 "Sensex slumps 296 points, dragged down by metal shares")
Benchmark shares indices dropped over 1% on Tuesday to end near their two-month closing lows with metal shares leading the decline amid growth concerns in China, the world's largest consumer of metals
Sensex closed with a loss of 296 points, down 1.1% at 26,347 while Nifty ended down by 93 points or 1.2% at 7,852.
In the broader market, BSE Mid cap and Small Cap closed down 0.8-0.9% each, marginally better than benchmark indices.
Meanwhile , World Bank raised India's growth forecasts to 6.4% for the year 2015-16.
Further, HSBC Services Purchasing Managers' Index (PMI), compiled by Markit rose to 51.6 in September from 50.6 in August, reversing a slowdown seen in the previous two months.
Another positive was the CII Business Confidence Index (CII-BCI) for July-September quarter which shot up to 57.4, up from 53.7 in April-June quarter and 49.9 in January-March quarter of this year indicating sustained improvement.
Rupee is trading higher at 61.41 against US Dollar versus previous close of 61.61. Strenghtening rupee and weakening global crude oil prices are likely to narrow the country's trade deficit.
Global Markets
With Bank of Japan flagging housing and industrial production as weak spots in the country's economy, but refusing to launch fresh monetary easing measures after a two-day meeting, Nikkei closed on a weak note. Nikkei shed 107 points and closed at 15,783.
In Honk Kong investors coifndence revived following meeting between protest leaders and government officials leading to consecutive three days of higher closing at Hang Seng which rose 0.5% to 23,422. Shanghai stock exchange was closed on October 7, 2014 on account of seventh and final day of Naional day celebrations.
European stocks are trading lower amid concerns over weak data from Germany. Industrial output for August slumped to 4%, the largest drop in five years. Britian's FTSE and German DAX are trading with a loss of 0.7% while French CAC 40 has shed 1%.%
Sector and Stocks
BSE Metal was the top sectoral loser down over 2.7% on Chinese growth concerns along with Healthcare, Capital Goods and Consumer Durables indice which lost around 1.8% while losses for BSE IT, Auto and Reality were close to 1%.
Within the metal sector Hindalco and Sesa Sterlite took the biggest hit losing 4.6% and 4.1% respectively.
Among other metal shares, Coal India and Tata Steel declined 0.7and 1.6% respectively.
Sun Pharma declined nearly 3%. Reports about Sun Pharma plans to invest more than $280 million in the experimental psoriasis drug in-licensed last month from US-based Merck Sharp& Dohme (MSD) eroded the appeal of its stocks.
Cipla lost around 3.6%. On October 4, 2014 Company had announced signing of a definitive agreement with its existing Iranian distributor for setting up a manufacturing facility in Iran.
L&T lost around 2%. However, news about receiving an engineering, procurement and construction (EPC) order worth Rs.1,630 crore in Uttar Pradesh may revive the investors' interests in company's stocks.
News about aquisitions and new launches firmed up auto stocks with Tata Motors emerging as the biggest gainer, however it pared gains towards the end of the trading day and closed with a gain of 0.4%. Despite total sales (including exports) of Tata commercial and passenger vehicles declining 8% to 46,118units in September 2014 over September 2013, promising data related to the sales of new launches like the entry-level sedan Zest which has received over 10,000 pre-book ordrers even before the formal launch attracted investors to the company's stocks.
Launch of much awaited Ciaz sedan billed as Maruti Suzuki most audacious attempt at gatecrashing the mid-sized sedan party boosted company's stocks. Maruti Suzuki has pared early gains and closed with a loss of 1%.
Mahindra and Mahindra lost 2.2% on the news about proposed acquisition of Europe based PeugHeot.
In an attempt to revive its ailing two-wheeler segment which lost Rs 459 Crores in the last financial year Mahindra & Mahindra has acquired a 51% stake in PSA Peugeot Citroen's scooters business.
Private sector lender ICICI Bank closed with marginal gain of 0.1%. The bank announced acquisition of 5.2% stake in Hindustan Motors as part of settlement with the cash strapped maker of the iconic Ambassador car.
SBI declined by 2.2% while HDFC bank ended down by 0.6%.
Financial Services Secretary G.S. Sandhu had earlier said that state-run banks will soon start raising funds from markets as part of government's efforts to infuse capital into banks to meet the Basel III norms.
IT sector ended flat though it witnessed a lot of investor interest as IT majors are expected to poststrong growth in the July-September quarter (Q2 FY15). In line with several earlier quarters, the country's largest IT services player Tata Consultancy Services (TCS) is seen leading the pack in Q2FY15, closely followed by HCL Technologies. TCS and Infosys ended down 0.4-1.5% each while Wipro gained 0.4%.
Among other shares, DQ Entertainment surged nearly 16% after the the company said it has entered into an content distribution deal with China-based Ciwen Media Group.
Cera Sanitary soared 7.7% after reporting 48% year on year (yoy) growth in net profit at Rs 15.75 crore for the second quarter ended September 2014 (Q2), on back of healthy operational income.
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Apollo Tyres rallied nearly 6% after the Reserve Bank of India (RBI) said foreign investors can now buy up to 45% stake in the tyre manufacturer.
GMR Infrastructure surged 11.5% after the company said the first unit of 1370 MW Chhattisgarh supercritical thermal power plant synchronized.
HOV Services gained 10% after the board of directors approved sale of its entire investment in SourceHOV. Stocks closed at Rs 167.80.
Sensex closed with a loss of 296 points, down 1.1% at 26,347 while Nifty ended down by 93 points or 1.2% at 7,852.
In the broader market, BSE Mid cap and Small Cap closed down 0.8-0.9% each, marginally better than benchmark indices.
Also Read
Market breadth ended weak with 1758 declines against 1121 advances.
Meanwhile , World Bank raised India's growth forecasts to 6.4% for the year 2015-16.
Further, HSBC Services Purchasing Managers' Index (PMI), compiled by Markit rose to 51.6 in September from 50.6 in August, reversing a slowdown seen in the previous two months.
Another positive was the CII Business Confidence Index (CII-BCI) for July-September quarter which shot up to 57.4, up from 53.7 in April-June quarter and 49.9 in January-March quarter of this year indicating sustained improvement.
Rupee is trading higher at 61.41 against US Dollar versus previous close of 61.61. Strenghtening rupee and weakening global crude oil prices are likely to narrow the country's trade deficit.
Global Markets
With Bank of Japan flagging housing and industrial production as weak spots in the country's economy, but refusing to launch fresh monetary easing measures after a two-day meeting, Nikkei closed on a weak note. Nikkei shed 107 points and closed at 15,783.
In Honk Kong investors coifndence revived following meeting between protest leaders and government officials leading to consecutive three days of higher closing at Hang Seng which rose 0.5% to 23,422. Shanghai stock exchange was closed on October 7, 2014 on account of seventh and final day of Naional day celebrations.
European stocks are trading lower amid concerns over weak data from Germany. Industrial output for August slumped to 4%, the largest drop in five years. Britian's FTSE and German DAX are trading with a loss of 0.7% while French CAC 40 has shed 1%.%
Sector and Stocks
BSE Metal was the top sectoral loser down over 2.7% on Chinese growth concerns along with Healthcare, Capital Goods and Consumer Durables indice which lost around 1.8% while losses for BSE IT, Auto and Reality were close to 1%.
Within the metal sector Hindalco and Sesa Sterlite took the biggest hit losing 4.6% and 4.1% respectively.
Among other metal shares, Coal India and Tata Steel declined 0.7and 1.6% respectively.
Sun Pharma declined nearly 3%. Reports about Sun Pharma plans to invest more than $280 million in the experimental psoriasis drug in-licensed last month from US-based Merck Sharp& Dohme (MSD) eroded the appeal of its stocks.
Cipla lost around 3.6%. On October 4, 2014 Company had announced signing of a definitive agreement with its existing Iranian distributor for setting up a manufacturing facility in Iran.
L&T lost around 2%. However, news about receiving an engineering, procurement and construction (EPC) order worth Rs.1,630 crore in Uttar Pradesh may revive the investors' interests in company's stocks.
News about aquisitions and new launches firmed up auto stocks with Tata Motors emerging as the biggest gainer, however it pared gains towards the end of the trading day and closed with a gain of 0.4%. Despite total sales (including exports) of Tata commercial and passenger vehicles declining 8% to 46,118units in September 2014 over September 2013, promising data related to the sales of new launches like the entry-level sedan Zest which has received over 10,000 pre-book ordrers even before the formal launch attracted investors to the company's stocks.
Launch of much awaited Ciaz sedan billed as Maruti Suzuki most audacious attempt at gatecrashing the mid-sized sedan party boosted company's stocks. Maruti Suzuki has pared early gains and closed with a loss of 1%.
Mahindra and Mahindra lost 2.2% on the news about proposed acquisition of Europe based PeugHeot.
In an attempt to revive its ailing two-wheeler segment which lost Rs 459 Crores in the last financial year Mahindra & Mahindra has acquired a 51% stake in PSA Peugeot Citroen's scooters business.
Private sector lender ICICI Bank closed with marginal gain of 0.1%. The bank announced acquisition of 5.2% stake in Hindustan Motors as part of settlement with the cash strapped maker of the iconic Ambassador car.
SBI declined by 2.2% while HDFC bank ended down by 0.6%.
Financial Services Secretary G.S. Sandhu had earlier said that state-run banks will soon start raising funds from markets as part of government's efforts to infuse capital into banks to meet the Basel III norms.
IT sector ended flat though it witnessed a lot of investor interest as IT majors are expected to poststrong growth in the July-September quarter (Q2 FY15). In line with several earlier quarters, the country's largest IT services player Tata Consultancy Services (TCS) is seen leading the pack in Q2FY15, closely followed by HCL Technologies. TCS and Infosys ended down 0.4-1.5% each while Wipro gained 0.4%.
Among other shares, DQ Entertainment surged nearly 16% after the the company said it has entered into an content distribution deal with China-based Ciwen Media Group.
Cera Sanitary soared 7.7% after reporting 48% year on year (yoy) growth in net profit at Rs 15.75 crore for the second quarter ended September 2014 (Q2), on back of healthy operational income.
.
Apollo Tyres rallied nearly 6% after the Reserve Bank of India (RBI) said foreign investors can now buy up to 45% stake in the tyre manufacturer.
GMR Infrastructure surged 11.5% after the company said the first unit of 1370 MW Chhattisgarh supercritical thermal power plant synchronized.
HOV Services gained 10% after the board of directors approved sale of its entire investment in SourceHOV. Stocks closed at Rs 167.80.