Nifty ends at 8108, Sensex bleeds 514 points; Auto falls 5%
15 November 2016
3:30 pm Market closing: The market has ended with heavy losses. The Sensex was down 514.19 points or 1.9 percent at 26304.63 and the Nifty slipped 187.85 points or 2.3 percent at 8108.45. About 348 shares have advanced, 2354 shares declined, and 112 shares were unchanged.
SBI, TCS, Dr Reddy's Labs, Wipro and HUL were top gainers while Tata Motors, Tata Steel, Asian Paints, Maruti and HDFC were losers in the Sensex.
Auto index was down 5 percent.
3:20 pm Market check: The Sensex is down 542.70 points or 2 percent at 26276.12, and the Nifty down 196.45 points or 2.4 percent at 8099.85.
About 341 shares have advanced, 2357 shares declined, and 105 shares are unchanged.
2:58 pm Market Update: The Sensex was down 404.05 points or 1.51 percent at 26414.77 and the Nifty down 152.05 points or 1.83 percent at 8144.25.
About 2283 shares declined against 348 advancing shares on the BSE.
2:42 pm Acquisition: Automotive component solutions provider Bharat Forge shares gained more than 4 percent intraday ahead of board meeting to consider US acquisition.
"The meeting of finance and risk management committee is scheduled, on November 18, to consider and approve the proposed acquisition of a target entity based out of North America," the company said in its filing today.
Bharat Forge will acquire the company through its wholly owned subsidiary, Bharat Forge America Inc, USA.
The company, which will be acquired, is engaged in automotive and industrial forgings.
2:32 pm Market Expert: As the landslide continues in the Indian market, Shyamsunder Bhat, CIO of Exide Life Insurance says that this correction is mainly driven by two factors, firstly due to the short-term impact on business due to shortage of currency in circulation and secondly, because of the strengthening of the US bond yield and US dollar and some concerns on the trade measures by the US.
In an interview with CNBC-TV18 he said that this panic is likely to be short-lived and where a likely downgrade in FY17 earnings in possible, FY18 earnings are to remain intact given the bounceback in the economy and corporate sector.
2:20 pm Order inflow: State-run power equipment maker BHEL has expanded its footprint in the international market by securing export orders for supply of industrial motors to the African nations of Togo and Benin.
Scancem International DA, Norway (Heidelberg Cement group) has placed the order for the motors for their cement plants, Ciments Du Togo S.A. & Cimbenin S.A, Benin, BHEL said in press release.
According to the statement, the motors will be manufactured and supplied by BHEL's Bhopal unit.
BHEL has been present in the African continent almost since its export journey commenced 45 years back and has references today in almost half of the African continent.
The company has recently built 500 MW Kosti Thermal Power Plant - the largest in Sudan.
2:10 pm Europe update: European stocks were higher as the US dollar stood near a 13-and-a-half-year high and treasury yields continued to rise as traders anticipate President-elect Donald Trump's policies will stoke inflation.
Britain's FTSE was up 0.7 percent and France's CAC gained 0.3 percent.
The dollar index – which measures the greenback against a basket of currencies – was around USD 99.745 in European trade after paring some gains.
2:00 pm Market Check: Selling pressure continued in afternoon trade with the Sensex falling 371.81 points or 1.39 percent to 26447.01 and the Nifty down 146.95 points or 1.77 percent at 8149.35.
The broader markets continued to underperform benchmarks with the BSE Midcap and Smallcap indices losing 3.5-4 percent on weak breadth. About 7 shares declined for every share rising on the exchange.
Nifty IT index gained more than 1 percent as TCS, Wipro, HCL Technologies and Infosys climbed 1-2.5 percent while PSU Bank jumped 2 percent as Bank of Baroda rallied 8 percent. Canara Bank, SBI, Bank of India and Andhra Bank rose over 1.6 percent.
HPCL lost 4 percent after disappointing earnings. Profit in Q2 fell sharply by 66.6 percent quarter-on-quarter to Rs 701.3 crore due to weak operational performance.
1:45 pm Europe: European stocks opened higher as the US dollar stood near a thirteen and a half year high and treasury yields continued to rise as traders anticipate President-elect Donald Trump's policies will stoke inflation.
The pan-European STOXX 600 was up 0.2 percent.
The dollar index – which measures the greenback against a basket of currencies – was around USD 99.745 in European trade after paring some gains. It had risen to 100.22 earlier. If it manages to break the 100.51 mark that it reached in December 2015, this would mark the highest level since 2003, according to Reuters.
US 10-year Treasury yields also continued to tick up.
1:30 pm WPI: India's wholesale inflation rose to 3.39 percent in October year-on-year, marginally lower than the previous month's 3.57 percent. Food inflation moderated to four month low of 4.34 percent aided by fresh arrival of seasonal vegetable supplies. Wholesale prices of pulses, a common source of protein for most Indians, grew 21.80 percent in October compared with 23.99 percent in September. Wholesale vegetable inflation rates, a marker for price movements in bulk buys for traders, fell (-)9..97 percent in October mirroring the onset of new vegetable supplies. Onion prices continue to remain muted, with wholesale inflation rate falling for the widely used bulb falling (-)65.97 percent in October from (-)70.52 percent in September
The market continues to be under selling pressure with the Nifty hovering around 8150. The 50-share index is down 141.65 points or 1.7 percent at 8154.65 and the Sensex is down 366.49 points or 1.4 percent at 26452.33. About 280 shares have advanced, 2257 shares declined, and 104 shares are unchanged.
IT stocks are outperforming with big gainers like Wipro, TCS and Infosys. SBI and Dr Reddy's are other top gainers in the Sensex. Auto and Metals indices are down over 4 percent each. Losers in the index are Tata Motors, Tata Steel, Asain Paints, Maruti and Hero MotoCorp are major losers in the Sensex.
Gold prices moved higher during Asian hours on Tuesday as investors snapped up bars and coins in a wave of physical buying after the precious metal slipped to its lowest level in nearly six months in the previous session.
The metal has fallen nearly 9 percent from a November 9 high of USD 1,337.40 per ounce since US President-elect Donald Trump's election win, as investors bet fiscal and trade policies under his administration would stoke inflation.
Markets are now anticipating a hike in US interest rates in December. Dallas Fed President Robert Kaplan on Monday suggested the Federal Reserve is on track to raise US interest rates soon.
12:55 pm Market Update: The Sensex was down 404.23 points or 1.51 percent at 26414.59 and the Nifty down 157 points or 1.89 percent at 8139.30.
About 2238 shares declined against 279 advancing shares on the BSE.
12:45 pm Earnings: Hindustan Petroleum Corporation (HPCL) disappointed analysts on its quarterly earnings front as profit fell sharply by 66.6 percent quarter-on-quarter to Rs 701.3 crore due to weak operational performance.
Revenue during the quarter declined 7.4 percent to Rs 47,822.5 crore compared with Rs 51,661 crore in previous quarter.
Profit was estimated at Rs 1,036 crore on revenue of Rs 46,174 crore and EBITDA was expected at Rs 2,107 crore with margin at 4.6 percent for the quarter, according to average of estimates of analysts polled by CNBC-TV18.
EBITDA (earnings before interest, tax, depreciation and amortisation) plunged 65.2 percent sequentially to Rs 1,261 crore and margin contracted by 442 basis points to 2.6 percent in the quarter ended September 2016.
12:35 pm Interview: Speaking to CNBC-TV18 Satpal Arora, MD of Tourism Finance Corp said they have made provisions for Rs 20 crore. Their net non performing assets constitute 6.5 percent. Disbursements are lower, but will pick up, he said, expressing hope. In the first six months of this fiscal year, they made disbursements of Rs 185 crore.
Net interest margin is lower at 3.09 percent as two of their accounts turned NPAs.
12:25 pm Write-off: Religare Enterprises said its subsidiary will write-off a total of Rs 793.67 crore on account of non-receipt of dues.
"The board of directors of Religare Finvest Ltd (RFL), a material subsidiary company...has considered and approved one-time write-off of entire amount of Rs 519.92 crore in the profit and loss account pursuant to non-receipt of dues towards assignment of certain loan accounts by RFL," Religare Enterprises said in a BSE filing.
It further said: "In addition to the above, the board of directors of RFL have further approved write-off of an entire amount of Rs 273.75 crore standing overdue in other accounts related to the same transaction."
12:16 pm Asia weak: Asia markets were mostly lower, as investors eyed the dollar for guidance amid growing expectations of a Federal Reserve rate hike in December.
Australia's ASX 200 closed down 0.37 percent, or 19.53 points, at 5,326.2, dragged by its materials sub-index, which was down 1.05 percent, and its healthcare sub-index, which was down 1.53 percent.
The Nikkei 225 finished near flat, down 0.03 percent, or 4.47 points, at 17,668.15, likely taking its lead from the yen's direction.
12:00 pm Market Check: Bears kept tight control over Dalal Street as heavy selling pressure continued for the second consecutive session. All sectoral indices except IT and PSU Bank remained under pressure.
The 30-share BSE Sensex was down 404.96 points or 1.51 percent at 26413.86 and the 50-share NSE Nifty fell 146.95 points or 1.77 percent to 8149.35 while the BSE Midcap and Smallcap indices were down 4-5 percent on weak breadth.
About 9 shares declined for every share rising on the exchange.
WPI inflation fell to 3.39 percent in October against 3.57 percent in previous month.
Infosys, TCS, SBI, Wipro and Dr Reddy's Labs bucked the trend, rising 1-2 percent whereas Tata Motors, HDFC, Asian Paints, ICICI Bank, Maruti, Adani Ports and Tata Steel were leading contributors to Sensex's fall, down 2.5-8 percent.
11:45 am Interview: Even as citizens are coming to terms with the government's demonetisation drive, Future Group's Chief Executive Kishore Biyani says that cash payments at their retail chains have dipped and consumers are moving towards digital payment mediums.
Biyani said while sales dipped a day after the demonetisation was announced, it picked up in the days that followed. He said sales have been stabilising and cash transactions, which accounted for about 60 percent of sales, have reduced to 10-15 percent now.
The company's supply is likely to get impacted but it's well-stocked for the next 15-20 days, Biyani said.
11:30 am Demonitisation: Speaking to CNBC-TV18 Pronab Sen, Former Advisor, Plan Panel said that up to now the government's focus has been solely on consumption and on the retail side. ''It must turn its attention to the production side,'' he said, adding that if production seizes up, people's expectations of income will go down. In turn, this could have a dramatic effect on the economy.
He also said that in the light of Rabi sowing, the impact on the rural sector could be substantial.
Talking about the demonetisation drive, he said that we should be okay in 3-4 months if the government puts in place systems to ease out pain.
The market is still slipping away while the Sensex down 369.23 points or 1.4 percent at 26449.59. The Nifty is down 120.10 points or 1.4 percent at 8176.20. About 295 shares have advanced, 1734 shares declined, and 73 shares are unchanged.
SBI, Wipro, Dr Reddy's Labs, ITC and ONGC are top gainers while Asian Paints, Tata Motors, Tata Steel, Adani Ports and HDFC are losers in the Sensex. Jet Airways fell 6 percent post Q2 results.
Reliance Mutual Fund, a part of Reliance Capital, has crossed Rs 2 lakh crore in assets under management and expects big gains from demonetisation.
With this, Reliance Nippon Life Asset Management now manages over Rs 3.3 lakh crore in total AUM and retains its position as the largest asset manager in the country.
Reliance Mutual Fund (RMF) is the third fund house to cross the 2 lakh crore AUM mark after HDFC MF and ICICI MF. Overall, the industry has 43 fund houses.
10:50 am Interview: In its biggest reform, Indian government banned Rs 500 and Rs 1000 notes. The attempt is to curb the black money menace and make the society a cashless one. But, the demonetization drive is having an impact on many sectors.
Just like others, Non-Banking Financial companies (NBFCs) are facing issues too.
In conversation with CNBC-TV18, Ramesh Iyer of M&M Finance, says that NBFCs will be under pressure for some more time.
He said at this time it is important to be close to the customers and not to take a knee-jerk reaction.
He also said there will be delays in payments and there will be a spill-over effect.
These are good times but difficult times, he said.
10:40 am Joint venture: Future Group food and FMCG arm Future Consumer Ltd has formed a 50:50 joint venture with the UK's largest wholesaler, Booker Group, to expand and develop Booker India.
As part of the agreement, Future Consumer Limited (FCL) and Booker Group will invest jointly to scale up the network to service merchandising requirements of neighbourhood retailers pan India, a Future Group statement said.
Booker Group, which had entered India in 2009, has a network of six Cash & Carry stores in Maharashtra and Gujarat.
It currently operates out of four locations in Mumbai and one each in Pune and Surat, it added.
10:30 am HDFC tanks 5%: Insurance regulator IRDAI posed reservations on the present form of amalgamation of Max India and HDFC Life into a single entity. The two companies, however, said they will clarify on the matter to the regulator.
The scheme of amalgamation proposes merging of insurance business in an agreement between Max Financial Services Ltd (MFSL), its subsidiary Max Life Insurance Company Ltd (MLIC), HDFC Standard Life Insurance Company Ltd (HDFC Life) and Max India.
HDFC Life and MLIC had filed an application seeking in-principle approval of Irdai for the proposed amalgamation scheme on September 21, 2016.
"Irdai has expressed reservations to accept the scheme of amalgamation in its current form. MLIC and HDFC Life believe that the scheme of arrangement as submitted to the Irdai is in compliance with all applicable laws and propose to represent and clarify the matter to Irdai," they said in separate filings to the exchanges.
10:20 am Market Update: Benchmark as well as broader markets extended losses. The Sensex was down 410.46 points or 1.53 percent at 26408.36, and the Nifty down 148 points or 1.78 percent at 8148.30.
BSE Midcap tanked 3.9 percent and Smallcap crashed 4.8 percent.
Jewellery stocks like Titan, PC Jeweller, Gitanjali Gems, TBZ and Thangamayil Jewellery shed 7-21 percent.
10:15 am FII View: Sakthi Siva of Credit Suisse says while foreign investors turned net sellers of Emerging Asia ex-China back in October, the pace has now accelerated.
While Taiwan and Korea accounted for two-thirds of last Friday's net foreign selling, she believes domestically driven markets on high price-to-book plus current account deficits are potentially more vulnerable. But this is still not yet capitulation, she says.
While such large foreign selling on a single day smacks of panic, she tends to use net foreign selling on a rolling 12-month basis as a sign of foreign investor capitulation.
However, this time around, net foreign buying in Emerging Asia ex China ex Malaysia is still running at 0.5 percent of market cap. Only Japan is associated with foreign investor capitulation, Siva says.
10:00 am Market Check: Equity benchmarks remained under pressure with the Sensex shedding 343.46 points or 1.28 percent to 26475.36, weighed by auto, infra, metals and telecom. HDFC was the leading contributor to index fall, down 4.5 percent.
The 50-share NSE Nifty plunged 114.80 points or 1.38 percent to 8181.50 while the broader markets underperformed benchmarks. The BSE Midcap and Smallcap indices were down around 3 percent each.
About 7 shares declined for every share rising on the exchange.
Nifty PSU Bank index bucked the trend, up 3.6 percent on getting huge deposits, especially after Prime Minister Narendra Modi banned Rs 500 and Rs 1,000 notes. Union Bank, SBI, Andhra Bank, Bank of India, Canara Bank, OBC and PNB gained around 3 percent.
Bank of Baroda surged more than 8 percent after stellar performance in Q2.
9:50 am Market slumps: The Sensex is down 369.23 points or 1.4 percent at 26449.59, and the Nifty down 120.10 points or 1.4 percent at 8176.20.
About 295 shares have advanced, 1734 shares declined, and 73 shares are unchanged.
9:40 am Europe & Trump: EU ministers approved a common defence plan today despite sharp differences over how far it should go, as Donald Trump's election win stoked fears about Washington's commitment to European security.
Trump's campaign threat to think twice about defending NATO allies unless they up their defence spending has driven calls for the European Union to press ahead on its own, despite objections from Britain.
EU foreign policy chief Federica Mogherini insisted the plans -- to boost the bloc's ability to respond to external conflicts, help partner countries build their defence capabilities and protect EU citizens -- would not undermine NATO.
9:30 am FII view: Speaking to CNBC-TV18 Geoff Lewis of Manulife Asset Management said that Donald Trump has been a game-changer in the sense that there is a movement away from a scenario of low margin growth and low interest rates. There could be some more damage to come in the short term, he said.
He was positive that US we will see stronger growth which will be is good for world trade and for EMs. Regarding selloffs in India, he said the sub continent has moved in line with the emerging market universe over the past week. The rupee has been firmer than other EM currencies, he said, adding that initial phase of selloff is behind us. He warned that markets will remain volatile till clarity emerges on US policy.
The market has fallen sharply in opening dragged by index heavyweights. The Sensex is down 327.91 points or 1.2 percent at 26490.91, and the Nifty down 96.50 points or 1.2 percent at 8199.80. About 446 shares advanced, 598 shares declined, and 71 shares are unchanged.
Reacting to September quarter results, Tata Motors and Tata Steel fell 4-5 percent each. Maruti Suzuki, HDFC and Asian Paints are other losers while ONGC, SBI, Sun Pharma, Dr Reddy's and GAIL are top gainers.
The Indian rupee declined in the early trade. It has opened lower by 37 paise at 67.62 per dollar versus 67.25 Friday.
Bhaskar Panda of HDFC Bank said, "The markets across the globe are divided on the possible US policies under the new President. Meanwhile the dollar Index has now crossed 100 levels."
The dollar rose to an 11-month high against a basket of major currencies, in step with a jump in US bond yields as traders bet fiscal and trade policies under a Donald Trump administration would stoke inflation.
MSCI's broadest index of Asia-Pacific shares outside Japan was flat in early trades while Australian stocks were off 0.5 percent.
The risks of faster-than-expected Federal Reserve rate increases have dragged on emerging market assets, particularly equities and currencies, which have benefited from large capital inflows.
The US dollar scaled an eleven-month peak on Tuesday and Treasury yields extended their rise as investors braced for higher inflation in the United States amid expectations of fiscally expansionary polices under Donald Trump's presidency.
In the US, after choppy trading late in the session, the Dow ended at a record high while the S&P 500 and the Nasdaq Composite dipped.
Nymex crude prices pared losses after falling to their lowest levels in three months yesterday,
As the prospect of another year of oversupply and weak prices overshadowed chances that OPEC will reach a deal to cut output.
Brent, however, is gaining about a percent in early morning trade. From the precious metals space --gold prices edge up as bargain-hunters were tempted to buy after the metal hit its lowest in 5-1/2 months the previous session.