Market sees broad based decline on weak global cues
Metal, power and oil sector stocks led losses as key benchmark indices edged lower for the third day in a row. The barometer index, the S&P BSE Sensex, lost 315.68 points or 1.29% to settle at 24,247.21. The 50-unit Nifty 50 index lost 93.75 points or 1.26% to settle at 7,361.80. The Sensex and Nifty, both, hit their lowest closing level in almost two weeks. Weakness in global stocks hit sentiment on the domestic bourses adversely. All the nineteen sectoral indices on BSE ended in negative zone.
The Sensex and the Nifty traded in negative zone throughout the trading session after opening with a downward gap. After seeing range bound movement in negative zone until the first half of the trading session, the two benchmark indices losses witnessed intraday volatility later. The two benchmark indices extended losses in late trade.
The broad market depicted weakness. More than three stocks fell against each stock that rose on BSE. 2,084 shares declined and 578 shares rose. A total of 98 shares were unchanged. Quite a few stocks constituting the broad based BSE Small-Cap index registered losses exceeding 3%. The BSE Small-Cap index shed 2.25%. The BSE Mid-Cap index dropped 1.3%. The losses for both these indices were higher in percentage terms than those for the Sensex.
Stocks from steel, aluminium and cement sector edged lower after the Cabinet Committee on Economic Affairs (CCEA) approved auction based coal linkage for non-regulated sectors. Crompton Greaves slumped a staggering 21.72% in a single trading session after the company reported reversed turnaround in Q3 December 2015. Shares of oil exploration and production (E&P) firms edged lower after sharp decline in crude oil prices overnight.
The Sensex lost 315.68 points or 1.29% to settle at 24,247.21, its lowest closing level since 21 January 2016. The index lost 351.46 points or 1.43% at the day's low of 24,187.54. The index lost 129.74 points or 0.52% at the day's high of 24,409.26.
The Nifty lost 93.75 points or 1.26% to settle at 7,361.80, its lowest closing level since 21 January 2016. The index lost 105.25 points or 1.41% at the day's low of 7,350.30. The index lost 36.15 points or 0.48% at the day's high of 7,419.40.
The total turnover on BSE amounted to Rs 2698 crore, lower than turnover of Rs 2937.85 crore registered during the previous trading session.
All the nineteen sectoral indices on BSE ended in negative zone. The S&P BSE Utilities index (down 2.59%), the S&P BSE Power index (down 4.16%), the S&P BSE Auto index (down 1.62%), the S&P BSE Capital Goods index (down 2.79%). the S&P BSE Finance index (down 1.44%), the S&P BSE Bankex (down 1.63%), the S&P BSE Oil & Gas index (down 1.58%), the S&P BSE Realty index (down 2.63%), the S&P BSE Basic Materials index (down 2.14%), the S&P BSE Metal index (down 2.03%), the S&P BSE Industrials index (down 2.69%), the S&P BSE Energy index (down 1.71%), the S&P BSE Consumer Discretionary Goods & Services index (down 1.35%), and the S&P BSE Telecom index (down 2.05%) underperformed the Sensex. The S&P BSE Healthcare index (down 0.75%), the S&P BSE Teck index (down 1.25%), the S&P BSE IT index (down 1.17%), and the S&P BSE FMCG index (down 0.3%) outperformed the Sensex.
In overseas stock markets, European stocks edged lower, tracking losses for Asian stocks and overnight sharp slide in the US equities. Shares in Japan and Hong Kong led most markets across Asia lower amid ongoing volatility in the oil market and concerns that global growth is slowing. In Japan, the Nikkei Stock Average ended 3.15% lower. In Hong Kong, the Hang Seng index ended 2.34% lower. US stocks closed sharply lower yesterday, 2 February 2016, as investors unloaded energy and financial stocks amid a selloff in crude-oil futures.
Shares of power generation and distribution companies declined. JSW Energy (down 6.54%), Reliance Power (down 6.65%), GMR Infrastructure (down 5.35%), Adani Power (down 4.03%), NTPC (down 3.46%), NHPC (down 3.63%), Jaiprakash Power Ventures (down 2.91%), Reliance Infrastructure (down 3.58%), Tata Power Company (down 3.22%) and CESC (down 0.88%) edged lower. Torrent Power (up 0.43%) edged higher.
Shares of Power Grid Corporation of India were off 1.27% at Rs 144.20. The stock hit a high of Rs 146.20 and a low of Rs 141.45 in intraday trade.
Shares of power finance companies also declined. Power Finance Corporation (down 2.84%) and Rural Electrification Corporation (down 3.63%) edged lower.
Stocks from steel, aluminium and cement sector edged lower after the Cabinet Committee on Economic Affairs (CCEA) today, 3 February 2016, approved auction based coal linkage for non-regulated sectors viz. cement, steel, sponge iron, aluminium, and others excluding fertilizer (urea) sector. Among steel stocks, Jindal Steel & Power (down 7.32%), JSW Steel (down 3.4%), Tata Steel (down 3.91%) and Steel Authority of India (down 1.52%) edged lower. Among aluminium makers, Hindalco Industries (down 2.7%) and National Aluminium Company (down 2.34%) edged lower.
Among other metal stocks, Vedanta (down 4.85%), NMDC (down 1.9%) and Hindustan Zinc (down 0.45%) edged lower.
Among cement stocks, Ambuja Cements (down 2.39%), Shree Cement (down 2.41%), ACC (down 1.68%) and UltraTech Cement (down 2.07%) edged lower.
Grasim Industries was off 0.58%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
For non-regulated sectors, there will be no renewal of existing fuel supply agreements (FSAs) for coal linkage which are maturing in 2015-16 onwards after completion of their current agreement tenure. However, there will not be premature termination of exiting FSAs. The auction based coal linkage framework attempts to make the coal available in a fair manner to the end-users. To start with, in the first tranche, the quantities corresponding to FSAs of non-regulated sector maturing in 2015-16 onwards and 25% of incremental Coal India/Singareni Collieries Company production during 2015-16 (over 2014-15) will be put up for auction.
Shares of state-run coal mining giant Coal India were off 1.11% at Rs 315.45. The stock was volatile. The stock hit a high of Rs 323.90 and a low of Rs 314.45 in intraday trade.
Index heavyweight and housing finance major HDFC lost 1.41% at Rs 1,160.80. The stock hit a high of Rs 1,180.80 and a low of Rs 1,159 in intraday trade.
Index heavyweight and cigarette maker ITC lost 0.92% at Rs 321.40. The stock hit a high of Rs 323.80 and a low of Rs 319.50 in intraday trade.
Bharat Heavy Electricals (Bhel) dropped 4.86%, with the stock extending previous sessions' 3.99% losses.
Crompton Greaves slumped 21.72% at Rs 130.80 after the company reported consolidated net loss of Rs 107.03 crore in Q3 December 2015 as against net profit of Rs 274.29 crore in Q3 December 2014. Net sales declined 14.18% to Rs 2067.80 crore in Q3 December 2015 over Q3 December 2014. The result was announced after trading hours yesterday, 2 February 2016.
In a separate announcement after trading hours yesterday, 2 February 2016, Crompton Greaves said that with effect from 3 February 2016, Laurent Demortler will be stepping down as the CEO and Managing Director of the company and K. N Neelkant will take over as CEO and Managing Director of the company. From 1 April 2016, Madhav Acharya will join as a member of the Board of the company as Executive Director Finance in addition to being the CFO of the company. Norberto Santiago will remain as the CEO of the international Automation business and will report to the international board of the company.
Meanwhile, the company further added that its board of directors received a definitive offer for the purchase of selected power businesses in Europe, the USA and Indonesia. After due discussion and deliberation, the board decided not to accept the offer in its current form.
Shares of oil exploration and production (E&P) firms edged lower after sharp decline in crude oil prices overnight. Cairn India (down 1.86%), Oil India (down 1.74%), ONGC (down 1.68%) and Reliance Industries (down 2.13%) declined. Lower crude oil prices will result in lower realization from crude sales for oil exploration firms.
Shares of public sector oil marketing companies (PSU OMCs) also declined. BPCL (down 2.21%), HPCL (down 1.88%) and Indian Oil Corporation (down 0.69%) edged lower
In the global commodities markets, Brent for April settlement was currently up 41 cents at $33.13 a barrel. The contract had declined $1.52 a barrel or 4.43% to settle at $32.72 a barrel during previous trading session.
Bank stocks declined. Among shares of public sector banks, Punjab National Bank (down 0.06%), Corporation Bank (down 3.34%), Allahabad Bank (down 2.54%), Bank of India (down 3.78%), State Bank of India (SBI) (down 2.01%), Union Bank of India (down 2.54%) and Canara Bank (down 2.85%) edged lower.
Among shares of private sector banks, Axis Bank (down 2.75%), HDFC Bank (down 1.11%), IndusInd Bank (down 0.26%), ICICI Bank (down 3.09%), Kotak Mahindra Bank (down 1.57%), and Federal Bank (down 0.97%) declined. Yes Bank rose 1.71%.
TCS rose 0.65%. The company announced after market hours today, 3 February 2016 that Investec India, a part of wealth management giant Investec, has gone live on TCS BaNCS to power its front and back office operations in India.
Index heavyweight and IT major Infosys dropped 1.42% at Rs 1,158.15. The stock hit a high of Rs 1,175 and a low of Rs 1,152.70 in intraday trade.
The Sensex and the Nifty edged lower for the third day in a row. The Sensex has declined 647.37 points or 2.6% in three sessions from its close of 24,870.69 on 29 January 2016. The Sensex has fallen 1,894.22 points or 7.25% in calendar year 2016 so far (till 3 February 2016). The Sensex is up 383.56 points or 1.6% from a 52-week low of 23,839.76 hit on 20 January 2016. The Sensex is off 5,801.42 points or 19.32% from a record high of 30,024.74 hit on 4 March 2015.
The Sensex and the Nifty traded in negative zone throughout the trading session after opening with a downward gap. After seeing range bound movement in negative zone until the first half of the trading session, the two benchmark indices losses witnessed intraday volatility later. The two benchmark indices extended losses in late trade.
The broad market depicted weakness. More than three stocks fell against each stock that rose on BSE. 2,084 shares declined and 578 shares rose. A total of 98 shares were unchanged. Quite a few stocks constituting the broad based BSE Small-Cap index registered losses exceeding 3%. The BSE Small-Cap index shed 2.25%. The BSE Mid-Cap index dropped 1.3%. The losses for both these indices were higher in percentage terms than those for the Sensex.
Stocks from steel, aluminium and cement sector edged lower after the Cabinet Committee on Economic Affairs (CCEA) approved auction based coal linkage for non-regulated sectors. Crompton Greaves slumped a staggering 21.72% in a single trading session after the company reported reversed turnaround in Q3 December 2015. Shares of oil exploration and production (E&P) firms edged lower after sharp decline in crude oil prices overnight.
The Sensex lost 315.68 points or 1.29% to settle at 24,247.21, its lowest closing level since 21 January 2016. The index lost 351.46 points or 1.43% at the day's low of 24,187.54. The index lost 129.74 points or 0.52% at the day's high of 24,409.26.
The Nifty lost 93.75 points or 1.26% to settle at 7,361.80, its lowest closing level since 21 January 2016. The index lost 105.25 points or 1.41% at the day's low of 7,350.30. The index lost 36.15 points or 0.48% at the day's high of 7,419.40.
The total turnover on BSE amounted to Rs 2698 crore, lower than turnover of Rs 2937.85 crore registered during the previous trading session.
All the nineteen sectoral indices on BSE ended in negative zone. The S&P BSE Utilities index (down 2.59%), the S&P BSE Power index (down 4.16%), the S&P BSE Auto index (down 1.62%), the S&P BSE Capital Goods index (down 2.79%). the S&P BSE Finance index (down 1.44%), the S&P BSE Bankex (down 1.63%), the S&P BSE Oil & Gas index (down 1.58%), the S&P BSE Realty index (down 2.63%), the S&P BSE Basic Materials index (down 2.14%), the S&P BSE Metal index (down 2.03%), the S&P BSE Industrials index (down 2.69%), the S&P BSE Energy index (down 1.71%), the S&P BSE Consumer Discretionary Goods & Services index (down 1.35%), and the S&P BSE Telecom index (down 2.05%) underperformed the Sensex. The S&P BSE Healthcare index (down 0.75%), the S&P BSE Teck index (down 1.25%), the S&P BSE IT index (down 1.17%), and the S&P BSE FMCG index (down 0.3%) outperformed the Sensex.
In overseas stock markets, European stocks edged lower, tracking losses for Asian stocks and overnight sharp slide in the US equities. Shares in Japan and Hong Kong led most markets across Asia lower amid ongoing volatility in the oil market and concerns that global growth is slowing. In Japan, the Nikkei Stock Average ended 3.15% lower. In Hong Kong, the Hang Seng index ended 2.34% lower. US stocks closed sharply lower yesterday, 2 February 2016, as investors unloaded energy and financial stocks amid a selloff in crude-oil futures.
Shares of power generation and distribution companies declined. JSW Energy (down 6.54%), Reliance Power (down 6.65%), GMR Infrastructure (down 5.35%), Adani Power (down 4.03%), NTPC (down 3.46%), NHPC (down 3.63%), Jaiprakash Power Ventures (down 2.91%), Reliance Infrastructure (down 3.58%), Tata Power Company (down 3.22%) and CESC (down 0.88%) edged lower. Torrent Power (up 0.43%) edged higher.
Shares of Power Grid Corporation of India were off 1.27% at Rs 144.20. The stock hit a high of Rs 146.20 and a low of Rs 141.45 in intraday trade.
Shares of power finance companies also declined. Power Finance Corporation (down 2.84%) and Rural Electrification Corporation (down 3.63%) edged lower.
Stocks from steel, aluminium and cement sector edged lower after the Cabinet Committee on Economic Affairs (CCEA) today, 3 February 2016, approved auction based coal linkage for non-regulated sectors viz. cement, steel, sponge iron, aluminium, and others excluding fertilizer (urea) sector. Among steel stocks, Jindal Steel & Power (down 7.32%), JSW Steel (down 3.4%), Tata Steel (down 3.91%) and Steel Authority of India (down 1.52%) edged lower. Among aluminium makers, Hindalco Industries (down 2.7%) and National Aluminium Company (down 2.34%) edged lower.
Among other metal stocks, Vedanta (down 4.85%), NMDC (down 1.9%) and Hindustan Zinc (down 0.45%) edged lower.
Among cement stocks, Ambuja Cements (down 2.39%), Shree Cement (down 2.41%), ACC (down 1.68%) and UltraTech Cement (down 2.07%) edged lower.
Grasim Industries was off 0.58%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
For non-regulated sectors, there will be no renewal of existing fuel supply agreements (FSAs) for coal linkage which are maturing in 2015-16 onwards after completion of their current agreement tenure. However, there will not be premature termination of exiting FSAs. The auction based coal linkage framework attempts to make the coal available in a fair manner to the end-users. To start with, in the first tranche, the quantities corresponding to FSAs of non-regulated sector maturing in 2015-16 onwards and 25% of incremental Coal India/Singareni Collieries Company production during 2015-16 (over 2014-15) will be put up for auction.
Shares of state-run coal mining giant Coal India were off 1.11% at Rs 315.45. The stock was volatile. The stock hit a high of Rs 323.90 and a low of Rs 314.45 in intraday trade.
Index heavyweight and housing finance major HDFC lost 1.41% at Rs 1,160.80. The stock hit a high of Rs 1,180.80 and a low of Rs 1,159 in intraday trade.
Index heavyweight and cigarette maker ITC lost 0.92% at Rs 321.40. The stock hit a high of Rs 323.80 and a low of Rs 319.50 in intraday trade.
Bharat Heavy Electricals (Bhel) dropped 4.86%, with the stock extending previous sessions' 3.99% losses.
Crompton Greaves slumped 21.72% at Rs 130.80 after the company reported consolidated net loss of Rs 107.03 crore in Q3 December 2015 as against net profit of Rs 274.29 crore in Q3 December 2014. Net sales declined 14.18% to Rs 2067.80 crore in Q3 December 2015 over Q3 December 2014. The result was announced after trading hours yesterday, 2 February 2016.
In a separate announcement after trading hours yesterday, 2 February 2016, Crompton Greaves said that with effect from 3 February 2016, Laurent Demortler will be stepping down as the CEO and Managing Director of the company and K. N Neelkant will take over as CEO and Managing Director of the company. From 1 April 2016, Madhav Acharya will join as a member of the Board of the company as Executive Director Finance in addition to being the CFO of the company. Norberto Santiago will remain as the CEO of the international Automation business and will report to the international board of the company.
Meanwhile, the company further added that its board of directors received a definitive offer for the purchase of selected power businesses in Europe, the USA and Indonesia. After due discussion and deliberation, the board decided not to accept the offer in its current form.
Shares of oil exploration and production (E&P) firms edged lower after sharp decline in crude oil prices overnight. Cairn India (down 1.86%), Oil India (down 1.74%), ONGC (down 1.68%) and Reliance Industries (down 2.13%) declined. Lower crude oil prices will result in lower realization from crude sales for oil exploration firms.
Shares of public sector oil marketing companies (PSU OMCs) also declined. BPCL (down 2.21%), HPCL (down 1.88%) and Indian Oil Corporation (down 0.69%) edged lower
In the global commodities markets, Brent for April settlement was currently up 41 cents at $33.13 a barrel. The contract had declined $1.52 a barrel or 4.43% to settle at $32.72 a barrel during previous trading session.
Bank stocks declined. Among shares of public sector banks, Punjab National Bank (down 0.06%), Corporation Bank (down 3.34%), Allahabad Bank (down 2.54%), Bank of India (down 3.78%), State Bank of India (SBI) (down 2.01%), Union Bank of India (down 2.54%) and Canara Bank (down 2.85%) edged lower.
Among shares of private sector banks, Axis Bank (down 2.75%), HDFC Bank (down 1.11%), IndusInd Bank (down 0.26%), ICICI Bank (down 3.09%), Kotak Mahindra Bank (down 1.57%), and Federal Bank (down 0.97%) declined. Yes Bank rose 1.71%.
TCS rose 0.65%. The company announced after market hours today, 3 February 2016 that Investec India, a part of wealth management giant Investec, has gone live on TCS BaNCS to power its front and back office operations in India.
Index heavyweight and IT major Infosys dropped 1.42% at Rs 1,158.15. The stock hit a high of Rs 1,175 and a low of Rs 1,152.70 in intraday trade.
The Sensex and the Nifty edged lower for the third day in a row. The Sensex has declined 647.37 points or 2.6% in three sessions from its close of 24,870.69 on 29 January 2016. The Sensex has fallen 1,894.22 points or 7.25% in calendar year 2016 so far (till 3 February 2016). The Sensex is up 383.56 points or 1.6% from a 52-week low of 23,839.76 hit on 20 January 2016. The Sensex is off 5,801.42 points or 19.32% from a record high of 30,024.74 hit on 4 March 2015.
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