 "Sensex ends 439 points lower on global cues, P-Note woes")
Benchmark share indices ended sharply lower on Thursday, amid weak global cues, after weak trade data from China sparked off global growth concerns. Further, signals of rate hike by the US Federal Reserve and reports of proposed crackdown on investments through P-Note also weighed on sentiment.
The S&P BSE Sensex ended down 439 points at 27,643 and the Nifty50 settled 135 points lower at 8,573. In the broader market, the BSE Midcap and Smallcap indices ended 1.4%-1.5% lower. Market breadth ended weak with 1912 losers and 950 gainers on the BSE.
"Report on banks’ indecisiveness on debt recast has cast a cloud on hopes surrounding the pace of banks’ recovery. Long liquidation, however, was not isolated to PSUs which led the fall, but was witnessed across sectors. IIP data showing a decline in manufacturing mining and capital goods, rings alarm bells ahead of earnings season, and has sparked a profit booking spree. FOMC minutes favouring a 2016 rate hike and weak Asian as well as European stocks added backdrop to the bearish bias. Pound’s sharp fall has stoked Brexit fears again." said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services
On the macro-economic front, monthly inflation data based on consumer price index (CPI) for September is due on Thursday and wholesale price index (WPI) on Friday.
Foreign institutional investors were net sellers in equities worth Rs 547 crore on Monday, as per provisional stock exchange data.
Markets were closed on Tuesday and Wednesday on account of Dussehra and Muharram.
Meanwhile, reports suggest that the special investigation team (SIT) on black money has asked the Securities and Exchange Board of India (Sebi) to furnish the details of all those investing through participatory notes (P-Notes), according to sources in the know.
Global Roundup
The minutes of the September meeting of the US Federal Reserve indicate probability of a rate hike by the US central bank in December.
Asian markets ended lower after weak trade data in September from China, the world's second largest economy, raised concerns over global growth. According to official data, China's exports during September 2016 declined 10% compared to the same month last year and imports contracted 1.9%. However, China's benchmark Shanghai Composite recovered in late trades to end flat with positive bias. Hong Kong eased 1.6% while Nikkei and Straits Times ended down 0.4%-0.5% each.
European shares were trading lower with miners among the top losers after weak trade data from China, the world's largest consumer of metals. Energy stocks weakened after global crude oil prices eased. The CAC-40, DAX and FTSE-100 were down 0.4%-1.2% each.
Buzzing Stocks
TCS will kick off the second quarter earnings season with its September quarter results today while Infosys will announce its results tomorrow.
According to analysts, the seasonal strength that leads to strongest sequential growth in the September quarter is hardly expected to play out this time, as slowness in spending by the Banking, Financial services and Insurance (BFSI) vertical weighs on the information technology (IT) industry. TCS ended down 2% while Infosys ended up 1.5%.
Index heavweight Reliance Industries also witnessed profit taking after recent gains. The stock ended 3.5% lower.
Tata Motors ended 3% lower. The company plans to offer the fifth series of its rated, listed, unsecured, redeemable, NCDs (non-convertible debentures) aggregating to Rs 500 crore.
Sun Pharmaceutical ended nearly 2% down. The pharma major is recalling 31,762 bottles of bupropion hydrochloride extended-release tablets in America, used for treatment of major depressive disorder, due to ‘failed dissolution specifications’.
ICICI Bank dropped over 3%. The private banking major has become the first Indian lender to complete a banking transaction using Blockchain technology.
HDFC slumped 4%. The mortgage lender plans to raise Rs 500 crore through issuance of Rupee denominated bonds to overseas investors.
GAIL (India) ended down 1.4%. The company announced that it has received intimation from the Ministry of Petroleum and Natural Gas that the Cabinet Committee on Economic Affairs (CCEA) approved 40% capital grant (limited to Rs 5176 crore) of the estimated capital cost of Rs 12940 crore to GAIL (India) for execution Jagdishpur-Haldia/Bokaro-Dhamra gas pipeline (JHBDPL) project by 2020.
Cipla pared early gains to end flat. The pharma major on Wednesday said that it has received Establishment Inspection Report (EIR) from the US Food and Drug Administration (USFDA) for its Indore facility indicating formal closure of the US FDA inspection conducted in July/August, 2015.
Among other shares, PSU banks witnessed selling pressure. Canara Bank, Bank of India, Punjab National Bank, Andhra Bank, Oriental Bank of Commerce and Bank of Baroda ended down over 1.5% each.Rating agency CRISIL on Wednesday said four ailing public sector banks (PSBs) may fail to pay interest on additional Tier-I bonds as mounting losses could wipe out their revenue reserves.
