A setback in European stocks and sharp slide in US index futures triggered more than 2% slide for barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty index. The Sensex plunged 541.14 points or 2.07% to settle at 25,651.84. The Nifty fell 165.10 points or 2.07% to settle at 7,812. The Sensex fell below the psychological 26,000 mark. The Nifty failed to retain the psychological 8,000 after surpassing that level in intraday trade. The Sensex and Nifty, both, hit 1-1/2-week closing low. Metal, mining, banking and power sector stocks led steep losses for key benchmark indices.
Losses for Indian stocks accentuated towards the latter part of the trading session. Until early afternoon trade, the Sensex and Nifty hovered in positive zone. In overseas stock markets, car makers led a sharp slide in European stocks after French Finance Minister Michel Sapin reportedly called for a probe of the auto sector in Europe in the wake of German auto maker Volkswagen AG admitting to rig emission tests in the US. Late last week, the US Environmental Protection Agency and the California Air Resources Board (EPA and CARB) revealed their findings that while testing diesel cars of the Volkswagen Group they have detected manipulations that violate American environmental standards. Trading in US index futures indicated that the Dow Jones Industrial Average could slide 237 points at the opening bell today, 22 September 2015.
The Sensex fell 541.14 points or 2.07% to settle at 25,651.84, its lowest closing level since 11 September 2015. The index tumbled 621.64 points at the day's low of 25,571.34 in late trade. The index gained 146.12 points at the day's high of 26,339.10 in early trade.
The Nifty dropped 165.10 points or 2.07% to settle at 7,812, its lowest closing level since 11 September 2015. The index fell 189.35 points at the day's low of 7,787.75 in intraday trade. The index rose 44.50 points at the day's high of 8,021.60 in intraday trade.
The BSE Mid-Cap index dropped 1.57%. The BSE Small-Cap index fell 1.21%. The decline in both these indices was lower than Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was weak. On BSE, 1,719 shares fell and 970 shares rose. A total of 107 shares were unchanged.
Also Read
The total turnover on BSE amounted to Rs 2718 crore, higher than turnover of Rs 2357.71 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Bankex index (down 3.04%), BSE Capital Goods index (down 3.1%), BSE Metal index (down 4.24%), BSE Power index (down 3.09%) and BSE Realty index (down 2.54%) underperformed the Sensex. The S&P BSE FMCG index (down 0.88%), BSE Healthcare index (down 0.46%), BSE IT index (down 0.22%), BSE Auto index (down 1.73%), BSE Consumer Durables index (down 0.12%), BSE Oil & Gas index (down 1.27%) and BSE Teck index (down 0.47%) outperformed the Sensex.
Bank stocks declined almost across the board. Among PSU banks, Syndicate Bank (down 4.62%), Bank of India (down 4.74%), Union Bank of India (down 4.45%), Punjab National Bank (down 3.89%), IDBI Bank (down 3.67%), Andhra Bank (down 3.51%), Canara Bank (down 3.42%), State Bank of India (down 2.96%), Bank of Baroda (down 2.73%) and Corporation Bank (down 1.65%) edged lower.
Among private sector banks, Yes Bank (down 4.64%), Axis Bank (down 3.57%), ICICI Bank (down 3.13%), Kotak Mahindra Bank (down 3.09%), IndusInd Bank (down 4.22%) and HDFC Bank (down 2.38%) edged lower.
Power generation stocks slumped. Jaiprakash Power Ventures (down 6.17%), NTPC (down 4.58%), Reliance Infrastructure (down 3.39%), Reliance Power (down 3.4%), Torrent Power (down 2.91%), Tata Power (down 2.48%), JSW Energy (down 2.54%), GVK Power & Infrastructure (down 1.83%), Adani Power (down 1.01%) and NHPC (down 0.6%) edged lower.
Metal and mining shares tumbled. Vedanta (down 6.29%), Hindalco Industries (down 6.22%), Jindal Steel & Power (down 5.22%), Tata Steel (down 3.02%), JSW Steel (down 1.7%), Steel Authority of India (down 2.12%), National Aluminium Company (down 0.68%), Hindustan Zinc (down 1.07%) and NMDC (down 1.68%) edged lower.
Shares of state-run coal mining giant Coal India dropped 5.4% at Rs 323.85.
Auto stocks declined. Bajaj Auto (down 1.65%), TVS Motor Company (down 1.61%), Hero MotoCorp (down 1.6%) and Eicher Motors (down 0.66%) edged lower. Ashok Leyland (up 0.62%) and Mahindra & Mahindra (up 0.2%) edged higher.
Shares of car makers dropped after calls for a wider probe globally of the auto industry in the wake of Volkswagen AG admitting to rig emission tests in the US. Tata Motors fell 4.81% to Rs 315.65. Maruti Suzuki India dropped 0.47% at Rs 4,470.95. French Finance Minister Michel Sapin has reportedly called for a probe of the auto sector in Europe in the wake of German auto maker Volkswagen AG admitting to rig emission tests in the US. South Korea has decided to launch a probe into Volkswagen's diesel cars and the US government has decided to expand its pollution-skirting investigation to other car makers, according to news reports. Late last week, the US Environmental Protection Agency and the California Air Resources Board (EPA and CARB) revealed their findings that while testing diesel cars of the Volkswagen Group they have detected manipulations that violate American environmental standards.
Bharat Heavy Electricals (Bhel) fell 2.77% to Rs 201.65. The company's Chairman & Managing Director Mr. B. Prasada Rao said at the 51st Annual General Meeting of the company today, 22 September 2015, that faster execution and on time delivery are indispensable to sustain market leadership in the power equipment sector and that the company has already augmented its capacity for power plant equipment manufacturing to 20,000 megawatts per annum. To capitalize on the opportunities in the defence sector, Bhel has formed a consortium with Mishra Dhatu Nigam and Hindustan Shipyards for jointly bidding for indigenously building P-75 (I) submarines for the Indian Navy. The R&D expenditure of the company has consistently been more than 2.5% of the turnover for more than 5 years now. For the year ended 31 March 2015, Bhel invested Rs 1019 crore on R&D and recorded a turnover of Rs 7300 crore from in-house developed products and services, Rao said.
TCS dropped 0.95% at Rs 2,526.35. The stock hit a high of Rs 2,575 and a low of Rs 2,493.90 in intraday trade. TCS announced after market hours today, 22 September 2015, that its Digital Software & Solutions (DS&S) unit has launched an analytics-based software solution for intelligent city operations to help address growing expectations of digitally connected, urban citizens. The solution offers customized city data models for the accelerated deployment of smart city programs, TCS said in a statement.
TCS said after market hours yesterday, 21 September 2015 that pursuant to the scheme of merger of CMC with the company, TCS has fixed 1 October 2015 as the record date to determine the names of the public shareholders of CMC who would be entitled to receive the equity shares of TCS in lieu of equity shares held in CMC. As per the scheme, all equity shares held by TCS in CMC constituting 51.12% of the total paid-up share capital of CMC shall automatically get cancelled. For the balance shareholding of 48.88% held by the public shareholders in CMC, 79 equity shares of Rs 1 each of TCS will be issued and allotted as fully paid up equity shares for every 100 equity shares of Rs 10 each held by the public shareholders of CMC as on the record date. Shares of CMC lost 0.26% at Rs 1,976. The stock hit a high of Rs 2,030 and a low of Rs 1,962.95 in intraday trade.
Infosys rose 0.08% at Rs 1,105.50. The stock hit a high of Rs 1,135.40 and a low of Rs 1,100 in intraday trade. The company after market hours yesterday, 21 September 2015, announced that it has signed a three-year agreement with TOMS to become its partner to maintain and develop its digital platform. The agreement will enable TOMS to streamline the management of its web-based properties and introduce automation technologies to lower overall support and development costs, Infosys said in a statement.
Meanwhile, media reports suggested that Infosys has bagged a contract worth Rs 1380 crore to build and maintain the technology network crucial for implementing the proposed goods and services tax system across the country for five years.
Index heavyweight and construction major L&T fell 4.34% to Rs 1,484.45. The stock hit a high of Rs 1,562.95 and a low of Rs 1,480.60 in intraday trade.
Index heavyweight Reliance Industries (RIL) fell 3.45% to Rs 847.45. The stock hit a high of Rs 884.45 and a low of Rs 845 in intraday trade.
Index heavyweight and housing finance major HDFC fell 3.24% to Rs 1,167.85. The stock hit a high of Rs 1,216.40 and a low of Rs 1,163.10 in intraday trade.
UltraTech Cement dropped 3.27% at Rs 2,810.90. The company said during market hours today, 22 September 2015, that it has commissioned a cement grinding unit with a capacity of 1.6 million tonnes per annum (MTPA) at Jhajjar in Haryana.
Amtek Auto tumbled 11.46% at Rs 45.95 on reports that the company has missed payments on the Rs 800 crore worth of bonds that matured on 20 September 2015. The company had issued bonds with a coupon rate of 10.25% and maturity of five years in 2010.
The Sensex and the Nifty declined for the second straight trading session today, 22 September 2015. The Sensex has lost 567.07 points or 2.16% in the preceding two trading sessions from a recent high of 26,218.91 on 18 September 2015. The Sensex has lost 631.25 points or 2.4% in this month so far (till 22 September 2015). The Sensex has fallen 1,847.58 points or 6.71% in this calendar year so far (till 22 September 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 818.30 points or 3.29%. The Sensex is off 4,372.90 points or 14.56% from a record high of 30,024.74 hit on 4 March 2015.
Powered by Capital Market - Live News