Key benchmark indices dropped on the last trading session of the week today, 4 December 2015, tracking slide in global stocks after the European Central Bank (ECB)'s stimulus package announced after policy meet yesterday, 3 December 2015, fell well short of markets' high expectations. The barometer index, the S&P BSE Sensex, lost 248.51 points or 0.96% to settle at 25,638.11. The fall in 50-unit CNX Nifty 50 index was higher in percentage terms than Sensex's fall. The Nifty 50 index shed 82.25 points or 1.05% to settle at 7,781.90. The Sensex and the Nifty, both, hit their lowest closing level in more than two weeks. After opening lower, key indices remained in the negative terrain throughout the session.
Key indices fell for the third day in a row today, 4 December 2015.
In overseas markets, European stocks slipped after Asian stocks settled lower as the European Central Bank (ECB)'s stimulus package fell well short of markets' high expectations. US stocks dropped yesterday, 3 December 2015 as the ECB disappointed market hopes for greater stimulus. The ECB cut its deposit rate deeper into negative territory and extended its asset buys by six months, as expected. But some market participants had hoped for greater stimulus.
The ECB President Mario Draghi after a policy meet yesterday, 3 December 2015, announced the central bank would extend its massive 60 billion euro ($63.5 billion) a month bond-buying scheme to at least March 2017. The ECB cut its deposit rate further into negative territory by 10 basis points to a fresh low of -0.3%, down from -0.2%.
The Sensex lost 248.51 points or 0.96% to settle at 25,638.11, its lowest closing level since 18 November 2015. The Sensex lost 262.91 points or 1.01% at the day's low of 25,623.71. The barometer index dropped 76.56 points 0.29% at the day's high of 25,810.06.
The Nifty shed 82.25 points or 1.05% to settle at 7,781.90, its lowest closing level since 18 November 2015. The Nifty lost 88.45 points or 1.12% at the day's low of 7,775.70. The Nifty fell 42.75 points or 0.54% at the day's high of 7,821.40.
The BSE Mid-Cap index dropped 1.05%. The decline in the index was higher in percentage terms than the Sensex's fall. The BSE Small-Cap index fell 0.64%. The decline in the index was lower in percentage terms than the Sensex's fall.
The market breadth indicating the overall health of the market was negative. On BSE, 1,567 shares fell and 1,177 shares rose. A total of 168 shares were unchanged.
The total turnover on BSE amounted to Rs 2980 crore, lower than turnover of Rs 3096.30 crore registered during the previous trading session.
Shares of power generation and power distribution companies edged lower. Torrent Power (down 2.27%), GVK Power & Infrastructure (down 3.98%), NHPC (down 2.76%), Tata Power Company (down 1.83%), NTPC (down 2.13%), Power Grid Corporation of India (down 2.17%), Reliance Infrastructure (down 2.11%) and Reliance Power (down 1.79%) declined.
Auto stocks declined. Mahindra & Mahindra (M&M) (down 2.42%), Ashok Leyland (down 1.63%), Maruti Suzuki India (down 0.49%), Eicher Motors (down 1.3%), Bajaj Auto (down 0.95%), Hero MotoCorp (down 0.05%) and Tata Motors (down 1.36%) declined. TVS Motor Company rose 0.16%.
Bank stocks fell across the board. Among private bank stocks, HDFC Bank (down 0.96%), Kotak Mahindra Bank (down 1.29%), ICICI Bank (down 1.71%), Axis Bank (down 0.43%), and Yes Bank (down 1.69%) declined. IndusInd Bank rose 0.04%.
Among PSU bank stocks, Punjab National Bank (down 1.68%), Bank of Baroda (down 2.5%), Canara Bank (down 2.75%), IDBI Bank (down 1.93%), Bank of India (down 1.52%), State Bank of India (SBI) (down 0.08%) and Union Bank of India (down 1.87%) dropped.
Dena Bank rose 1.73% after its board of directors approved raising funds from the equity market by diluting the government's stake to 52% from the current 65%. The announcement was made after market hours yesterday, 3 December 2015. As on 30 September 2015, the Government of India held 65% stake in Dena Bank. Besides the stake dilution, the bank also plans to raise capital through additional tier-I (AT1) bonds of up to Rs 1500 crore in one or more tranches. It will also raise capital through tier-II bonds up to Rs 1000 crore, the lender said.
Reliance Communications (RCom) dropped 3.11%. The company announced during market hours that it has signed a non-binding term sheet with Tillman Global Holdings, LLC and TPG Asia, Inc. (TPG) in relation to the proposed acquisition of RCom's nationwide tower assets and related infrastructure by Tillman and TPG.
Under the term sheet, the specified assets are intended to be transferred from Reliance Infratel (RITL) on a going concern basis into a separate special purpose vehicle (SPV), to be owned 100% by Tillman and TPG. RCom will continue as an anchor tenant on the tower assets, under a long term MSA, for its integrated telecommunications business. RCom intends to utilize the proceeds of the proposed transaction only to reduce its debt. Tillman and TPG will also evaluate purchase of RCom's extensive nationwide inter-city and intra-city optic fibre assets, in a separate and independent transaction. The parties have entered into an Exclusivity Agreement valid till 15 January 2016. The proposed Transaction is subject to final due diligence, definitive documentation, applicable regulatory and other approvals and certain other terms and conditions. Accordingly, there can be no certainty that a transaction will result. Further announcements will be made at an appropriate stage.
3i Infotech was locked at 20% upper circuit at Rs 5.20 after the company said that a meeting of the board of directors of the company will be held on 7 December 2015, inter alia, to discuss and approve a proposal for the realignment of its debt with the lenders/lessors in India and foreign currency convertible bondholders (FCCBs). Such realignment of debt may include, among others, conversion of a portion of debt into equity/redeemable preference shares and restructuring of a portion of debt to provide for elongated repayment schedule and revised interest rate, 3i Infotech said. Any debt realignment proposal shall remain subject to approval from, among others, the lenders/lessors in India and FCCB holders as well as relevant shareholder and regulatory authorities, 3i Infotech said. The announcement was made during market hours today, 4 December 2015.
Sandur Manganese & Iron Ores rose 7.17% after the company said that the Karnataka high court vide Order dated 3 December 2015 has quashed the levy of forest development tax (FDT) by the government of Karnataka on mining lease holders. The announcement was made during trading hours today, 4 December 2015. The State Government, pursuant to notification dated 16 August 2008, had amended the provisions of Section 98(A) of the Karnataka Forest Act, 1963 for levying FDT on the sale of ores by the mining lease holders with effect from 27 August 2008. The said matter was contested by Sandur Manganese & Iron Ores and other mining lease holders before the High Court of Karnataka, wherein the High Court of Karnataka at Bangalore has pronounced the judgment to the effect that the levy FDT shall be applicable only to State Government-owned entities and not others. The operative portion/summary of the judgement was pronounced in Open Court and a copy of the order is awaited, the company said in a statement.
New Delhi Television rose 5.46% after the company said it forayed into the online wedding market space with a new e-commerce venture. The announcement was made during trading hours today, 4 December 2015. The company said its forthcoming wedding and festival platform, Special Occasion, has raised funding at a valuation of $20 million from US-based venture capital firm, CerraCap Ventures. With this launch, NDTV establishes itself more firmly in the digital and ecommerce space, the company said in a statement.
Meanwhile, key benchmark indices fell for third day in a row today, 4 December 2015. The Sensex has declined 531.30 points or 2.03% in the preceding three trading sessions from its close of 26,169.41 on 1 December 2015. The Sensex has declined 507.56 points or 1.94% in the first four trading sessions of this month. The Sensex has fallen 1,861.31 points or 6.76% in this calendar year so far (till 4 December 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 804.57 points or 3.23%. The Sensex is off 4,386.63 points or 14.61% from a record high of 30,024.74 hit on 4 March 2015.
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