Weak global stocks drag indices lower
Trading for the week ended on a subdued note as weakness in global stocks dragged key benchmark indices lower for the second day in a row today, 10 June 2016. The barometer index, the S&P BSE Sensex shed 127.71 points or 0.48% to settle at 26,635.75. The Nifty 50 index dropped 33.55 points or 0.41% to settle at 8,170.05. The Sensex hit lowest closing level in more than two weeks. The Nifty hit lowest closing level in more than one-week. High volatility was witnessed during the trading session. Key indices slipped into the red during the latter half of the session after recovering sharply earlier during the day after starting the day's trade on a subdued note.
The Nifty dropped 33.55 points or 0.41% to settle at 8,170.05, its lowest closing level since 31 May 2016. The index fell 40.75 points or 0.49% at the day's low of 8,162.85. The index rose 62 points or 0.75% at the day's high of 8,265.60.
In overseas stock markets, Asian and European shares edged lower on concerns about global economic slowdown and concerns over the 23 June 2016 referendum that could see Britain exit the European Union. Earlier this week, the World Bank revised its global economic growth forecast for calendar year 2016 to 2.4% from the 2.9% projection in January. Key indices in UK, Germany and France dropped by between 1.68% to 2.25%.
The UK government holds a referendum on 23 June 2016 on whether the country should remain a member of the EU. The Organization for Economic Cooperation and Development (OECD) has warned that Britain's leaving the EU -- the so-called Brexit -- could send shocks through global financial markets. The OECD said on 1 June 2016 that a United Kingdom vote to leave the EU would trigger negative economic effects on the UK, other European countries and the rest of the world. Brexit would lead to economic uncertainty and hinder trade growth, with global effects being even stronger if the British withdrawal from the EU triggers volatility in financial markets, the OECD said. By 2030, post-Brexit UK GDP could be over 5% lower than if the country remained in the European Union, the OECD said.
Trading in US stock index futures indicated decline for US stocks at the opening bell later in the global day. Trading in US index futures indicated that the Dow Jones Industrial Average could slide 89 points at the opening bell. US stocks dropped yesterday, 9 June 2016, after three days of gains as a decline in crude oil futures sapped risk appetite.
Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 1,363 shares fell and 1,206 shares rose. A total of 196 shares were unchanged The BSE Mid-Cap index fell 0.4%. The BSE Small-Cap index dropped 0.2%. The decline in both these indices was lower than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 2361 crore, lower than turnover of Rs 2801.30 crore registered during the previous trading session.
IDFC gained 3.66% to Rs 51 after a bulk deal of 12.02 lakh shares was executed in the scrip at Rs 50.50 per share at 13:00 IST on BSE.
Auto stocks declined. Ashok Leyland (down 1.63%), Maruti Suzuki India (down 1.49%), Mahindra & Mahindra (M&M) (down 0.19%), Hero MotoCorp (down 0.3%), Tata Motors (down 2.02%), Bajaj Auto (down 0.25%) and TVS Motor Company (down 1.34%) declined. Eicher Motors rose 0.36%.
The BSE Auto index had outperformed the market over the past one month till 9 June 2016, rising 5% compared with Sensex's 4.18% rise.
Most realty stocks reversed intraday gains. Indiabulls Real Estate (down 3.6%), Oberoi Realty (down 1.12%), Housing Development & Infrastructure (HDIL) (down 0.51%), and DLF (down 1.47%) edged lower. Sobha (up 0.73%) and Unitech (up 4.62%) gained.
Most bank stocks declined. Among public sector banks, Bank of Baroda (down 1.68%), Bank of India (down 0.72%), State Bank of India (SBI) (down 1.81%), Union Bank of India (down 0.62%), and Canara Bank (down 0.43%) edged lower. Punjab National Bank rose 2.25%.
Moody's Investors Service has said in a report on 11 public sector banks rated by the global credit rating agency that the weak earnings outlook for public sector banks highlights their high level of external capital needs and their capitalisation profiles will further deteriorate unless the government provides additional capital support. Moody's Vice President and Senior Analyst Alka Anbarasu said that the bank's asset quality will remain under pressure over the next 12 months, as they continue to recognize non-performing loans (NPLs) from some of the larger leveraged corporate groups, particularly in the steel and power sectors. As a result, elevated provisioning expenses will continue to constrain profitability and limit internal capital generation of public sector banks. The ability of public sector banks to raise capital through public offerings is constrained by most bank shares trading below book.
Among private sector banks, Axis Bank (down 0.17%), ICICI Bank (down 0.75%), Kotak Mahindra Bank (down 0.37%), Federal Bank (down 0.09%), and IndusInd Bank (down 0.41%) edged lower. HDFC Bank rose 0.11%.
Yes Bank rose 2.11% to Rs 1,062.25 after the bank announced that it executed a share subscription and shareholders' agreement to acquire 8% of the post-issue paid-up capital of Receivables Exchange of India (RXIL). RXIL is a joint venture company set up by NSE Strategic Investment Corporation and Small Industries Development Bank of India. The announcement was made after market hours yesterday, 9 June 2016.
Tata Power Company rose 0.4%. The company clarified after market hours today, 10 June 2016 that the company is not in discussion with Lanco Group to acquire Lanco Power assets and that the news is speculative in nature. Reports had suggested that Lanco Group shortlisted four players including Tata Power for its power business sale.
HDFC declined 0.61%. The company announced after market hours today, 10 June 2016 that it will issue secured redeemable non convertible debentures amounting to Rs 1000 crore on private placement basis. Debentures carry a coupon rate of 8.46% per annum and tenor of 10 years and will mature on 15 June 2026. The issue will open on 15 June 2016 and will close on the same day. The object of the issue is to augment the long term resources of the company. The proceeds will be utilized for financing/refinancing the housing finance requirements of the company.
Key indices dropped for the second day in a row today, 10 June 2016. The Sensex has declined 384.91 points or 1.42% in two sessions from its close of 27,020.66 on 8 June 2016. The Sensex has declined 32.21 points or 0.12% in this month so far (till 10 June 2016). The Sensex has risen 518.21 points or 1.98% in calendar year 2016 so far (till 10 June 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 4,141.14 points or 18.4%. The Sensex is off 1,942.58 points or 6.79% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 3,388.99 points 11.28% from a record high of 30,024.74 hit on 4 March 2015.
The Nifty dropped 33.55 points or 0.41% to settle at 8,170.05, its lowest closing level since 31 May 2016. The index fell 40.75 points or 0.49% at the day's low of 8,162.85. The index rose 62 points or 0.75% at the day's high of 8,265.60.
In overseas stock markets, Asian and European shares edged lower on concerns about global economic slowdown and concerns over the 23 June 2016 referendum that could see Britain exit the European Union. Earlier this week, the World Bank revised its global economic growth forecast for calendar year 2016 to 2.4% from the 2.9% projection in January. Key indices in UK, Germany and France dropped by between 1.68% to 2.25%.
The UK government holds a referendum on 23 June 2016 on whether the country should remain a member of the EU. The Organization for Economic Cooperation and Development (OECD) has warned that Britain's leaving the EU -- the so-called Brexit -- could send shocks through global financial markets. The OECD said on 1 June 2016 that a United Kingdom vote to leave the EU would trigger negative economic effects on the UK, other European countries and the rest of the world. Brexit would lead to economic uncertainty and hinder trade growth, with global effects being even stronger if the British withdrawal from the EU triggers volatility in financial markets, the OECD said. By 2030, post-Brexit UK GDP could be over 5% lower than if the country remained in the European Union, the OECD said.
Trading in US stock index futures indicated decline for US stocks at the opening bell later in the global day. Trading in US index futures indicated that the Dow Jones Industrial Average could slide 89 points at the opening bell. US stocks dropped yesterday, 9 June 2016, after three days of gains as a decline in crude oil futures sapped risk appetite.
Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 1,363 shares fell and 1,206 shares rose. A total of 196 shares were unchanged The BSE Mid-Cap index fell 0.4%. The BSE Small-Cap index dropped 0.2%. The decline in both these indices was lower than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 2361 crore, lower than turnover of Rs 2801.30 crore registered during the previous trading session.
IDFC gained 3.66% to Rs 51 after a bulk deal of 12.02 lakh shares was executed in the scrip at Rs 50.50 per share at 13:00 IST on BSE.
Auto stocks declined. Ashok Leyland (down 1.63%), Maruti Suzuki India (down 1.49%), Mahindra & Mahindra (M&M) (down 0.19%), Hero MotoCorp (down 0.3%), Tata Motors (down 2.02%), Bajaj Auto (down 0.25%) and TVS Motor Company (down 1.34%) declined. Eicher Motors rose 0.36%.
The BSE Auto index had outperformed the market over the past one month till 9 June 2016, rising 5% compared with Sensex's 4.18% rise.
Most realty stocks reversed intraday gains. Indiabulls Real Estate (down 3.6%), Oberoi Realty (down 1.12%), Housing Development & Infrastructure (HDIL) (down 0.51%), and DLF (down 1.47%) edged lower. Sobha (up 0.73%) and Unitech (up 4.62%) gained.
Most bank stocks declined. Among public sector banks, Bank of Baroda (down 1.68%), Bank of India (down 0.72%), State Bank of India (SBI) (down 1.81%), Union Bank of India (down 0.62%), and Canara Bank (down 0.43%) edged lower. Punjab National Bank rose 2.25%.
Moody's Investors Service has said in a report on 11 public sector banks rated by the global credit rating agency that the weak earnings outlook for public sector banks highlights their high level of external capital needs and their capitalisation profiles will further deteriorate unless the government provides additional capital support. Moody's Vice President and Senior Analyst Alka Anbarasu said that the bank's asset quality will remain under pressure over the next 12 months, as they continue to recognize non-performing loans (NPLs) from some of the larger leveraged corporate groups, particularly in the steel and power sectors. As a result, elevated provisioning expenses will continue to constrain profitability and limit internal capital generation of public sector banks. The ability of public sector banks to raise capital through public offerings is constrained by most bank shares trading below book.
Among private sector banks, Axis Bank (down 0.17%), ICICI Bank (down 0.75%), Kotak Mahindra Bank (down 0.37%), Federal Bank (down 0.09%), and IndusInd Bank (down 0.41%) edged lower. HDFC Bank rose 0.11%.
Yes Bank rose 2.11% to Rs 1,062.25 after the bank announced that it executed a share subscription and shareholders' agreement to acquire 8% of the post-issue paid-up capital of Receivables Exchange of India (RXIL). RXIL is a joint venture company set up by NSE Strategic Investment Corporation and Small Industries Development Bank of India. The announcement was made after market hours yesterday, 9 June 2016.
Tata Power Company rose 0.4%. The company clarified after market hours today, 10 June 2016 that the company is not in discussion with Lanco Group to acquire Lanco Power assets and that the news is speculative in nature. Reports had suggested that Lanco Group shortlisted four players including Tata Power for its power business sale.
HDFC declined 0.61%. The company announced after market hours today, 10 June 2016 that it will issue secured redeemable non convertible debentures amounting to Rs 1000 crore on private placement basis. Debentures carry a coupon rate of 8.46% per annum and tenor of 10 years and will mature on 15 June 2026. The issue will open on 15 June 2016 and will close on the same day. The object of the issue is to augment the long term resources of the company. The proceeds will be utilized for financing/refinancing the housing finance requirements of the company.
Key indices dropped for the second day in a row today, 10 June 2016. The Sensex has declined 384.91 points or 1.42% in two sessions from its close of 27,020.66 on 8 June 2016. The Sensex has declined 32.21 points or 0.12% in this month so far (till 10 June 2016). The Sensex has risen 518.21 points or 1.98% in calendar year 2016 so far (till 10 June 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 4,141.14 points or 18.4%. The Sensex is off 1,942.58 points or 6.79% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 3,388.99 points 11.28% from a record high of 30,024.74 hit on 4 March 2015.
No comments:
Post a Comment