After registering gains for the preceding six straight trading sessions, key benchmark indices edged lower today, 8 October 2015, as stocks of private sector banks, automobile and pharma sector companies and index heavyweights ITC and Reliance Industries edged lower. The barometer index, the S&P BSE Sensex, dropped 190.04 points or 0.7% to settle at 26,845.81. The 50-unit CNX Nifty declined 48.05 points or 0.59% to settle 8,129.35. The Sensex and the Nifty languished in negative zone almost throughout the trading session. The Sensex fell below the psychological 27,000 mark. Modest gains had helped the Sensex reclaim the psychological 27,000 mark yesterday, 7 October 2015.
Metal & mining stocks were mixed. Bharti Infratel lost on profit booking after recent steep rally. Rajesh Exports rose after securing an export order.
In overseas stock markets, European stocks edged higher in volatile trade as weak exports data from Germany fueled expectations that the European Central Bank will launch more easing measures. The weak German exports data comes close on the heels of recent weak industrial output and manufacturing orders data in Europe's biggest economy. Trading in US stock index futures pointed to losses for US stocks at the opening bell. In Asia, stocks in mainland China edged higher, catching up to a rally in global equities as trading resumed after a week-long break. The Shanghai Composite ended with a gain of 2.97%.
The barometer index, the S&P BSE Sensex, dropped 190.04 points or 0.7% to settle at 26,845.81, its lowest closing level since 5 October 2015. The index fell 273.49 points or 1.01% at the day's low of 26,762.36 in mid-afternoon trade. The index rose 84.26 points or 0.31% to the day's high of 27,120.11 at onset of the trading session.
The 50-unit CNX Nifty declined 48.05 points or 0.59% to settle at 8,129.35, its lowest closing level since 5 October 2015. The index lost 71.55 points or 0.87% at the day's low of 8,105.85 in mid-afternoon trade. The index rose 19.35 points or 0.23% at the day's high of 8,196.75 in opening trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,479 shares fell and 1,267 shares rose. A total of 114 shares were unchanged. The BSE Mid-Cap index fell 1.01%. The fall in the index was higher than Sensex's decline in percentage terms. The BSE Small-Cap index fell 0.15%. The fall in the index was lower than Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 3074 crore, lower than turnover of Rs 3250.25 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Bankex (down 0.77%), the S&P BSE Oil & Gas index (down 0.85%), the S&P BSE Healthcare index (down 1%) and the S&P BSE FMCG index (down 1.04%), underperformed the Sensex. The S&P BSE Metal index (up 0.32%), the S&P BSE Consumer Durables index (up 0.24%), the S&P BSE IT index (down 0.19%), the S&P BSE Teck index (down 0.39%), the S&P BSE Power index (down 0.49%), the S&P BSE Realty index (down 0.51%), the S&P BSE Auto index (down 0.53%) and the S&P BSE Capital Goods index (down 0.56%) outperformed the Sensex.
Index heavyweight and cigarette maker ITC shed 1.93% to Rs 339.60 on reports that the Uttar Pradesh (UP) state government has decided to ban the sale of loose cigarette sticks in the state. The stock hit high of Rs 347 and low of Rs 335.50. UP is India's most populous state, and contributes 3-4% to ITC's volumes, according to reports.
Index heavyweight and engineering and construction major L&T fell 0.54% to Rs 1,536. The stock hit high of Rs 1,550 and low of Rs 1,521.
Index heavyweight Reliance Industries (RIL) dropped 2.61% to Rs 890. The stock hit high of Rs 915 and low of Rs 886.60.
Index heavyweight and housing finance major HDFC rose 0.29% to Rs 1,280, also its intraday high. The stock hit an intraday low of Rs 1,258.55.
Shares of private sector banks declined. Axis Bank (down 1.14%), HDFC Bank (down 0.38%), ICICI Bank (down 1.29%), Kotak Mahindra Bank (down 1.51%), Federal Bank (down 1%), Yes Bank (down 1.37%), and IndusInd Bank (down 0.26%) edged lower.
Shares of public sector banks were mixed. Bank of Baroda (down 0.4%), Allahabad Bank (down 0.06%), Union Bank of India (down 0.14%), Canara Bank (down 0.28%), edged lower. State Bank of India (SBI) (up 0.14%), Punjab National Bank (up 0.11%) and Bank of India (up 0.14%) rose.
Corporation Bank gained 0.89%. The bank has reduced the base rate by 25 basis points from 9.9% to 9.65% with effect from 8 October 2015. The announcement was made after market hours yesterday, 7 October 2015.
A number of banks have cut their base rate after the Reserve Bank of India (RBI) cut its benchmark interest rate viz. the repo rate by 50 basis points after a monetary policy review late last month. The base rate is the minimum lending rate charged by a bank.
Most pharma shares declined. Cadila Healthcare (down 3.32%), Glenmark Pharmaceuticals (down 3.84%), Lupin (down 0.95%), Sun Pharmaceutical Industries (down 1.41%), GlaxoSmithKline Pharmaceuticals (down 0.69%), and Wockhardt (down 0.27%) declined. Dr Reddy's Laboratories rose 0.48%.
Cipla slipped 0.32%. The company announced that its South African subsidiary Cipla Medpro (Pty) Ltd. has entered into an exclusive agreement with the world's largest vaccine manufacturer, Serum Institute of India (SII) in South Africa to supply of vaccines in South Africa. SII manufactures a variety of vaccine classes including vaccines for Polio, Diphtheria, Tetanus, BCG (Tuberculosis), Hepatitis B, Measles, Mumps and Rubella. South Africa will be participating in the majority of these portfolios. Cipla Medpro has exclusivity and first right of refusal of the SII pipeline within South Africa.
Separately, Cipla announced after market hours yesterday, 7 October 2015, that Cipla (EU), a wholly owned subsidiary of the company, has entered into a definitive agreement with Biopharma SPA for establishing a joint venture company in Algeria. The joint venture company will manufacture and market respiratory products facilitating Cipla's front-end presence in Algeria. As per Cipla's announcement made in February this year when it had announced a binding term sheet for establishing the joint venture in Algeria, Cipla (EU) will hold a 40% stake in the joint venture company while the remainder will be held by a Biopharm-led Algerian consortium. Cipla had also announced at that time that its initial investment in the joint venture company is estimated at $6 million and that the joint venture company will make an investment of up to $15 million for the construction of a manufacturing facility.
Most auto stocks declined. Ashok Leyland (down 1.4%), Eicher Motors (down 1.4%), Maruti Suzuki India (down 0.49%), TVS Motor Company (down 0.23%) and Bajaj Auto (down 0.71%) declined. Tata Motors (up 0.82%) and Hero MotoCorp (up 0.82%) edged higher.
Mahindra & Mahindra (M&M) declined 0.98%. The company announced during market hours today, 8 October 2015, that global credit rating agency Moody's Investors Service has assigned Baa3 foreign currency and local currency issuer rating with stable outlook to the company. The rating reflects M&M's diversified business profile, leading market position in India, long track record of successful operations, strong corporate governance practices, financial flexibility and conservative financial policies.
Metal & mining stocks were mixed. National Aluminum Company (up 2.62%), Hindustan Copper (up 0.52%), Vedanta (up 2.21%), NMDC (up 0.47%), Hindalco Industries (up 0.24%), and Jindal Steel & Power (up 0.21%) gained. Steel Authority of India (Sail) (down 0.91%), JSW Steel (down 0.45%), Hindustan Zinc (down 1.83%) declined.
Tata Steel rose 1.35%. The company after market hours yesterday, 7 October 2015, announced that as a result of measures agreed between the trustee of the British Steel Pension Scheme (the Scheme) and Tata Steel UK (TSUK) and benefit changes implemented following consultation between TSUK, its employees and their representatives, the on-going residual deficit at TSUK has been reduced sharply from around 550 million pounds as at 31 March 2011 to 90 million pounds as at 31 March 2014. Accounting impacts arising from the changes to the pension plan will be recorded in the company's accounts in due course, Tata Steel said. TSUK is an indirect subsidiary of Tata Steel.
Tata Power Company declined 0.43%. The company announced that it has launched a LED tube light program for its residential consumers in Mumbai to encourage them to adopt energy efficient lights, thereby saving power. The company announced during market hours today, 8 October 2015. Under this programmer, each residential consumer is eligible to procure 5 LED tube lights fittings at a price of Rs 525 each, against a market price of Rs 1,325 each.
Bharti Infratel lost 5.17% to Rs 408.20 on profit booking after recent steep rally. Shares of Bharti Infratel had rallied 21.33% in the preceding four trading sessions to settle at Rs 430.45 yesterday, 7 October 2015, from a recent low of Rs 354.75 on 30 September 2015.
Rajesh Exports rose 1.85% after the company said it has secured an export order worth Rs 1360 crore of designer range of gold and diamond studded jewellery and medallions from UAE. The company announced the new order during market hours today, 8 October 2015. Rajesh Exports said that the execution of its latest export order will significantly add to the bottom line of the company.
Tribhovandas Bhimji Zaveri jumped 9.76% after the company said it has tied up with Snapdeal, India's leading online marketplace, to offer its diamond jewellery and gold coins on Snapdeal's online marketplace. The announcement was made during trading hours today, 8 October 2015.
Genesys International Corporation rose by maximum permissible daily limit of 20% to settle at Rs 69.30 on BSE after the company said that Quikr, an online cross category classifieds company is making an investment in Genesys' venture A.N.Virtual World Tech. The company made the announcement after market hours yesterday, 7 October 2015. Genesys International Corporation did not disclose the financial and other aspects of investment by Quikr in A.N.Virtual World Tech. The investment by Quikr is a strategic move as it deepens its offerings in several verticals and consolidates its position in the online classifieds industry, Genesys said.
Key benchmark indices snapped six-day winning streak. The Sensex had risen 1,419.01 points or 5.53% in the preceding six trading sessions to settle at 27,035.85 yesterday, 7 October 2015, from its close of 25,616.84 on 28 September 2015. The Sensex has risen 690.98 points or 2.64% in this month so far (till 8 October 2015). The Sensex has fallen 653.61 points or 2.37% in this calendar year so far (till 8 October 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 2,012.27 points or 8.1%. The Sensex is off 3,178.93 points or 10.58% from a record high of 30,024.74 hit on 4 March 2015.
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