Sensex ends over 200 points lower, Nifty below 9400, pharma, realty stocks decline
23 May 2017
3:30 pm Market at Close: The benchmark indices ended lower as it has witnessed a sell-off during the day and the Nifty has slipped below the psychological level of 9400.
Pharma and realty were the major contributors in the today's sell-off.
Sensex was down 205.72 points at 30365.25, and the Nifty was down 52.1 points at 9386.15.
About 602 shares advanced, 2121 shares declined, and 159 shares were unchanged.
2:45 pm Earning Update: Hitachi Home has reported 89.7 percent jump in its Q4FY17 net profit at Rs 25 crore versus Rs 13 crore, in a year ago period.
Revenue of the company increased 41 percent at Rs 578 crore against Rs 410 crore.
The operating profit rose 50.6 percent at Rs 50.7 crore and EBITDA margin was up at 8.8 percent.
The company has recommended a dividend of Rs 1.50 per equity share of Rs 10 each.
1:45 pm Update: The market was off the day's low points, with the Sensex reclaiming its 30,500 mark after gaining nearly 100 points on the index.
1:33 pm New IPO papers: Shalby Hospitals has filed draft paper with capital markets regulator Sebi to float an initial public offering.
The public issue comprise fresh sale of shares worth Rs 580 crore besides an offer for sale of 10 lakh shares by promoter Vikram Shah, according to draft red herring prospectus (DRHP).
Proceeds of the initial public offer (IPO) will be utilised towards repayment of certain borrowings availed by the company besides purchasing medical equipment for existing, recently set-up as well as upcoming hospitals.
Also, the company plans to spend the funds for purchase of interior and infrastructure for upcoming hospitals and a portion will be kept for general corporate purposes.
1:10 pm Market Check: Benchmark indices were sluggish during the afternoon session, with the Sensex and Nifty trading below by about half a percent.
The Sensex was down 138.42 points at 30432.55, while the Nifty was down 35.85 points at 9402.40. The market breadth, however, was negative as just 461 shares advanced against a decline of 2,100 shares, while 119 shares were unchanged.
Sun Pharma and Cipla were the top losers on both indices, while Maruti Suzuki, Mahindra and Mahindra, Eicher Motors and Hindalco gained the most.
12:45 pm VA Tech Wabag bags order: The company has won an order form Dangote Oil Refinery Company in Nigeria worth of Rs 680 crore.
A board meeting of the company is scheduled on May 25, 2017, to consider, approve and take on record, the audited financial results (both standalone and consolidated) of the Company for the year ended March 31, 2017 and to consider recommendation of dividend, if any.
12:05 pm Market Check: After taking a breather in the previous hour, the market extended its losses from the morning session, with the Nifty hovering around 9400-mark.
The Sensex was down 173.66 points at 30397.31, while the Nifty was down 50.10 points at 9388.15. The market breadth was negative as 376 shares advanced against a decline of 2,090 shares, while 111 shares were unchanged.
Sun Pharma, Cipla and Aurobindo Pharma lost the most, while Maruti Suzuki, Eicher Motors, and Tata Motors gained the most.
European bourses are expected to open mixed Tuesday as investors wake up to news of another terrorist incident in the U.K. and digest further political and economic turmoil in the euro zone.
The FTSE 100 is seen up by 7 points at 7,502, the DAX is expected to open lower by 1 point at 12,620 and the CAC 40 is set to start down by 2 points at 5,323.
11:35 am Buzzing Stock: Aurobindo Pharma lost over 6 percent intraday on Tuesday after investors reacted to the developments around the insider trading case with the SEBI.
The market regulator, Securities and Exchange Board of India (SEBI), on Monday disposed a case relating to violation of insider trading norms against Sumanth Kumar Reddy Mettu, promoter of Aurobindo Pharma. The case was disposed as the pharma company had already imposed a fine on him and also cautioned him against future defiance.
11:15 am Market Check: After shedding over 0.5 percent in the first hour of trade, the market looked to be steady at lower levels, with the Nifty hovering around 9400.
The Sensex was down 149.90 points at 30421.07, while the Nifty was down 45.20 points at 9393.05.The market breadth was firmly placed in the negative zone as 330 shares advanced against a decline of 2,019 shares, while 98 shares were unchanged.
GAIL, along with pharma stocks Sun Pharma and Aurobindo Pharma lost the most on both indices, while Maruti Suzuki, Wipro and Eicher Motors gained the most.
Midcaps, PSU banks and metals cut its losses, while pharma index on the Nifty extended its losses.
10:37 am Voltas Earnings Poll: Refrigerator and air conditioning maker Voltas will be announcing its fourth quarter numbers on Tuesday.
The company is likely to report a 20 percent fall in its Q4FY17 net profit at Rs 142.45 versus Rs 176 crore in the same quarter last fiscal, according to analysts polled by CNBC-TV18.
Revenue of the company is seen down at Rs 1885.14 crore against Rs 1889 crore.
10:20 am Buzzing Stock: Public sector banking major, Bank of India, extended its fall from the previous session on the back of poor results that the lender posted. The stock had fallen 9 percent on Monday post it Q4 results announcement.
The lender narrowed its net loss in the fourth quarter results ending March 2017 at Rs 1,045 crore driven by interest income and lower provisions. The net loss a year ago was at Rs 3587 crore. However, the loss comes against a profit of Rs 102 crore in the
10:05 am Market Check: Benchmark indices saw a sharp fall from the opening tick, with the Nifty snapping 9400-mark during the first hour of trade.
The Sensex was down 157.72 points at 30413.25, while the Nifty was down 56.80 points at 9381.45. The market breadth was absolutely negative as 244 shares advanced against a decline of 1,847 shares, while 57 shares were unchanged.
GAIL and Sun Pharma lost the most, while Maruti Suzuki and Hindustan Unilever have led the list of top gainers.
Midcaps continued their corrective phase as the index fell 2.5 percent, while pharma index cracked over 3.5 percent, coupled with PSU banks and energy stocks' fall.
9:55 am Weakness: The market after having slipped in the red extended its losses. The midcap index on the Nifty was down over 2 percent, while major public sector banks bled.
9:45 am Buzzing Stock: Adani Enterprises tanked over 9 percent intraday on Tuesday as investors turned wary of the company's decision to defer investment decision in its Australian project.
The company, on Monday, deferred a final investment decision on its long-delayed Australian Carmichael coal project as Queensland state government is yet to sign off a royalty deal for the mine.
The company had been planning to make a final investment decision (FID) on the 25 million tonnes a year coal mine and rail project by the end of May.
9:30 am Oil glut: Expectations of an extension of an oil production cut agreement by the Organization of the Petroleum Exporting Countries and major producers led by Russia are supporting prices, but there are risks for a renewed surplus later next year, Goldman Sachs analysts wrote in a report published on Monday.
"A nine-month extension would normalize OECD inventories by early 2018, in our view, but we see risks for a renewed surplus later next year if OPEC and Russia's production rises to their expanding capacity and shale grows at an unbridled rate," the Goldman analysts said.
Crude oil prices have been gaining steadily in the last few weeks but are slightly lower in Asia on Tuesday with U.S. West Texas intermediate and European Brent futures down 0.4 percent lower around $51 and $53.60 a barrel respectively, as prices give up some recent gains after President Donald Trump proposed the sale of half the country's strategic oil reserves in his budget plan, according to Reuters.
9:15 am Market opens: Equity benchmark indices began the session on a flat note, with the Sensex and Nifty trading with double digit gains.
The Sensex was up 21.25 points at 30592.22, while the Nifty was up 5.30 points at 9443.55. The market breadth was narrow as 447 shares advanced against a decline of 312 shares, while 39 shares were unchanged.
Midcaps gained marginally higher, along with IT and auto indices on the Nifty, while pharma stocks took a hit on the back of negative news flow. Aurobindo Pharma and Sun Pharma fell over 4 percent.
Maruti Suzuki, HDFC, and Asian Paints were the top gainers, while GAIL and Sun Pharma lost the most on both indices.
The Indian rupee opened lower by 8 paise at 64.63 per dollar on Tuesday versus previous close 64.55.
Bhaskar Panda of HDFC Bank said, "USD-INR pair bounced back from recent lows and is expected to move towards 65/dollar in due course of time. Today the pair is expected to trade within a range of 64.40-64.60."
He further added, "The 10-year benchmark yield is expected to trade within a range 6.76-6.78 percent. The yield is expected to soften further."
Globally, Asian markets traded sideways on Tuesday, after major indexes on Wall Street closed in the green and on headlines out of the UK of a deadly explosion at a concert venue in Manchester.
Nineteen people were reported dead following a blast at the Manchester Arena in northern England where US singer Ariana Grande had been performing, Reuters said. The UK police are treating the blast as a terrorism incident.
The safe-haven yen climbed after news of the bombing. The dollar was fetching as little as 110.84 yen down from around 111.34 yen earlier. At 9:00 a.m. HK/SIN, the dollar was fetching 111.13 yen.
The British pound also slipped after the news, fetching as little as USD 1.2983, off a high of $1.3005 earlier. At 9:00 a.m. HK/SIN, the pound was at USD 1.2978.
US stocks rose on Monday, boosted by technology shares and by defence companies, which gained after the United States and Saudi Arabia signed a multi-billion dollar arms deal.
Shares of General Dynamics , Raytheon , and Lockheed Martin all hit record highs early on but ended off those levels, with gains of between 0.6 percent and 1.6 percent. Boeing gave the Dow its biggest boost, ending up 1.6 percent at USD 183.67.
The S&P industrials index rose 0.7 percent and the S&P 500 posted a third straight day of gains, further recovering from last week's selloff that was tied to worries about the outlook for US President Donald Trump's domestic agenda.