Losses for IT, telecom stocks and index heavyweight Reliance Industries (RIL) outweighed gains for stocks of public sector banks and index heavyweights ITC and HDFC, with the two key benchmark indices registered small losses. The barometer index, the S&P BSE Sensex, fell 72.22 points or 0.28% to settle at 25,269.64. The Nifty fell 25.35 points or 0.33% to settle at 7,713.05. The small losses for the two key benchmark indices materialized in the backdrop of weakness in global stocks. The Sensex and the Nifty snapped a two-day winning streak.
Nonetheless, the broad market depicted strength. More than two stocks rose for each stock that dropped on BSE. 1,729 shares rose and 811 shares fell. A total of 103 shares were unchanged. A number of stocks forming part of the broad based BSE Small-Cap index registered gains exceeding 3%. The BSE Small-Cap index rose 0.93%. The BSE Mid-Cap index rose 0.22%. Both these indices outperformed the Sensex.
In the overseas stock markets, European stocks edged lower ahead of release of the closely watched monthly US jobs data, which could reveal more about the state of health of the US economy. Earlier during the global day, Japanese stocks led losses for Asian markets after data showing a slump in business confidence in Japan in Q1 March 2016. The Nikkei 225 Average ended 3.55% lower. US stocks closed lower yesterday, 31 March 2016, but still had one of their best months since October as market sentiment stabilized on a more dovish Federal Reserve.
The Sensex fell 72.22 points or 0.28% to settle at 25,269.64, its lowest closing level since 29 March 2016. The index fell 222.51 points, or 0.88% at the day's low of 25,119.35. The barometer index rose 13.08 points, or 0.05% at the day's high of 25,354.
The Nifty 50 index fell 25.35 points or 0.33% to settle at 7,713.05, its lowest closing level since 29 March 2016. The index fell 72.30 points, or 0.93% at the day's low of 7,666.10. The index rose 1.75 points, or 0.02% at the day's high of 7,740.15.
Among the sectoral indices on BSE, the S&P BSE Realty index (up 2.97%), the S&P BSE Capital Goods index (up 1.24%), the S&P BSE FMCG index (up 1.01%), the S&P BSE Power index (up 0.77%), the S&P BSE Consumer Durables index (up 0.70%), the S&P BSE Industrials index (up 0.54%), the S&P BSE Finance index (up 0.35%), the S&P BSE Bankex (up 0.29%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.11%), the S&P BSE Basic Materials index (up 0.04%), the S&P BSE Utilities index (up 0.02%) and the S&P BSE Healthcare index (down 0.26%), outperformed the Sensex.
The S&P BSE Auto index (down 0.66%), the S&P BSE Metal index (down 0.69%), the S&P BSE IT index (down 1.01%), the S&P BSE Energy index (down 1.12%), the S&P BSE Teck index (down 1.23%), the S&P BSE Oil & Gas index (down 1.24%) and the S&P BSE Telecom index (down 2.4%), underperformed the Sensex.
The total turnover on BSE amounted to Rs 2129 crore, lower than turnover of Rs 2764.82 crore registered during the previous trading session.
Stocks of public sector banks edged higher. Union Bank of India (up 6.42%), Andhra Bank (up 6.31%), Allahabad Bank (up 5.48%), UCO Bank (up 5.30%), Syndicate Bank (up 5.24%), Canara Bank (up 4.69%), IDBI Bank (up 4.39%), United Bank of India (up 4.20%), Bank of Baroda (up 3.77%), Dena Bank (up 3.65%), Corporation Bank (up 2.69%), Central Bank of India (up 2.63%), Vijaya Bank (up 2.39%), Punjab and Sind Bank (up 1.87%), Bank of Maharashtra (up 1.55%) and State Bank of India (up 0.72%) edged higher. Indian Bank fell 0.53%.
Punjab National Bank (PNB) rose 3.66% to Rs 87.80. The bank announced lending rates based on marginal cost of funds to be effective from today, 1 April 2016. PNB's Marginal Cost of Funds based Lending Rate (MCLR) for overnight loans will be 9.15%, for one month will be 9.2% and for three months will be 9.3%. The MCLR on 6-month loans will be 9.35% and for one-year loans the rate would be 9.4%, the bank said. MCLR for three-year loans would be at 9.55% and loans with five-year maturity would carry an MCLR of 9.7%, the bank said. The announcement was made after market hours yesterday, 31 March 2016.
Bank of India rose 3.61% to Rs 100.55. The bank said that it allotted 46.39 lakh equity shares to General Insurance Corporation of India on preferential basis on 30 March 2016 at Rs 86.22 per share. The announcement was made after market hours yesterday, 31 March 2016.
Private sector banks were mixed. City Union Bank (up 2.48%) and Federal Bank (up 1.41%), edged higher. Kotak Mahindra Bank (down 0.23%), HDFC Bank (down 0.59%), IndusInd Bank (down 0.79%) and Yes Bank (down 1.02%) edged lower.
Axis Bank rose 1.12% at Rs 449.55. The bank announced lending rates based on marginal cost of funds to be effective from today, 1 April 2016. Axis Bank's Marginal Cost of Funds based Lending Rate (MCLR) for overnight loans will be 9.10%, for one month will be 9.20% and for three months will be 9.40%. The MCLR on 6-month loans will be 9.45% and for one-year loans the rate would be 9.50%, the bank said. The MCLR on two-year loans will be 9.60% and for three-year loans the rate would be 9.65%, the bank said. The announcement was made during market hours today, 1 April 2016.
ICICI Bank rose 0.87% at Rs 238.60. The bank announced lending rates based on marginal cost of funds to be effective from today, 1 April 2016. ICICI Bank's Marginal Cost of Funds based Lending Rate (MCLR) for overnight loans will be 9%, for one month will be 9% and for three months will be 9.1%. The MCLR on 6-month loans will be 9.15% and for one-year loans the rate would be 9.2%, the bank said. The announcement was made after market hours yesterday, 31 March 2016.
In a separate announcement today, ICICI Bank said that it has completed the sale of 9% shareholding in ICICI Lombard General Insurance Company, a subsidiary of the bank, to its joint venture partner Fairfax Financial Holdings on 31 March 2016. The transfer of 2% stake in ICICI Prudential Life Insurance Company to Compassvale Investments, an indirectly wholly owned subsidiary of the Singapore-based investment company Temasek, was also completed following receipt of requisite approvals, it said.
Shares of companies engaged in exploration & production of natural gas extended losses registered during the previous trading session after the Petroleum Planning & Analysis Cell (PPAC) attached to the Ministry of Petroleum & Natural Gas announced a reduction in locally produced natural gas price for the six-month period April-September 2016. Cairn India (down 0.71%) and ONGC (down 2.79%), edged lower. Oil India was up 0.93%. The price has been cut by almost 20% to $3.06 per million British thermal units (mmBtu) on gross calorific value (GCV) basis for the period 1 April 2016 to 30 September 2016 from $3.82 per mmBtu for the period from 1 October 2015 to 31 March 2016. PPAC made the announcement after trading hours yesterday, 31 March 2016. Shares of ONGC, Oil India and Cairn India edged lower yesterday, 31 March 2016, after media reports suggested that the gas price will be cut by about 20% after the half-yearly price review.
Separately, PPAC set the ceiling price at $6.61 per mmBtu on GCV basis for the gas produced from deepwater, ultra deepwater and high pressure-high temperature areas for the six-month period 1 April 2016 to 30 September 2016. It may be recalled that the government last month finalized proposal to grant marketing, including pricing freedom for the gas produced from deepwater, ultra deepwater and high pressure-high temperature areas in its bid to boost gas exploration and production in the country. The higher pricing for gas produced from deepwater, ultra deepwater and high pressure-high temperature areas is expected to result in estimated additional gas production of around 35 mmscmd. The country's present gas production is around 90 mmscmd.
Index heavyweight Reliance Industries slipped 1.11% to Rs 1,033.65. The stock hit high of Rs 1,045.90 and low of Rs 1,026.40 in intraday trade.
Telecom major Bharti Airtel fell 4.46% to Rs 335.25. The stock hit a high of Rs 350.60 and a low of Rs 332.30 in intraday trade.
Idea Cellular fell 2.60% to Rs 106.90. The stock hit a high of Rs 110.80 and a low of Rs 106.45 in intraday trade.
Aviation stocks surged. InterGlobe Aviation (up 3.84%), Jet Airways (India) (up 3.56%) and SpiceJet (up 3.13%), edged higher.
IT stocks edged lower. MphasiS (down 4.57%), Persistent Systems (down 2.77%), Tech Mahindra (down 2.65%), TCS (down 2.41%) and Wipro (down 0.33%), edged lower. Oracle Financial Services Software (up 0.24%), HCL Technologies (up 0.80%), Hexaware Technologies (up 1.31%) and MindTree (up 2.52%), edged higher.
Index heavyweight and IT major Infosys fell 0.99% to Rs 1,205.90. The stock hit a high of Rs 1,221.80 and a low of Rs 1,197 in intraday trade. Infosys is set to announce its Q4 March 2016 results on 15 April 2016.
Index heavyweight and cigarette major ITC rose 2.42% to Rs 336. The stock hit a high of Rs 336.75 and a low of Rs 325.85 in intraday trade.
Index heavyweight and housing finance major HDFC rose 0.54% to Rs 1,111.55. The stock hit a high of Rs 1,117 and a low of Rs 1,093.30 in intraday trade. The company before market hours today, 1 April 2016, announced that it has completed the sale of a 9% stake in HDFC Standard Life Insurance Company (HDFC Life), a subsidiary of the company, to Standard Life (Mauritius Holdings) 2006 Limited.
Bharat Heavy Electricals (Bhel) rose 2.77% to Rs 116.90 on media reports that a foreign brokerage has upgraded the stock to buy from sell citing robust order pipeline. Bhel is scheduled to announce flash results for the year ended 31 March 2016 (FY 2016) on 7 April 2016.
Meanwhile, data released by the government after trading hours yesterday, 31 March 2016, showed that the output of eight core industries comprising nearly 38% of the weight of items included in the Index of Industrial Production (IIP) surged 5.7% in February 2016, the highest rate of expansion in the past 15 months. The cumulative growth during the period April 2015 to February 2016 stood at 2.3%.
The Sensex and the Nifty snapped a two-day winning streak. The Sensex had risen 441.40 points or 1.77% in the preceding two trading sessions to settle at 25,341.86 yesterday, 31 March 2016, from its close of 24,900.46 on 29 March 2016. The Sensex has fallen 843.90 points or 3.23% in calendar year 2016 so far (till 1 April 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the Sensex has risen 2,777.03 points or 12.35%. The Sensex is off 3,823.97 points or 13.14% from a 52-week high of 29,094.61 hit on 15 April 2015. The Sensex is off 4,755.10 points or 15.84% from a record high of 30,024.74 hit on 4 March 2015.
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