Markets shrug off Services PMI data; Sensex, Nifty down 1%

At 11:30 am, the S&P BSE Sensex was down 243 points at 24,296 and the Nifty was down 76 points at 7,382

Markets continued to trade 1% lower in late morning deals with index heavyweights leading the decline.

At 11:30am, the S&P BSE Sensex was down 243 points at 24,296 and the Nifty was down 76 points at 7,382.

In the broader market, the BSE Midcap and Smallcap indices were down 1.6% -2.1% each. Market breadth was weak with 1795 losers and 359 gainers on the BSE.

The rupee breached the 68-mark and was trading 21 paise at 68.19 against the dollar in early trade at the Interbank Foreign Exchange, on demand from importers and banks. The  weakness in domestic equities also weighed on sentiment.

 

ECONOMY

Growth in India’s services activity rose at its fastest pace in 19 months in January as demand picked up, a business survey showed today. The Nikkei/Markit Services Purchasing Managers' Index (PMI) surged to 54.3 in January from December's 53.6, marking a seventh month above the 50-level that separates growth from contraction.

SECTORS & STOCKS

All sectoral indices on the BSE were in the red with Capital Goods index down 3.5% as the top loser.

Among the index heavyweight, Infosys and Reliance Industries were down 1.3%-2.4% each contributing the most to the Sensex decline.

ICICI Bank was down 2.3% post its third quarter earnings on concerns over rising non performing assets. 

Among other shares, Vakrangee was up by 4% to Rs 205, extending its over 7% gain in past two trading sessions on the BSE, after the company announced that its Corporate Agency has tied up with Tata AIG General Insurance Company, a joint venture between Tata Group and American International Group (AIG).

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(updated at 10:00 am)

Markets have opened the session on a weak note mirroring losses in the global equities as oil prices continue to move south on growing supply glut. Meanwhile, movement of rupee and FII stance are likely to dictate the trend later during the session.

At 10:00 am, the S&P BSE Sensex has slumped 189 points to trade at 24,349 and the Nifty50 has cracked 59 points to quote at 7,396. In the broader market, BSE Midcap and Smallcap indices have declined between 1%-1.5% each. The market breasth is dismal on the BSE with 1,284 shares declining versus 257 shares advancing.

GLOBAL MARKETS

Asian stocks were trading lower on Wednesday after global crude oil prices resumed their downward trend. The Japanese benchmark Nikkei was down 3.7% while China's Shanghai Composite slipped 1% while Hang Seng eased 3% and Straits Times fell 1.8%.

US stocks ended 2% lower on Tuesday as disappointing earnings from global oil majors Exxon and British Petroleum after global crude oil prices. British Petrolem registered 91% slump in fourth-quarter earnings. The Dow Jones industrial average ended down 1.8% at 16,153, S&P 500 closed 1.9% lower while the Nasdaq ended 2.2% lower at 4,517. 

KEY STOCKS & RESULT IMPACT

Energy shares continue to reel under pressure as oil prices slip further. ONGC, RIL down between 1.5%-2.5%.

Metal shares are battered in the early morning trades on falling commodity prices. Tata Steel, Vedanta and Hindalco have lost up to 2.3%.

Sun Pharmaceuticals and Lupin have launched the generic versions of top selling drugs with 180 days’ sale exclusivity in the US market. Sun Pharma is up 1.3% while Lupin is trading with marginal gains.

Coal India is down 1.25%. Coal India is likely to buy back shares worth at least 25 billion rupees ($368 million) from the government, as the finance ministry looks to state firms for cash ahead of the budget, said a media report. 

Other major laggards in the morning trades are ICICI Bank, Tata Motors, BHEL, Maruti Suzuki, SBI, L&T down between 1.5%-2.6%.

Sun Pharmaceuticals and Lupin have launched the generic versions of top selling drugs with 180 days’ sale exclusivity in the US market. Sun Pharma is up 1.3% while Lupin is trading with marginal gains.

DLF is trading with marginal gains after it posted 24% rise in its consolidated net profit at Rs 164 crore for the December 2015 quarter against Rs 132 crore in the year-ago period on the back of higher sales and one-time gain from stake sale deal with Singapore’s GIC.

Crompton Greaves has cracked 24% after it posted a consolidated net loss of Rs 107 crore for the quarter ended December 31, 2015 compared to a net profit of Rs 274.29 crore for the corresponding quarter in the previous year.

Tata Communications has shed 5% after the company reported net profit of Rs. 21.89 crore for the quarter ended December 31, 2015 as compared to Rs. 108.5 crore for the quarter ended December 31, 2014.

RPG Lifesciences is up 2% after net profit for December 2015 quarter was higher at Rs 4.7 crore compared with Rs 2.5 crore for the same quarter last fiscal.

Coal India is down 1.25%. Coal India is likely to buy back shares worth at least 25 billion rupees ($368 million) from the government, as the finance ministry looks to state firms for cash ahead of the budget, said a media report. 

Amara Raja Batteries is up 1.7% after it reported a 33.06 per cent rise in its stand-alone net profit at Rs 136.18 crore for the quarter ended December 2015. 

DCM Shriram is trading with marginal gains after it reported more than two-fold jump in its consolidated net profit at Rs 60 crore for the quarter ended December on higher sales and fall in interest outgo.