Sensex, Nifty drop over 2%
Key benchmark indices slumped in the week just gone by in line with slide in global stocks as a recent sharp drop in global crude oil prices heightened fears about receding global growth. Diminishing hopes that the constitutional amendment bill on goods and services tax (GST) will be passed during the ongoing winter session of parliament with main opposition Congress party repeatedly disrupting the parliament also weighed on investor sentiment.
The barometer index, the S&P BSE Sensex, fell below the psychological 25,000 mark in intraday trade on Friday, 11 December 2015, but managed to claw back and settle slightly above that mark. The Sensex and the Nifty dropped in four out of five trading sessions in the week ended 11 December 2015.
The Sensex dropped 593.68 points or 2.31% to settle at 25,044.43. The decline for the Sensex was higher in percentage terms compared with the fall in the 50 unit Nifty 50 index. The Nifty lost 171.45 points or 2.2% to settle at 7,610.45.
The BSE Mid-Cap index shed 3.28%. The BSE Small-Cap index skidded 2.97%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
Trading for the week began on a negative note as losses for index heavyweight ITC and stocks of oil exploration and production (E&P) pulled key benchmark indices lower on Monday, 7 December 2015. The Sensex lost 108 points or 0.42% to settle at 25,530.11.
Weakness in global stocks triggered losses for Indian stocks which fell for a fifth day in a row on Tuesday, 8 December 2015. The Sensex lost 219.78 points or 0.86% to settle at 25,310.33, its lowest closing level since 7 September 2015.
Key benchmark indices extended losses on Wednesday, 9 December 2015, on weak global stocks and on diminishing hopes that the constitutional amendment bill on goods and services tax (GST) will be passed during the ongoing winter session of parliament. The Sensex lost 274.28 points or 1.08% to settle at 25,036.05, its lowest closing level since 7 September 2015.
Index heavyweights Reliance Industries (RIL), HDFC, Infosys and stocks from metal sector led gains as key benchmark indices snapped a six-day losing streak on Thursday, 10 December 2015. The Sensex gained 216.27 points or 0.86% to settle at 25,252.32.
Banking and telecom stocks led losses as key benchmark indices edged lower on the last trading session of the week on Friday, 11 December 2015. The Sensex lost 207.89 points or 0.82% to settle at 25,044.43.
From the 30-share Sensex pack, 23 stocks fell and 7 rose in the week ended 11 December 2015.
Auto stocks fell. Mahindra & Mahindra (M&M) dropped 3.78%.
Tata Motors declined 5.49%. Tata Motors said on Friday, 11 December 2015, that its British luxury car unit, Jaguar Land Rover will open a manufacturing facility in Slovakia. The new world-class £1 billion premium manufacturing facility will eventually employ around 2,800 people. As part of Jaguar Land Rover's commitment to deliver more lightweight vehicles, the plant will manufacture a range of all-new aluminium Jaguar Land Rover vehicles. It is anticipated that the first cars will come off the production line from the plant in late 2018. The factory will have an initial capacity of 1.5 lakh vehicles.
Separately Tata Motors on 9 December 2015, reported 8% increase in global wholesales to 90,695 units in November 2015 over November 2014.
Maruti Suzuki India fell 2.31%. According to reports, the company plans to raise prices of its cars by up to Rs 20,000 from 1 January 2016 to offset cost increases and unfavourable foreign exchange rates.
Among two-wheeler makers, Bajaj Auto (down 2.32%) and Hero MotoCorp (down 3.59%) edged lower.
Bank stocks dropped. ICICI Bank (down 4.63%), Axis Bank (down 4.47%), HDFC Bank (down 1.35%) and State Bank of India (down 5.75%) edged lower.
On 10 December 2015, the Reserve Bank of India (RBI) announced a reduction of 100 basis points in the Statutory Liquidity Ratio (SLR) of commercial banks to 20.5% from 21.5% in four equal stages starting from 2 April 2016. The SLR will be reduced to 21.25% from 2 April 2016, 21% from 9 July 2016, 20.75% from 1 October 2016 and 20.5% from 7 January 2017.
Most pharma stocks edged lower. Dr Reddy's Laboratories (down 7.2%), Lupin (down 3.59%), and Cipla (down 0.97%) declined.
Sun Pharmaceutical Industries rose 0.26%. The company announced on 10 December 2015 that it has entered into a tripartite research and option agreement with Israel-based Weizmann Institute of Science and Spain's Health Research Institute of Santiago de Compostela (IDIS) to develop breakthrough products for the treatment of neurological diseases like brain stroke, as well as glioblastoma, a lethal brain cancer.
Among metal stocks, Tata Steel rose 0.29%. Vedanta slumped 9% and was the biggest loser from the Sensex pack. Hindalco Industries lost 3.54%.
Wipro lost 0.67%. The company announced on 9 December 2015, that Wipro Digital, its digital business unit, has opened a new office in London to offer enhanced digital transformation services at close proximity to its UK and European customers.
Infosys rose 0.43%. The company on 10 December 2015 announced that it has won a five-year contract to transform the application landscape of DNB Bank of Norway.
TCS gained 2.45% and was the biggest gainer from the Sensex pack. The company announced the inauguration of phase II of its campus at Kalinga Park in Bhubaneswar. With the addition of 3,000 seats in phase II, the Kalinga Park campus now has operational capacity of 4,000 seats. The announcement was made on 10 December 2015.
Coal India tumbled 8.18% and was the second biggest loser from the Sensex pack.
Cigarette maker ITC declined 4.38% after a committee headed by Chief Economic Adviser Dr. Arvind Subramanian on possible tax rates under goods and services tax (GST) recommended a steep 40% tax on tobacco and tobacco products. Luxury cars, aerated beverages and paan masala are the three other product lines in addition to tobacco and tobacco products for which the committee has suggested sin/demerit rate of 40%.
On political front, the latest row in parliament stems from a New Delhi judge's order that Congress president Sonia Gandhi and her son Rahul must appear in court next week, in a case brought by BJP's Subramanian Swamy. The Congress has accused the government of pursuing a political vendetta against the Gandhi family. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. The winter session of the parliament began on 26 November 2015 and concludes on 23 December 2015.
The barometer index, the S&P BSE Sensex, fell below the psychological 25,000 mark in intraday trade on Friday, 11 December 2015, but managed to claw back and settle slightly above that mark. The Sensex and the Nifty dropped in four out of five trading sessions in the week ended 11 December 2015.
The Sensex dropped 593.68 points or 2.31% to settle at 25,044.43. The decline for the Sensex was higher in percentage terms compared with the fall in the 50 unit Nifty 50 index. The Nifty lost 171.45 points or 2.2% to settle at 7,610.45.
The BSE Mid-Cap index shed 3.28%. The BSE Small-Cap index skidded 2.97%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
Trading for the week began on a negative note as losses for index heavyweight ITC and stocks of oil exploration and production (E&P) pulled key benchmark indices lower on Monday, 7 December 2015. The Sensex lost 108 points or 0.42% to settle at 25,530.11.
Weakness in global stocks triggered losses for Indian stocks which fell for a fifth day in a row on Tuesday, 8 December 2015. The Sensex lost 219.78 points or 0.86% to settle at 25,310.33, its lowest closing level since 7 September 2015.
Key benchmark indices extended losses on Wednesday, 9 December 2015, on weak global stocks and on diminishing hopes that the constitutional amendment bill on goods and services tax (GST) will be passed during the ongoing winter session of parliament. The Sensex lost 274.28 points or 1.08% to settle at 25,036.05, its lowest closing level since 7 September 2015.
Index heavyweights Reliance Industries (RIL), HDFC, Infosys and stocks from metal sector led gains as key benchmark indices snapped a six-day losing streak on Thursday, 10 December 2015. The Sensex gained 216.27 points or 0.86% to settle at 25,252.32.
Banking and telecom stocks led losses as key benchmark indices edged lower on the last trading session of the week on Friday, 11 December 2015. The Sensex lost 207.89 points or 0.82% to settle at 25,044.43.
From the 30-share Sensex pack, 23 stocks fell and 7 rose in the week ended 11 December 2015.
Auto stocks fell. Mahindra & Mahindra (M&M) dropped 3.78%.
Tata Motors declined 5.49%. Tata Motors said on Friday, 11 December 2015, that its British luxury car unit, Jaguar Land Rover will open a manufacturing facility in Slovakia. The new world-class £1 billion premium manufacturing facility will eventually employ around 2,800 people. As part of Jaguar Land Rover's commitment to deliver more lightweight vehicles, the plant will manufacture a range of all-new aluminium Jaguar Land Rover vehicles. It is anticipated that the first cars will come off the production line from the plant in late 2018. The factory will have an initial capacity of 1.5 lakh vehicles.
Separately Tata Motors on 9 December 2015, reported 8% increase in global wholesales to 90,695 units in November 2015 over November 2014.
Maruti Suzuki India fell 2.31%. According to reports, the company plans to raise prices of its cars by up to Rs 20,000 from 1 January 2016 to offset cost increases and unfavourable foreign exchange rates.
Among two-wheeler makers, Bajaj Auto (down 2.32%) and Hero MotoCorp (down 3.59%) edged lower.
Bank stocks dropped. ICICI Bank (down 4.63%), Axis Bank (down 4.47%), HDFC Bank (down 1.35%) and State Bank of India (down 5.75%) edged lower.
On 10 December 2015, the Reserve Bank of India (RBI) announced a reduction of 100 basis points in the Statutory Liquidity Ratio (SLR) of commercial banks to 20.5% from 21.5% in four equal stages starting from 2 April 2016. The SLR will be reduced to 21.25% from 2 April 2016, 21% from 9 July 2016, 20.75% from 1 October 2016 and 20.5% from 7 January 2017.
Most pharma stocks edged lower. Dr Reddy's Laboratories (down 7.2%), Lupin (down 3.59%), and Cipla (down 0.97%) declined.
Sun Pharmaceutical Industries rose 0.26%. The company announced on 10 December 2015 that it has entered into a tripartite research and option agreement with Israel-based Weizmann Institute of Science and Spain's Health Research Institute of Santiago de Compostela (IDIS) to develop breakthrough products for the treatment of neurological diseases like brain stroke, as well as glioblastoma, a lethal brain cancer.
Among metal stocks, Tata Steel rose 0.29%. Vedanta slumped 9% and was the biggest loser from the Sensex pack. Hindalco Industries lost 3.54%.
Wipro lost 0.67%. The company announced on 9 December 2015, that Wipro Digital, its digital business unit, has opened a new office in London to offer enhanced digital transformation services at close proximity to its UK and European customers.
Infosys rose 0.43%. The company on 10 December 2015 announced that it has won a five-year contract to transform the application landscape of DNB Bank of Norway.
TCS gained 2.45% and was the biggest gainer from the Sensex pack. The company announced the inauguration of phase II of its campus at Kalinga Park in Bhubaneswar. With the addition of 3,000 seats in phase II, the Kalinga Park campus now has operational capacity of 4,000 seats. The announcement was made on 10 December 2015.
Coal India tumbled 8.18% and was the second biggest loser from the Sensex pack.
Cigarette maker ITC declined 4.38% after a committee headed by Chief Economic Adviser Dr. Arvind Subramanian on possible tax rates under goods and services tax (GST) recommended a steep 40% tax on tobacco and tobacco products. Luxury cars, aerated beverages and paan masala are the three other product lines in addition to tobacco and tobacco products for which the committee has suggested sin/demerit rate of 40%.
On political front, the latest row in parliament stems from a New Delhi judge's order that Congress president Sonia Gandhi and her son Rahul must appear in court next week, in a case brought by BJP's Subramanian Swamy. The Congress has accused the government of pursuing a political vendetta against the Gandhi family. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. The winter session of the parliament began on 26 November 2015 and concludes on 23 December 2015.
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