Losses for banking sector stocks and index heavyweights HDFC, Infosys and L&T outweighed gains for pharma stocks and index heavyweight Reliance Industries (RIL) resulting in small losses for key benchmark indices. The barometer index, the S&P BSE Sensex, lost 51.56 points or 0.20% to settle at 26,117.85. The losses for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty shed 23.55 points or 0.30% to settle at 7,931.35. Small losses pushed the Sensex and Nifty to lowest closing level in almost a week.
Pharma stocks gained on weak rupee. Steel stocks gained on hopes China may announce further stimulus measures to prop up slowing economy. Bajaj Auto edged higher after announcing sales volume data for the month just gone by. Shares of hospitality and airlines companies surged. Shares of Chennai-based companies fell as heavy rains in Chennai has thrown life out of gear and created a flood like situation in many areas.
The Sensex lost 51.56 points or 0.2% to settle at 26,117.85, its lowest closing level since 26 November 2015. The barometer index lost 127.73 points or 0.48% at the day's low of 26,041.68. The Sensex rose 87.01 points or 0.33% at the day's high of 26,256.42.
The Nifty shed 23.55 points or 0.30% to settle at 7,931.35, its lowest closing level since 26 November 2015. The Nifty dropped 44.10 points or 0.55% at the day's low of 7,910.80. The index rose 24.40 points or 0.3% at the day's high of 7,979.30.
The market breadth indicating the overall health of the market was positive. On BSE, 1,486 shares rose and 1,296 shares fell. A total of 155 shares were unchanged. The BSE Mid-Cap index rose 0.2%. The BSE Small-Cap index rose 0.01%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 3019 crore, higher than turnover of Rs 2994.91 crore registered during the previous trading session.
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Among sectoral indices on BSE, the S&P BSE Industrials index (down 0.51%), the S&P BSE Teck index (down 0.64%), the S&P BSE Capital Goods index (down 0.71%), the S&P BSE Finance index (down 0.85%), the S&P BSE IT index (down 0.86%) and the S&P BSE Bankex (down 1.03%), underperformed the Sensex. The S&P BSE Healthcare index (up 0.87%), the S&P BSE FMCG index (up 0.7%), the S&P BSE Telecom index (up 0.51%), the S&P BSE Basic Materials index (up 0.45%), the S&P BSE Metal index (up 0.40%), the S&P BSE Energy index (up 0.38%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.28%), the S&P BSE Utilities index (up 0.23%), the S&P BSE Oil & Gas index (up 0.21%), the S&P BSE Realty index (up 0.11%), the S&P BSE Auto index (down 0.05%) and the S&P BSE Consumer Durables index (down 0.15%), outperformed the Sensex. The S&P BSE Power index ended unchanged at 1,910.14, outperforming the Sensex.
Shares of index heavyweight Reliance Industries (RIL) rose 1.14% at Rs 976.60. The stock hit a high of Rs 978.60 and a low of Rs 965.80 in intraday trade.
Index heavyweight and engineering and construction major L&T fell 0.96% to Rs 1,352. The stock hit high of Rs 1,373.90 and low of Rs 1,351 in intraday trade.
Index heavyweight and housing finance major HDFC dropped 1.25% to Rs 1,210. The stock hit high of Rs 1,233 and low of Rs 1,205.25 in intraday trade.
Bank stocks declined. Among public sector banks, Bank of Baroda (down 1.83%), Punjab National Bank (down 3.23%), Corporation Bank (down 1.04%), Allahabad Bank (down 1.94%), Bank of India (down 2.68%), State Bank of India (SBI) (down 1.85%), Union Bank of India (down 1.45%), Canara Bank (down 2.46%) and Vijaya Bank (down 2.1%) edged lower.
Among private sector banks, Axis Bank (down 0.69%), HDFC Bank (down 0.68%), ICICI Bank (down 0.99%), Kotak Mahindra Bank (down 1.32%), Federal Bank (down 1.95%), Yes Bank (down 1.06%) edged lower. IndusInd Bank rose 0.52%.
Bajaj Auto edged higher after announcing sales volume data for the month just gone by. The stock rose 1.29% to Rs 2,493. The stock hit high of Rs 2,513 and low of Rs 2,427.50 in intraday trade. Bajaj Auto's total sales rose 0.13% to 3.09 lakh units in November 2015 over November 2014. Motorcycles sales rose 3% to 2.7 lakh units in November 2015 over November 2014. Commercial vehicles sales fell 18% to 38,787 units in November 2015 over November 2014. Exports dropped 17% to 1.37 lakh units in November 2015 over November 2014.
Pharma stocks gained on weak rupee. Lupin (up 3.64%), Dr Reddy's Laboratories (up 1.31%), Cipla (up 1.22%), Sun Pharmaceutical Industries (up 0.14%), Divi's Laboratories (up 0.29%), and Cadila Healthcare (up 1.67%) gained. Weakness in rupee could boost sales of pharma companies in rupee terms as pharma firms derive substantial revenue from exports. Aurobindo Pharma shed 0.39%.
In the foreign exchange market, the partially convertible rupee was currently hovering at 66.61, compared with its close of 66.49 during the previous trading session.
Wockhardt rose 0.73% after the company said that UK MHRA has issued an unrestricted GMP certificate to the company's L1-Chikalthana manufacturing facility in Aurangabad after carrying out the inspection at the facility. The announcement was made after market hours yesterday, 1 December 2015.
Steel stocks gained on hopes China may announce further stimulus measures to prop up slowing economy. Bhushan Steel (up 0.47%), Steel Authority of India (Sail) (up 2.47%) gained. Jindal Steel & Power shed 0.84%. China is the World's largest consumer of steel, copper and aluminum.
Tata Steel gained 2.19% after the company announced that its subsidiary incorporated in Singapore T S Global Holdings Pte Ltd. (TSGH) has executed agreements worth $1.5 billion for refinancing exiting debt. The new loan facilities comprise of a 5 year loan of $750 million and a 6 year loan of $750 million. The company said that the new loan facilities are at lower cost with extension of the loan tenor.
JSW Steel rose 3.78% to Rs 979.05. The stock was volatile. The stock hit high of Rs 984.40 and low of Rs 939.10 in intraday trade. The company said a decision has been pronounced by the US Court against its subsidiary, JSW Steel USA Inc. JSW Steel is studying and analysing the judgement in detail and evaluating all options available to defend the company's position under the applicable laws, it added.
Shares of Chennai-based companies fell as heavy rains in Chennai has thrown life out of gear and created a flood like situation in many areas. Chennai Petroleum Corporation (CPCL) fell 0.91%. India Cements fell 1.32%.
Shares of IT major Infosys fell 1.65% at Rs 1,058.90. The stock hit a high of Rs 1,082 and a low of Rs 1,058.25 in intraday trade.
Ashok Leyland lost 0.48%. Ashok Leyland's Ennore plant in Chennai accounts for 40% of its production, as per media reports.
Shares of TVS Motor Company shed 4.9% after the company announced that incessant rains for the past three weeks in Chennai have had an adverse impact on the company's production in November 2015. The company suffered a loss of approximately 15,000 units due to the inclement weather, TVS Motor Company said at the time of announcement of sales volume data for November 2015 after market hours yesterday, 1 December 2015. The company reported 2.43% growth in total sales to 2.25 lakh units in November 2015 over November 2014.
SRF fell 2.44% after the company said that the operations at its factory located at Manali Industrial Area in Chennai, Tamil Nadu have been disrupted due to flooding of the factory premises caused by incessant rains. The announcement was made during trading hours today, 2 December 2015. The factory has been shut down after midnight of 1 December 2015. Due to heavy water logging and continuous rain, the damage could not be ascertained as of now. The factory is adequately covered by insurance. Adequate steps are being taken to restore normalcy and further updates will be communicated in due course, the company said.
Shares of hospitality companies surged. TajGVK Hotels & Resorts (up 5.57%), Hotel Leela Venture (up 11.11%), Indian Hotels (up 11.29%), EIH (up 10.31%), EIH Associated Hotels (up 14.29%) and Royal Orchid Hotels (up 6.89%) jumped.
Airline stocks gained. Jet Airways (India) (up 10.32%), InterGlobe Aviation (up 0.11%), and SpiceJet (up 7%) edged higher.
Cox & Kings lost 1.4% after the company through its Holidaybreak plc subsidiary sold 100% of the issued and outstanding shares of Explore Worldwide for GBP 25.8 million to Hotelplan UK Group. The announcement was made after market hours yesterday, 1 December 2015. Explore Worldwide which includes the brands Explore soft adventure tours and RegalDive -- diving adventure specialist, generated net revenue of GBP 11.2 million and earnings before interest, taxation, depreciation and amortization (EBITDA) of GBP 2.3 million in the year ended 31 March 2015 (FY 2015). Peter Kerkar, Director of Cox & Kings said that the sale of Explore Worldwide business helps the company to further increase focus on its three key verticals viz. leisure, education and hybrid hotels (Meininger).
CEAT rose 1.27% after the company and Pirelli announced their exclusive partnership for distribution of Pirelli's global range of premium motorcycle tyres in the Indian market. The announcement was made after market hours yesterday, 1 December 2015. This sole partnership will leverage CEAT's vast distribution and dealer network pan India. Riding on CEAT's ever-expanding network, Pirelli will offer its entire gamut of motorcycle tyres, the statement said. Italy-based Pirelli is a leading tyres manufacturing company.
TV Today Networks jumped 7.19% after the Reserve Bank of India (RBI) notified after market hours yesterday, 1 December 2015, that foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) can invest up to 26% of the paid up capital of TV Today Networks under the portfolio investment scheme (PIS).
IL&FS Engineering and Construction Company jumped by its maximum permissible daily limit of 20% to Rs 72.05 after the company said it has received a letter of acceptance (LoA) from Ministry of Road Transport and Highways (MoRTH) for a total value of Rs 675 crore for rehabilitation and upgradation to 2 lanes of Birpur-Bihpur section of National Highway-106 in Bihar under phase-I of National Highways Development Project (NHDP). The announcement was made after market hours yesterday, 1 December 2015. The project involves engineering, procurement, and construction (EPC) with a completion period of 36 months.
Tree House Education & Accessories jumped by its maximum permissible daily limit of 10% to Rs 184 after Morgan Stanley Asia (Singapore) Pte bought 2.4 lakh shares at Rs 166.56 per share in a bulk deal on the NSE yesterday, 1 December 2015. Macquarie Fund through its two schemes sold a total of 11.94 lakh shares of Tree House Education & Accessories at an average price of Rs 160.69 per share.
The Sensex snapped a four-day winning streak. The barometer index had risen 393.67 points or 1.52% in the preceding four trading sessions to settle at 26,169.41 yesterday, 1 December 2015, from its close of 25,775.74 on 24 November 2015. The Sensex has declined 27.82 points or 0.1% in the first two trading sessions this month. The Sensex has fallen 1,381.57 points or 5.02% in this calendar year so far (till 2 December 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 1,284.31 points or 5.17%. The Sensex is off 3,906.89 points or 13.01% from a record high of 30,024.74 hit on 4 March 2015.
In overseas stock markets, European stocks edged higher as a lower-than-expected reading on inflation for November 2015 strengthened market expectations that the European Central Bank will announce a round of fresh measures to boost the eurozone economy at its regular monetary policy review scheduled tomorrow, 3 December 2015. Earlier during the global day, Chinese stocks edged higher as disappointing manufacturing data spurred hopes of stimulus for the world's second biggest economy.
US stocks edged higher yesterday, 1 December 2015, after downbeat manufacturing report hinted at gradual pace of US interest rate increases next year. The US Federal Reserve is widely expected to announce an increase of 25 basis points in the federal funds rate after a regular monetary policy review scheduled during the middle of this month. With markets having already priced in a 25 basis points rate hike in mid-December, the focus has shifted to the likely pace and quantum of rate hikes once this first move is done.
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