Key benchmark indices suffered heavy losses on geopolitical concerns after Indian Army in a press conference today, 29 September 2016 revealed that India conducted surgical strikes against terror launchpads inside Pak occupied Kashmir late last night. The barometer index, the S&P BSE Sensex slumped 400.34 points or 1.41% to 27,892.47, as per the provisional closing data. The Nifty 50 index skidded 133.90 points or 1.53% to 8,611.25, as per the provisional closing data. The Sensex provisionally closed below the psychological 28,000 mark after falling below that mark in afternoon trade. All the nineteen sectoral indices on BSE were in the red. Except TCS all the rest of the scrips from the 30-share Sensex pack dropped.
The Indian Army conducted surgical strikes on terror launch pads yesterday, 28 September 2016 night across the Line of Control (LoC) in Pakistan, killing several terrorists and causing significant casualties to their hideouts. The press conference was jointly conducted by the Ministry of External Affairs and the Ministry of Defence. Based on very specific and credible information which Army received yesterday that some terrorist teams had positioned itself along the line of control, the Army carried out surgical strikes last night at these launch pads. The operations were focused to ensure that these terrorists do not succeed in endangering lives of citizens in India. The Pakistani military reportedly said no such strike had taken place but that there had been an exchange of firing at the frontier.
Key indices languished in the red after witnessing a steep drop in afternoon trade after announcement of surgical strikes carried out by Indian Army across LoC on terrorists camps. Earlier, key indices hovered in positive terrain after opening higher. The Sensex slumped 572.89 points or 2.02% at the day's low of 27,719.92 in afternoon trade, its lowest level since 29 August 2016. The barometer index gained 182.76 points or 0.64% at the day's high of 28,475.57 in early trade. The Nifty shed 186.90 points or 2.13% at the day's low of 8,558.25 in afternoon trade, its lowest level since 28 August 2016. The index gained 55.50 points or 0.63% at the day's high of 8,800.65 in early trade, its highest level since 26 September 2016.
The broad market depicted weakness. There were more than five losers against every gainer on BSE. 2,288 shares fell and 449 shares rose. A total of 194 shares were unchanged. The BSE Mid-Cap index provisionally down 3.6%. The BSE Small-Cap index provisionally shed 4.62%. The fall in both these indices was higher than Sensex's decline in percentage terms.
In overseas stock markets, global stocks rose after the Organization of the Petroleum Exporting Countries (OPEC) took an important step toward a cap on crude-oil output, which helped in lifting oil prices. OPEC said yesterday, 28 September 2016 that it would reduce output to a range of 32.5-33.0 million barrels per day (bpd), a reduction of 0.7-2.2% from OPEC estimates of its current output at 33.24 million bpd. In economic data, US orders for durable or long-lasting goods flattened out in August after a sizable gain in the prior month, pointing to ongoing difficulties for American manufacturers.
The total turnover on BSE amounted to Rs 5413.86 crore, higher than turnover of Rs 2932.59 crore registered during the previous trading session.
Metal and mining stocks fell. Vedanta (down 3.32%), JSW Steel (down 5.26%), Tata Steel (down 3.63%), Steel Authority of India (Sail) (down 7.08%), National Aluminium Company (down 3.99%), Hindustan Zinc (down 1.67%), Jindal Steel & Power (down 8.4%), Hindalco Industries (down 3.91%), NMDC (down 6.24%) edged lower.
Hindustan Copper fell 5.28% to Rs 61.90 as the offer for sale by the Government of India through the stock exchanges mechanism began today, 29 September 2016. The government is offering a 7% stake in the company through a two-day offer for sale (OFS) which ends tomorrow, 30 September 2016. The government has set a floor price of Rs 62 per share, a 5.12% discount to the stock's Wednesday's closing share price of Rs 65.35 on BSE. While the trading window is open for non-institutional investors today, 29 September 2016, retail investors can subscribe tomorrow, 30 September 2016. Retail investors will be allocated shares at a 5% discount to the cut-off price, the company said. The OFS, comprising 6.47 crore shares, will help the government raise Rs 401.54 crore. The government's stake will decline to 82.95% following the sale. The Government of India holds 89.95% stake in Hindustan Copper (as per shareholding pattern as on 30 June 2016). The announcement was made after market hours yesterday, 28 September 2016.
Realty stocks slumped. Sobha (down 4.53%), Indiabulls Real Estate (down 8.27%), Unitech (down 4.9%), NBCC (down 2.76%), Godrej Properties (down 0.65%), Housing Development & Infrastructure (HDIL) (down 8.35%), DLF (down 8.97%), and Omaxe (down 1.39%) edged lower.
Lupin declined 3.2%. The company announced that it has received final approval for its Memantine Hydrochloride Extended-Release Capsules, 7 mg, 14 mg, 21 mg, and 28 mg from the United States Food and Drug Administration (USFDA) to market a generic version of Allergan's Namenda XR Capsules, 7 mg, 14 mg, 21 mg, and 28 mg.
Lupin's Memantine Hydrochloride Extended-Release Capsules, 7 mg, 14 mg, 21 mg, and 28 mg are the AB rated generic equivalent of Allergan's Namenda XR Capsules, 7 mg, 14 mg, 21 mg, and 28 mg. Memantine Hydrochloride Extended-Release Capsules, 7 mg, 14 mg, 21 mg, and 28 mg are indicated for treatment of moderate to severe dementia of the Alzheimer's type. Namenda XR Capsules had annual sales of $1.22 billion in US as per IMS MAT June 2016.The announcement was made during market hours today, 29 September 2016.
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