Sensex ends 202 points lower, Nifty below 8150; banks tank
29 Oct 2015
3:30 pm Market closing: The market ended lower on October F&O series expiry day. The Sensex was down 201.62 points or 0.7 percent at 26838.14 and the Nifty slipped 59.45 points or 0.7 percent at 8111.75. About 1214 shares advanced, 1441 shares declined, and 196 shares were unchanged.
BHEL, Axis Bank, Coal India, SBI and Sun Pharma were laggards while Dr Reddy's Labs, Vedanta, Tata Steel, Tata Motors and Lupin were gainers.
3:10 pm exclusive: French drugmaker Sanofi has decided not to pursue its deal with Glenmark related to development of Vatelizumab drug, a monoclonal antibody (MaB) for multiple sclerosis.
This will negatively impact Glenmark as the drug was already in the second phase of trials.
Sources say Sanofi was not satisfied with the primary endpoint of the ongoing trials. This will be a setback to Glenmark's plan of launching its own novel biological drug in the market.
In June 2011, Glenmark had licensed the molecule to Sanofi in a deal worth USD 613 million. Till April 2014, as a part pf the deal, the Mumbai-based pharmaceutical company had received USD 55 million from Sanofi.
2:55 pm Market Update: The Sensex slipped 173.30 points to 26866.46 and the Nifty dropped 52.55 points to 8118.65. About 1162 shares have advanced, 1392 shares declined, and 212 shares are unchanged on the BSE.
2:40 pm NTPC in News: NTPC , the country's largest power generation company, has reported a solid 40 percent year-on-year growth in standalone profit at Rs 2,898 crore for July-September quarter. It was boosted by tax gain and operational performance despite lower other income.
Revenue increased 7 percent to Rs 17,898 crore compared to Rs 16,737 crore in same quarter last year.
Operating profit jumped 24.3 percent year-on-year to Rs 4,030 crore and margin expanded by 310 basis points to 22.5 percent in quarter gone by.
Other income during the quarter plunged 48 percent to Rs 275.4 crore compared to year-ago period. NTPC has received tax gain of Rs 729.7 crore for the quarter against gain of Rs 117.60 crore in corresponding quarter of last fiscal and Rs 427.8 crore in June quarter.
2:30 pm Market Expert: Corporate earnings, the Federal Reserve stance on interest rates and the Bihar elections will be the three factors driving market sentiment near term, Yogesh Radke, Head of Quantitative Research at Edelweiss Securities tells CNBC-TV18.
He expects the Nifty to slip to 7800 in the November series.
The roll over cost for the November series is around 45-50 basis points compared to an average of around 70 basis points during a bull market. This, Radke says, indicates that traders are rolling over their long positions, but cautiously.
2:20 pm Earnings: Tyre maker MRF today reported a 45.38 percent surge in its net profit at Rs 460.73 crore for the quarter ended September 30. The company had posted a net profit of Rs 316.91 crore during the same period of the previous fiscal.
Net sales of the company declined to Rs 3,327.21 crore during the June-September period compared with Rs 3,359.91 crore during the same period of previous fiscal, MRF Ltd said in a regulatory filing.
The company's board, which met today, approved a second interim dividend of Rs 3 per equity share for the period ending March 31, 2016.
2:00 pm Market Check
The market remained under pressure for fourth consecutive session today ahead of expiry of October derivative contracts. Fears of likely hike in Fed rate by December and unlikely of majority to NDA government in Bihar elections also weighed.
The 30-share BSE Sensex fell 140.95 points to 26898.81 and the Nifty declined 40.10 points to 8131.10. The market breadth also turned negative as about 1314 shares declined for 1160 advancing shares on the BSE.
ITC dropped 1.5 percent ahead of earnings due on Friday. Analysts expect cigarette volume to see double digit decline for fourth consecutive quarter.
Sun Pharma, Axis Bank, HUL, Bharti Airtel and Maruti Suzuki were down 1-2 percent. BHEL topped selling list on Sensex, down 4 percent.
NTPC rebounded post earnings, rising nearly a percent. Tata Motors, Dr Reddy's Labs (ahead of earnings) and Lupin gained 1-2 percent.
1:55 pm Exclusive: Mahindra & Mahindra is planning to consolidate all its agri business under EPC Industries , sources say. M&M's agri business has growth 8x in 5 years. EPC Industries is likely to be the vehicle for agri business of M&M Group and may be renamed post consolidation of all agri units. M&M had acquired EPC Industries in February 2011.
1:45 pm Recall: Volkswagen India is set to recall 1 lakh diesel cars following an unsatisfactory report from the Automotive Research Association of India (ARAI) on compliance with Indian emission norms, reports CNBC-TV18's Farah Bookwala Vhora, quoting sources.
In the aftermath of the emission scandal that engulfed German carmaker Volkswagen (VW) in the US, several countries began independent investigations. India too joined that list with the Ministry of Heavy Industries directing India's apex car testing agency, to check if VW had manipulated Indian emission norms.
It is learnt that VW India is preparing to recall the cars before November 8. This recall will affect 1.5 litre Polo GT TDI, 1.5 litre Polo Cross TDI, 1.5 litre Vento TDI, 2.0 Litre Jetta, 2.0 Litre Passat and will include 20,000 units of India-made diesel cars.
1:30 pm Result: Private sector lender Yes Bank 's July-September quarter earnings beat analysts' expectations on Thursday. Profit increased 26.4 percent year-on-year to Rs 610.4 crore, driven by strong net interest income, other income and operating profit. However, higher provisions and tax cost limited profitability. Net interest income, the difference between interest earned and interest expended, jumped 29.5 percent to Rs 1,108.5 crore in same period, boosted by credit growth. Profit was estimated at Rs 593 crore and net interest income at Rs 1,085.8 crore for the quarter, according to analysts polled by CNBC-TV18
The market is still down as the Sensex slips 148.16 points or 0.6 percent at 26891.60. The Nifty falls 42.30 points or 0.5 percent at 8128.90. About 1142 shares have advanced, 1255 shares declined, and 218 shares are unchanged.
Dr Reddy's Labs, Tata Motors, Lupin, Tata Steel and Vedanta are top gainers while BHEL, Axis Bank, Bahrti Airtel, GAIL and Sun Pharma.
Meanwhile, emphasising on the significance of Africa for India, Modi said, "African energy helps run the engine of the Indian economy, its resources are powering our industries, and African prosperity offers growing market for Indian products." He added that Africa's economic growth has gathered momentum and has a more diversified base. African initiatives are replacing old fault lines with new bridges of regional economic integration, he said. Modi also said that technology can be a strong foundation of the partnership between India and Africa.
12:58 pm Market Update: Equity benchmarks extended losses in afternoon trade with the Sensex falling 162.78 points to 26876.98 and the Nifty losing 47.40 points to 8123.80.
About 1135 shares have advanced, 1205 shares declined, and 193 shares are unchanged on the BSE.
12:40 pm BPCL in News: Foreign companies are in talks to buy a stake of up to 24 percent in the Bina refinery in India's Madhya Pradesh state which is jointly owned by Bharat Petroleum Corp and Oman's state oil firm, BPCL's chairman told Reuters today.
The two owners want to boost the refinery's capacity by about 30 percent from 120,00 barrels per day (bpd), said BPCL Chairman S. Varadarajan.
The expansion of the refinery, which has started to make money after quarters of losses, could cost USD 460 million and would be completed by 2018, Varadarajan said.
BPCL and Oman Oil Company could make a public share offer next year if a deal is not sealed.
"There are conversations with parties for up to 24 percent stake sale and some of them have shown interest," he said, declining to name the companies.
"If the talks do not materialise in a deal, we will go for a public issue next year."
12:20 pm Earnings: Private sector lender Yes Bank 's July-September quarter earnings beat analysts' expectations on Thursday. Profit increased 26.4 percent year-on-year to Rs 610.4 crore and net interest income jumped 29.5 percent to Rs 1,108.5 crore during the quarter.
Profit was estimated at Rs 593 crore and net interest income at Rs 1,085.8 crore for the quarter, according to analysts polled by CNBC-TV18.
Asset quality weakened during the quarter as gross non-performing assets increased 15 basis points quarter-on-quarter and 25 basis points year-on-year to 0.61 percent in the quarter gone by. Net NPA rose 7 bps Q-o-Q and 11 bps Y-o-Y to 0.20 percent in same period
12:00 pm Market Check
Equity benchmarks remained under pressure amid volatility in noon trade. The Sensex fell 74.43 points to 26965.33 and the Nifty declined 22.15 points to 8149.05 ahead of expiry of October derivative contracts.
The market breadth remained positive as about 1198 shares advanced against 1094 declining shares on the Bombay Stock Exchange.
HDFC, Tata Motors, Dr Reddy's Labs (ahead of Q2 earnings), Vedanta and Tata Steel topped buying list on Sensex, up 1-2 percent. BHEL was biggest loser, down more than 4 percent followed by ITC, Axis Bank, Sun Pharma, Bharti Airtel, Maruti Suzuki and Coal India with 1-2 percent loss.
11:55 am Interview: KEC International's margins improved significantly in the second quarter, says Rajeev Aggarwal, CFO, of the company. It has reported the highest margin 14 quarters. However, the company's revenue is down 7 percent. Aggarwal says this is because of lower commodity prices and currency depreciation in Brazil. the forex situation in Brazil has impacted 55-56 percent revenues, he told CNBC-TV18. Also, the company has passed the impact of lower commodity prices to the buyers, he adds. On the back of these, the company has lowered its FY16 revenue growth guidance to 10 percent from 10-15 percent earlier, he says.
11:45 am F&O expiry view: Corporate earnings, the Federal Reserve stance on interest rates and the Bihar elections will be the three factors driving market sentiment near term, Yogesh Radke, Head of Quantitative Research at Edelweiss Securities tells CNBC-TV18. He expects the Nifty to slip to 7800 in the November series. The roll over cost for the November series is around 45-50 basis points compared to an average of around 70 basis points during a bull market.
11:30 am Market outlook: There is no reason why one should not grab Axis Bank at the current levels, suggests Dipen Sheth of HDFC Securities. He urges investors to look at all parameters like NIM, loan growth etc and not agonise over NPAs. Sheth calls the private lender responsible for admitting its September quarter asset quality concerns. He is also bullish on ICICI Bank , which also has stressed assets, and advises to own the two stocks with a 2-year time horizon. "We remain buyers," he told CNBC-TV18
The market is volatile as generally seen on F&O expiry day. The Sensex is down 48.70 points or 0.2 percent at 26991.06 and the Nifty is down 19.95 points or 0.2 percent at 8151.25. About 1162 shares have advanced, 884 shares declined, and 144 shares are unchanged.
Bank and FMCG stocks are under heavy selling pressure. BHEL, Axis Bank, Bharti Airtel, GAIL and Maruti Suzuki are major losers in the Sensex.
Oil prices tumbled, cutting short a rally the day before after hints of an interest rate hike in December by the US Federal Reserve boosted the dollar.
Prices rose yesterday after the US Department of Energy said the country's commercial crude stockpiles had increased less than expected, suggesting stronger demand in the world's top oil consuming nation.
But the rebound was punctured after the Fed yesterday signalled it could raise rates before the end of the year, expressing optimism for the world's top economy after "solid" consumer spending and business investment
10:55 am Market Update: The Sensex fell 74.44 points to 26965.32 and the Nifty declined 27.40 points to 8143.80. About 1130 shares have advanced, 878 shares declined, and 134 shares are unchanged on the BSE.
10:45 am Maruti's Baleno: Country's largest car maker Maruti Suzuki has received over 4,600 bookings of its latest premium hatchback Baleno launched recently, a top company official said.
The company had re-introduced Baleno two days ago at New Delhi aiming to garner a significant market share in the premium hatchback segment. The car would compete with Hyundai Motor India's Elite i20 and Jazz from Honda cars in India.
"We have been receiving overwhelming bookings ahead of its national launch. On the day of the launch, over 1,500 visitors visited our showrooms and 600 of them booked while on the second day, 3,500 visited the showrooms and 1,200 booked. Total booking figures will be over 4,600," Maruti Suzuki India Executive Director (Marketing and Sales), R S Kalsi told reporters.
10:25 am Earnings Poll: Torrent Pharmaceuticals ' July-September quarter earnings are expected to be outstanding as Abilify generic launch may electrify its earnings. Profit is likely to jump 153 percent year-on-year to Rs 501.13 crore and revenue is seen rising 49.2 percent to Rs 1,815.3 crore during the quarter, according to analysts polled by CNBC-TV18.
Operating profit may surge 143 percent to Rs 663.1 crore and margin may expand 1410 basis points to 36.5 percent compared to year-ago period.
The US Food and Drug Administration approved Abilify generic version (Aripiprazole) in April 2015. Post approval, along with Torrent Pharma, Hetero Healthcare, Teva and Alembic had launched drug in the US. Generic Aripiprazole is an antipsychotic drug to treat schizophrenia and bipolar disorder.
10:15 am Gold Update: Gold ticked up today but stayed near its lowest level in two weeks after the Federal Reserve hinted at a possible US rate hike in December, bolstering the dollar and reducing the appeal of non-interest-paying bullion.
Spot gold rose 0.3 percent to USD 1,159.50 an ounce, following a 1 percent slide in the previous session. The metal fell on Wednesday to USD 1,152, its lowest since October 13.
US gold futures slid over 1 percent today, and other precious metals also fell.
10:00 am Market Check
The market continued to see marginal selling pressure, weighed by FMCG, infrastructure, technology and select banks stocks. The Sensex fell 78.87 points to 26960.89 and the Nifty declined 23.45 points to 8147.75.
The BSE Smallcap index outperformed benchmarks, up 0.4 percent. The market breadth was positive as about 993 shares advanced against 709 declining shares on the BSE.
Dr Reddy's Labs gained more than 2 percent ahead of earnings. Profit is seen rising 12 percent year-on-year to Rs 642.86 crore and revenue is likely to increase 11 percent to Rs 3,978 crore during July-September quarter, according to a CNBC-TV18 poll.
Axis Bank lost another 2 percent today, in addition to 7.4 percent loss in previous session on asset quality concerns.
9:55 am Result: Nestle India's third quarter net profit is expected to fall 26.7 percent year-on-year to Rs 228 crore due to absence of Maggi noodles, according to analysts polled by CNBC-TV18. Revenue is likely to decline 20 percent to Rs 2,055 crore from Rs 2,570 crore in same period. Analysts expect Q3 to see full impact of absence of Maggi. Maggi is estimated to have had 20-25 percent contribution to revenue in the past. The company follows calendar year as its financial year.
9:45 am High credit: Schedule commercial banks' credit increased by 9.54 percent to Rs 67,83,127 crore in the fortnight ended October 16, according to RBI data.
The loans stood at Rs 61,92,158 crore in the same period last year. Advances grew by 9.45 percent at Rs 68,30,245 crore in the previous fortnight from Rs 62,40,256 crore in the same period last year.
"We are not seeing any fresh investments. Demand from corporates is not there. We can see some pick up in the fourth quarter," Dena Bank Executive Director R K Takkar said.
In the reporting period, deposits rose by 11.17 percent to Rs 90,73,325 crore as against Rs 81,61,169 crore same period last year.
9:30 am Scale up plans: United Spirits will scale back its roster of more than 150 brands and focus on the faster-growing top end, hoping to bolster its fortunes in a market dominated by cheaper, local names. Anand Kripalu, chief executive of the unit of Britain's Diageo Plc, said the maker of Johnnie Walker whisky expects growth in top-end spirits to outpace the mass market over the next few years, as a growing class of wealthy young professionals demands better quality.
The market has opened volatile ahead of expiry of October derivative contracts. The Sensex fell 7.52 points to 27032.24 and the Nifty declined 4.85 points to 8166.35.
Vedanta, Cipla, ICICI Bank, ONGC, BHEL, Cairn India and HCL Tech were early gainers. HUL, Sun Pharma, HDFC Bank, Wipro, Hero Motocorp, Power Grid Corp, Ambuja Cements and BPCL lost ground.
The Indian rupee slipped in early trade today. It has opened lower by 23 paise at 65.15 per dollar against 64.92 Wednesday.
Mohan Shenoi of Kotak Mahindra Bank said, "A hawkish October FOMC statement has increased the probability of US Fed rate hike in December. Consequently, the dollar rallied across the board in particular against Euro while US stocks also showed decent recovery."
"USD-INR is likely to trade marginally weaker today and is expected to be in a range of 64.90-65.20/dollar," he added.
The dollar stood near a 2 and a half month high against a basket of currencies after the US fed left the door open for a rate hike in December, while the European Central Bank is widely expected to add to its stimulus.
Globally, the Federal Reserve has left the door open for December indicating that the chances of a December rate hike have increased as growth picks up. The Nasdaq led gains with a 1.3 percent rise, while the Dow Jones and S&P 500 closed up 1.1 and 1.2 percent respectively.
Asian stocks mostly advanced today, encouraged by a positive Wall Street handover following the Fed's decision to leave interest rates near zero.