Trading for the week began on a downbeat note as losses for index heavyweight ITC and stocks of oil exploration and production (E&P) companies pulled key benchmark indices lower. The barometer index, the S&P BSE Sensex, lost 108 points or 0.42% to settle at 25,530.11. The decline for the Sensex was higher in percentage terms than that for the 50-unit Nifty 50 index. The Nifty declined 16.50 points or 0.21% to settle at 7,765.40. A fourth straight day of decline took both the Sensex and the Nifty to their lowest closing level in almost three weeks.
Index heavyweight and cigarette major ITC declined sharply after a committee headed by the Chief Economic Adviser Dr. Arvind Subramanian on possible tax rates under goods and services tax (GST) in its report recommended a steep 40% tax on tobacco and tobacco products. The committee has suggested standard GST rate at 17% to 18%. Typically, the majority of the goods and services will be taxed at the standard rate under the GST regime. FMCG stocks gained. Index heavyweight HDFC edged higher.
Shares of oil exploration and production (E&P) firms declined and stocks of state-run oil marketing companies (PSU OMCs) rose as global crude oil prices fell.
The Sensex lost 108 points or 0.42% to settle at 25,530.11, its lowest closing level since 18 November 2015. The Sensex lost 160.42 points or 0.62% at the day's low of 25,477.69. The barometer index rose 147.42 points 0.57% at the day's high of 25,785.53.
The Nifty shed 16.50 points or 0.21% to settle at 7,765.40, its lowest closing level since 18 November 2015. The Nifty lost 35.85 points or 0.46% at the day's low of 7,746.05. The Nifty rose 43.50 points or 0.55% at the day's high of 7,825.40.
The market breadth indicating the overall health of the market was positive. On BSE, 1,446 shares rose and 1,316 shares declined. A total of 162 shares were unchanged.
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The BSE Mid-Cap index shed 0.1%. The decline in this index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index rose 0.16%, outperforming the Sensex.
Among sectoral indices on BSE, the S&P BSE Industrials index (down 0.01%), the S&P BSE Teck index (up 0.12%), the S&P BSE Telecom index (up 0.22%), the S&P BSE Basic Materials index (up 0.09%), the S&P BSE Utilities index (up 0.08%), the S&P BSE Power index (up 0.08%), the S&P BSE Realty index (up 0.5%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.34%), the S&P BSE Consumer Durables index (up 0.29%), the S&P BSE Capital Goods index (down 0.09%), the S&P BSE Finance index (up 0.33%), the S&P BSE Auto index (down 0.2%), the S&P BSE IT index (up 0.08%), the S&P BSE Healthcare index (up 0.77%), and the S&P BSE Bankex (up 0.3%), outperformed the Sensex. The S&P BSE FMCG index (down 2.45%), the S&P BSE Metal index (down 0.77%), the S&P BSE Energy index (down 1.07%), and the S&P BSE Oil & Gas index (down 0.46%) underperformed the Sensex.
The total turnover on BSE amounted to Rs 2653 crore, lower than turnover of Rs 2989.76 crore registered during the previous trading session.
TCS declined 0.26%. TCS announced that IDFC Bank has gone operational with TCS BaNCS for core banking operations. IDFC Bank started operations on 1 October 2015, with operations powered by TCS BaNCS. TCS made the announcement after market hours today, 7 December 2015.
FMCG stocks gained. Godrej Consumer Products (up 1.99%), Marico (up 0.36%), Tata Global Beverages (up 1.35%), Procter & Gamble Hygiene and Health Care (up 0.41%), Hindustan Unilever (up 2.15%), Nestle India (up 0.72%), Colgate Palmolive (India) (up 1.85%), GlaxoSmithkline Consumer Healthcare (up 3.11%) and Dabur India (up 1.51%) edged higher. Britannia Industries (down 1.89%), Jyothy Laboratories (down 1.77%), Bajaj Corp (down 0.58%) and Emami (down 0.45%) edged lower.
Shares of public sector banks declined. Bank of Baroda (down 0.96%), UCO Bank (down 0.22%), Syndicate Bank (down 0.11%), Punjab National Bank (down 0.41%), Corporation Bank (down 0.24%), Allahabad Bank (down 0.61%), Bank of India (down 1.22%), State Bank of India (SBI) (down 0.75%), and Union Bank of India (down 0.03%), Canara Bank (down 0.04%) declined. United Bank of India was flat.
Shares of private sector banks rose. Axis Bank (up 0.31%), HDFC Bank (up 0.21%), ICICI Bank (up 0.67%), Kotak Mahindra Bank (up 1.05%), Federal Bank (up 1.23%), and IndusInd Bank (up 1.21%) edged higher. Yes Bank declined 0.59%.
Asian Paints rose 4.16% to Rs 870.90. The stock hit high of Rs 875 and low of Rs 843.80.
Sun Pharmaceutical Industries gained 2.81% to Rs 777.35. The stock hit high of Rs 781.20 and low of Rs 762.35.
HDFC rose 1.2% to Rs 1,186. The stock hit high of Rs 1,188 and low of Rs 1,175.35.
Index heavyweight and cigarette major ITC declined sharply after a committee headed by the Chief Economic Adviser Dr. Arvind Subramanian on possible tax rates under goods and services tax (GST) in its report recommended a steep 40% tax on tobacco and tobacco products. The stock lost 6.57% to settle at Rs 313.55. Luxury cars, aerated beverages and paan masala are the three other product lines in addition to tobacco and tobacco products for which the committee has suggested sin/demerit rate of 40%.
Shares of oil exploration and production (E&P) firms declined along with drop in global crude oil prices. Cairn India (down 2.8%), Oil India (down 1.79%), ONGC (down 1.49%) and Reliance Industries (down 1.2%) edged lower. Lower crude oil prices would result in lower realization from crude sales for oil exploration firms.
Shares of state-run oil marketing companies (PSU OMCs) rose on decline in global crude oil prices. BPCL (up 0.27%), HPCL (up 2.11%) and Indian Oil Corporation (up 0.16%) gained. Decline in crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. The government has already decontrolled pricing of petrol and diesel.
Crude oil prices dropped in the global commodities markets in the wake of the Organization of the Petroleum Exporting Countries's (OPEC) decision to keep crude production running at current levels. Brent for January settlement was currently off 29 cents at $42.71 a barrel. The contract had fallen 84 cents or 1.91% to settle at $43 a barrel during the previous trading session in the wake of the OPEC announcement.
Metal and mining stocks were mixed. National Aluminium Company (down 1.35%), Steel Authority of India (down 0.32%), Hindustan Zinc (down 0.58%) and Vedanta (down 0.44%) edged lower. Tata Steel (up 1.39%), Hindalco Industries (up 0.32%), Jindal Steel & Power (up 0.16%), and JSW Steel (up 0.2%) edged higher.
NMDC declined 1.47% at Rs 90.40 after the company reduced prices of lump ore by Rs 300 per tonne to Rs 1,800 per tonne with effect from 4 December 2015. In its monthly price review, the state-run iron ore miner has kept prices of iron ore fines unchanged at Rs 1,560 per tonne. The prices are excluding royalty, taxes, DMF, duties, levies etc. The announcement was made after market hours on Friday, 4 December 2015.
Maruti Suzuki India (MSIL) fell 0.87% at Rs 4,566 after the company reported 11.8% fall in its production to 1.03 lakh units in November 2015 over November 2014. The announcement was made after market hours on Friday, 4 December 2015.
Manali Petrochemicals tumbled 4.95% at Rs 31.65 after the company said that the production at both the plants of the company in Chennai remains affected since 2 December 2015 due to flooding and the resultant power disruptions. The plant operations are expected to recommence shortly in a phased manner subject to resumption of normalcy in power supply, material movements, etc, Manali Petrochemicals said during trading hours today, 7 December 2015. Consequently, the overall operations for the quarter and the year will be impacted significantly, it added.
The Sensex and the Nifty fell for fourth day in a row. The Sensex has declined 639.30 points or 2.44% in the preceding four trading sessions from its close of 26,169.41 on 1 December 2015. The Sensex has declined 615.56 points or 2.35% in this month so far (till 7 December 2015). The Sensex has fallen 1,969.31 points or 7.16% in this calendar year so far (till 7 December 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 696.57 points or 2.8%. The Sensex is off 4,494.63 points or 14.96% from a record high of 30,024.74 hit on 4 March 2015.
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