Another bloody day! Sensex falls 118 points, Nifty ends at 8057
07 May 2015
03:30pm Market close: The Sensex was down 118.26 points at 26599.11 and the Nifty ended down 39.70 points at 8057.30. About 821 shares advanced, 1845 shares declined, and 170 shares were unchanged. IT stocks gained on weak rupee. TCS, Wipro, Bajaj Auto, Coal India and TCS were top gainers in the Sensex. Among the losers were ONGC, Axis Bank, Maruti Suzuki, ICICI Bank and Hindalco.
02:50pm Market Update: The Sensex crashed 273.44 points or 1.02 percent to 26443.93 and the Nifty fell 97.15 points or 1.20 percent to 7999.85.
About 673 shares have advanced, 1901 shares declined, and 160 shares are unchanged on the BSE.
02:47pm Sintex in News: Sintex Industries's fourth quarter consolidated net profit climbed 22.7 percent year-on-year to Rs 198 crore, aided by other income and lower finance cost. Textile and infrastructure businesses also supported profit growth. However, higher other expenses and tax cost limited the growth in bottomline.
Total income from operations grew by 9.7 percent to Rs 2,176.3 crore for the quarter ended March 2015 compared to Rs 1,983 crore in the year-ago period, supported by growth in textile and plastics businesses.
02:45pm Market sheds further: The Sensex dropped 207.25 points or 0.78 percent to 26510.12 and the Nifty fell 72.95 points or 0.90 percent to 8024.05.
About 709 shares have advanced, 1853 shares declined, and 163 shares are unchanged on the BSE.
02:40pm Siemens under pressure: German industrial group Siemens posted a slightly larger-than-expected 5 percent drop in quarterly industrial profit as a weak result at its digital factory unit compounded problems at its energy operations.
Siemens said today it would cut an additional 4,500 jobs, or roughly 1 percent of the global workforce, as it struggles with low demand and price erosion in its core gas turbines business while grappling with a host of other underperforming operations. Half the job cuts will come in Germany.
Chief Executive Joe Kaeser is trying to streamline the company's sprawling portfolio and change the corporate culture to help it close a profitability gap with rivals General Electric and ABB .
But he is fighting on many fronts as slowing economic growth in major markets dampens appetite for infrastructure spending while structural change and weak demand challenge the energy businesses that account for about 40 percent of Siemens' sales.
Profit from Siemens' industrial businesses in the quarter to end-March was 1.7 billion euros (USD 1.9 billion) after 98 million euros in restructuring costs for job cuts. That was below a Reuters poll average of 1.78 billion euros.
02:25pm Further rupee fall possible?: According to Ananth Narayan, head-financial markets, Standard Chartered Bank says triggers for depreciating rupee have been both domestic and global. However, he terms this as healthy correction. "It is good we are having a soft landing," he says.
Domestic factors like growth constraints, lack of revival in investment climate, weak earnings and global factors like rising crude prices, sharp moves seen in European and US debt markets make a strong case for rupee to depreciate to levels of 64.5-65 to the USD in the next few weeks, said Narayan.
He does not see a run away fall for the rupee unless crude rises to USD 80-90 per barrel.
With USD 70-80 billion net long rupee positions having built over the last few months, it makes a strong case for volatility and vulnerability, feels Narayan.
02:00pm Market Check
Dalal Street continued to be controlled by bears on further weakness in rupee and weak global cues. The Bank Nifty saw a sharp fall of almost 2 percent today and market breadth remained in favour of declines with the ratio of 1:3.
The Sensex shed 183.87 points or 0.69 percent to 26533.50 and the Nifty fell 61 points or 0.75 percent to 8036. The broader markets saw major fall compared to benchmarks; the BSE Midcap and Smallcap indices declined 2 percent and 1.5 percent, respectively.
Adrian Mowat of JP Morgan said India has lost its favored emerging market tag. However, this is a routine correction in a bull market and a lot of consensus trades are unwinding globally, he added.
Globally, Asian stocks extended their sell off. Chinese market fell almost 3 percent, seeing 3rd day of decline while Hang Seng has fallen 350 points. Morgan Stanley downgraded the MSCI China Index to equal weight from overweight, marking the first downgrade in seven and half years.
More pain continued in the currency market. The rupee hit a 20-month low, breaching 64 a dollar mark weighed down by global debt sell off, weak equity markets and government's taxation policies. The currency slipped 65 paise to 64.19 a dollar, the biggest intraday fall since December 15, 2014.
TCS bucked the trend, up 2.7 percent. Bajaj Auto and Coal India gained 1.5-2 percent followed by ITC and Infosys with 0.7 percent upside.
However, ICICI Bank, ONGC, Axis Bank, Dr Reddy's Labs, Maruti Suzuki,, Tata Power and Hindalco topped the selling list on Sensex, down 2-4 percent. Heavyweights Reliance Industries and HDFC Bank declined 1.7 percent each.
1:30 pm GST outlook: The Goods and Services Tax (GST) cleared a key hurdle in the Parliament Wednesday when the Lok Sabha passed the constitutional amendment bill to enable single nationwide sales tax. Speaking to CNBC-TV18, Kevin DSA, President Finance, Bajaj Auto the entire industry has been looking forward to GST and the passage of this constitutional amendment bill in the Parliament is a very good beginning. According to him, a 24 percent rate for GST would be good for the government, for the country and for the automobile industry. And as GST sets in and one starts getting the entire benefit of this reform, the rate may gradually flow down to 20 percent, he added. The market continues to be under pressure as bank, pharma and oil stocks fall sharply. The Sensex is down 81.22 points at 26636.15 and the Nifty is down 29.90 points at 8067.10. About 792 shares have advanced, 1621 shares declined, and 135 shares are unchanged.
ONGC, Dr Reddy's Labs, Hindalco, ICICI Bank and Tata Power are major losers in the Sensex. Among the gainers are Bajaj Auto, Bharti, Coal India and Hero MotoCorp.
The Indian currency has weakened to 64 per dollar. The rupee fell to its lowest in 20 months on Thursday, weighed down by concerns over the government's taxation policies that threaten to reduce the allure of local assets for foreign institutions, while a global debt sell-off also hurt.
Traders said the uptick in non-deliverable forwards traded in Singapore was hitting sentiment for the local unit and prompting custodian banks to sell the rupee.
Most emerging Asian currencies lost ground as a global bond rout lifted government bond yields across the region. Traders are now waiting to see if the Reserve Bank of India steps in to prevent a further sharp fall in the currency.
12:30pm Market Update: Equity benchmarks slipped to day's low on further selling pressure in banks and oil stocks. The Sensex plunged 172.65 points to 26544.72 and the Nifty declined 62.60 points to 8034.40. About 761 shares have advanced, 1585 shares declined, and 148 shares are unchanged on the BSE.
12:15pm Dabur weak: The first quarter of FY16 would be a bit a subdued but the overall volume growth for whole of the fiscal would be in line is the word coming in from Sunil Duggal, CEO, Dabur India.
Demand will pick up in third and fourth quarter on back of good monsoon. So overall for FY16 demand looks fairly promising, said Duggal in an interview to CNBC-TV18.
According to Duggal, although urban consumption demand hasnt picked up, rural demand has remained resilient despite challenging macros. However, rural centers have shown signs of emerging demand, he added.
On the margins front, the improvement story is likely to continue for first half of FY16 but would remain subdued for the fiscal as a whole.
12:00pm Market Check
The market remained under pressure with marginal losses amid consolidation. The Sensex fell 68.21 points to 26649.16 and the Nifty declined 34.40 points to 8062.60.
The broader markets underperformed benchmarks with the BSE Midcap and Smallcap indices falling around a percent. Nearly two shares declined for every share advancing on the Bombay Stock Exchange.
Adrian Mowat of JP Morgan said this was routine correction for India equities. He reiterated that emerging markets historically see 15-20 percent correction in bull markets. However, he added that India has lost its favourite emerging market tag.
Globally, Asian markets too head southward to hit multi-week lows. Shanghai Composite deepened its losses to trade 2 percent lower amid jitters over tighter margin trading rules in China. In commodities, Brent crude traded around USD 67 per barrel.
The rupee hit a 20-month low on sustained dollar buying by FIIs, down 35 paise to 63.89 a dollar. Global rise in yields also prompted some emerging market curreny weakness.
Hero Motocorp gained 1 percent despite expectations of a disappointing quarter. A CNBC-TV18 poll indicated an 18 percent profit growth due to discontinuation of royalty payments to Honda, but margins are expected to fall 140 basis points year-on-year.
In the Yes Bank case, Bombay High Court ruled in favour of Rana Kapoor and denied interim relief to Madhu Kapur. Madhu had sought nomination right to a board seat.
11:30 am Market outlook: The current sell-off in market is due to both global and local factors. We are one step away from panic and miles away from recovery, said Ajay Srivastava, CEO, Dimensions Consulting. The Indian bull market is over, but it is not yet the time to buy, he said. However, Srivastava thinks the current lows would definitely make investors go in for bluechip stocks. According to him, the first steps of revival will start with banking sector. He expects Nifty at 7800 to be a comfortable level to enter the market.
The market remains sluggish as the Sensex is up 10.91 points at 26728.28. The Nifty is down 13.15 points at 8083.85. About 841 shares have advanced, 1227 shares declined, and 140 shares are unchanged.
TCS, Bajaj Auto, Bharti Airtel, Hero and Infosys are top gainers in the Sensex while Hindalco, Dr Reddy's Labs, GAIL, Reliance and ICICI Bank are major laggards in the Sensex.
The Indian currency is at 20-month low, hitting 63.90 per dollar. The rupee had opened at its lowest level in 2015, down 24 paise to 63.78 a dollar. "Mixed data emanating from US continues will exert pressure on Dollar. However, weak Indian stock market is weakening the rupee which is partly neutralised by RBI actions," said Mohan Shenoi, Kotak Mahindra Bank.
He expects the USD-INR pair to trade today in a range of Rs 63.40-63.70/USD.
Oil prices fell in Asia as dealers fretted over a lower-than-expected drop in US crude production that dimmed hopes of a quick end to a global supply glut, analysts said.
US benchmark West Texas Intermediate for June delivery fell 58 cents to USD 60.35 while Brent crude for June eased 56 cents to USD 67.21 in mid-morning trade.
10:55am Market Update: The Sensex fell 10.70 points to 26706.67 and the Nifty declined 19.20 points to 8077.80. About 825 shares have advanced, 1231 shares declined, and 143 shares are unchanged on the BSE.
10:40am Interview: Venkat Narayana, CFO, Prestige Estates said the company would continue to grow on all parameters in FY16 too with project pipeline of over 10 million square feet mainly in Bangalore, Chennai and Kochi, said Narayana.
Realty firm Prestige Estates Projects reported 13 percent increase in sales bookings at Rs 5,013 crore for 2014-15 fiscal.
"The company has for the year ended March 31, 2015, sold 4,058 residential units and 0.81 million sq ft of commercial space, totaling to 7.73 million sq ft, amounting to Rs 5,013.5 crore of sales, up by 13 percent from that of FY'14," Bengaluru-based developer said in a filing to the BSE.
10:20am Market Expert: The current sell-off in market is due to both global and local factors. We are one step away from panic and miles away from recovery, said Ajay Srivastava, CEO, Dimensions Consulting.
The Indian bull market is over, but it is not yet the time to buy, he said. However, Srivastava thinks the current lows would definitely make investors go in for bluechip stocks.
According to him, the first steps of revival will start with banking sector. He expects Nifty at 7800 to be a comfortable level to enter the market.
10:00am Market Check
The market recouped its early losses amid consolidation with the Sensex rising more than 100 points led by technology and FMCG stocks. However, the broader markets remained under pressure with the BSE Midcap and Smallcap indices falling marginally.
The Sensex gained 119.07 points at 26836.44 and the Nifty climbed 21 points to 8118. About 798 shares have advanced, 967 shares declined, and 141 shares are unchanged on the BSE.
TCS topped the buying list on Sensex, up 2.7 percent followed by Infosys and Bajaj Auto with 2 percent gains. Bharti Airtel, L&T, Coal India and BHEL climbed over 1 percent. ITC and HDFC also supported the market with marginal gains.
Two-wheeler major Hero Motocorp gained 1 percent ahead of its fourth quarter earnings. A CNBC-TV18 poll expects the company to report a 18.3 percent growth (year-on-year) in profit after tax at Rs 656 crore for the quarter ended March 2015 due to discontinuation of royalty payments to Honda.
9:55 am Market outlook: Bharat Iyer of JP Morgan says that FIIs are overweight on Indian equities by 390 bps versus the benchmark (MSCI EM) near historic highs. The positioning is reflective of the renewed faith in the growth potential, but also poses risks in the event of any significant global risk aversion. He also says, most indicators of equity market sentiment suggest near-term consolidation.
9:42 am Market recovers: The market is bouncing back slightly with the Sensex in green now. The 30-share index is up 17.43 points at 26734.80 and the Nifty is down 9.70 points at 8087.30. About 541 shares have advanced, 997 shares declined, and 109 shares are unchanged.
Vedanta, TCS, Coal India, Hero Motocrop and Infosys are top gainers in the Sensex. Among the losers are Hindalco, Cipla, Axis Bank, Sun Pharma and Reliance.
9:40 am Market check: After sinking below 8050, the Nifty is trying hard to keep above the level. The 50-share index is down 46.35 points or 0.6 percent at 8050.65. The Sensex is down 84.49 points at 26632.88. About 430 shares have advanced, 1026 shares declined, and 101 shares are unchanged.
9:30 am Result poll: Hero Motorcorp is expected to report a 18.3 percent growth (year-on-year) in profit after tax at Rs 656 crore for the quarter ended March 2015 due to discontinuation of royalty payments to Honda, according to a CNBC-TV18 poll. The two-wheeler maker will announce its earnings on Thursday. Revenue is seen rising 1.2 percent to Rs 6,592 crore during January-March quarter compared to Rs 6,513 crore in the year-ago period due to lower volume growth. Volumes declined 0.9 percent Y-o-Y (down 4.4 percent Q-o-Q) to 15.75 lakh units led by weak rural demand. Rural markets contribute 50 percent of Heros domestic sales.
After massive cuts yesterday, the market has again opened at 2015 lows. The Sensex is down 93.07 points at 26624.30 and the Nifty is down 40.50 points at 8056.50. About 294 shares have advanced, 487 shares declined, and 83 shares are unchanged.
Cipla, Dr Reddy's Labs, GAIL, Axis Bank and Wipro are major laggards while TCS, NTPC, Coal India, ONGC and Infosys are top gainers in the Sensex.
Indian rupee has opened at its lowest level in 2015, down 24 paise to 63.78 a dollar against previous day's closing value of 63.54 per dollar.
"Mixed data emanating from US continues to exert pressure on Dollar. However, weak Indian stock market is weakening the rupee which is partly neutralised by RBI actions," said Mohan Shenoi, Kotak Mahindra Bank.
He expects the USD-INR pair to trade today in a range of Rs 63.40-63.70/USD. According to him, FII selling in debt segment and rising Brent crude prices are likely to keep Indian bonds bearish. He expects the 10-year benchmark yield to trade today in a range of 7.88-7.91 percent.
Asian markets too have opened up lower on the back of a weaker finish on Wall Street overnight and growth worries in Australia. Nikkei opened at one-month lows as heavies like Sony and SoftBank are under pressure. Kospi has opened at three-and-a-half-week lows...
US markets closed lower as investors weigh higher bond yields and oil prices ahead of Fridays important jobs report. Also comments from Fed Chair Janet Yellen that the equities market is overvalued added to the market anxiety.
All eyes will be on the UK elections. Polling will kick off today, the incumbent Prime Minister David Cameron and Ed Miliband, the leader of the opposition Labour Party, are level in most polls, showing that another coalition government is a highly probable outcome of the election.
In other asset classes, crude prices pared gains as investors took profits on a multi-week rally but continue to trade near 2015 highs. NYMEX crude is around USD 60 per barrel.
From the precious metal space, gold prices edged lower as the impact of higher US real yields counteracted the effects of a weaker dollar.