Volatile trading session ended with modest losses as key benchmark indices, which crashed in early trade, recovered sharply in mid-afternoon trade. The barometer index, the S&P BSE Sensex, fell 338.61 points or 1.23% to 27,252.53, as per the provisional closing data. The Nifty 50 index fell 111.55 points or 1.31% to 8,432, as per the provisional closing data. Concenrns about the outcome of the US presidential polls, coupled with a major government crackdown on the India's cash economy had triggered widespread selling in early trade. However, the market staged a sharp recovery in second half of the trading session after Republican Donald Trump was declared as the 45th President of the United States.
The Nifty provisionally ended above the psychologically important 8,000 mark after hitting an intraday low just a shade above that mark in morning trade. The Sensex provisionally ended above the psychologically important 27,000 mark. It had earlier slipped below the 26,000 level at the onset of trading session.
The Sensex recovered after hitting its lowest intraday level in more than five months in early trade. The Nifty recovered after hitting its lowest intraday level in 4-1/2 months in early trade. The Sensex fell 1,688.69 points, or 6.12% at the day's low of 25,902.45 in early trade, its lowest level since 25 May 2016. The index fell 193.76 points, or 0.70% at the day's high of 27,397.38 in late trade. The Nifty fell 541.30 points, or 6.34% at the day's low of 8,002.25 in early trade, its lowest level since 24 June 2016. The index fell 67.35 points, or 0.79% at the day's high of 8,476.20 in late trade.
The initial sell-off on domestic bourses was triggered by the Union government's surprise move to withdraw currency notes with a denomination of Rs 1,000 and Rs 500, effective from Tuesday, 8 November 2016, midnight, in an attempt to crack down on black money.
The broad market depicted weakness. There were more than three losers against every gainer on BSE. 2,143 shares fell and 626 shares rose. A total of 95 shares were unchanged. The BSE Mid-Cap index provisionally fell 1.85%. The BSE Small-Cap index provisionally fell 2.66%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 5456.21 crore, higher than turnover of Rs 3142.77 crore registered during the previous trading session.
More From This Section
Meanwhile, global financial markets also recovered after intraday sell-off after Republican Donald Trump pulled off a dramatic win to defeat Democratic contender Hillary Clinton in one of the most bitterly contested US Presidential battles. Donald Trump won 276 votes and Hillary Clinton won 218 votes. Candidates need at least 270 electoral votes to win. Trump will be the 45th President of the United States. The United States presidential elections of 2016 were held yesterday, 8 November 2016.
In overseas stock markets, most European markets were trading lower, while Asian stocks fell across the board. In US, stocks finished in positive territory for a second straight day on Tuesday, 8 November 2016, as gains in the consumer goods, utilities and telecoms sectors led shares higher.
Trading in US index futures indicated that the Dow Jones Industrial Average could slump 313.50 points at the opening bell today, 9 November 2016.
Back home, drug major Lupin gained 1.45% after consolidated net profit jumped 57.75% to Rs 662.19 crore on 27.45% rise in total income to Rs 4317.62 crore in Q2 September 2016 over Q2 September 2015. Commenting on the results, Nilesh Gupta, Managing Director, Lupin said that the company continues to invest ahead of the curve be it research or manufacturing. The Q2 September 2016 profit was impacted on account of higher research spend and forex, he added. Investment in research for the quarter was 13.6% of sales at Rs 571.60 crore. The result was announced during market hours today, 9 November 2016.
Sun Pharmaceutical Industries rose 4.86% after the company's US subsidiary Taro Pharmaceutical Industries (Taro Pharma) reported better-than-expected Q2 September 2016 results yesterday, 8 November 2016. Taro Pharma's net profit fell 7.2% to $123.7 million on 7.9% growth in net sales to $228.8 million in Q2 September 2016 over Q2 September 2015. The top line during the quarter was driven by increased volumes in the US generic business. However, the increase in operating profit was offset by the decrease in foreign exchange income and an increase in tax expense thereby pulling down the bottom line in Q2 September 2016.
Sun Pharmaceutical Industries will declare its Q2 September 2016 results tomorrow, 10 November 2016.
Hindalco Industries fell 2.86% on equity dilution concerns after the company announced that board of directors will consider raising of funds by issue of equity related instruments.
Hindalco Industries announced during market hours today, 9 November 2016, that a meeting of the board of directors of the company is scheduled on 12 November 2016 to consider among other items, approval of raising of funds by issue of equity shares, global depository receipts/American depository receipts/, foreign currency convertible bonds/, fully convertible debentures/partly convertible debentures/ preference shares convertible into equity shares, and/or any other financial instruments convertible into equity shares (including warrants, or otherwise, in registered or bearer form) and/or any security convertible into equity shares, combination of any of the aforementioned securities by way of one or more public and/or private offerings, qualified institutions placement and/or on preferential allotment basis or any combination thereof or any other method as may be permitted under applicable law, subject to such approvals as may be required.
Real estate shares slumped after Prime Minister Narendra Modi announced the eradication of Rs 500 and Rs 1000 banknotes from the system effective 8 November 2016 midnight in a swift move to clamp down on black money in the system and against terror financing. The real estate sector, which is infamous for being the biggest receiver and hoarder of black money in the domestic economy, is likely to take a massive hit.
Sunteck Realty (down 19.96%), DLF (down 17.68%), Indiabulls Real Estate (down 17.52%), Housing Development and Infrastructure (HDIL) (down 16.52%), Anant Raj (down 12.57%), D B Realty (down 12.17%), Peninsula Land (down 12.11%), Oberoi Realty (down 11.24%), Parsvnath Developers (down 8.08%), Unitech (down 6.15%), Sobha (down 4.51%), Mahindra Lifespace Developers (down 3.73%), Godrej Properties (down 2.32%), Omaxe (down 1.48%) and Phoenix Mills (down 0.98%), edged lower. Prestige Estates Projects rose 0.22%.
On the domestic front, in a historical move that will add record strength in the fight against corruption, black money, money laundering, terrorism and financing of terrorists as well as counterfeit notes, the Government of India decided that the five hundred and one thousand rupee notes will no longer be legal tender from midnight of 8 November 2016. The Government accepted the recommendations of the Reserve Bank of India (RBI) to issue two thousand rupee notes and new notes of five hundred rupees will also be placed in circulation. Notes of one hundred, fifty, twenty, ten, five, two and one rupee will remain legal tender and will remain unaffected by the decision. The Prime Minister said the steps taken by the Government would strengthen the hands of the common citizens in the fight against corruption, black money and counterfeit notes. Persons holding old notes of five hundred or one thousand rupees can deposit these notes in bank or post offices from 10 November 2016 onwards till 30 December 2016, the Prime Minister announced yesterday, 8 November 2016, evening.
Powered by Capital Market - Live News