Sensex drops 9.35% in FY 2016
Amid a divergent trend among various index constituents, the two key benchmark indices ended near the flat line on the last trading day of the financial year. The barometer index, the S&P BSE Sensex, rose 3.28 points or 0.01% to settle at 25,341.86. The Nifty 50 index rose 3.20 points or 0.04% to settle at 7,738.40. A bout of volatility was witnessed in late trade as key benchmark indices regained positive zone after slipping into the red from green. The Sensex and the Nifty edged higher for the second day in a row. With minuscule gains, the Sensex and the Nifty, both, hit their highest closing level in more than 12 weeks.
Shares of companies engaged in exploration & production of natural gas fell on reports that the government has reduced the cost of locally produced gas by about 20% for the six months period starting 1 April 2016. Gas utility stocks rose on reports that the cut in gas price would reduce raw material costs and expand margins of gas utility firms. Most metal shares declined after global credit ratings agency Standard & Poor's (S&P) cut the outlook on China's sovereign credit rating to negative from stable.
In overseas stock markets, European stocks edged lower as investors remained cautious ahead of the release of euro zone inflation data due later in the day. Earlier during the global day, most Asian stocks edged lower. US stocks extended gains for the third day yesterday, 30 March 2016, although shares ended well off their day's highs amid a dip in crude oil prices. Sentiment was underpinned by data from payroll firm ADP showing slightly stronger than expected private sector job growth in March.
The Sensex rose 3.28 points or 0.01% to settle at 25,341.86, its highest closing level since 6 January 2016. The Sensex rose 141.04 points, or 0.56% at the day's high of 25,479.62. The index fell 115.36 points, or 0.46% at the day's low of 25,223.22.
The Nifty rose 3.20 points or 0.04% to settle at 7,738.40, its highest closing level since 6 January 2016. The Nifty rose 42.40 points, or 0.55% at the day's high of 7,777.60. The index fell 33.20 points, or 0.43% at the day's low of 7,702.
The Sensex and the Nifty edged higher for the second day in a row. The Sensex has gained 441.40 points or 1.77% in two trading sessions from its close of 24,900.46 on 29 March 2016. The Sensex clocked gains of 2,339.86 points or 10.17% in March 2016. The Sensex declined 2,615.63 points or 9.35% in the year ended 31 March 2016 (FY 2016). The Sensex has fallen 775.68 points or 2.97% in calendar year 2016 so far (till 31 March 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the Sensex has risen 2,847.25 points or 12.65%. The Sensex is off 3,752.75 points or 12.89% from a 52-week high of 29,094.61 hit on 15 April 2015. The Sensex is off 4,682.88 points or 15.59% from a record high of 30,024.74 hit on 4 March 2015.
The market breadth indicating the overall health of the market was positive. On BSE, 1,306 shares rose and 1,247 shares fell. A total of 187 shares were unchanged. The BSE Mid-Cap index rose 0.68%. The BSE Small-Cap index rose 0.46%. Both these indices outperformed the Sensex.
Among the sectoral indices on BSE, the S&P BSE Consumer Durables index (up 1.21%), the S&P BSE Power index (up 0.82%), the S&P BSE IT index (up 0.66%), the S&P BSE Healthcare index (up 0.66%), the S&P BSE Utilities index (up 0.64%), the S&P BSE Teck index (up 0.63%), the S&P BSE FMCG index (up 0.57%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.46%), the S&P BSE Realty index (up 0.25%), the S&P BSE Finance index (up 0.07%), the S&P BSE Basic Materials index (up 0.05%) and the S&P BSE Bankex (up 0.02%) outperformed the Sensex. The S&P BSE Industrials index (down 0.07%), the S&P BSE Telecom index (down 0.12%), the S&P BSE Capital Goods index (down 0.18%), the S&P BSE Energy index (down 0.46%), the S&P BSE Oil & Gas index (down 0.64%) and the S&P BSE Metal index (down 0.77%) underperformed the Sensex. The S&P BSE Auto index rose 0.01%, with the gains in the index matching the gains in the Sensex.
The total turnover on BSE amounted to Rs 2707 crore, higher than turnover of Rs 2545.99 crore registered during the previous trading session.
Index heavyweight and cigarette major ITC rose 0.86% to Rs 329.50. The stock hit a high of Rs 332.45 and a low of Rs 325 in intraday trade.
Index heavyweight and software major Infosys advanced 1.18% to Rs 1,220. The stock hit high of Rs 1,228.95 and low of Rs 1,200.60 in intraday trade. Infosys is set to announce its Q4 March 2016 results on 15 April 2016.
Index heavyweight and housing finance major HDFC shed 0.78% to Rs 1,106.90. The stock hit high of Rs 1,117.40 and low of Rs 1,098 in intraday trade.
Shares of companies engaged in exploration & production of gas fell on reports that the government has reduced the cost of locally produced natural gas by about 20% for the six months period starting 1 April 2016. Cairn India (down 0.61%), ONGC (down 1.7%) and Oil India (down 0.52%) edged lower. Media reports suggested that the government has reduced the cost of locally produced gas by about 20% for the six months period starting 1 April 2016, compared with the previous six months period. Prices will be cut to $3.06 per million British thermal units (mmBtu) in the first half of the next fiscal year starting 1 April 2016, on gross heat value basis, reports suggested. It will cost about $3.4 per mmBtu on a net heat value basis compared with $4.24 per mmBtu for the period from 1 October 2015 to 31 March 2016, as per reports.
Index heavyweight Reliance Industries slipped 0.16% to Rs 1,043.20. The stock hit high of Rs 1,055.95 and low of Rs 1,034.10 in intraday trade.
Gas utility stocks rose on reports that the cut in gas price would reduce raw material costs and expand margins for gas utility firms. Indraprastha Gas (up 1.84%), Gujarat State Petronet (up 1.27%) and Gujarat Gas (up 2.71%) rose.
Private sector bank stocks were mixed. HDFC Bank (up 0.63%), Axis Bank (up 0.51%), IndusInd Bank (up 1.89%) gained. ICICI Bank (down 1.03%), Yes Bank (down 0.66%), Kotak Mahindra Bank (down 0.07%) fell.
PSU bank stocks rose. Indian Overseas Bank (up 2.9%), Vijaya Bank (up 1.44%), Canara Bank (up 1.68%), IDBI Bank (up 0.07%), Bank of India (up 0.83%) and Union Bank of India (up 1.24%) rose. Shares of Bank of Baroda ended unchanged at Rs 147.
State Bank of India fell 1.8% to Rs 194, after announcing lending rates based on marginal cost of funds to be effective from 1 April 2016. According to the announcement on the bank's website, State Bank of India (SBI)'s Marginal Cost of Funds based Lending Rate (MCLR) for overnight loans will be 8.95%, for one month will be 9.05% and for three months will be 9.10%. The MCLR on 6-month loans will be 9.15% and for one-year loans the rate would be 9.2%, the bank said. MCLR for two-year loans would be at 9.3% and loans with three-year maturity would carry an MCLR of 9.35%, the bank said.
As per RBI's news norms, which take effect from 1 April 2016, interest rate on advances will be based on marginal cost of funds.
Punjab National Bank fell 0.94% after the bank said that rating agency CARE has downgraded its ratings on the bank's Tier I and upper Tier II bonds to CARE AA+ from CARE AAA, mainly on account of the impairments in the credit portfolio. PNB said it has not accepted the downward revision by CARE. The announcement was made after market hours yesterday, 30 March 2016.
Mahindra & Mahindra (M&M) fell 0.98%. M&M during market hours today, 31 March 2016, announced its foray into the global combine harvester business, by entering into a strategic partnership with Sampo Rosenlew, a combine harvester company based in Pori, Finland. Under the transaction, which is expected to close by 30 June 2016, M&M will acquire a 35% equity stake in Sampo Rosenlew. The two companies will work in tandem to grow their combine harvester business globally, M&M said. Sampo Rosenlew had a stand-alone revenue of euro 93 million for the year ended 30 September 2015. The company is also a joint venture partner in a combine harvester company in Algeria, which had revenues of Euro 45 million in FY 2014-15.
Together with its existing strategy in the core markets, Sampo Rosenlew will also develop a new range of combine harvesters for developing markets and for specialty crops. Mahindra and Sampo Rosenlew will jointly focus on the combine harvester business in Asia, Africa and Eurasian Economic Union countries, M&M said.
Dr Reddy's Laboratories (DRL) was up 1.09% at Rs 3,045.90 after the company announced during trading hours today, 31 March 2016, that it has entered into a licensing agreement with Eisai Co., Japan by which Dr. Reddy's will be granted exclusive worldwide development and commercialization rights (excluding Japan and Asia) for Eisai's investigational anticancer agent E7777. Eisai will be responsible for the development and marketing of E7777 in Japan and Asia, while DRL holds the option for rights to develop and market the agent in India. In exchange of these rights, Eisai will receive milestone payments in line with obtaining marketing approval and the achievement of agreed upon sales targets. Through this agreement, the two companies aim to accelerate development and maximize the value of E7777.
Lupin rose 0.24% to Rs 1,478 after the company announced during trading hours today, 31 March 2016, that its US subsidiary, Lupin Pharmaceuticals Inc. has launched its Donepezil Hydrochloride Tablets, 23 mg in the United States. Lupin's Donepezil Hydrochloride Tablets, 23 mg are the AB rated generic equivalent of Eisai Inc's Aricept Tablets, 23mg. It is indicated for the treatment of dementia of the Alzheimer's type. Aricept had US sales of $47.1 million (IMS MAT December 2015).
Most metal shares declined after global credit ratings agency Standard & Poor's (S&P) cut the outlook on China's sovereign credit rating to negative from stable, saying the nation's economic rebalancing is likely to proceed more slowly than the ratings firm had expected. NMDC (down 2.05%), Vedanta (down 1.96%), Bhushan Steel (down 1.51%), Tata Steel (down 1.2%), Steel Authority of India (down 0.69%), Hindustan Copper (down 0.1%) and Hindalco Industries (down 0.06%) edged lower. JSW Steel (up 0.42%), National Aluminium Company (up 4.18%) and Jindal Steel & Power (up 4.42%) edged higher.
Over the next five years, China will show modest progress in economic rebalancing and credit growth deceleration, S&P said. These expected trends could weaken the Chinese economy's resilience to shocks, limit the government's policy options, and increase the likelihood of a sharper decline in trend growth rate, it said.
Meanwhile, copper edged lower in the global commodities markets. High Grade Copper for May 2016 delivery was currently down 0.73% at $2.174 per pound on the COMEX.
Hindustan Zinc surged 4.71% to Rs 183.40 after the company said its board of directors at a meeting held yesterday, 30 March 2016, declared special golden jubilee dividend of Rs 24 per share for the financial year ending 31 March 2016. The announcement was made after market hours yesterday, 30 March 2016. Shares of Hindustan Zinc offered a dividend yield of 13.7% based on the stock's closing price of Rs 175.15 on the BSE yesterday, 30 March 2016.
Tata Motors edged lower in volatile trade. The stock fell 0.24% to Rs 387.95. China is a key market for Jaguar Land Rover (JLR), which is owned by Tata Motors.
Saint-Gobain Sekurit India jumped 9.99% to Rs 40.75 after a massive bulk deal of 1.19 crore shares was executed on the scrip at Rs 41 per share at 09:33 IST on BSE.
Shares of companies engaged in exploration & production of natural gas fell on reports that the government has reduced the cost of locally produced gas by about 20% for the six months period starting 1 April 2016. Gas utility stocks rose on reports that the cut in gas price would reduce raw material costs and expand margins of gas utility firms. Most metal shares declined after global credit ratings agency Standard & Poor's (S&P) cut the outlook on China's sovereign credit rating to negative from stable.
In overseas stock markets, European stocks edged lower as investors remained cautious ahead of the release of euro zone inflation data due later in the day. Earlier during the global day, most Asian stocks edged lower. US stocks extended gains for the third day yesterday, 30 March 2016, although shares ended well off their day's highs amid a dip in crude oil prices. Sentiment was underpinned by data from payroll firm ADP showing slightly stronger than expected private sector job growth in March.
The Sensex rose 3.28 points or 0.01% to settle at 25,341.86, its highest closing level since 6 January 2016. The Sensex rose 141.04 points, or 0.56% at the day's high of 25,479.62. The index fell 115.36 points, or 0.46% at the day's low of 25,223.22.
The Nifty rose 3.20 points or 0.04% to settle at 7,738.40, its highest closing level since 6 January 2016. The Nifty rose 42.40 points, or 0.55% at the day's high of 7,777.60. The index fell 33.20 points, or 0.43% at the day's low of 7,702.
The Sensex and the Nifty edged higher for the second day in a row. The Sensex has gained 441.40 points or 1.77% in two trading sessions from its close of 24,900.46 on 29 March 2016. The Sensex clocked gains of 2,339.86 points or 10.17% in March 2016. The Sensex declined 2,615.63 points or 9.35% in the year ended 31 March 2016 (FY 2016). The Sensex has fallen 775.68 points or 2.97% in calendar year 2016 so far (till 31 March 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the Sensex has risen 2,847.25 points or 12.65%. The Sensex is off 3,752.75 points or 12.89% from a 52-week high of 29,094.61 hit on 15 April 2015. The Sensex is off 4,682.88 points or 15.59% from a record high of 30,024.74 hit on 4 March 2015.
The market breadth indicating the overall health of the market was positive. On BSE, 1,306 shares rose and 1,247 shares fell. A total of 187 shares were unchanged. The BSE Mid-Cap index rose 0.68%. The BSE Small-Cap index rose 0.46%. Both these indices outperformed the Sensex.
Among the sectoral indices on BSE, the S&P BSE Consumer Durables index (up 1.21%), the S&P BSE Power index (up 0.82%), the S&P BSE IT index (up 0.66%), the S&P BSE Healthcare index (up 0.66%), the S&P BSE Utilities index (up 0.64%), the S&P BSE Teck index (up 0.63%), the S&P BSE FMCG index (up 0.57%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.46%), the S&P BSE Realty index (up 0.25%), the S&P BSE Finance index (up 0.07%), the S&P BSE Basic Materials index (up 0.05%) and the S&P BSE Bankex (up 0.02%) outperformed the Sensex. The S&P BSE Industrials index (down 0.07%), the S&P BSE Telecom index (down 0.12%), the S&P BSE Capital Goods index (down 0.18%), the S&P BSE Energy index (down 0.46%), the S&P BSE Oil & Gas index (down 0.64%) and the S&P BSE Metal index (down 0.77%) underperformed the Sensex. The S&P BSE Auto index rose 0.01%, with the gains in the index matching the gains in the Sensex.
The total turnover on BSE amounted to Rs 2707 crore, higher than turnover of Rs 2545.99 crore registered during the previous trading session.
Index heavyweight and cigarette major ITC rose 0.86% to Rs 329.50. The stock hit a high of Rs 332.45 and a low of Rs 325 in intraday trade.
Index heavyweight and software major Infosys advanced 1.18% to Rs 1,220. The stock hit high of Rs 1,228.95 and low of Rs 1,200.60 in intraday trade. Infosys is set to announce its Q4 March 2016 results on 15 April 2016.
Index heavyweight and housing finance major HDFC shed 0.78% to Rs 1,106.90. The stock hit high of Rs 1,117.40 and low of Rs 1,098 in intraday trade.
Shares of companies engaged in exploration & production of gas fell on reports that the government has reduced the cost of locally produced natural gas by about 20% for the six months period starting 1 April 2016. Cairn India (down 0.61%), ONGC (down 1.7%) and Oil India (down 0.52%) edged lower. Media reports suggested that the government has reduced the cost of locally produced gas by about 20% for the six months period starting 1 April 2016, compared with the previous six months period. Prices will be cut to $3.06 per million British thermal units (mmBtu) in the first half of the next fiscal year starting 1 April 2016, on gross heat value basis, reports suggested. It will cost about $3.4 per mmBtu on a net heat value basis compared with $4.24 per mmBtu for the period from 1 October 2015 to 31 March 2016, as per reports.
Index heavyweight Reliance Industries slipped 0.16% to Rs 1,043.20. The stock hit high of Rs 1,055.95 and low of Rs 1,034.10 in intraday trade.
Gas utility stocks rose on reports that the cut in gas price would reduce raw material costs and expand margins for gas utility firms. Indraprastha Gas (up 1.84%), Gujarat State Petronet (up 1.27%) and Gujarat Gas (up 2.71%) rose.
Private sector bank stocks were mixed. HDFC Bank (up 0.63%), Axis Bank (up 0.51%), IndusInd Bank (up 1.89%) gained. ICICI Bank (down 1.03%), Yes Bank (down 0.66%), Kotak Mahindra Bank (down 0.07%) fell.
PSU bank stocks rose. Indian Overseas Bank (up 2.9%), Vijaya Bank (up 1.44%), Canara Bank (up 1.68%), IDBI Bank (up 0.07%), Bank of India (up 0.83%) and Union Bank of India (up 1.24%) rose. Shares of Bank of Baroda ended unchanged at Rs 147.
State Bank of India fell 1.8% to Rs 194, after announcing lending rates based on marginal cost of funds to be effective from 1 April 2016. According to the announcement on the bank's website, State Bank of India (SBI)'s Marginal Cost of Funds based Lending Rate (MCLR) for overnight loans will be 8.95%, for one month will be 9.05% and for three months will be 9.10%. The MCLR on 6-month loans will be 9.15% and for one-year loans the rate would be 9.2%, the bank said. MCLR for two-year loans would be at 9.3% and loans with three-year maturity would carry an MCLR of 9.35%, the bank said.
As per RBI's news norms, which take effect from 1 April 2016, interest rate on advances will be based on marginal cost of funds.
Punjab National Bank fell 0.94% after the bank said that rating agency CARE has downgraded its ratings on the bank's Tier I and upper Tier II bonds to CARE AA+ from CARE AAA, mainly on account of the impairments in the credit portfolio. PNB said it has not accepted the downward revision by CARE. The announcement was made after market hours yesterday, 30 March 2016.
Mahindra & Mahindra (M&M) fell 0.98%. M&M during market hours today, 31 March 2016, announced its foray into the global combine harvester business, by entering into a strategic partnership with Sampo Rosenlew, a combine harvester company based in Pori, Finland. Under the transaction, which is expected to close by 30 June 2016, M&M will acquire a 35% equity stake in Sampo Rosenlew. The two companies will work in tandem to grow their combine harvester business globally, M&M said. Sampo Rosenlew had a stand-alone revenue of euro 93 million for the year ended 30 September 2015. The company is also a joint venture partner in a combine harvester company in Algeria, which had revenues of Euro 45 million in FY 2014-15.
Together with its existing strategy in the core markets, Sampo Rosenlew will also develop a new range of combine harvesters for developing markets and for specialty crops. Mahindra and Sampo Rosenlew will jointly focus on the combine harvester business in Asia, Africa and Eurasian Economic Union countries, M&M said.
Dr Reddy's Laboratories (DRL) was up 1.09% at Rs 3,045.90 after the company announced during trading hours today, 31 March 2016, that it has entered into a licensing agreement with Eisai Co., Japan by which Dr. Reddy's will be granted exclusive worldwide development and commercialization rights (excluding Japan and Asia) for Eisai's investigational anticancer agent E7777. Eisai will be responsible for the development and marketing of E7777 in Japan and Asia, while DRL holds the option for rights to develop and market the agent in India. In exchange of these rights, Eisai will receive milestone payments in line with obtaining marketing approval and the achievement of agreed upon sales targets. Through this agreement, the two companies aim to accelerate development and maximize the value of E7777.
Lupin rose 0.24% to Rs 1,478 after the company announced during trading hours today, 31 March 2016, that its US subsidiary, Lupin Pharmaceuticals Inc. has launched its Donepezil Hydrochloride Tablets, 23 mg in the United States. Lupin's Donepezil Hydrochloride Tablets, 23 mg are the AB rated generic equivalent of Eisai Inc's Aricept Tablets, 23mg. It is indicated for the treatment of dementia of the Alzheimer's type. Aricept had US sales of $47.1 million (IMS MAT December 2015).
Most metal shares declined after global credit ratings agency Standard & Poor's (S&P) cut the outlook on China's sovereign credit rating to negative from stable, saying the nation's economic rebalancing is likely to proceed more slowly than the ratings firm had expected. NMDC (down 2.05%), Vedanta (down 1.96%), Bhushan Steel (down 1.51%), Tata Steel (down 1.2%), Steel Authority of India (down 0.69%), Hindustan Copper (down 0.1%) and Hindalco Industries (down 0.06%) edged lower. JSW Steel (up 0.42%), National Aluminium Company (up 4.18%) and Jindal Steel & Power (up 4.42%) edged higher.
Over the next five years, China will show modest progress in economic rebalancing and credit growth deceleration, S&P said. These expected trends could weaken the Chinese economy's resilience to shocks, limit the government's policy options, and increase the likelihood of a sharper decline in trend growth rate, it said.
Meanwhile, copper edged lower in the global commodities markets. High Grade Copper for May 2016 delivery was currently down 0.73% at $2.174 per pound on the COMEX.
Hindustan Zinc surged 4.71% to Rs 183.40 after the company said its board of directors at a meeting held yesterday, 30 March 2016, declared special golden jubilee dividend of Rs 24 per share for the financial year ending 31 March 2016. The announcement was made after market hours yesterday, 30 March 2016. Shares of Hindustan Zinc offered a dividend yield of 13.7% based on the stock's closing price of Rs 175.15 on the BSE yesterday, 30 March 2016.
Tata Motors edged lower in volatile trade. The stock fell 0.24% to Rs 387.95. China is a key market for Jaguar Land Rover (JLR), which is owned by Tata Motors.
Saint-Gobain Sekurit India jumped 9.99% to Rs 40.75 after a massive bulk deal of 1.19 crore shares was executed on the scrip at Rs 41 per share at 09:33 IST on BSE.
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