Sensex down for 6th day, Nifty manages to hold 8000; ITC up
02 Nov 2015
3:30 pm Market close: The market has ended lower. The Sensex was down 97.68 points or 0.4 percent at 26559.15 and the Nifty slipped 15 points or 0.2 percent at 8050.80. About 1162 shares advanced, 1533 shares declined, and 122 shares were unchanged.
M&M, Coal India, Reliance, Tata Motors and Axis Bank were top gainers in the Sensex. Among the losers were Bajaj Auto, Tata Steel, Vedanta, Hindalco and HDFC.
3:10 pm Market outlook: Experts warn the correction can be a bit more severe and can even breach the September lows. Talking to CNBC-TV18, Jai Bala says the market can correct more and go below September lows. That should be the time to buy. However medium trend is still suggests an uptrend.
While summing up the mood, Deven Choksey of KR Choksey said the overhang of Bihar elections and jitters about its outcome are reasons why people are refraining from taking further positions in the market. There is a fresh bout of FII selling as well. "All these put together is now resulting into the fall into the market."
Jagdish Malkani, Member, NSE believes the primary reason for this fall is Bihar elections and very weak Asian markets. "It does look that after a very salutary October, Foreign Institutional Investor (FIIs) are back in selling mode. But anyway largely it is the Bihar stuff looming over and it is probably not going to go the government's way."
3:00 pm Market recovers a bit: Equity benchmarks recouped some losses in afternoon trade. The Sensex declined 170.10 points to 26486.73 and the Nifty fell 29.75 points to 8036.05.
About 967 shares have advanced, 1650 shares declined, and 125 shares are unchanged on the BSE.
2:50 pm Dr Reddy's new launch: Drug major Dr Reddy's Laboratories has launched a pain relief spray under 'Nise D Spray' as part of its plans to bolster presence in Indian over-the-counter (OTC) market.
The spray will be available across the country in two sizes - pocket pack at Rs 99 and home pack for Rs 130 -- Dr Reddy's Laboratories said in a statement.
Dr Reddy's EVP and Head Branded Markets (India & Emerging countries) M V Ramana said: "Nise D Spray marks our entry into the new segment and further boosts our OTC portfolio." Nise D spray offers quick and targeted pain killing, the company said.
2:40 pm Earnings: India Cements has reported an over five-fold jump in its net profit at Rs 41.04 crore for the second quarter ended September 30, 2015. The Chennai-based company had registered a net profit of Rs 7.49 crore during the same period last year, India Cements Ltd said in a statement.
For the six-month period ended September 30, net profit soared to Rs 81.14 crore from Rs 4.53 crore registered during the corresponding period of the previous year.
Total income from operations for the July-September period marginally slipped to Rs 1,082.37 crore as against Rs 1,135.71 crore registered in the same period last year.
For the half-year period, total income from operations declined to Rs 2,157.82 crore from Rs 2,370.53 crore registered during the corresponding six months of the previous year.
2:20 pm Moody's on Bharti: Country's largest telecom operator Bharti Airtel will have a revenue growth of 8-10 percent over the next 12-18 months on strong demand for data services and affordable smartphones, Moody's Investors Service said today.
The aggregate average revenue of telecom operators in Asia Pacific will increase 3-4 percent over the next 12-18 months, similar to 2014s growth rate of 3.8 percent and trending in line with forecast average GDP growth for the region and its outlook for the industry is stable, it said.
"Banglalink Digital Communications Ltd and Bharti Airtel Ltd will lead with revenue growth of 8-10 percent on strong demand for data services and affordable smartphones," Moody's said in a report.
It said the revenue growth is slowing slightly because of increasing mobile-penetration rates and competition but it remains healthy.
2:00 pm Market Check
Equity benchmarks continued to see selling pressure in afternoon trade, dragged by index heavyweights like HDFC, HDFC Bank, Infosys and Larsen & Toubro. The broader markets were also under pressure with the BSE Midcap and Smallcap indices down 0.6 percent and 0.8 percent, respectively.
The Sensex slipped 264.66 points or 0.99 percent to 26392.17 and the Nifty declined 65.10 points to 8000.70. About two shares declined for every share advancing on the BSE.
Bajaj Auto topped selling list on the Sensex, down 5.4 percent after a 9 percent decline in October sales. However, Tata Motors, Mahindra & Mahindra and Maruti Suzuki reacted positively to their sales numbers, up 0.5-2 percent.
Metals stocks lost shine today; Vedanta, Tata Steel and Hindalco Industries plunged 3.5-4.5 percent. HDFC was the top contributor to Sensex's fall, down 3.4 percent followed by HDFC Bank, Infosys, Sun Pharma and L&T with 1.5-2 percent loss.
1:55 pm Maruti sales: Country's largest car manufacturer Maruti Suzuki said it has sold 1.34 lakh vehicles in October, a growth of 29.1 percent compared to 1.04 lakh vehicles sold in corresponding quarter of last fiscal. The growth was driven largely by compact cars (especially Baleno that was launched on October 26) and exports. Company's domestic sales increased by 24.7 percent to 1.21 lakh vehicles and exports shot up 90.4 percent to 13,146 vehicles.
1:45 pm Macro data: Growth in India's manufacturing sector cooled to its slowest in 22 months in October as domestic demand softenend, a private survey showed on Monday, adding pressure on Prime Minister Narendra Modi to usher in long-promised reforms. The Nikkei Manufacturing Purchasing Managers' Index, compiled by Markit, fell to 50.7 in October from September's 51.2. The 50-mark divides expansion from contraction. A sub-index covering new orders dropped to a two-year low of 51.2 from 52.5 as the uncertain economic climate deterred clients from committing to new projects, Markit said. New export orders grew slightly faster than September but at a modest pace, and levels were still well below those in late summer.
1:30 pm Buzzing: Shares of Larsen and Toubro fell over 2 percent intraday, reacting to its weak order inflow and revenue guidance. the company has slashed its order inflow guidance for FY16 to 5-7 percent from 15 percent earlier and revenue growth guidance to 12.5 percent from 15 percent earlier. The company said that lower commodity prices & weakening currency have been constraining growth prospects and may take further time for healthy pick-up in business opportunities. However, few analysts are still betting on the infrastructure stock. CLSA maintains a buy rating stating that L&T looks well positioned in the domestic market to take advantage of a revival in the infrastructure capex cycle.
Jet Airways soars 8% as Rakesh Jhunjhunwala buys stake
The market is dragging further as index heavyweights are under severe selling pressure. The Sensex is down 219.10 points or 0.8 percent at 26437.73 and the Nifty slips 50.70 points or 0.6 percent at 8015.10. About 846 shares have advanced, 1579 shares declined, and 105 shares are unchanged.
M&M, Tata Motors, Maruti, ICICI Bank and TCS are top gainers while Bajaj Auto, Hindalco, Sun Pharma and Vedanta are major losers.
Asian stocks fell, as investors digested a private survey which showed China's mammoth manufacturing sector remaining in a tough spot, though the pace of decline in factory activity slowed in October.
Caixin's purchasing managers' index (PMI) for October edged up to 48.3 from September's fresh six-and-a-half year low of 47.2, official data showed, contracting for an eighth straight month.
12:50 pm Market Update: The 50-share NSE Nifty breached 8000-mark for the first time since October 1, dow 65.60 points to 8005.20.
The 30-share BSE Sensex shed 236.88 points to 26419.95, dragged by index heavyweights HDFC, HDFC Bank, Infosys and L&T.
12:40 pm Earnings: State-run private sector lender Oriental Bank of Commerce's (OBC) profit increased 3 percent year-on-year to Rs 301.3 crore in July-September quarter. It was driven by lower provisions, higher other income and operating profit despite tax cost.
Even its sequential performance improved. In Q1FY16, the bank had reported a 29.1 percent fall in profit with 7 percent growth in net interest income.
Net interest income, the difference between interest earned and interest expended, grew by 11 percent to Rs 1,383.05 crore compared to year-ago period with loan book growth of 6 percent.
Asset quality of the bank improved sequentially though deteriorated on yearly basis. Gross non-performing assets (as a percentage of gross advances) declined 15 basis points quarter-on-quarter (up 96 bps year-on-year) to 5.7 percent and net NPA fell 21 bps sequentially (up 26 bps on yearly basis) to 3.55 percent in quarter ended September 2015.
12:20 pm PMI at 22-month low: Growth in India's manufacturing sector cooled to its slowest in 22 months in October as domestic demand softenend, a private survey showed today, adding pressure on Prime Minister Narendra Modi to usher in long-promised reforms.
The Nikkei Manufacturing Purchasing Managers' Index, compiled by Markit, fell to 50.7 in October from September's 51.2. The 50-mark divides expansion from contraction.
A sub-index covering new orders dropped to a two-year low of 51.2 from 52.5 as the uncertain economic climate deterred clients from committing to new projects, Markit said. New export orders grew slightly faster than September but at a modest pace, and levels were still well below those in late summer.
12:00 pm Market Check
The market slipped further in noon trade with the Sensex falling 200.75 points to 26456.08 and the Nifty down 51.30 points to 8014.50. FMCG, metals, infra, select technology and banking & financial stocks dragged market down.
The broader markets also declined with the BSE Midcap and Smallcap indices down 0.3-0.5 percent.
Auto stocks bucked the trend post October sales data. Mahindra & Mahindra rallied 3 percent as its October sales increased by 20 percent year-on-year to 51,383 units, majorly led by passenger vehicle (up 19 percent to 24,060 units) and commercial vehicle sales (up 31 percent at 18,756 units).
Tata Motors gained over a percent on reporting a 1 percent increase in sales at 43,486 units. Its passenger vehicle sales rose 11 percent and medium & heavy commercial vehicle sales climbed 20 percent despite a 4 percent decline in commercial vehicle sales.
Maruti Suzuki was up 0.8 percent as sales jumped 29 percent whereas Bajaj Auto lost 4.4 percent after a 9 percent decline in sales at 3.5 lakh units year-on-year.
11:45 am Market outlook: The market does not appear to be particularly volatile, in fact it is in the normal range of volatility, says Vetri Subramaniam, CIO of Religare Invesco Mutual Fund. The trading range of the market is 15 percent, he says. Global newsflow has been strong and that is having an impact on the markets, but that's about it, he adds. However, big disappointments have come from earnings downgrades over the past few quarters.
This time too, earnings are trending lower, he says. According to him, FY16 and FY17 growth estimates are likely to be revised lower by the end of the earnings season. As far as the Bihar elections are concerned, he says people always like to play up important state elections as the mood of the electorate and a referendum on policy making at the Centre. But, he is not sure whether the outcome of the polls will make a huge difference.
11:30 am Buzzing: Shares of Jet Airways soared 8 percent intraday after it got itself a new maverick investor. Ace investor Rakesh Jhunjhunwala purchased 1.05 percent stake in the airline company for Rs 50.52 crore through an open market transaction. Jet Airways had gained 11 percent on Friday. According to the bulk deals data available with NSE, Jhunjhunwala's RARE Enterprises acquired 11,95,000 shares or 1.05 percent stake in the private airline. The shares were bought at an average price of Rs 422.76, valuing the transaction at Rs 50.52 crore.
The market is sliding away as the the Sensex is down 128.95 points or 0.5 percent at 26527.88. The Nifty slips 34.85 points or 0.4 percent at 8030.95.
About 820 shares have advanced, 1260 shares declined, and 86 shares are unchanged.
Capital goods, metals and pharma stocks are falling sharply. Hit by weak October sales, Bajaj Auto is down 4 percent. Hindalco, Lupin, Tata Steel and L&T are major losers in the Sensex. Among the gainers are M&M, ICICI Bank, Tata Motors, Maruti and Axis Bank.
Oil prices fell in as analysts expected weaker demand from China in upcoming months. The weakness came after gains made last week following a further decline in the US oil rig count which indicated that domestic crude production could drop in coming months.
But in Asia, the possibility of slowing demand in China dominated trade on Monday, with growth faltering in the world's No.2 economy.
10:59 am Market Update: Equity benchmarks remained under pressure with the Sensex falling 142.41 points to 26514.42 and the Nifty down 39.05 points to 8026.75.
10:50 am Earnings Poll: Adani Ports and Special Economic Zone's July-September quarter consolidated profit is seen rising 12.5 percent year-on-year to Rs 645 crore, according to average of estimates of analysts polled by CNBC-TV18.
Revenue is likely to increase 8.8 percent to Rs 1,801 crore from Rs 1,655 crore in same period. Operating profit may climb 10.4 percent to Rs 1,160 crore and margin may expand by 90 basis points to 64.4 percent compared to year-ago period.
10:40 am Maruti sales: Country's largest car manufacturer Maruti Suzuki said it has sold 1.34 lakh vehicles in October, a growth of 29.1 percent over 1.04 lakh vehicles sold in corresponding quarter of last fiscal. The growth was driven largely by compact cars (especially Baleno that launched on October 26) and exports.
Company's domestic sales increased by 24.7 percent to 1.21 lakh vehicles and exports shot up 90.4 percent to 13,146 vehicles.
10:20 am FII View: Rakesh Arora, Macquarie says reporting season is reflecting the fragile nature of recovery and has not provided anything to cheer about as yet.
At the same time, the probability of a Fed 'lift-off' in December 2015 has increased post recent minutes, indicating that risk-off may come back in vogue, he feels.
Back home, all eyes are on Bihar elections to lift sentiment and take the market beyond the range, says Arora.
10:00 am Market check
The market extended losses in morning trade, weighed down by metals, pharma, technology stocks and HDFC twins. The Sensex fell 150.81 points to 26506.02 and the Nifty declined 43.10 points to 8022.70.
The broader markets were also under pressure as the BSE Midcap and Smallcap indices declined 0.4 percent each. The market breadth was negative as about 1112 shares declined against 748 advancing shares on the BSE.
New kid on the block Coffee Day Enterprise has debuted on bourses at Rs 307 per share, down 14 percent intraday today. Pre-opening rate was at Rs 317 per share. The company which operates popular brand Cafe Coffee Day had fixed the issue price at Rs 328 per share for investors.
The IPO, which was opened for subscription during October 14-16, was subscribed 1.64 times at price band of Rs 316-328 a share.
9:55 am Interview: Sales numbers for November will be pretty much the same as were for October, Kevin Dsa, Chief Financial Officer, Bajaj Auto tells CNBC-TV18.
Bajaj Auto sold 3.53 units in October(two wheelers and three wheelers), down around 9 percent year-on-year. Domestic sales were good because of the festive season demand, but exports fell around 20 percent to 1.27 lakh units.
Dsa says the company lost some numbers in Nepal because of the disturbance in that country.
He says the response to the new Avenger series has been encouraging, and there have been 7000 bookings already.
9:35 am Market outlook: It is very difficult for an investor to stay bullish on the market right now given the slew of weak corporate earnings in the past few days, says CNBC-TV18 consultant Udayan Mukherjee. In an interview, Mukherjee says the market rally is capped at 8300-8400 and infact the Nifty could retest lows seen in September. "Not too many sectors have delivered and earnings are just not supporting the market. I will be very surprised if there aren't any significant number of downgrades," add Mukherjee.
9:25 am Confidence booster: India has moved up one position to become the world's seventh most valued 'nation brand', with an increase of 32 percent in its brand value to USD 2.1 billion. The US remains on the top with a valuation of USD 19.7 billion, followed by China and Germany at the second and the third positions respectively, as per the annual report on world's most valuable nation brands compiled by Brand Finance. The UK is ranked 4th, Japan is at fifth position and France is sixth on the list.
The market has kickstarted the week on a flat note. The Sensex is up 52.53 points at 26709.36. The Nifty slips 11.55 points at 8054.25. About 347 shares have advanced, 196 shares declined, and 45 shares are unchanged.
M&M, GAIL, Axis Bank, Tata Motors and Vedanta are top gainers in the Sensex. Among the losers are Sun Pharma, ITC, L&T, ONGC and Infosys.
The Indian rupee slipped in the early trade. It has opened lower by 12 paise at 65.39 per dollar versus 65.27 Friday.
Agam Gupta of Standard Chartered said, "USD-INR pair should trade in a range of 65.15-65.45/dollar today. There will probably be good interest from local government banks to buy dollar on dips to the lower end of the range."
"Exporters will use up move in the dollar as an opportunity to sell dollar and to hedge their future dollar receivables," he added.
Dollar is steady ahead of all-important non-farm payrolls due on Friday, and how that could affect the Federal Reserve's stance on interest rates.
Asian stocks held on to losses early Monday, even as a private survey of China's mammoth manufacturing sector indicated factory activity fell for an eighth straight month in October, but at a slower pace. Over the weekend, China's official purchasing managers' index (PMI) came in at 49.8 for October, according to data from the National Bureau of Statistics (NBS), contracting for a third straight month.