Stocks of private sector banks, auto sector stocks and index heavyweight Reliance Industries led modest losses for key benchmark indices. The barometer index, the S&P BSE Sensex, lost 191.64 points or 0.74% to settle at 25,860.17. The Nifty 50 index fell 67.80 points or 0.84% to settle at 7,965.50. The Sensex settled below the psychological 26,000 mark after falling below that mark in intraday trade. The Nifty closed below the psychological 8,000 level after moving above and below that mark in intraday trade. Key indices snapped two-day winning streak today, 24 November 2016.
Stocks of public sector banks were mixed. IT stocks advanced on weak rupee. Infosys rose after the company announced that it has signed a definitive agreement to a Limited Partner investment of Rs 31.6 crore from its Innovation Fund in Stellaris Venture Partners, an India-based early stage venture fund. TCS edged higher after the company said it will implement a unified global process blueprint for ASML, one of the world's leading manufacturers of chip-making equipment. Power Grid Corporation of India (PGCIL) rose after the company said that a meeting of Committee of Directors for Bonds is planned to be held on 28 November 2016, to consider issue of secured, redeemable, non-convertible, non-cumulative, taxable bonds (debenture) under private placement.
Indian stocks fell today, 24 November 2016, as investors fear that upbeat US economic data strengthened the prospect for higher US interest rate raising worries that higher interest rates in the US will spark capital outflows from the emerging equity markets.
Volatility was witnessed during the latter part of the trading session as traders rolled over positions in the futures & options (F&O) segment from the near month November 2016 series to December 2016 series. The near month November 2016 derivatives contracts expired today, 24 November 2016.
The Sensex lost 191.64 points or 0.74% to settle at 25,860.17, its lowest closing level since 21 November 2016. The index shed 2.67 points or 0.01% at the day's high of 26,049.14. The index lost 240.84 points or 0.92% at the day's low of 25,810.97.
The Nifty fell 67.80 points or 0.84% to settle at 7,965.50, its lowest closing level since 21 November 2016. The index shed 8.45 points or 0.1% at the day's high of 8,024.85. The index lost 80.75 points or 1% at the day's low of 7,952.55.
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The BSE Mid-Cap index fell 0.13%. The BSE Small-Cap index dropped 0.11%. The losses for both these indices were lower in percentage terms than those for the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,341 shares rose and 1,215 shares fell. A total of 168 shares were unchanged.
The total turnover on BSE amounted to Rs 2479.19 crore, lower than turnover of Rs 2499.34 crore registered during the previous trading session.
Among the sectoral indices on the BSE, the BSE Healthcare index (down 1.03%), the BSE Auto index (down 1.34%) and the BSE Bankex index (down 1.45%) underperformed the Sensex. The BSE IT index (up 1.23%), the BSE Telecom index (down 0.01%) and the BSE Power index (down 0.29%) outperformed the Sensex.
Stocks of public sector banks were mixed. Bank of Baroda (up 2.99%), Bank of India (up 2.52%), State Bank of India (up 1.14%) and Punjab National Bank (up 0.33%) edged higher. IDBI Bank (down 2.12%), Indian Bank (down 1.76%) and Central Bank of India (down 0.51%) edged lower.
Stocks of private sector banks declined. Kotak Mahindra Bank (down 2.72%), IndusInd Bank (down 2.16%), ICICI Bank (down 2.02%), HDFC Bank (down 1.52%), RBL Bank (down 0.7%) and Yes Bank (down 0.63%) edged lower.
Axis Bank was down 2.59%. The bank said that its board allotted 18,000 unsecured redeemable non-convertible subordinated debentures aggregating to Rs 1800 crore on a private placement basis. The debentures will be listed on the wholesale debt market segment of the BSE and National Stock Exchange of India. The announcement was made after market hours yesterday, 23 November 2016.
Auto stocks declined. Mahindra & Mahindra (M&M) (down 2.41%), Ashok Leyland (down 1.81%), Maruti Suzuki India (down 0.88%), and Eicher Motors (down 2.67%) edged lower. Shares of two-wheeler makers rose. Hero MotoCorp (up 1.22%), Bajaj Auto (up 1.69%) and TVS Motor Company (up 1.4%) gained.
IT stocks advanced on weak rupee. Oracle Financial Services Software (up 3.26%), Tech Mahindra (up 1.76%), HCL Technologies (up 0.45%) and Wipro (up 0.45%) edged higher. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
In the foreign exchange market, the partially convertible rupee was hovering at 68.765, compared with its close of 68.56 during the previous trading session.
Infosys rose 1.33% after the company announced that it has signed a definitive agreement to a Limited Partner investment of Rs 31.6 crore from its Innovation Fund in Stellaris Venture Partners, an India-based early stage venture fund. This investment is towards the first close of Stellaris' fund. The investment is expected to complete by 15 December 2016. The announcement was made after market hours yesterday, 23 November 2016.
TCS was up 1.38% after the company said it will implement a unified global process blueprint for ASML, aiming to simplify business processes, improve operational efficiency and elevate stakeholder experience. ASML is one of the world's leading manufacturers of chip-making equipment. The announcement was made during market hours today, 24 November 2016.
Index heavyweight Reliance Industries (RIL) declined 1.65% to Rs 990.65. The stock hit high of Rs 1,006.90 and a low of Rs 986 in intraday trade. A fire reportedly broke out at the refinery site of RIL in Gujarat but there was no hit to the production. The fire broke out early today, 24 November 2016, morning at the company's fluid catalytic cracking unit (FCCU), a gasoline-making unit, at the 6.6 lakh barrels per day (bpd) refinery, which was under maintenance. The part of the refinery where the fire broke out was in the domestic tariff area (DTA) of the refinery site. The second 5.4 lakh bpd refinery is located in the special economic zone of the refinery site.
Index heavyweight and cigarette maker ITC shed 0.42% to Rs 223.60. The stock hit high of Rs 225 and low of Rs 222.25 in intraday trade.
Power Grid Corporation of India (PGCIL) rose 1.92% after the company said that a meeting of Committee of Directors for Bonds is planned to be held on 28 November 2016, to consider issue of secured, redeemable, non-convertible, non-cumulative, taxable bonds (debenture) under private placement. The announcement was made after market hours yesterday, 23 November 2016.
Zee Entertainment Enterprises (Zee) was down 3.99%. The company after market hours yesterday, 23 November 2016, announced the acquisition of general entertainment television broadcasting undertakings from Anil Ambani led Reliance Group (Reliance) under a composite scheme of arrangement subject to requisite approvals. Reliance's TV business comprises two entertainment channels (Big Magic, Big Ganga) and four other TV licenses. The business shall get demerged into Zee from three Reliance entities viz. Big Magic, Reliance Big Broadcasting (RBBL) and Azalia Broadcast (Azalia). The consideration payable by the company for the proposed acquisition shall be by way of taking over off debt of the demerged undertakings aggregating about Rs 295 crore and issuance of unlisted preference shares aggregating to Rs 3.95 crore to the shareholders of transferor companies. The appointed date of the demerger scheme shall be 31 March 2017. The transaction is expected to close in the second half of the calendar year 2017. Reliance also operates a news and current affairs channel (BTV) which is not part of the transaction.
The Sensex had risen 286.67 points or 1.11% in two trading sessions to settle at 26,051.81 yesterday, 23 November 2016, from its close of 25,765.14 on 21 November 2016. The Sensex has fallen 2,070.04 points or 7.41% in November 2016 so far (till 24 November 2016). The Sensex has fallen 257.37 points or 0.98% in calendar year 2016 so far (till 24 November 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 3,365.56 points or 14.96%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 3,217.11 points or 11.06%. The Sensex is off 4,164.57 points or 13.87% from a record high of 30,024.74 hit on 4 March 2015.
In overseas stock markets, European stocks edged higher after another record-setting session for US equities in the run-up to Thanksgiving holidays. German economic growth slowed in the third quarter, as expected, following a drop in exports and weaker investment in machinery and equipment, the country's Destatis statistics office said today, 24 November 2016. Gross domestic product in Europe's largest economy grew 0.2%, or an annualized rate of 0.8%, Destatis said. German business sentiment was steady in November, a sign that the country's economic upturn remains intact, the Ifo institute said. The Ifo business climate index came in at 110.4 points in November, unchanged from October and broadly in line with forecasts.
Most Asian stocks edged lower as upbeat economic data strengthened the prospect for higher US interest rate. Investors fear that higher interest rates in the US will spark capital outflows from the emerging equity markets. US stocks closed mixed yesterday, 23 November 2016, as investors digested a number of economic data, including minutes from the Federal Reserve's November meeting. The Dow Jones Industrial Average and S&P 500 indices hit record closing high. The minutes released yesterday, 23 November 2016, back the consensus view on Wall Street that the Fed is poised to raise rates in December. Policymakers left borrowing costs unchanged earlier this month, just days before Republican Donald Trump triumphed in the November 8 presidential contest. Voting members of the Fed's rate-setting committee saw equal risks the economy would overshoot or undershoot their forecasts for continued growth and a tightening labor market. Almost all of them continued to judge that near-term risks to the economic outlook were roughly balanced, according to the minutes. The US stock market will remain closed today, 24 November 2016, because of the Thanksgiving holiday.
US weekly jobless claims increased 18,000 to a seasonally adjusted 251,000 for the week ended 19 November 2016, the Labor Department said. The claims have now been below 300,000, a threshold associated with a healthy labor market, for 90 straight weeks. Meanwhile, the Commerce Department said US durable goods increased 4.8% in October, well above a consensus estimate. Other data released included the IHS Markit manufacturing index for November, which showed a slight increase to 53.9 from 53.4 in October. A reading above 50 signals expansion within the sector. New home sales for October fell 1.9%, while consumer sentiment came in at 93.8, above estimate.
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