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Markets have extended losses with Sensex slipping below 27,000 mark weighed down with Index heavyweights and financials with ITC leading the decline after the stock turned ex-dividend today.
ITC turns ex-dividend today, 3 June 2015, for dividend of Rs 6.25 per share for the year ended 31 March 2015. Tata Motors has shed over 4% on weak Jaguar sales for the month of May.
At 11:28AM, the 30-share Sensex was down 266 points at 26,922 and the 50-share Nifty was down 79 points at 8,157.
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(ypdated at 11 am)Markets have trimmed losses but continue to trade weak dragged by Tata Motors, ITC and bank shares. However, the downside is limited led by buying demand among index heavyweights like RIL, HDFC and software shares.
At 11:00AM, the 30-share Sensex was down 128 points at 27,060 and the 50-share Nifty was down 45 points at 8,191.
The top losers on the Sensex are Tata Motors, ITC, Axis Bank, HUL and ICICI Bank.
On the gaining side, Coal India, Wipro, RIL, BHEL and HDFC have surged between 1-2%.
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Updated at 10:30
Markets have extended losses and are trading lower with ITC and select auto and banks leading the decline.
At 10:30AM, the 30-share Sensex was down 206 points at 26,983 and the 50-share Nifty was down 67 points at 8,170.
However, the broader markets are underperforming the benchmark indices- BSE Midcap and Smallcap indices are down over 1%.
Adani Enterprises has nosedived by over 80%. According to media reports, the company has hived off its port and power businesses and merged them with Adani Ports, Adani Power.
From the Sensex pack, Tata Motors has dropped over 5%. ITC, ICICI Bank, Sun Pharma, HUL and Axis Bank have slipped between 2-3%.
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Updated at 9:45
Markets have extended yesterday’s losses and have opened lower weighed down by FMCG major ITC and bank shares.
Indices slumped almost 2% yesterday even as the rate cut by the RBI was in line with street expectations, as downgrade of monsoon forecast raised fears of higher inflation adding to the uncertainty of further easing of key policy rates in the near future.
At 9:46AM, the 30-share Sensex was down 142 points at 27,045 and the 50-share Nifty was down 48 points at 8,188.
"Nifty has broken all immediate support zones as heavy sell off was seen in all the heavyweights and rate sensitive counters with higher volume activities. Now till it doesn’t cross and hold above crucial juncture of 8,340-8,350 zones weakness may continue. On the downside, it has next support near 8,181 then 8,120 zones while on upside hurdle exists at around 8,300 levels and then around 8,340-8,350 zones," said a morning note from Anand Rathi Research.
Among broader markets, BSE Midcap and Smallcap indices are down 0.5-0.6%. The market breadth is negative. Out of 1,482 stocks traded on the BSE, there were 529 advancing stocks as against 913 declines.
The India Meteorological Department (IMD) on Tuesday revised its projection of the 2015 monsoon from slightly less than normal to deficient as the El Niño weather phenomenon gained strength, pushing parts of the country to the brink of an expected drought.
Further, foreign portfolio investors sold shares worth a net Rs 594.14 crore on Tuesday, as per provisional data.
GLOBAL MARKETS
Equity markets in Asia slipped early on Wednesday as a widespread spike in debt yields dented the allure of risky assets, while the euro stood tall after surging on upbeat euro zone inflation data and hopes that Greece will reach a deal with its creditors.
Japan's Nikkei lost 0.6% while Australian shares shed 0.5% and South Korea's Kospi dipped 0.1%.
MSCI's broadest index of Asia-Pacific shares outside Japan nudged up 0.1%.
Activity in China's services sector accelerated in May as new business rose at the fastest pace in three years, a private survey showed on Wednesday, a rare piece of good news for policymakers struggling to reviving a cooling economy.
SECTORS & STOCKS
BSE FMCG index has slumped almost 2% followed by counters like Auto, Banks, Healthcare, Consumer Durables and Oil & Gas, all falling between 0.1-1%. However, BSE IT index has surged by nearly 1%.
ITC has extended yesterday’s decline and is the top Sensex loser, down almost 3%. According to reports, Maharashtra has banned sale of loose cigarettes. Further, ITC has turns ex-dividend today, for dividend of Rs 6.25 per share for the year ended 31 March 2015.
FMCG stocks are in focus after the IMD in its second stage Long Range Forecast (LRF) for Southwest Monsoon 2015 issued after trading hours yesterday, 2 June 2015, said that the rainfall over the country as a whole for the 2015 southwest monsoon season is likely to be deficient. A deficient monsoon could adversely impact rural incomes. FMCG companies derive substantial revenue from rural India.
Rate-sensitive sectors are also witnessing selling pressure after the Reserve Bank of India at its monetary policy review yesterday signalled that it would await data on monsoon forecast and keep check inflation before any further rate cuts. The central bank also highlighted uptick in global crude oil prices amid geopolitical concerns.
Tata Motors, ICICI Bank, Axis Bank, SBI, Bajaj Auto, Maruti Suzuki and M&M have slipped between 0.2-2.5%.
State Bank of India (SBI) has reduced its base rate or minimum lending rate to 9.70% from 9.85% effective June 8. This is the second rate cut by SBI in about two months.
On the gaining side, Wipro, Infosys, Coal India, BHEL, HDFC, Hindalco and L&T have gained between 0.4-1.2%.
Bharat Heavy Electricals Limited (BHEL) secured the largest order in its history for setting up a 4,000 megawatt (5x800 Mw) super-critical thermal power project from Telangana State Power Generation Corporation (TSGENCO). The order is valued at Rs 17,950 crore.
Shares of Nestle have dropped 7% to Rs 6,310 on the Bombay Stock Exchange (BSE) after the Delhi Government summoned officials of Nestle India claiming that the samples of Maggi noodles fail to conform to food safety norms and are unsafe.
Emami has gained more than 3% to Rs 1,105 on the NSE in the early morning trades after the consumer goods company announced that it was buying ayurvedic hair oil brand Kesh King from SBS Biotech, a Himachal Pradesh company, for Rs 1,651 crore.
