Global cues spook; Nifty ends at 7732, Sensex falls 382 points
18 November 2015
3:30 pm Market closing: Late sell-off spooked by European markets, dragged benchmark indices. The Sensex slipped 381.95 points or 1.5 percent at 25482.52 and the Nifty slumped 105.75 points or 1.3 percent at 7731.80. About 1048 shares advanced, 1619 shares declined and 175 shares were unchanged. GAIL, Bharti Airtel, NTPC, Coal India and Sun Pharma were top gainers while Hindalco, Infosys, Tata Steel, Vedanta and SBI were major losers.
3:10 pm Outlook: Moody's Investors Service today said state-run NTPC will benefit from improving operating environment for India's power sector and revival scheme UDAY for debt-ridden distribution companies.
"The improving coal environment and proposed debt reduction program should boost the ability of offtakers to buy electricity, which will in turn increase NTPC's utilisation rates and incentive income," said Abhishek Tyagi, Moody's Vice President and Senior Analyst.
"Further, the government's sale of a 5 percent stake in NTPC will not affect our assessment of the support for the company," adds Tyagi.
3:00 pm Market Update: Equity benchmarks remained sharply under pressure with the Sensex down 362.20 points or 1.40 percent at 25502.27. The Nifty plunged 102.05 points or 1.30 percent to 7735.50.
About 1031 shares have advanced, 1574 shares declined, and 169 shares are unchanged on the BSE.
2:50 pm Cadila in News: 7th Pay Commission to boost consumer durable demand: Nomura
2:00 pm Market Check
Equity benchmarks crashed in afternoon trade, tracking negative European cues. The 30-share BSE Sensex tanked 353.39 points or 1.37 percent to 25511.08 and the 50-share NSE Nifty fell 98 points or 1.25 percent to 7739.55.
The broader markets outperformed benchmarks as the BSE Midcap and Smallcap indices were down only 0.5 percent each. The market breadth was negative as about 1524 shares declined against 1000 advancing shares on the BSE.
European equities traded lower today as further security scares after the Paris attacks last Friday weigh on investor confidence. All major European indices were in the red. Tensions are high in Europe amid more security concerns after the Paris terrorist attacks on Friday in which 129 people died.
Banking & financials, technology, auto, oil and metals stocks were under pressure while NTPC, Bharti Airtel, Coal India and GAIL were only gainers on Sensex, up 1-2 percent.
1:55 pm Big boost for sugar stocks: The government will, for the first time, pay sugarcane farmers in part for produce that they sell to money-losing mills, government sources said after a cabinet meeting chaired by Prime Minister Narendra Modi. Modi's government would directly pay farmers Rs 45 (USD 0.68) for every tonne of cane produced, leaving mills to bear the rest of nearly 98 percent of the cost, one of the sources said, aimed at wooing politically influential growers and helping sugar companies recovering from a global glut.
The sources did not wish to be identified as the government is soon expected to announce the cabinet decision.
Shares of Indian sugar companies have been rising on hopes of government help and stocks of Shree Renuka Sugars, Simbhaoli Sugars and Bannari Amman Sugars shot up further on Wednesday.
1:45 pm Buzzing: Shares of GMR Infrastructure gained 11 percent intraday after its Kamalanga energy plant received a favourable tariff order from CERC, which will boost the company's operating profit.
"This is another reaffirmation of government’s and regulator’s resolve to solve problems of Power sector. CERC has passed this tariff order which will go a long way improving profitability and liquidity of the group," GBS Raju, Business Chairman-Energy said. The company said this long pending order would entitle GMR Group to collect all arrears of power supply from GMR Kamalanga Energy to GRIDCO for power supplied till September 2015. Going forward, the order will help improve company’s EBITDA by Rs 120 crore, it added.
1:40 pm Europe tumbles: European equities opened lower as further security scares after the Paris attacks last Friday weigh on investor confidence.
Tensions are high in Europe amid more security concerns after the Paris terrorist attacks on Friday in which 129 people died. Today morning, police confirmed, according to multiple media reports, that two terrorists were killed in the ongoing raid on Saint-Denis, Paris.
Air France said that two Paris-bound flights that had been diverted following anonymous threats had landed safely.
1:30 pm Market check: The Sensex is down 328.68 points or 1.3 percent at 25535.79. The Nifty is down 90.95 points or 1.2 percent at 7746.60.
About 1086 shares have advanced, 1387 shares declined, and 169 shares are unchanged.
Hindalco is down 4 percent, Infosys falls 3 percent.
The market is slipping away as the Sensex is down 117.56 points or 0.4 percent at 25746.91. The Nifty slips 31.55 points or 0.4 percent at 7806. About 1268 shares have advanced, 1172 shares declined, and 176 shares are unchanged.
Hindalco, Infosys, Vedanta, Tata Steel and Dr Reddy's Labs are major losers while NTPC, Bharti Airtel, GAIL, Tata Motors and Coal India are top gainers.
Oil prices rebounded in Asia today but buying sentiment remains sluggish owing to supply glut woes and a strong dollar. Traders are waiting for the release later in the day of a US Department of Energy report on commercial stockpiles in the world's top oil consumer which is expected to show an increase and further confirm the oversupply.
Another key focus is the release later today of minutes from last month's Federal Reserve policy meeting, with dealers looking for hints on whether it will raise interest rates at its gathering next month.
Speculation has mounted in recent weeks that the central bank will pull the trigger following a string of positive US economic figures.
12:58 pm Market Update: Equity benchmarks extended losses in afternoon trade with the Sensex down 91.18 points to 25773.29 and the Nifty down 23.75 points to 7813.80.
About 1260 shares have advanced, 1146 shares declined, and 173 shares are unchanged on the BSE.
12:48 pm FII View: Current market is a ‘buy-on-dips’, says Rakesh Arora, Head of Research-India at Macquarie Capital Securities adding that India is better placed amongst Emerging
Arora expects Foreign Institutional Investors (FIIs) to flow-in soon. In coming days, government-led infrastructure spending, One rank, One Pension (OROP) and the Seventh Pay Commission will be closely watched by investors.
Investor sentiment is positive on urban consumption, he says even with no earnings cheer this quarter. Arora expects 8 percent earnings growth in FY16, 10 percent in FY17 and 15 percent in FY18.
12:35 pm Aviation cos in focus: Jet Airways , IndiGo and SpiceJet said they would pursue legal steps against CCI order imposing penalties totalling Rs 258 crore on them for anti-competitive practices related to air cargo.
Clamping down on unfair business practices in the aviation sector, Competition Commission of India (CCI) had yesterday penalised the three airlines for cartelisation in determining the fuel surcharge on air cargo.
A penalty of Rs 151.69 crore was imposed on Jet Airways, while that on InterGlobe Aviation and SpiceJet are Rs 63.74 crore and Rs 42.48 crore, respectively.
12:20 pm Buzzing: Shares of GMR Infrastructure gained 11 percent intraday after its Kamalanga energy plant received a favourable tariff order from CERC, which will boost the company's operating profit. "This is another reaffirmation of government’s and regulator’s resolve to solve problems of Power sector. CERC has passed this tariff order which will go a long way improving profitability and liquidity of the group," GBS Raju, Business Chairman-Energy said.
The company said this long pending order would entitle GMR Group to collect all arrears of power supply from GMR Kamalanga Energy to GRIDCO for power supplied till September 2015. Going forward, the order will help improve company’s EBITDA by Rs 120 crore, it added.
12:00 pm Market Check
The market continued to see marginal selling pressure in noon trade with the Sensex down 23.12 points at 25841.35. The Nifty continued to struggle below 7850, down 6.20 points to 7831.35.
However, the broader markets outperformed benchmarks as the BSE Midcap and Smallcap indices gained more than 0.3 percent. About 1310 shares have advanced against 1023 declining shares on the BSE.
Bharti Airtel and NTPC topped buying list on Sensex, up more than 2 percent followed by L&T, Tata Motors, M&M and Coal India.
Infosys remained under pressure for second consecutive session today, down another 2.5 percent on margin warning for H2FY16. TCS, Dr Reddy's Labs, Maruti Suzuki, Tata Steel, Hindalco and Vedanta lost 1-2.5 percent.
Gold prices hit their lowest in nearly six years today as the dollar rose and investors braced for the first US interest rate rise in nearly a decade next month. The other precious metals followed gold down, with silver dropping to a fresh 2-1/2-month low and platinum tapping a seven-year low.
11:55 am Buzzing: Shares of Eros International Media have finally seen some buying after plunging almost 50 percent from October 26. The stock rose 5 percent intraday on Wednesday riding on its strong September quarter. In the September quarter, its parent company's net profit jumped 155 percent to USD 11 million while revenues also rose 98 percent at USD 98.8 million on an annual basis. In constant currency terms, its revenue was up 129 percent year-on-year.
In a conference call, it said India's contribution to total revenue increased to 62 percent against 51.5 percent.
11:45 am Greece deal: Greece announced it has struck a deal with its international creditors to unblock some 12 billion euros in much-needed bailout loans.
"We have reached agreement on everything, including the 48 additional measures" that should allow the 12 billion euros (USD 12.8 billion) to be paid out on Friday, Finance Minister Euclid Tsakalotos told reporters after marathon talks.
"This is good news," Eurogroup chief Jeroen Dijsselbloem said in a statement released in Brussels, adding that the funds would be paid once the Greek parliament adopts fresh reforms on Thursday.
"Upon the completion of the agreed conditionality and the implemented legislation, the Eurogroup stand ready to support the disbursement," he said.
11:30 am Buzzing: Shares of Pipavav Defence and Offshore Engineering Company gained further after the Reserve Bank of India (RBI) has allowed foreign investors to increase shareholding in the company.
"Registered foreign portfolios investors/foreign institutional investors/qualified foreign investors can now invest up to 12 percent and non resident Indians (NRIs)/ persons of Indian origin (PIO) up to 2 percent of the paid up capital of Pipavav Defence under portfolio investment scheme (PIS)," the Reserve Bank said.
The company has passed resolutions at its board of directors and shareholders’ level for allocating sub limits for purchase of equity shares by RFPI/FII/QFIs/NRI/PIOs, the RBI said.
The market is slipping further with the Nifty almost nearing 7800. The 50-share index is down 22.05 points or 0.3 percent at 7815.50. The Sensex is down 73.86 points or 0.3 percent at 25790.61. About 1207 shares have advanced, 912 shares declined, and 144 shares are unchanged.
Capital Goods index is up while IT index is down 1.6 percent from previous close. Coal India, NTPC, GAIL, Tata Motors and Cipla are top gainers while Infosys, Hindalco, Dr Reddy's Labs, Vedanta and Tata Steel are among losers.
The rupee was trading down by 9 paise against the American currency at 66.12 in late morning deals on dollar demand from banks and importers on the back of bullish greenback in the overseas market.
The Indian rupee opened lower at 66.12 per dollar as against yesterday's level of 66.03 at the Interbank Foreign Exchange (Forex) market. Overseas, the US dollar sat near a seven-month high against a basket of currencies in Asian early trade as the euro slid on expectations for the European Central Bank to ease monetary policy in December.
10:55 am Market Update: Equity benchmarks remained under pressure with the Sensex down 49.56 points to 25814.91 and the Nifty down 13.05 points to 7824.50.
About 1242 shares have advanced, 862 shares declined, and 141 shares are unchanged on the BSE.
10:40 am Pipavav extends gain: Reserve Bank today allowed foreign investors to raise their investment in Pipavav Defence and Offshore Engineering Ltd .
"Registered Foreign Portfolios Investors/Foreign Institutional Investors /Qualified Foreign Investors can now invest up to 12 percent and Non Resident Indians / Persons of Indian Origin up to 2 percent of the paid up capital of Pipavav Defence and Offshore Engineering Limited under the Portfolio Investment Scheme (PIS)," RBI said in a release.
RBI said the company passed resolutions at its Board of Directors and shareholders' level for allocating the sub limits for the purchase of its equity shares by these entities. 10:20 am: FII View: Neelkanth Mishra, Credit Suisse says given the government's focus on bottom-up growth rather than top-down, he believes first signs of recovery are likely to come from broad-based indicators.
Good growth in oil, power and auto demand for two months points to a reviving economic momentum, he says, adding first reports on Diwali sales from a number of companies have been strong.
These trends support oil marketing companies like BPCL, staples like HUL and autos like Maruti Suzuki, Mishra says.
10:00 am Market Check: The market is struggling to move into positive terrain. The Sensex is down 34.91 points at 25829.56 and the Nifty slips 13.35 points at 7824.20. About 1067 shares have advanced, 665 shares declined, and 110 shares are unchanged.
Coal India, NTPC, Bharti Airtel, GAIL and HUL are top gainers while Infosys, Dr Reddy's, Vedanta, Maruti and Hindalco.
Though the world is bearish on the emerging market (EM) space, India is still better placed, says Bhanu Baweja, Global Head of EM Cross Asset Strategy at UBS in an conversation with CNBC-TV18 from the sidelines of UBS India Conference.
The combination of growth and dollar strength in the US could give the Federal Reserve the ammunition to hike rates in December and could result in more weaknes for EMs towards the year-end. However, since markets have already priced in a 70 percent chance of rate hike, it is unlikely that they will crash, says Baweja.
9:55 am FII view: Though the world is bearish on the emerging market (EM) space, India is still better placed, says Bhanu Baweja, Global Head of EM Cross Asset Strategy at UBS in an conversation with CNBC-TV18 from the sidelines of UBS India Conference. The combination of growth and dollar strength in the US could give the Federal Reserve the ammunition to hike rates in December and could result in more weaknes for EMs towards the year-end. However, since markets have already priced in a 70 percent chance of rate hike, it is unlikely that they will crash, says Baweja.
9:45 am Aviation stocks: Clamping down on unfair business practices in the aviation sector, Competition Commission on Tuesday slapped penalties totalling Rs 258 crore on Jet Airways , IndiGo and SpiceJet for cartelisation in fixing fuel surcharge for transporting cargo.
However, the fair trade regulator did not impose any penalty on national airline Air India and private carrier Go Airlines, which were also named in a complaint filed by Express Industry Council of India. The Competition Commission of India (CCI) has penalised three carriers -- Jet Airways, InterGlobe Aviation Ltd and SpiceJet -- for "concerted action in fixing and revising Fuel Surcharge (FSC) for transporting cargo", according to an official release.
9:30 am Interview: Retail car demand saw a pick-up this festive season, says RC Bhargava, Chairman of Maruti Suzuki adding that November sales are also looking ‘reasonably good’ currently. Speaking to CNBC-TV18, Bhargava says the recently-launched Baleno has been well accepted by the market. A waiting period of two months is expected in Baleno, he adds. The company will not be offering discounts on its new models, but will continue selling old models at discounted rates, he says. Bhargava is optimistic of clocking in 12 percent volume growth in the second half of FY16. The full year growth will be close to 10 percent, he says. Despite the uptick in demand, Bhargava says it will be difficult to go back to 20 percent volume growth soon due to insufficient manufacturing capacity.
The market has opened on a flat note following lacklustre global cues Wednesday. The Sensex fell 10.44 points to 25854.03 and the Nifty declined 7.95 points to 7829.60.
Infosys fell again on margin warning, down nearly 2 percent. HDFC, TCS, Axis Bank, Hero Motocorp and ONGC were down over 0.4 percent.
ITC continued to be lead contributor to Sensex's gains, up 0.5 percent followed by Tata Motors, Lupin.
The Indian rupee has opened lower by 10 paise at 66.12 per dollar today against previous days's closing value of 66.02 a dollar.
Pramit Brahmbhatt of Veracity said investors are expected to trade cautiously ahead of data due this week. According to him, the rupee is expected to trade weak taking cues from a strong dollar. He sees the range for the rupee between 65.60-66.40/dollar today.
On the global front, Asian markets were mixed. Shanghai, Hang Seng, Nikkei and Kospi were marginally positive while Straits Times and Taiwan Weighted fell over 0.5 percent.
US stocks closed mixed with slight support from some earning reports that offset pressure from decline in oil prices. On the economic data front, the October’s industrial production declined for second month with a 0.2 percent drop.
The dollar gained on expectations that the Federal Reserve will raise interest rates next month.