Auto, telecom sector stocks and index heavyweights Reliance Industries, HDFC and HDFC Bank led modest losses for key benchmark indices in a volatile trading session. The barometer index, the S&P BSE Sensex, fell 143.63 points or 0.52% to settle at 27,529.97. The decline in the Nifty 50 index was higher than the Sensex's fall in percentage terms. The Nifty fell 63 points or 0.73% to settle at 8,520.40. Weakness in European stocks weighed on sentiment on the domestic bourses. The Sensex hit its lowest level in more than 14 weeks. The Nifty hit its lowest level in more than 12 weeks.
On the macro front, data released by the government after market hours on Friday, 14 October 2016 showed that India's trade deficit narrowed to $8.34 billion in September 2016, from $10.17 billion a year earlier. Imports declined 2.54% to $31.22 billion. Exports rose 4.62% to $22.88 billion.
In overseas stock markets, European stocks edged lower as investors remained cautious ahead of earnings, key data and a European Central Bank (ECB) meeting later this week. Asian stocks witnessed a mixed trend. US stocks registered small gains on Friday, 14 October 2016, as investors digested commentary from key Federal Reserve officials while parsing through strong bank earnings and US economic data.
Back home, the Sensex fell 143.63 points or 0.52% to settle at 27,529.97, its lowest closing level since 8 July 2016. The index rose 129.61 points, or 0.47% at the day's high of 27,803.21. The index fell 185.30 points, or 0.67% at the day's low of 27,488.30.
The Nifty 50 index fell 63 points or 0.73% to settle at 8,520.40, its lowest closing level since 21 July 2016. The index rose 32 points, or 0.37% at the day's high of 8,615.40. The index fell 77.25 points, or 0.90% at the day's low of 8,506.15.
Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 1,513 shares declined and 1,290 shares rose. A total of 175 shares were unchanged. The BSE Mid-Cap index fell 0.95%. The decline in this index was higher than the Sensex's decline in percentage terms. The BSE Small-Cap index fell 0.52%. The decline in this index matched the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 3873.02 crore, higher than turnover of Rs 3423.38 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Auto index (down 2.12%), the S&P BSE Consumer Discretionary Goods & Services index (down 1.77%), the S&P BSE Telecom index (down 1.76%), the S&P BSE Capital Goods index (down 1.47%), the S&P BSE Metal index (down 1.19%), the S&P BSE Realty index (down 1.19%), the S&P BSE Industrials index (down 1.12%), the S&P BSE Teck index (down 0.95%), the S&P BSE Energy index (down 0.89%), the S&P BSE Basic Materials index (down 0.83%), the S&P BSE Healthcare index (down 0.79%), the S&P BSE Oil & Gas index (down 0.59%), the S&P BSE IT index (down 0.57%) and the S&P BSE Power index (down 0.57%), underperformed the Sensex. The S&P BSE Utilities index (down 0.44%), the S&P BSE Finance index (down 0.2%), the S&P BSE FMCG index (down 0.11%), the S&P BSE Consumer Durables index (down 0.09%) and the S&P BSE Bankex (up 0.50%), outperformed the Sensex.
UltraTech Cement fell 0.74% at Rs 4,008.70. The stock was volatile. The stock hit a high of Rs 4,069.55 and a low of Rs 3,965 in intraday trade. On a consolidated basis, the company's net profit rose 25.05% to Rs 614 crore on 2.52% decline in net sales to Rs 5709 crore in Q2 September 2016 over Q2 September 2015. The result was announced during market hours today, 17 October 2016.
With regard to future business outlook, UltraTech Cement said that the government's thrust on developing infrastructure spending, good monsoons, development of smart cities leading to growth in housing demand in Tier-I and Tier-II cities, slower pace of new capacity addition augur well for the cement industry. The company added that it is well positioned across the country to meet the expected rise in cement demand and participate in the next phase of growth in the country.
Separately, UltraTech Cement announced after market hours on Friday, 14 October 2016 that it is proposing to issue secured redeemable non-convertible debentures (NCDs) amounting to Rs 300 crore on private placement basis. The tenure of debentures is five years. The interest offered on debentures is 7.15% per annum.
Telecom stocks declined. Idea Cellular (down 3.08%), Reliance Communications (down 2.92%) and Bharti Airtel (down 1.50%) edged lower.
Bharti Infratel was down 1.62%. Bharti Infratel is a telecom tower arm of Bharti Airtel.
Index heavyweight Reliance Industries fell 1.67% at Rs 1,060.15. The stock hit a high of Rs 1,080.65 and a low of Rs 1,058 in intraday trade.
Index heavyweight and housing finance major HDFC fell 1.30% to Rs 1,302. The company after market hours on Friday, 14 October 2016 announced that it has closed the issue of rupee denominated bonds to overseas investors aggregating to an amount up to Rs 500 crore. The yield to investor is 7.25% per annum payable semi-annually. Maturity date is 9 January 2020.
Shares of public sector banks edged lower. Among public sector banks, Allahabad Bank (down 2.33%), Andhra Bank (down 2.32%), Union Bank of India (down 2.3%), Vijaya Bank (down 2.2%), Bank of Baroda (down 2.11%), Punjab National Bank (down 1.69%), Bank of Maharashtra (down 1.31%), UCO Bank (down 1.25%), Syndicate Bank (down 1.19%), Bank of India (down 1.12%), United Bank of India (down 0.95%), Corporation Bank (down 0.73%), Indian Bank (down 0.55%), IDBI Bank (down 0.36%), Central Bank of India (down 0.32%), Dena Bank (down 0.27%) and Punjab & Sind Bank (down 0.2%), edged lower.
State Bank of India (SBI) rose 0.48% at Rs 253.10 after the bank said that the Executive Committee of the Central Board (ECCB) at its meeting held on 14 October 2016, approved to dilute upto 5% stake of SBI in SBI Life to a non-promoter entity. The announcement was made after market hours on Friday, 14 October 2016.
Canara Bank fell 2.60% to Rs 305.15 after the bank said that the majority of the directors approved to raise additional Tier-I capital funds through BASEL-III compliant additional Tier-I perpetual bonds. The announcement was made after market hours on Friday, 14 October 2016. Canara Bank said that the majority of the directors have taken note of the contents and the recommendations of the bank in the circular note and consented to raise additional Tier-I capital funds through BASEL-III compliant additional Tier-I perpetual bonds in rupee terms domestically for an amount not exceeding Rs 2500 crore in single tranche or in tranches depending on the market conditions to maintain healthy capital to risk (weighted) assets ratio (CRAR), during the current financial year. A bond committee will be constituted to determine the structure of the issue size, tenor, coupon, timing of the issue, date of allotment, listing and other matters connected to the issue.
On 6 October 2016, the bank had proposed to circulate a note among the directors of the board of the bank in respect of raising additional funds through BASEL-III compliant additional Tier-I bonds in rupee terms.
Stocks of private sector banks declined. RBL Bank (down 2.29%), Kotak Mahindra Bank (down 1.72%), Federal Bank (down 1.48%), City Union Bank (down 0.98%), IndusInd Bank (down 0.94%), Yes Bank (down 0.72%) and Axis Bank (down 0.35%), edged lower.
Index heavyweight HDFC Bank fell 1.87% at Rs 1,237.80. The stock hit a high of Rs 1,270 and a low of Rs 1,233 in intraday trade.
ICICI Bank jumped 6.91% at Rs 258.55 on reports the debt-laden company, Essar Oil agreed to sell an oil unit to a consortium led by Russia's Rosneft. ICICI Bank is amongst the major lenders to Essar Group. Exposure to Essar Group expressed as a percent of respective bank's loan book is highest for ICICI Bank, Axis Bank, Punjab National Bank and State Bank of India, as per reports.
Separately, ICICI Bank announced after market hours on Friday, 14 October 2016 that the board of directors of the bank at its meeting held on 14 October 2016, approved the appointment of Anup Bagchi, presently Managing Director & CEO, ICICI Securities, as Executive Director of ICICI Bank subject to regulatory approvals for a period of five years effective 1 February 2017 or the date of approval of his appointment by the Reserve Bank of India (RBI), whichever is later. Anup Bagchi has been with the ICICI Group since 1992 and has worked in the areas of retail banking, corporate banking and treasury. During his tenure at ICICI Securities, he has led the growth and development of the retail broking, retail financial product distribution and wealth management businesses, ICICI Bank said. Bagchi is not related to any other director of the bank, it added.
The board also took on record, the resignation of Rajiv Sabharwal, Executive Director consequent to his decision to pursue opportunities outside the ICICI Group, effective 31 January 2017. The board also took note of other incidental changes to the senior management positions across the ICICI Group.
Auto stocks edged lower after public sector oil marketing companies (PSU OMCs) hiked petrol and diesel prices. Mahindra & Mahindra (down 3.22%), Eicher Motors (down 2.96%), Hero MotoCorp (down 2.24%), Bajaj Auto (down 1.8%), Tata Motors (down 1.51%), Maruti Suzuki India (down 1.43%) and TVS Motor Company (down 0.68%), edged lower. Escorts (up 0.78%) and Ashok Leyland (up 0.99%), edged higher.
PSU OMCs increased petrol and diesel prices with effect from midnight 15 October 2016/16 October 2016. PSU OMCs announced increase in selling price of petrol by Rs 1.34per litre (excluding state levies) and increase in selling price of diesel by Rs 2.37per litre (excluding state levies).
The Sensex has declined 335.99 points or 1.21% in this month so far (till 17 October 2016). The Sensex has risen 1,412.43 points or 5.41% in calendar year 2016 so far (till 17 October 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,035.36 points or 22.38%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 1,547.31 points or 5.32%. The Sensex is off 2,494.77 points or 8.31% from a record high of 30,024.74 hit on 4 March 2015.
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