Market slumps on China woes
Suspension of trading in mainland China twice during the week on 4 January and 7 January 2016 triggered by a 7% slide for the CSI 300 Index caused sharp drop in global stocks and Indian stocks were no exception. Fresh geopolitical concerns over the Korean Peninsula also weighed on investors' sentiment in Asian markets after an announcement from North Korea that it had successfully conducted a hydrogen-bomb test. The barometer index, the S&P BSE Sensex, skidded below the psychological 25,000 mark. The Sensex and the 50-unit Nifty 50 index fell in four out of five sessions of the week ended Friday, 8 January 2016.
The Sensex slumped 1,226.57 points or 4.68% to settle at 24,934.33. The 50-unit Nifty 50 index tumbled 361.85 points or 4.54% to settle at 7,601.35. The BSE Mid-Cap index lost 2.25%. The BSE Small-Cap index fell 2.41%. The losses for both these indices were lower in percentage terms than those for the Sensex.
Trading for the week began on a weak note. A sharp selloff and trading halt in stock markets in mainland China rattled global stocks on Monday, 4 January 2016, and Indian equity markets were no exception. The Sensex slumped 537.55 points or 2.05% to settle at 25,623.35 on that day.
Amid a divergent trend among various index constituents, key benchmark indices registered minuscule to small losses on Tuesday, 5 January 2016. The Sensex fell 43.01 points or 0.17% to settle at 25,580.34.
Metal stocks and index heavyweights ITC and L&T led losses for key benchmark indices on Wednesday, 6 January 2016, which fell on weak global cues. The Sensex fell 174.01 points or 0.68% to settle at 25,406.33.
As another China led selloff gripped global markets, Indian stocks witnessed a steep slide, with the barometer index, the S&P BSE Sensex, falling below the psychological 25,000 level on Thursday, 7 January 2016. The Sensex lost 554.50 points or 2.18% to settle at 24,851.83.
Stocks from power and oil sector and private sector banks led gains as key benchmark indices snapped a 4-day losing streak on Friday, 8 January 2016. The Sensex rose 82.50 points or 0.33% to settle at 24,934.33.
For the 30-share Sensex pack, 28 stocks fell and only two rose in the week ended on Friday, 8 January 2016.
Index heavyweight Reliance Industries (RIL) rose 0.86%. GAIL (India) gained 0.91%.
Mahindra & Mahindra (M&M) fell 5.28%. The company on 6 January 2016 announced the launch of Imperio, its premium, aspirational pick-up vehicle. Imperio is developed to cater to the transportation needs of small and medium businesses. Imperio will be available in two model variants of single cabin and double cabin and in 3 colours. The vehicle is priced at Rs 6.25 lakh ex-showroom Thane, Mumbai for single cabin BS3 variant.
Maruti Suzuki India declined 9.05%. The company announced on 6 Janaury 2016 that its total production rose 12.96% to 1.07 lakh units in December 2015 over December 2014.
Tata Motors slumped on concerns about Chinese demand. The stock tumbled 12% and was the biggest loser from the Sensex pack. China is a key market for Tata Motors' British luxury car unit Jaguar Land Rover (JLR).
Hero MotoCorp (down 7.4%) and Bajaj Auto (down 5.68%) edged lower.
IT stocks declined. TCS (down 0.79%), Wipro (down 0.07%), and Infosys (down 3.47%) fell.
Pharma stocks dropped. Sun Pharmaceutical Industries declined 2.79%. Cipla shed 4.93%. Dr Reddy's Laboratories fell 3.07%.
Lupin dropped 7.2%. The company on 8 January 2016 announced that it has received final approval for its Kaitlib Fe Tablets from the United States Food and Drug Administration (FDA). Lupin's US subsidiary, Lupin Pharmaceuticals Inc. would commence promoting the product in the US shortly
Bank stocks also declined. Axis Bank (down 7.99%), HDFC Bank (down 2.26%), ICICI Bank (down 6.86%) and State Bank of India (down 8.21%) declined.
Bharat Heavy Electricals (Bhel) slumped 10.12%. The stock was the second biggest loser from the Sensex pack. The company on 7 January 2016 announced that it has commissioned two 220/20kV substations in Afghanistan. The project was executed by Bhel on engineering, procurement and construction (EPC) basis.
L&T shed 8.44%. The company announced on 7 January 2016 that L&T Hydrocarbon Engineering (LTHE), a fully owned subsidiary of L&T, in consortium with McDermott has bagged an offshore contract from ONGC valued at Rs 2450 crore for the development of ONGC's Vashista and S1 deepwater fields situated off the East Coast of India. LTHE's share in the consortium is Rs 640 crore.
State-run coal-mining giant Coal India declined 3.85%.
Meanwhile, the outcome of a monthly survey on 4 January 2016 showed that incessant rainfall in Chennai in December 2015 impacted heavily on India's manufacturing sector in that month. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) slipped to 49.1 in December 2015 from 50.3 in November 2015, pointing to deterioration in operating conditions across the manufacturing sector. The reading of 50 separates contraction from expansion.
Meanwhile, the outcome of a monthly survey on 6 January 2016 showed that growth in India's services sector accelerated last month. The Nikkei India Services PMI rose to a 10-month high of 53.6 in December 2015.
China's stocks took a plunge on 4 and 7 January 2016 after its central bank set onshore yuan's value lower to the US dollar, deepening concerns about China's economy and after it ushered in 7% limit in the new circuit-breaker system. However, China Securities Regulator on 8 January 2016 removed its four-day-old circuit-breaker system that was blamed for triggering a rout in Chinese stocks and China's central bank also guided the yuan stronger against the dollar on 8 January 2016, further helping to calm the markets.
Latest data on 6 January 2016 showed that the Caixin China services purchasing managers' index (PMI) fell to a 17-month low of 50.2 in December 2015 from 51.2 in November 2015.
The Sensex slumped 1,226.57 points or 4.68% to settle at 24,934.33. The 50-unit Nifty 50 index tumbled 361.85 points or 4.54% to settle at 7,601.35. The BSE Mid-Cap index lost 2.25%. The BSE Small-Cap index fell 2.41%. The losses for both these indices were lower in percentage terms than those for the Sensex.
Trading for the week began on a weak note. A sharp selloff and trading halt in stock markets in mainland China rattled global stocks on Monday, 4 January 2016, and Indian equity markets were no exception. The Sensex slumped 537.55 points or 2.05% to settle at 25,623.35 on that day.
Amid a divergent trend among various index constituents, key benchmark indices registered minuscule to small losses on Tuesday, 5 January 2016. The Sensex fell 43.01 points or 0.17% to settle at 25,580.34.
Metal stocks and index heavyweights ITC and L&T led losses for key benchmark indices on Wednesday, 6 January 2016, which fell on weak global cues. The Sensex fell 174.01 points or 0.68% to settle at 25,406.33.
As another China led selloff gripped global markets, Indian stocks witnessed a steep slide, with the barometer index, the S&P BSE Sensex, falling below the psychological 25,000 level on Thursday, 7 January 2016. The Sensex lost 554.50 points or 2.18% to settle at 24,851.83.
Stocks from power and oil sector and private sector banks led gains as key benchmark indices snapped a 4-day losing streak on Friday, 8 January 2016. The Sensex rose 82.50 points or 0.33% to settle at 24,934.33.
For the 30-share Sensex pack, 28 stocks fell and only two rose in the week ended on Friday, 8 January 2016.
Index heavyweight Reliance Industries (RIL) rose 0.86%. GAIL (India) gained 0.91%.
Mahindra & Mahindra (M&M) fell 5.28%. The company on 6 January 2016 announced the launch of Imperio, its premium, aspirational pick-up vehicle. Imperio is developed to cater to the transportation needs of small and medium businesses. Imperio will be available in two model variants of single cabin and double cabin and in 3 colours. The vehicle is priced at Rs 6.25 lakh ex-showroom Thane, Mumbai for single cabin BS3 variant.
Maruti Suzuki India declined 9.05%. The company announced on 6 Janaury 2016 that its total production rose 12.96% to 1.07 lakh units in December 2015 over December 2014.
Tata Motors slumped on concerns about Chinese demand. The stock tumbled 12% and was the biggest loser from the Sensex pack. China is a key market for Tata Motors' British luxury car unit Jaguar Land Rover (JLR).
Hero MotoCorp (down 7.4%) and Bajaj Auto (down 5.68%) edged lower.
IT stocks declined. TCS (down 0.79%), Wipro (down 0.07%), and Infosys (down 3.47%) fell.
Pharma stocks dropped. Sun Pharmaceutical Industries declined 2.79%. Cipla shed 4.93%. Dr Reddy's Laboratories fell 3.07%.
Lupin dropped 7.2%. The company on 8 January 2016 announced that it has received final approval for its Kaitlib Fe Tablets from the United States Food and Drug Administration (FDA). Lupin's US subsidiary, Lupin Pharmaceuticals Inc. would commence promoting the product in the US shortly
Bank stocks also declined. Axis Bank (down 7.99%), HDFC Bank (down 2.26%), ICICI Bank (down 6.86%) and State Bank of India (down 8.21%) declined.
Bharat Heavy Electricals (Bhel) slumped 10.12%. The stock was the second biggest loser from the Sensex pack. The company on 7 January 2016 announced that it has commissioned two 220/20kV substations in Afghanistan. The project was executed by Bhel on engineering, procurement and construction (EPC) basis.
L&T shed 8.44%. The company announced on 7 January 2016 that L&T Hydrocarbon Engineering (LTHE), a fully owned subsidiary of L&T, in consortium with McDermott has bagged an offshore contract from ONGC valued at Rs 2450 crore for the development of ONGC's Vashista and S1 deepwater fields situated off the East Coast of India. LTHE's share in the consortium is Rs 640 crore.
State-run coal-mining giant Coal India declined 3.85%.
Meanwhile, the outcome of a monthly survey on 4 January 2016 showed that incessant rainfall in Chennai in December 2015 impacted heavily on India's manufacturing sector in that month. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) slipped to 49.1 in December 2015 from 50.3 in November 2015, pointing to deterioration in operating conditions across the manufacturing sector. The reading of 50 separates contraction from expansion.
Meanwhile, the outcome of a monthly survey on 6 January 2016 showed that growth in India's services sector accelerated last month. The Nikkei India Services PMI rose to a 10-month high of 53.6 in December 2015.
China's stocks took a plunge on 4 and 7 January 2016 after its central bank set onshore yuan's value lower to the US dollar, deepening concerns about China's economy and after it ushered in 7% limit in the new circuit-breaker system. However, China Securities Regulator on 8 January 2016 removed its four-day-old circuit-breaker system that was blamed for triggering a rout in Chinese stocks and China's central bank also guided the yuan stronger against the dollar on 8 January 2016, further helping to calm the markets.
Latest data on 6 January 2016 showed that the Caixin China services purchasing managers' index (PMI) fell to a 17-month low of 50.2 in December 2015 from 51.2 in November 2015.
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