Key benchmark indices suffered steep 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 Pakistan occupied Kashmir late last night. The barometer index, the S&P BSE Sensex slumped 465.28 points or 1.64% to settle at 27,827.53. The Nifty 50 index lost 153.90 points or 1.76% to settle at 8,591.25. The Sensex settled below the psychological 28,000 mark after falling below that mark in afternoon trade. The Sensex and the Nifty, both, settled at their lowest level in almost five weeks. All the nineteen sectoral indices on BSE were in the red.
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.
The Sensex slumped 465.28 points or 1.64% to settle at 27,827.53, its lowest closing level since 26 August 2016. The Sensex slumped 572.89 points or 2.02% at the day's low of 27,719.92. The barometer index gained 182.76 points or 0.64% at the day's high of 28,475.57.
The Nifty 50 index lost 153.90 points or 1.76% to settle at 8,591.25, its lowest closing level since 26 August 2016. The Nifty dropped 186.90 points or 2.13% at the day's low of 8,558.25. The index gained 55.50 points or 0.63% at the day's high of 8,800.65.
The broad market depicted weakness. There were more than five losers against every gainer on BSE. 2,297 shares fell and 442 shares rose. A total of 192 shares were unchanged. The BSE Mid-Cap index fell 3.6%. The BSE Small-Cap index lost 4.02%. 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.
Among the sectoral indices on BSE, the S&P BSE Realty index (down 6.31%), the S&P BSE Power index (down 4.11%), the S&P BSE Utilities index (down 3.49%), the S&P BSE Basic Materials index (down 3.48%), the S&P BSE Industrials index (down 3.29%), the S&P BSE Healthcare index (down 3.26%), the S&P BSE Metal index (down 3.17%), the S&P BSE Consumer Durables index (down 2.84%), the S&P BSE Finance index (down 2.66%), the S&P BSE Capital Goods index (down 2.5%), the S&P BSE Consumer Discretionary Goods & Services index (down 2.46%), the S&P BSE Bankex (down 2.43%), the S&P BSE Telecom index (down 2.17%), the S&P BSE Auto index (down 2.16%), the S&P BSE Oil & Gas index (down 1.9%) and the S&P BSE Energy index (down 1.7%), underperformed the Sensex. The S&P BSE FMCG index (down 1.54%), the S&P BSE Teck index (down 1.04%) and the S&P BSE IT index (down 0.96%), outperformed the Sensex.
IT major TCS was the lone gainer in the 30-share Sensex pack. TCS rose 0.46% to Rs 2,434.60.
Index heavyweight and housing finance major HDFC lost 1.61% to Rs 1,400.10. The stock hit high of Rs 1,432.45 and low of Rs 1,392.55 in intraday trade.
Index heavyweight Reliance Industries lost 1.57% to Rs 1,072.55. The stock hit high of Rs 1,110 and low of Rs 1,067.50 in intraday trade.
Pharma shares declined. Aurobindo Pharma (down 4.98%), Cadila Healthcare (down 3.18%), Cipla (down 0.73%), Dr Reddy's Laboratories (down 2.12%), Glenmark Pharmaceuticals (down 4.19%), Sun Pharmaceutical Industries (down 3.84%), Alkem Laboratories (down 2.05%), GlaxoSmithKline Pharmaceuticals (down 0.9%) declined.
Wockhardt lost 4.68%. The company announced that inspection of the company's manufacturing unit at L-1, Chikalthana, Aurangabad, Maharashtra by UK Medicines and Healthcare products Regulatory Agency (MHRA) has since been completed without any critical observations and the approval status of the said unit continues. The announcement was made during trading hours today, 29 September 2016.
Bank stocks declined. Among private sector banks, Axis Bank (down 1.89%), HDFC Bank (down 1.39%), ICICI Bank (down 3.76%), Yes Bank (down 2.99%), RBL Bank (down 4.2%), Federal Bank (down 6.82%), Kotak Mahindra Bank (down 1.32%), and IndusInd Bank (down 1.72%) edged lower.
Among public sector banks, Bank of India (down 8.08%), Bank of Baroda (down 4.01%), Syndicate Bank (down 5.03%), Punjab National Bank (down 6.59%), Corporation Bank (down 7.49%), Allahabad Bank (down 6.81%), State Bank of India (SBI) (down 2.5%), UCO Bank (down 5.83%), Union Bank of India (down 6.83%), and United Bank of India (down 5.81%) edged lower.
Metal and mining stocks fell. Steel Authority of India (Sail) (down 7.08%), National Aluminium Company (down 3.99%), Vedanta (down 3.32%), JSW Steel (down 5.26%), Tata Steel (down 3.63%), Hindustan Zinc (down 1.67%), Jindal Steel & Power (down 8.4%), Hindalco Industries (down 3.91%) and 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.
L&T fell 1.29%. The company said its construction arm won orders worth Rs 2046 crore across various business segments. The announcement was made during trading hours today, 29 September 2016.
Realty stocks slumped. DLF (down 8.97%), Indiabulls Real Estate (down 8.27%), Unitech (down 4.9%), Godrej Properties (down 0.65%), Housing Development & Infrastructure (HDIL) (down 8.35%), Sobha (down 4.53%), and Omaxe (down 1.39%) edged lower.
Marathon Nextgen Realty lost 10.35% to Rs 236.35. The company's were listed and admitted to dealings on the National Stock Exchange of India with effect from today, 29 September 2016. Shares of Marathon Nextgen Realty had gained 10.06% to settle at Rs 263.65 yesterday, 28 September 2016 after the company said that shares of the company will be listed and admitted to dealings on the National Stock Exchange of India with effect from 29 September 2016. The announcement was made during market hours on 28 September 2016.
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.
Shares of ICICI Prudential Life Insurance Company settled at Rs 297.65 on BSE, a discount of 10.88% over the initial public offer price of Rs 334. The stock debuted at Rs 329, a discount of 1.5% to the initial public offer (IPO) price. So far the stock hit a high of Rs 333.90 and low of Rs 295.50. On BSE, 1.27 crore shares were traded on the counter. ICICI Prudential Life Insurance Company had priced the IPO at the top end of the Rs 300 to Rs 334 price band. The bidding for the IPO concluded on 21 September 2016. The issue received bids for 138.77 crore shares and it was subscribed 10.48 times. ICICI Prudential is the largest private sector life insurer in India by total premium and assets under management at 31 March 2016. ICICI Prudential is a joint venture between ICICI Bank and Prudential Corporation Holdings, a part of the Prudential Group, an international financial services group. The company is one of the first private sector life insurance companies in India. It commenced operations in October 2000 and offers a range of life insurance, health insurance and pension products and services.
Eros International Media fell 2.55%. The company said it tied up with UAE's Phars Film for co-production and distribution of Malayalam movies. The company announced its association with UAE's largest film distribution and exhibition network (Hollywood & Bollywood), Phars Film. The partnership will entail the two companies jointly co-producing Malayalam films along with exploration of theatrical rights between the two entities. The deal licenses Eros to exploit the distribution of all Malayalam movies produced jointly in India, while Phars Films would present the same overseas where it enjoys a dominant market share. The announcement was made after market hours yesterday, 28 September 2016.
CEAT fell 2.28%. Amansa Holding Pte bought 4.75 lakh shares or 1.17% stake in CEAT through secondary market purchase. After the latest stake buy, Amansa Holding Pte's stake in CEAT rose to 5.19%. The company made the announcement after trading hours yesterday, 28 September 2016.
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