Sensex, Nifty hit more than one-week closing low
Trading for the week ended on a subdued note as key benchmark indices settled lower with investors maintaining caution ahead of the US jobs data to get a clearer picture of the health of the world's biggest economy. The barometer index, the S&P BSE Sensex, shed 74.59 points or 0.27% to settle at 27,126.90. The losses for the Nifty 50 index were lower in percentage terms than those for the Sensex. The Nifty lost 14.70 points or 0.18% to settle at 8,323.20. The Sensex and the Nifty, both, hit their lowest closing level in more than a week.
In overseas stock markets, European stocks edged higher in volatile trade with financial shares advancing after a tough week for the sector, with the gains coming ahead of closely watched figures on the US labor market due later in the global day. Asian stocks edged lower as investors awaited US jobs data to get a clearer picture of the health of the world's biggest economy. US stocks closed mostly lower yesterday, 7 July 2016, tracking sinking oil prices, but the market pared losses late in the session as investors sought bargains ahead of the closely watched jobs report. As per data released by Automatic Data Processing Inc., US private-sector employment picked up a bit in June. Meanwhile, initial jobless claims fell last week to a nearly three-month low. The US government will announce nonfarm payroll report for June 2016 later in the global day today, 8 July 2016.
Closer home, the Sensex shed 74.59 points or 0.27% to settle at 27,126.90, its lowest closing level since 30 June 2016. The index lost 167.35 points or 0.61% at the day's low of 27,034.14. The index rose 93.33 points or 0.34% at the day's high of 27,294.82, its highest level since 5 July 2016.
The Nifty lost 14.70 points or 0.18% to settle at 8,323.20, its lowest closing level since 30 June 2016. The index lost 50.35 points or 0.6% at the day's low of 8,287.55. The index rose 15.40 points or 0.18% at the day's high of 8,353.30.
The market breadth indicating the overall health of the market was negative. On BSE, 1,551 shares fell and 1,161 shares rose. A total of 148 shares were unchanged. The BSE Mid-Cap index rose 0.11%, outperforming the Sensex. The BSE Small-Cap index fell 0.17%. The decline in this index was lower than the Sensex's fall in percentage terms.
The total turnover on BSE amounted to Rs 3118 crore, higher than turnover of Rs 2878.18 crore registered during the previous trading session.
Stocks of companies involved in oil exploration & production activities fell as global crude oil prices dropped sharply in the previous session. ONGC (down 1.35%) and Oil India (down 1.96%) declined. Lower crude oil prices will result in lower realization from crude sales for oil exploration firms.
Brent for September settlement was currently up 43 cents at $46.83 a barrel. The contract had dropped $2.40 a barrel or 4.91% to settle at $46.40 a barrel during the previous trading session after data from Energy Information Administration (EIA) showed a smaller-than-expected weekly decline in US crude-oil inventories.
Shares of Cairn India dropped 3.29% to Rs 145.40 as the stock turned ex-dividend today, 8 July 2016, for final dividend of Rs 3 per share for the year ended 31 March 2016. Before turning ex-dividend, the stock offered a dividend yield of 2.03% based on its closing price of Rs 147.30 on the BSE yesterday, 7 July 2016.
Reliance Industries (RIL) declined 0.79%. Reliance Jio Infocomm (RJIL), a subsidiary of RIL, has raised Rs 2000 crore by issuing 5 year non-convertible debentures (NCDs) bearing a coupon of 8.32% per annum, payable annually. The issue has been assigned a rating of AAA by CRISIL and ICRA. The proceeds of the issuance shall be utilized by RJIL for rolling out a digital services business in India. The announcement was made after market hours yesterday, 7 July 2016.
Shares of public sector oil marketing companies (PSU OMCs) also dropped. HPCL (down 0.57%), BPCL (down 0.11%) and Indian Oil Corporation (IOCL) (down 1.06%) declined.
The BSE Oil & Gas index had outperformed the market over the past one month till 7 July 2016, rising 7.71% compared with 0.71% rise in the Sensex. The index had also outperformed the market in past one quarter, gaining 10.94% as against Sensex's 10.19% rise.
Most airline stocks rose as crude oil prices dropped in the previous session. Jet Airways (India) (up 0.03%) and SpiceJet (up 0.46%) gained. InterGlobe Aviation fell 2.1%. Lower crude oil prices benefit aviation firms as jet fuel prices, which typically constitute about 50% of airlines' operating costs, are directly linked to international crude oil prices.
Stocks of public sector banks edged lower. Bank of Baroda (down 2.06%), Canara Bank (down 1.59%), Bank of India (down 1.23%), IDBI Bank (down 0.4%) and State Bank of India (down 0.95%) declined. Punjab National Bank (up 0.56%) and Union Bank of India (up 0.41%) gained.
Stocks of private sector banks were mixed. ICICI Bank (down 1.19%) and Kotak Mahindra Bank (down 0.05%) edged lower. IndusInd Bank (up 1.78%), Yes Bank (up 0.62%) and Axis Bank (up 0.74%) edged higher.
Index heavyweight HDFC Bank was down 0.97% at Rs 1,172.20. The stock hit a high of Rs 1,187 and a low of Rs 1,170.55 in intraday trade.
Most capital goods stocks dropped. BEML (down 1.15%), Havells India (down 0.08%), L&T (down 1.03%), Crompton Greaves (down 3.21%), Siemens (down 0.41%) and Bharat Electronics (down 1.22%) declined. ABB (India) (up 3.22%) and Thermax (up 0.8%) gained.
Bharat Heavy Electricals fell 1.64% at Rs 137.75, with the stock declining on profit booking after recent strong gains. The Bharat Heavy Electricals (Bhel) stocks had witnessed a sharp surge recently. The stock jumped 18.43% in eight trading sessions to settle at Rs 140.05 yesterday, 7 July 2016, from its close of Rs 118.25 on 24 June 2016. Meanwhile, a foreign brokerage reportedly maintained 'underperform' rating on Bharat Heavy Electricals (Bhel) with a target price of Rs 100. The target price remains substantially lower than the stock's ruling market price. The foreign brokerage has reportedly cut its EPS estimates on Bhel by 3% to 10% for FY 17-18.
The BSE Capital Goods index had outperformed the market over the past one month till 7 July 2016, rising 4.81% compared with 0.71% rise in the Sensex. The index had also outperformed the market in past one quarter, gaining 20.81% as against Sensex's 10.19% rise.
Cadila Healthcare rose 4.92% after the company's announcement that its Moraiya manufacturing facility in Gujarat has received an Establishment Inspection Report from the US drug regulator. The announcement was made during trading hours today, 8 July 2016. Cadila Healthcare said in a statement that the receipt of Establishment Inspection Report (EIR) from the United States Food and Drug Administration (USFDA) only indicates closure of the inspection points (483s) raised based on the inspection of the plant carried out between 28 August 2014 and 5 September 2014. What is "closed" is the initial review that resulted in the warning letter issuance. Though this is a positive step towards the resolution of the warning letter issued by the USFDA, it does not in itself indicate resolution of the warning letter. The company is in constant follow up with the USFDA for resolution of the warning letter.
The Sensex has risen 127.18 points or 0.47% in this month so far (till 8 July 2016). The Sensex has risen 1,009.36 points or 3.86% in calendar year 2016 so far (till 8 July 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 4,632.29 points or 20.59%. The Sensex is off 1,451.43 points or 5.07% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 2,897.84 points or 9.65% from a record high of 30,024.74 hit on 4 March 2015.
Meanwhile, India Meteorological Department (IMD) said in its latest update yesterday, 7 July 2016 that in the week from 30 June to 6 July 2016, rainfall was above long period average (LPA) by 35% over the country as a whole. For the country as a whole, cumulative rainfall during this year's monsoon until 6 July has been 1% above LPA, thus making a further recovery of 13% from the week ended 29 June, the IMD said. The IMD said in its extended forecast upto 25 July that it expects above normal rainfall activity over central India till 15 July. The weather office expects normal to above normal rainfall over northern parts of the country and northeastern states between 16 to 25 July. The IMD expects a subdued rainfall activity over south Peninsular India.
The IMD has forecast rains to be above normal in July and August 2016. The quantum of the rainfall and its spatial and temporal distribution are critical for the country's agriculture. Around 70% of the country's farmlands are rain-fed.
In overseas stock markets, European stocks edged higher in volatile trade with financial shares advancing after a tough week for the sector, with the gains coming ahead of closely watched figures on the US labor market due later in the global day. Asian stocks edged lower as investors awaited US jobs data to get a clearer picture of the health of the world's biggest economy. US stocks closed mostly lower yesterday, 7 July 2016, tracking sinking oil prices, but the market pared losses late in the session as investors sought bargains ahead of the closely watched jobs report. As per data released by Automatic Data Processing Inc., US private-sector employment picked up a bit in June. Meanwhile, initial jobless claims fell last week to a nearly three-month low. The US government will announce nonfarm payroll report for June 2016 later in the global day today, 8 July 2016.
Closer home, the Sensex shed 74.59 points or 0.27% to settle at 27,126.90, its lowest closing level since 30 June 2016. The index lost 167.35 points or 0.61% at the day's low of 27,034.14. The index rose 93.33 points or 0.34% at the day's high of 27,294.82, its highest level since 5 July 2016.
The Nifty lost 14.70 points or 0.18% to settle at 8,323.20, its lowest closing level since 30 June 2016. The index lost 50.35 points or 0.6% at the day's low of 8,287.55. The index rose 15.40 points or 0.18% at the day's high of 8,353.30.
The market breadth indicating the overall health of the market was negative. On BSE, 1,551 shares fell and 1,161 shares rose. A total of 148 shares were unchanged. The BSE Mid-Cap index rose 0.11%, outperforming the Sensex. The BSE Small-Cap index fell 0.17%. The decline in this index was lower than the Sensex's fall in percentage terms.
The total turnover on BSE amounted to Rs 3118 crore, higher than turnover of Rs 2878.18 crore registered during the previous trading session.
Stocks of companies involved in oil exploration & production activities fell as global crude oil prices dropped sharply in the previous session. ONGC (down 1.35%) and Oil India (down 1.96%) declined. Lower crude oil prices will result in lower realization from crude sales for oil exploration firms.
Brent for September settlement was currently up 43 cents at $46.83 a barrel. The contract had dropped $2.40 a barrel or 4.91% to settle at $46.40 a barrel during the previous trading session after data from Energy Information Administration (EIA) showed a smaller-than-expected weekly decline in US crude-oil inventories.
Shares of Cairn India dropped 3.29% to Rs 145.40 as the stock turned ex-dividend today, 8 July 2016, for final dividend of Rs 3 per share for the year ended 31 March 2016. Before turning ex-dividend, the stock offered a dividend yield of 2.03% based on its closing price of Rs 147.30 on the BSE yesterday, 7 July 2016.
Reliance Industries (RIL) declined 0.79%. Reliance Jio Infocomm (RJIL), a subsidiary of RIL, has raised Rs 2000 crore by issuing 5 year non-convertible debentures (NCDs) bearing a coupon of 8.32% per annum, payable annually. The issue has been assigned a rating of AAA by CRISIL and ICRA. The proceeds of the issuance shall be utilized by RJIL for rolling out a digital services business in India. The announcement was made after market hours yesterday, 7 July 2016.
Shares of public sector oil marketing companies (PSU OMCs) also dropped. HPCL (down 0.57%), BPCL (down 0.11%) and Indian Oil Corporation (IOCL) (down 1.06%) declined.
The BSE Oil & Gas index had outperformed the market over the past one month till 7 July 2016, rising 7.71% compared with 0.71% rise in the Sensex. The index had also outperformed the market in past one quarter, gaining 10.94% as against Sensex's 10.19% rise.
Most airline stocks rose as crude oil prices dropped in the previous session. Jet Airways (India) (up 0.03%) and SpiceJet (up 0.46%) gained. InterGlobe Aviation fell 2.1%. Lower crude oil prices benefit aviation firms as jet fuel prices, which typically constitute about 50% of airlines' operating costs, are directly linked to international crude oil prices.
Stocks of public sector banks edged lower. Bank of Baroda (down 2.06%), Canara Bank (down 1.59%), Bank of India (down 1.23%), IDBI Bank (down 0.4%) and State Bank of India (down 0.95%) declined. Punjab National Bank (up 0.56%) and Union Bank of India (up 0.41%) gained.
Stocks of private sector banks were mixed. ICICI Bank (down 1.19%) and Kotak Mahindra Bank (down 0.05%) edged lower. IndusInd Bank (up 1.78%), Yes Bank (up 0.62%) and Axis Bank (up 0.74%) edged higher.
Index heavyweight HDFC Bank was down 0.97% at Rs 1,172.20. The stock hit a high of Rs 1,187 and a low of Rs 1,170.55 in intraday trade.
Most capital goods stocks dropped. BEML (down 1.15%), Havells India (down 0.08%), L&T (down 1.03%), Crompton Greaves (down 3.21%), Siemens (down 0.41%) and Bharat Electronics (down 1.22%) declined. ABB (India) (up 3.22%) and Thermax (up 0.8%) gained.
Bharat Heavy Electricals fell 1.64% at Rs 137.75, with the stock declining on profit booking after recent strong gains. The Bharat Heavy Electricals (Bhel) stocks had witnessed a sharp surge recently. The stock jumped 18.43% in eight trading sessions to settle at Rs 140.05 yesterday, 7 July 2016, from its close of Rs 118.25 on 24 June 2016. Meanwhile, a foreign brokerage reportedly maintained 'underperform' rating on Bharat Heavy Electricals (Bhel) with a target price of Rs 100. The target price remains substantially lower than the stock's ruling market price. The foreign brokerage has reportedly cut its EPS estimates on Bhel by 3% to 10% for FY 17-18.
The BSE Capital Goods index had outperformed the market over the past one month till 7 July 2016, rising 4.81% compared with 0.71% rise in the Sensex. The index had also outperformed the market in past one quarter, gaining 20.81% as against Sensex's 10.19% rise.
Cadila Healthcare rose 4.92% after the company's announcement that its Moraiya manufacturing facility in Gujarat has received an Establishment Inspection Report from the US drug regulator. The announcement was made during trading hours today, 8 July 2016. Cadila Healthcare said in a statement that the receipt of Establishment Inspection Report (EIR) from the United States Food and Drug Administration (USFDA) only indicates closure of the inspection points (483s) raised based on the inspection of the plant carried out between 28 August 2014 and 5 September 2014. What is "closed" is the initial review that resulted in the warning letter issuance. Though this is a positive step towards the resolution of the warning letter issued by the USFDA, it does not in itself indicate resolution of the warning letter. The company is in constant follow up with the USFDA for resolution of the warning letter.
The Sensex has risen 127.18 points or 0.47% in this month so far (till 8 July 2016). The Sensex has risen 1,009.36 points or 3.86% in calendar year 2016 so far (till 8 July 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 4,632.29 points or 20.59%. The Sensex is off 1,451.43 points or 5.07% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 2,897.84 points or 9.65% from a record high of 30,024.74 hit on 4 March 2015.
Meanwhile, India Meteorological Department (IMD) said in its latest update yesterday, 7 July 2016 that in the week from 30 June to 6 July 2016, rainfall was above long period average (LPA) by 35% over the country as a whole. For the country as a whole, cumulative rainfall during this year's monsoon until 6 July has been 1% above LPA, thus making a further recovery of 13% from the week ended 29 June, the IMD said. The IMD said in its extended forecast upto 25 July that it expects above normal rainfall activity over central India till 15 July. The weather office expects normal to above normal rainfall over northern parts of the country and northeastern states between 16 to 25 July. The IMD expects a subdued rainfall activity over south Peninsular India.
The IMD has forecast rains to be above normal in July and August 2016. The quantum of the rainfall and its spatial and temporal distribution are critical for the country's agriculture. Around 70% of the country's farmlands are rain-fed.
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