 "Nifty slips below 7,100; SBI cracks 4%")
Markets extended losses in late trades on Tuesday with index heavyweights and state-owned banking major SBI leading the decline.
At 2:45pm, the S&P BSE Sensex was down 324 points at 23,230 and Nifty50 was down 113 points at 7,049.
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(Updated at 2:20PM)
After posting two days of gains, markets are witnessing a downward fall today as investors sought profit taking at higher levels. Meanwhile, India’s merchandise exports dropped for the 14th consecutive month with shipments in January, 2016 contracting 13.6% y-o-y to $21 billion owing to a steep fall in shipment of petroleum products and engineering goods amid tepid global demand which dented sentiment.
At 2:45pm, the S&P BSE Sensex was down 324 points at 23,230 and Nifty50 was down 113 points at 7,049.
_________________
(Updated at 2:20PM)
After posting two days of gains, markets are witnessing a downward fall today as investors sought profit taking at higher levels. Meanwhile, India’s merchandise exports dropped for the 14th consecutive month with shipments in January, 2016 contracting 13.6% y-o-y to $21 billion owing to a steep fall in shipment of petroleum products and engineering goods amid tepid global demand which dented sentiment.
At 2:20 pm, the S&P BSE Sensex was down 224 points at 23,330 and the Nifty50 was down 75 points at 7,088.
NOTABLE STOCKS
SBI emerged as the biggest laggard down over 4% after SBI chairman stated that non-performing assets will rise in the March quarter as well, and profitability will get impacted.
Private sector ICICI Bank plans to raise up to Rs 50,000 crore from bonds in tranches to fund affordable housing and infrastructure projects. However, the stock is trading lower by 1%.
Homegrown utility vehicle major Mahindra & Mahindra plans to invest Rs 8,000 crore on its automotive plants in Maharashtra over the next seven years as part of its expansion plans. The stock is trading with marginal gains.
Coal India has shed 1.5%. In a bid to cut-down its expenses on wages and rationalise its manpower structure while pursuing the ministerial directive to produce 908.1 million tonne (mt) of coal by 2020 has resulted in the company resorting to massive outsourcing of labourers. Also, South Eastern Coalfields Limited (SECL), a subsidiary of the Coal India Limited (CIL), would be setting up country’s largest coal washery with a capacity of 25 million tonnes per annum (MTPA) in Korba district of Chhattisgarh.
Meanwhile, shares of logistics firm Gati surged 3% after the company said it will invest in start-ups in the delivery space as the company tries to achieve its target of delivering 1 million packages per day by 2020.
Oil shares gained tracking firm global crude oil prices. Reliance Industries, ONGC, Cairn India gained up to 2%.
Adani Ports jumped 5% after the company reported 26% rise in net profit at Rs 645 crore for the quarter ended December 31, 2015 compared with Rs 512 crore for the same quarter last fiscal.
Ceat is up 1% after it is planned to invest Rs 300 crore to set up a manufacturing facility in Maharashtra to primarily serve export market for off-road radial tyres.
Telecom stocks are hogging limelight today. Bharti Airtel, India’s number one operator and the third largest mobile services provider globally, has migrated 40,000 of its network sites across India to green technology. The stock is up nearly 1%. Reliance Communications shares are trading with marginal gains on hopes that it may not have to raise another round of debt as Aircel deal faces delays. Further, Idea Cellular is all set to launch its 4G service in Maharashtra, Goa and North East by next month. The stock is trading with marginal gains.
NMDC shares were trading 0.5% higher after HSBC upgraded NMDC rating to ‘hold’ from ‘reduce’ and retained price target of Rs 78.
Further, Jindal Steel and Power slumped 5.6% after CRISIL downgraded JSPL credit rating to A4+ from A3+, indicating a negative outlook.
Another major loser in today’s trade is United Breweries (Holdings) Ltd (UBHL) down 12% after it received a letter fromPunjab National Bank (PNB) on February 15, 2016, whereby the bank has declared the company as a ‘Willful Defaulter’.
