90 per dollar versus previous close of 67.90. The US dollar fell to its lowest level in nearly four months as fears of a global economic slowdown pushed investors into safe-haven currencies like the Japanese yen and Swiss Franc.
NS Venkatesh of IDBI Bank said, "Volatility is expected even today, and the rupee will take cues from movement in the equity market. We expect the rupee to trade in a range of 67.85-68.10/dollar today."
Monkeys threw a wrench into Asian markets in the Lunar New Year's first week of trading, with sell-offs in Japan, Singapore and Down Under. In Japan, the Nikkei 225 initially halted its losing run to open 0.38 percent higher, but quickly erased gains to trade down 1.82 percent. Yesterday, the index plunged 5.4 percent, falling for five of the past six sessions.
US stocks ended a volatile session slightly lower on Tuesday as a late-day rally led by materials and healthcare shares offset another big drop in oil prices.
Yellen is expected to defend the US central bank's first rate hike in a decade and likely insist that further rises this year remain on track, albeit at a slower pace, when she addresses Congress.