Market ends near 4-month low, Nifty below 8500; ITC gains 2%

03 Nov 2016

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3:30 pm Market closing: The market ended at near 4-month low. The Sensex is down 96.94 points or 0.3 percent at 27430.28, and the Nifty down 29.05 points or 0.3 percent at 8484.95. About 1169 shares have advanced, 1785 shares declined, and 124 shares are unchanged.

3:10 pm Results: Ambuja Cements disappointed analysts with its quarterly earnings. Profit increased 79.2 percent year-on-year to Rs 277 crore on the back of solid growth in other income.

Revenue during the quarter declined 3.8 percent to Rs 2,031.4 crore from Rs 2,110.9 crore in same period last year, impacted by lower sales volume.

2:59 pm Market Update: Benchmark indices extended losses in last hour of trade. The Sensex fell 78.19 points to 27449.03 and the Nifty declined 22.45 points to 8491.55.

About 1665 shares declined against 1234 advancing shares on the BSE.

2:50 pm Payment default: Jindal Steel and Power today said it has failed to pay Rs 15.43 crore interest on non convertible debentures (NCDs), which was due on October 31.

"The company has not made payment of Rs 15.43 crore towards the interests due on NCDs, the due date for payment of which was October 31, 2016," JSPL said in a regulatory filing.

Last month, the firm had said it has defaulted on payment of interest on NCDs, due on September 30, 2016 on account of cash flow mismatches.

In the last few months, the Naveen Jindal led company has divested some of its assets to pare debt. JSPL has a net debt of around Rs 46,000 crore.

In October, the company said it will sell its 24 MW wind power plant in Satara, Maharashtra to a subsidiary of India infrastructure Fund II for an undisclosed amount.

2:37 pm Earnings: Diagnostic chain Dr Lal PathLabs has reported more than 8-fold increase in consolidated profit at Rs 52.5 crore for July-September quarter compared with Rs 6.2 crore in same period last year. It was partly driven by low base in year-ago period. The company had reported one-time loss of Rs 16.6 crore in Q2FY16. Hence, adjusted profit increased 40 percent.

Revenue during the quarter jumped 21.6 percent to Rs 262.2 crore as patient volumes increased substantially on account of outbreak of Dengue and Chikungunya in Delhi / NCR region.

About 70 percent of company's business comes from North India.

2:20 pm GST rates: Good & services tax (GST) rates are likely to be finalised today, reports CNBC-TV18 quoting agencies.

According to reports, GST rate on tobacco may be fixed at 40 percent while panel may fix GST rate at 5 percent, 12 percent, 18 percent and 28 percent slabs.

2:00 pm Market Check: Equity benchmarks continued to be lacklustre in afternoon trade but the broader markets underperformed with the BSE Midcap and Smallcap indices falling 0.4-0.7 percent.

The 30-share BSE Sensex fell 12.46 points to 27514.76 and the 50-share NSE Nifty declined 12.20 points to 8501.80.

Grasim, Tata Steel, ONGC, Adani Ports, Bank of Baroda, Asian Paints and SBI were top losers, down 2-4 percent while Hero Motocorp, Reliance Industries, Bharti Airtel, TCS, HDFC Bank, Hindalco, Bharti Infratel and ACC gained 0.5-4 percent.

European markets were mixed on continued concerns over the US election, with investors also focused on the Bank of England's latest rate decision and fresh corporate earnings.

Crude oil futures rose as an attack on a Nigerian oil pipeline and a weaker US dollar buoyed sentiment in the market, lifting prices for five-week lows. Brent crude was trading up 0.47 percent at USD 47.09 a barrel. US crude was up 0.26 percent at USD 45.46 per barrel.

1:45 pm Default: Jindal Steel and Power today said it has failed to pay Rs 15.43 crore interest on non convertible debentures (NCDs), which was due on October 31.

"The company has not made payment of Rs 15.43 crore towards the interests due on NCDs, the due date for payment of which was October 31, 2016," JSPL said in a regulatory filing.

Last month, the firm had said it has defaulted on payment of interest on NCDs, due on September 30, 2016 on account of cash flow mismatches.

1:30 pm Europe markets: European markets open lower morning on continued concerns over the US election, with investors also focused on the Bank of England's latest rate decision and fresh corporate earnings.

The Pan-European Stoxx 600 began Thursday going down 0.05 percent.

The US Federal Reserve announced Wednesday that it was keeping its interest rate at 0.25-0.5 percent, but sent stronger signals that, unless a major event takes place before December 14, it is ready to hike rates. Anxiety among investors looms as uncertainty regarding next week's US presidential becomes more evident. Polls continue to show a tight race between Hillary Clinton and Donald Trump.

The market has slipped into red as the Sensex is down 41.52 points or 0.1 percent at 27485.70. The Nifty is down 11.20 points or 0.1 percent at 8502.80. About 1484 shares have advanced, 1281 shares declined, and 137 shares are unchanged.

Hero MotoCorp, ITC, BHEL, Bajaj Auto and HDFC Bank are top gainers while Tata Steel, ONGC, Adani Ports, Asian Paints and Wipro are losers in the Sensex.

Gold prices drifted lower by Rs 81 to Rs 30,585 per 10gram in futures trade today as participants lightened their positions to book profits at existing higher levels even as the precious metal climbed overseas.

Analysts said the fall in gold prices at futures trade was mostly attributed to profit-booking by participants at higher levels despite a firm trend overseas where the precious metals strengthened.

Globally, gold rose 0.64 percent to USD 1,304.80 an ounce in Singapore. Yesterday, prices rallied to a four-week high of USD 1,308.02 on haven demand as global equities fell for the sixth time in seven days.

12:57 pm Market Update: Equity benchmarks were marginally higher amid consolidation and US election uncertainty. The Sensex was up 37.42 points at 27564.64 and the Nifty gained 15.15 points at 8529.15.

About 1677 shares advanced against 1037 declining shares on the BSE.

12:50 pm Anti-dumping duty: Centre has imposed anti-dumping duty on imports of steel wire rods from China to protect domestic manufacturers from cheap in-bound shipments.

The Department of Revenue in a notification yesterday said anti-dumping duty is being imposed for six months on import of wire road of alloy or non-alloy steel from China.

The measure follows recommendation by the Directorate General of Anti-Dumping and Allied Duties (DGAD) that steel wire road was being exported by China "below the normal value" and "the domestic industry has suffered material injury" because of such imports.

In its September 27 finding, the DGAD also stated that "the injury has been caused by the dumped imports of the subject goods" from China.

12:35 pm Bharti settlement: Zain, Kuwait's No.1 telecom operator by subscribers, on Thursday said it will pay USD 129 million to Bharti Airtel over a settlement related to the sale of Zain's Africa operations to the Indian firm in 2010.

The payment will have no future financial impact on Zain as it set aside provisions to cover potential payments related to the transaction at the time of the sale, a spokesman for Zain, which operates in eight countries in the Middle East and Africa, said.

Zain in 2010 completed the USD 9 billion sale of its Africa business, which included operations across 15 countries. Zain still operates in South Sudan and Sudan, according to its website.

12:20 pm Outlook: The current uncertainty in markets owing to global factors such as US presidential elections is an opportunity to buy stocks, according to Varanium Capital Advisors.

While a Donald Trump victory in the US presidential polls may surprise and upset markets, markets could see a rally if Hillary Clinton becomes the US President, said TS Anantakrishnan, CEO of Varanium Capital Advisors.

Back home in India, Anantakrishnan said that Nifty is unlikely to fall 400-500 points from the current levels. He said the advisory is bullish in financials, consumption and building materials stocks.

12:00 pm Market Check: Equity benchmarks remained directionless in noon trade with the Sensex hovering around 27500 level after sharp sell-off seen in previous session due to close competition for US presidential elections between Hillary Clinton and Donald Trump.

The Sensex was down 6.61 points at 27520.61 and the Nifty gained 2.75 points at 8516.75 despite strong market breadth. About 1672 shares advanced against 977 declining shares on the BSE.

Hindalco Industries was the biggest gainer, rising over 5 percent to trade around fresh 52-week high after anti-dumping duty hiked. Bharti Infratel gained more than 4 percent.

Asian markets were mixed after a short-lived recovery, even as oil prices jumped nearly 1 percent and the dollar weakened.

Crude oil futures rose as an attack on a Nigerian oil pipeline and a weaker US dollar buoyed sentiment in the market, lifting prices from five-week lows. Brent crude was trading up 54 cents, or 1.15 percent, at USD 47.40 a barrel. US crude was up 41 cents, or 0.9 percent, at USD 45.75 per barrel.

11:45 am Exclusive: Sources tell CNBC-TV18 that independent directors of Tata Sons are likely to meet ahead of the November 14 scheduled meeting. They will be discussing the manner in which the Cyrus Mistry affair was handled. It is learnt these directors will also be bringing these concerns to the board. Three of the four directors CNBC-TV18 spoke to said they were disconnected with the decision taken at Tata Sons and shocked by Mistry's ouster. Regarding Mistry's letter on Nano's viability, the directors said concerns were raised over the future of the Nano. However, one of the directors said that it is not easy to shut down the Nano quickly. They didn't agree with Mistry that Nano was kept alive only for emotional reasons as mentioned in Mistry's letter.

11:30 am Interview: Speaking to CNBC-TV18 Saugata Gupta, MD & CEO OF Marico explained the reasons behind the lower-than-estimated volume growth this quarter. ''The issue was related to Parachute. We perhaps took a premature price increase which was not in line with input costs. Rural consumption was stressed. We are optimistic of a recovery; greenshoots are seen in durables, auto.'' A poor Q2 show by Parachute coconut oil (27 percent of overall revenues) hit Marico's results for the second quarter. He said he was comfortable with their operating margin of 17-18 percent. Margins will be slightly lower than the first half of the year, going forward, he said. ''We will get out of the deflation effect.'' There won't be price cuts as input costs have bottomed out, he said, adding that Maico will be price competitive.

The market is gradually picking pace even though global concerns remain. The Sensex is up 73.32 points or 0.3 percent at 27600.54 and the Nifty is up 21.95 points or 0.3 percent at 8535.95. About 1765 shares have advanced, 688 shares declined, and 107 shares are unchanged.

Hero MotoCorp, BHEL, L&T, Maruti and L&T are top gainers in the Sensex while ONGC, Sun Pharma, Asian Paints, NTPC and Wipro are losers in the Sensex.

Ajay Srivastava, CEO of Dimensions Consulting thinks If Donald Trump wins the US presidential elections and the Indian market takes a dive
 it will be a perfect opportunity to buy.

Srivastava believes a Trump win would, in the longer term, benefit most of the world much more than anticipated.

He also advises caution on going all out and investing in any particular sector. ''2017 is a year of stocks and not the market,'' he says, adding, it is advisable to stick to the market leader in any sector.

10:58 am Market Update: Equity benchmarks were marginally higher with the Sensex rising 41.72 points to 27568.94 and the Nifty climbing 14.50 points to 8528.50.

About 1778 shares advanced against 638 declining shares on the BSE.

10:55 am Services PMI: Indian services activity accelerated rapidly in October as broadly steady prices helped drive a surge in domestic and foreign demand, a survey showed on Thursday.

The Nikkei/Markit Services Purchasing Managers' Index jumped to 54.5 in October from 52.0 in September. It has only been higher once - in August - since January 2013 and marked its 16th month above the 50 level that separates growth from contraction.

A sub index measuring new business climbed to 54.3 in October from 52.1, its second highest in over two years, although optimism cooled to a four-month low, suggesting a slowdown is possible after the annual festive season between October-December.

10:36 am Buzzing: Strides Shasun shares gained 4.5 percent intraday after the company and Mylan settled all regulatory claims related to Agila transaction.

"Strides and Mylan have agreed on a full and final settlement of all regulatory claims notified by Mylan to the company and subsidiary Strides Pharma Asia Pte Ltd," the healthcare company said in its filing.

With this final settlement, Mylan's regulatory concerns claims will be satisfied from the Regulatory Escrow, and Strides will receive approximately USD 30 million.

In addition, both companies have also agreed on a full and final settlement of the warranty and indemnity claims.

In December 2013, Strides and its subsidiary Strides Pharma Asia had completed the sale of Agila Specialties and Agila Specialties Global to Mylan Laboratories and Mylan Institutional Inc by entering into sale and purchase agreements.
 
10:20 am Market Outlook: If Trump wins and the market takes a dive, it will be a perfect opportunity to buy, says Ajay Srivastava, CEO of Dimensions Consulting while advising investors to keep cash on the sides now.

Srivastava believes a Trump win would, in the longer term, benefit most of the world much more than anticipated. 

He also advises caution on going all out and investing in any particular sector. ''2017 is a year of stocks and not the market,'' he says, adding, it is advisable to stick to the market leader in any sector.

10:00 am Market Check
Equity benchmarks recouped early losses with the Nifty firmly getting back above 8500, driven by ICICI Bank, Reliance Industries, ITC, L&T and HDFC.

The 30-share BSE Sensex was up 33.54 points at 27560.76 and the 50-share NSE Nifty gained 12.05 points at 8526.05 while the broader markets outperformed.

The BSE Midcap and Smallcap indices climbed 0.4-0.7 percent on strong breadth. About three shares advanced for every share falling on the exchange.

Bharat Iyer of JP Morgan says following yesterday's sell-off, the Nifty has reached critical support levels of about 8,500.

He feels if sentiment does not reverse quickly, he would not rule out a deeper correction, as tired retail investors capitulate. Support would then lie in the 8,000-8,200 range for the Nifty, according go him.

ICICI Bank and Tata Steel were the biggest gainers on the Sensex, up over 1 percent followed by Reliance Industries, ITC, L&T, HDFC, Maruti Suzuki and HDFC Bank.

ONGC fell further, down nearly 3 percent on top of 3 percent loss in previous session. Infosys, Asian Paints, Tata Motors, Sun Pharma and Bajaj Auto declined over half a percent.

9:55 am Exclusive: Independent directors of Tata Sons are likely to meet ahead of the November 14 scheduled meeting, reports CNBC-TV18 quoting sources. They will be discussing the manner in which the Cyrus Mistry affair was handled. It is learnt these directors will also be bringing these concerns to the board.

Three of the four directors CNBC-TV18 spoke to said they were disconnected with the decision taken at Tata Sons and shocked by Mistry's ouster.

Regarding Mistry's letter on Nano's viability, the directors said concerns were raised over the future of the Nano.

However, one of the directors said that it is not easy to shut down the Nano quickly. They didn't agree with Mistry that Nano was kept alive only for emotional reasons as mentioned in Mistry's letter.

9:45 am FII view: Bharat Iyer of JP Morgan says following yesterday's sell-off, the Nifty has reached critical support levels of about 8,500.

He feels if sentiment does not reverse quickly, he would not rule out a deeper correction, as tired retail investors capitulate.

Support would then lie in the 8,000-8,200 range for the Nifty, according go him.

That said, he had maintained that any correction would not constitute a trend reversal, but would be a buying opportunity, he says.

Iyer reiterates that stance and maintain Nifty target of 9,600-10,000 for CY17.

9:35 am Market check: The Sensex is up 31.52 points or 0.1 percent at 27558.74, and the Nifty up 11.80 points or 0.1 percent at 8525.80.  About 1344 shares have advanced, 384 shares declined, and 65 shares are unchanged.

The market has once again opened lower dragged by global concerns. The Nifty opened below 8500, down 14.45 points or 0.2 percent at 8499.55 and the Sensex is down 48.92 points or 0.2 percent at 27478.30.

ONGC, Tata Motors, L&T, Axis Bank and Asian Paints are losers in the Sensex. BHEL is the only green stock in the Sensex.

The Indian rupee opened flat at 66.72 per dollar Thursday against previous close 66.71. The dollar dropped, extending the longest losing streak since July, as currency traders seeking a clearer signal that Federal Reserve policy makers are determined to raise rates this year were left disappointed.

Investors are also coping with uncertainty just six days before the tightening US presidential election and two days before the October employment report.

Global markets fear a Donald Trump win in US Presidential election while the Federal Reserve kept interest rates unchanged in its last decision before the polls. The central bank maintained status quo in interest rates but signalled it could hike in December, as equities remained pressured by uncertainty over the impending US elections.

Among global markets, Asia shares eased as MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.1 percent in early trade, while Australia's market lost 0.5 percent. Tokyo markets were closed for a holiday, which was likely just as well as the Nikkei would have been hard pressed by the rising yen.

Wall Street stayed weak with the S&P 500 heading towards its seventh straight session of declines, its longest such streak in about five years. Investors generally view Clinton as a known quantity, but there is deep uncertainty about what a Trump win might mean for US economic policy, free trade and geopolitics.

Crude oil prices tumbled nearly 3 percent after a record weekly build in US crude stocks added to worries of all-time highs in OPEC production that suggested little could be done to rein in a global glut. Crude inventories rose by 14.4 million barrels for the week ended October 28 - the biggest ever rise in US. crude stocks in a week, overwriting a 2012 record.

Gold prices briefly hit highest level at USD 1309 an ounce for the first time since October 4.

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