Market settles with small losses in a lacklustre trading session
Key benchmark indices registered small losses in a lackluster trading session. The barometer index, the S&P BSE Sensex, lost 28.69 points or 0.1% to settle at 28,423.48. The Nifty 50 index fell 11.55 points or 0.13% to settle at 8,774.65. Key indices hovered alternately between gains and losses within a narrow range around the flat line throughout the session. Key benchmark indices snapped three day winning streak.
Stocks of public sector banks edged lower. Stocks of private sector banks edged higher. Auto stocks gained. Shares of telecom companies slumped after Reliance Industries Chairman Mukesh Ambani reportedly announced free voice calls and cheap internet plan for Reliance Jio customers. Shares of index heavyweight Reliance Industries edged lower on reports that a one-man probe panel said that RIL derived "unjust benefit" as a result of gas flowing into its KG-D6 block from the adjacent field of state-run ONGC in the Krishna-Godavari basin.
Mahindra & Mahindra (M&M) edged higher after the company reported good sales growth in its auto and tractor segments in August 2016. Maruti Suzuki India (Maruti) edged higher after the company reported good sales growth in August 2016. Ashok Leyland edged lower after the company reported fall in total sales in August 2016. Lupin rose after the company announced that its US subsidiary Gavis Pharmaceuticals LLC, USA has received tentative approval from the United States Food and Drug Administration (USFDA) to market a generic version of Pfizer Inc.'s Zithromax for oral suspension, 100mg/5ml and 200mg/5ml.
The Sensex lost 28.69 points or 0.1% to settle at 28,423.48, its lowest closing level since 30 August 2016. The index rose 96.68 points or 0.33% at the day's high of 28,548.85. The index slipped 65.56 points or 0.23% at the day's low of 28,386.61.
The Nifty fell 11.55 points or 0.13% to settle at 8,774.65, its lowest closing level since 30 August 2016. The index rose 27.05 points or 0.3% at the day's high of 8,813.25. The index shed 26.25 points or 0.29% at the day's low of 8,759.95.
The BSE Mid-Cap index lost 0.38%. The BSE Small-Cap index lost 0.39%. The losses for both these indices were higher than the Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was weak. On BSE, 1,656 shares declined and 1,077 shares rose. A total of 169 shares were unchanged.
The total turnover on BSE amounted to Rs 3644 crore, lower than turnover of Rs 3838.49 crore registered during the previous trading session.
Among the sectoral indices on BSE, the BSE Auto index (up 0.35%), the BSE Bankex index (up 0.09%) and the BSE Metal index (up 0.32%) outperformed the Sensex. The BSE Telecom index (down 5.67%), the BSE Oil & Gas index (down 0.81%), the BSE Power index (down 0.91%) and the BSE Realty index (down 2%) underperformed the Sensex.
Cement stocks declined after the Competition Commission of India (CCI) imposed penalties on 10 cement companies and their trade association i.e. Cement Manufacturers Association (CMA) for cartelisation in the cement industry. CCI slapped penalty of Rs 1147.59 crore on ACC. The stock was down 1.25%. A penalty of Rs 1163.91 crore was imposed on Ambuja Cements. The stock was down 0.54%. A penalty of Rs 1175.49 crore was imposed on UltraTech Cement. The stock was up 1.58%. The final order has been passed by CCI pursuant to the directions issued by Competition Appellate Tribunal remanding the matter back while setting aside the original order of CCI.
Stocks of public sector banks edged lower. Union Bank of India (down 2.79%), Bank of India (down 2.43%), IDBI Bank (down 1.85%), Canara Bank (down 0.86%), Bank of Baroda (down 1.01%), Indian Bank (down 0.27%) and State Bank of India (down 0.32%) declined.
Punjab National Bank (PNB) was down 1.3% at Rs 125.75. The bank announced lending rates based on marginal cost of funds with effect from 1 September 2016. PNB's Marginal Cost of Funds based Lending Rate (MCLR) for overnight loans will be 9.1%, for one month will be 9.15% and for three months will be 9.25%. The MCLR on 6-month loans will be 9.3% and for one-year loans the rate would be 9.35%, the bank said. MCLR for three-year loans would be at 9.5% and loans with five-year maturity would carry an MCLR of 9.65%, the bank said. The announcement was made after market hours yesterday, 31 August 2016.
Stocks of private sector banks edged higher. ICICI Bank (up 1.24%), Kotak Mahindra Bank (up 0.53%), Axis Bank (up 0.09%) and Yes Bank (up 0.23%) gained. IndusInd Bank (down 0.19%) edged lower.
Index heavyweight HDFC Bank was down 0.81% at Rs 1,280.25. The stock hit a high of Rs 1,290.75 and a low of Rs 1,266.35 in intraday trade.
Auto stocks gained. Tata Motors (up 1.15%), TVS Motor Company (up 0.51%) and Bajaj Auto (up 0.35%) edged higher. Hero MotoCorp (down 0.44%) edged lower.
Mahindra & Mahindra (M&M) edged higher after the company reported good sales growth in its auto and tractor segments in August 2016. The stock was up 0.97% at Rs 1,451.90. The company reported 16% growth in its total tractor sales at 13,543 units in August 2016 over August 2015. Domestic tractor sales rose 15% to 12,327 units in August 2016 over August 2015. Exports rose 28% to 1,216 units in August 2016 over August 2015. The company announced the monthly sales volume data during trading hours today, 1 September 2016.
Separately, M&M said its total auto sales rose 14% to 40,591 units in August 2016 over August 2015. Domestic auto sales rose 15% to 36,944 units in August 2016 over August 2015. Passenger vehicles sales grew 29% to 18,246 units in August 2016 over August 2015. Medium and heavy commercial vehicles (MHCV) sales rose 9% to 371 units in August 2016 over August 2015. Total auto exports rose 4% to 3,647 units in August 2016 over August 2015.
Eicher Motors was up 0.03% after the company said that total sales of VE Commercial Vehicles, an unlisted subsidiary of the company rose 12.93% to 4,191 units in August 2016 over August 2015. The announcement was made during market hours today, 1 September 2016.
Maruti Suzuki India (Maruti) edged higher after the company reported good sales growth in August 2016. The stock was up 0.11% at Rs 5,058.25. Maruti reported a 12.2% growth in total sales to 1.32 lakh units in August 2016 over August 2015. The company's domestic sales rose 12.3% to 1.19 lakh units in August 2016 over August 2015. The company's exports rose 10.8% to 12,280 units in August 2016 over August 2015. The announcement was made during market hours today, 1 September 2016.
Separately, the company announced during market hours today, 1 September 2016, that it has commenced sale of light commercial vehicle (LCV) model Super Carry in Gujarat. The company has planned to expand commercial channel to 50 outlets by the year end. The company has invested about Rs 300 crore towards the development of the Supper Carry LCV for the Indian market. The vehicle is available at a price of Rs 4.03 lakh ex-showroom Ahmedabad, Gujarat.
Ashok Leyland edged lower after the company reported 6% fall in total sales in August 2016. The stock was off 4.45% at Rs 83.80. The company reported 6% fall in total sales to 10,897 units in August 2016 over August 2015. Ashok Leyland reported 8% fall in sales of medium and heavy commercial vehicles (M&HCV) to 8,201 units in August 2016 over August 2015. Sales of light commercial vehicles (LCV) rose 2% to 2,696 units in August 2016 over August 2015. The company announced the monthly sales volume data during market hours today, 1 September 2016.
Shares of telecom companies slumped after Reliance Industries Chairman Mukesh Ambani reportedly announced free voice calls and cheap internet plan for Reliance Jio Infocomm (RJIL) customers. Idea Cellular (down 10.48%), Bharti Airtel (down 6.37%) and Reliance Communications (down 8.81%) edged lower. According to reports, Ambani announced the launch of "Jio Welcome Offer" from 5 September 2016. Under the new plan, RJIL customers can avail data, voice, video and Jio's bouquet of apps for free till 31 December 2016. RJIL will not charge for voice calls or for roaming calls within India. RJIL will charge Rs 50 for one gigabyte of 4G data, reports added. RJIL's data prices are roughly one-fifth of what customers have been charged by other operators so far.
Reliance Jio's aggressive pricing could force other telecom firms to cut voice and data tariffs. The price war may strain finances of most telecom operators, who are already laden with high debt.
Ambani made the announcement of free voice calls and cheaper 4G data plans during Reliance Industries' (RIL) annual general meeting in Mumbai today, 1 September 2016. RJIL is a unit of RIL. In 2015, RJIL successfully acquired the right to use 4G spectrum in 13 key circles across India.
Shares of index heavyweight RIL edged lower on reports that a one-man probe panel said that RIL derived "unjust benefit" as a result of gas flowing into its KG-D6 block from the adjacent field of state-run ONGC in the Krishna-Godavari basin. The stock declined 2.73% at Rs 1,029.15. RIL is liable to pay compensation to the government, the panel reportedly said. The panel, under the retired Delhi High Court chief justice A P Shah was set up to suggest a way forward in the ongoing dispute between RIL and ONGC.
Lupin rose 1.21% to Rs 1,501.60 after the company announced that its US subsidiary Gavis Pharmaceuticals LLC, USA has received tentative approval from the United States Food and Drug Administration (USFDA) to market a generic version of Pfizer Inc.'s Zithromax for oral suspension, 100mg/5ml and 200mg/5ml. The drug is a macrolide antibacterial drug indicated for mild to moderate infections caused by designated, susceptible bacteria. Zithromax oral suspension had annual US sales of $110.6 million as per IMS MAT June 2016 data. The announcement was made at the fag end of trading session today, 1 September 2016.
Key benchmark indices snapped three day winning streak. The Sensex had risen 669.92 points or 2.41% in the preceding three trading sessions to settle at 28,452.17 yesterday, 31 August 2016, from its close of 27,782.25 on 26 August 2016. The Sensex has risen 2,305.94 points or 8.82% in calendar year 2016 so far (till 1 September 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,928.87 points or 26.35%. The Sensex is off 1,601.26 points or 5.33% from a record high of 30,024.74 hit on 4 March 2015.
On the macro front, the outcome of a monthly survey released today, 1 September 2016, showed that India's manufacturing sector showed a solid improvement last month. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) climbed to a 13-month high of 52.6 in August, from July's reading of 51.8. Indian manufacturers enjoyed a solid improvement in operating conditions during August. With demand from the domestic and external markets picking up, companies raised output accordingly. Firms recorded an easing in cost inflation during the month, which in turn resulted in a softer overall increase in factory gate charges.
Meanwhile, India's GDP growth rate slowed to 7.1% in Q1 June 2016 from 7.9% expansion in Q4 March 2016. The growth was also slower than 7.5% expansion in Q1 June 2015.
Another data showed that the index of eight core infrastructure sector rose 3.2% in July 2016 over July 2015. Cumulative growth stood at 4.9% in the four months period from April to July 2016. The eight core industries comprising coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity have a combined weight of 38% in the Index of Industrial Production (IIP). Both the GDP and core infra data were announced after market hours yesterday, 31 August 2016.
In overseas stock markets, most European stocks edged higher as bank and mining shares advanced. Asian stocks edged lower as markets cautiously awaited the release of US jobs data scheduled tomorrow, 2 September 2016. China's official manufacturing purchasing managers' index, a gauge of factory activity, rose to 50.4 in August, returning to expansionary territory, official data showed today, 1 September 2016. The rise from July's 49.9 could be a sign of improvement in the world's second-largest economy. A PMI reading above 50 indicates an expansion in manufacturing activity, while a reading below 50 points to a contraction. However, the Caixin China manufacturing purchasing managers' index, a private gauge of nationwide factory activity, fell to 50 in August from 50.6 in July.
US stocks finished lower yesterday, 31 August 2016, as oil prices fell and promising economic data supported the case for a Federal Reserve rate hike this year. Data showed yesterday, 31 August 2016 the private sector created 177,000 jobs in August, in line with expectations, and contracts to buy previously owned homes surged in July, suggesting the economy was regaining sufficient momentum for the Federal Reserve to raise interest rates this year.
Stocks of public sector banks edged lower. Stocks of private sector banks edged higher. Auto stocks gained. Shares of telecom companies slumped after Reliance Industries Chairman Mukesh Ambani reportedly announced free voice calls and cheap internet plan for Reliance Jio customers. Shares of index heavyweight Reliance Industries edged lower on reports that a one-man probe panel said that RIL derived "unjust benefit" as a result of gas flowing into its KG-D6 block from the adjacent field of state-run ONGC in the Krishna-Godavari basin.
Mahindra & Mahindra (M&M) edged higher after the company reported good sales growth in its auto and tractor segments in August 2016. Maruti Suzuki India (Maruti) edged higher after the company reported good sales growth in August 2016. Ashok Leyland edged lower after the company reported fall in total sales in August 2016. Lupin rose after the company announced that its US subsidiary Gavis Pharmaceuticals LLC, USA has received tentative approval from the United States Food and Drug Administration (USFDA) to market a generic version of Pfizer Inc.'s Zithromax for oral suspension, 100mg/5ml and 200mg/5ml.
The Sensex lost 28.69 points or 0.1% to settle at 28,423.48, its lowest closing level since 30 August 2016. The index rose 96.68 points or 0.33% at the day's high of 28,548.85. The index slipped 65.56 points or 0.23% at the day's low of 28,386.61.
The Nifty fell 11.55 points or 0.13% to settle at 8,774.65, its lowest closing level since 30 August 2016. The index rose 27.05 points or 0.3% at the day's high of 8,813.25. The index shed 26.25 points or 0.29% at the day's low of 8,759.95.
The BSE Mid-Cap index lost 0.38%. The BSE Small-Cap index lost 0.39%. The losses for both these indices were higher than the Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was weak. On BSE, 1,656 shares declined and 1,077 shares rose. A total of 169 shares were unchanged.
The total turnover on BSE amounted to Rs 3644 crore, lower than turnover of Rs 3838.49 crore registered during the previous trading session.
Among the sectoral indices on BSE, the BSE Auto index (up 0.35%), the BSE Bankex index (up 0.09%) and the BSE Metal index (up 0.32%) outperformed the Sensex. The BSE Telecom index (down 5.67%), the BSE Oil & Gas index (down 0.81%), the BSE Power index (down 0.91%) and the BSE Realty index (down 2%) underperformed the Sensex.
Cement stocks declined after the Competition Commission of India (CCI) imposed penalties on 10 cement companies and their trade association i.e. Cement Manufacturers Association (CMA) for cartelisation in the cement industry. CCI slapped penalty of Rs 1147.59 crore on ACC. The stock was down 1.25%. A penalty of Rs 1163.91 crore was imposed on Ambuja Cements. The stock was down 0.54%. A penalty of Rs 1175.49 crore was imposed on UltraTech Cement. The stock was up 1.58%. The final order has been passed by CCI pursuant to the directions issued by Competition Appellate Tribunal remanding the matter back while setting aside the original order of CCI.
Stocks of public sector banks edged lower. Union Bank of India (down 2.79%), Bank of India (down 2.43%), IDBI Bank (down 1.85%), Canara Bank (down 0.86%), Bank of Baroda (down 1.01%), Indian Bank (down 0.27%) and State Bank of India (down 0.32%) declined.
Punjab National Bank (PNB) was down 1.3% at Rs 125.75. The bank announced lending rates based on marginal cost of funds with effect from 1 September 2016. PNB's Marginal Cost of Funds based Lending Rate (MCLR) for overnight loans will be 9.1%, for one month will be 9.15% and for three months will be 9.25%. The MCLR on 6-month loans will be 9.3% and for one-year loans the rate would be 9.35%, the bank said. MCLR for three-year loans would be at 9.5% and loans with five-year maturity would carry an MCLR of 9.65%, the bank said. The announcement was made after market hours yesterday, 31 August 2016.
Stocks of private sector banks edged higher. ICICI Bank (up 1.24%), Kotak Mahindra Bank (up 0.53%), Axis Bank (up 0.09%) and Yes Bank (up 0.23%) gained. IndusInd Bank (down 0.19%) edged lower.
Index heavyweight HDFC Bank was down 0.81% at Rs 1,280.25. The stock hit a high of Rs 1,290.75 and a low of Rs 1,266.35 in intraday trade.
Auto stocks gained. Tata Motors (up 1.15%), TVS Motor Company (up 0.51%) and Bajaj Auto (up 0.35%) edged higher. Hero MotoCorp (down 0.44%) edged lower.
Mahindra & Mahindra (M&M) edged higher after the company reported good sales growth in its auto and tractor segments in August 2016. The stock was up 0.97% at Rs 1,451.90. The company reported 16% growth in its total tractor sales at 13,543 units in August 2016 over August 2015. Domestic tractor sales rose 15% to 12,327 units in August 2016 over August 2015. Exports rose 28% to 1,216 units in August 2016 over August 2015. The company announced the monthly sales volume data during trading hours today, 1 September 2016.
Separately, M&M said its total auto sales rose 14% to 40,591 units in August 2016 over August 2015. Domestic auto sales rose 15% to 36,944 units in August 2016 over August 2015. Passenger vehicles sales grew 29% to 18,246 units in August 2016 over August 2015. Medium and heavy commercial vehicles (MHCV) sales rose 9% to 371 units in August 2016 over August 2015. Total auto exports rose 4% to 3,647 units in August 2016 over August 2015.
Eicher Motors was up 0.03% after the company said that total sales of VE Commercial Vehicles, an unlisted subsidiary of the company rose 12.93% to 4,191 units in August 2016 over August 2015. The announcement was made during market hours today, 1 September 2016.
Maruti Suzuki India (Maruti) edged higher after the company reported good sales growth in August 2016. The stock was up 0.11% at Rs 5,058.25. Maruti reported a 12.2% growth in total sales to 1.32 lakh units in August 2016 over August 2015. The company's domestic sales rose 12.3% to 1.19 lakh units in August 2016 over August 2015. The company's exports rose 10.8% to 12,280 units in August 2016 over August 2015. The announcement was made during market hours today, 1 September 2016.
Separately, the company announced during market hours today, 1 September 2016, that it has commenced sale of light commercial vehicle (LCV) model Super Carry in Gujarat. The company has planned to expand commercial channel to 50 outlets by the year end. The company has invested about Rs 300 crore towards the development of the Supper Carry LCV for the Indian market. The vehicle is available at a price of Rs 4.03 lakh ex-showroom Ahmedabad, Gujarat.
Ashok Leyland edged lower after the company reported 6% fall in total sales in August 2016. The stock was off 4.45% at Rs 83.80. The company reported 6% fall in total sales to 10,897 units in August 2016 over August 2015. Ashok Leyland reported 8% fall in sales of medium and heavy commercial vehicles (M&HCV) to 8,201 units in August 2016 over August 2015. Sales of light commercial vehicles (LCV) rose 2% to 2,696 units in August 2016 over August 2015. The company announced the monthly sales volume data during market hours today, 1 September 2016.
Shares of telecom companies slumped after Reliance Industries Chairman Mukesh Ambani reportedly announced free voice calls and cheap internet plan for Reliance Jio Infocomm (RJIL) customers. Idea Cellular (down 10.48%), Bharti Airtel (down 6.37%) and Reliance Communications (down 8.81%) edged lower. According to reports, Ambani announced the launch of "Jio Welcome Offer" from 5 September 2016. Under the new plan, RJIL customers can avail data, voice, video and Jio's bouquet of apps for free till 31 December 2016. RJIL will not charge for voice calls or for roaming calls within India. RJIL will charge Rs 50 for one gigabyte of 4G data, reports added. RJIL's data prices are roughly one-fifth of what customers have been charged by other operators so far.
Reliance Jio's aggressive pricing could force other telecom firms to cut voice and data tariffs. The price war may strain finances of most telecom operators, who are already laden with high debt.
Ambani made the announcement of free voice calls and cheaper 4G data plans during Reliance Industries' (RIL) annual general meeting in Mumbai today, 1 September 2016. RJIL is a unit of RIL. In 2015, RJIL successfully acquired the right to use 4G spectrum in 13 key circles across India.
Shares of index heavyweight RIL edged lower on reports that a one-man probe panel said that RIL derived "unjust benefit" as a result of gas flowing into its KG-D6 block from the adjacent field of state-run ONGC in the Krishna-Godavari basin. The stock declined 2.73% at Rs 1,029.15. RIL is liable to pay compensation to the government, the panel reportedly said. The panel, under the retired Delhi High Court chief justice A P Shah was set up to suggest a way forward in the ongoing dispute between RIL and ONGC.
Lupin rose 1.21% to Rs 1,501.60 after the company announced that its US subsidiary Gavis Pharmaceuticals LLC, USA has received tentative approval from the United States Food and Drug Administration (USFDA) to market a generic version of Pfizer Inc.'s Zithromax for oral suspension, 100mg/5ml and 200mg/5ml. The drug is a macrolide antibacterial drug indicated for mild to moderate infections caused by designated, susceptible bacteria. Zithromax oral suspension had annual US sales of $110.6 million as per IMS MAT June 2016 data. The announcement was made at the fag end of trading session today, 1 September 2016.
Key benchmark indices snapped three day winning streak. The Sensex had risen 669.92 points or 2.41% in the preceding three trading sessions to settle at 28,452.17 yesterday, 31 August 2016, from its close of 27,782.25 on 26 August 2016. The Sensex has risen 2,305.94 points or 8.82% in calendar year 2016 so far (till 1 September 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,928.87 points or 26.35%. The Sensex is off 1,601.26 points or 5.33% from a record high of 30,024.74 hit on 4 March 2015.
On the macro front, the outcome of a monthly survey released today, 1 September 2016, showed that India's manufacturing sector showed a solid improvement last month. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) climbed to a 13-month high of 52.6 in August, from July's reading of 51.8. Indian manufacturers enjoyed a solid improvement in operating conditions during August. With demand from the domestic and external markets picking up, companies raised output accordingly. Firms recorded an easing in cost inflation during the month, which in turn resulted in a softer overall increase in factory gate charges.
Meanwhile, India's GDP growth rate slowed to 7.1% in Q1 June 2016 from 7.9% expansion in Q4 March 2016. The growth was also slower than 7.5% expansion in Q1 June 2015.
Another data showed that the index of eight core infrastructure sector rose 3.2% in July 2016 over July 2015. Cumulative growth stood at 4.9% in the four months period from April to July 2016. The eight core industries comprising coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity have a combined weight of 38% in the Index of Industrial Production (IIP). Both the GDP and core infra data were announced after market hours yesterday, 31 August 2016.
In overseas stock markets, most European stocks edged higher as bank and mining shares advanced. Asian stocks edged lower as markets cautiously awaited the release of US jobs data scheduled tomorrow, 2 September 2016. China's official manufacturing purchasing managers' index, a gauge of factory activity, rose to 50.4 in August, returning to expansionary territory, official data showed today, 1 September 2016. The rise from July's 49.9 could be a sign of improvement in the world's second-largest economy. A PMI reading above 50 indicates an expansion in manufacturing activity, while a reading below 50 points to a contraction. However, the Caixin China manufacturing purchasing managers' index, a private gauge of nationwide factory activity, fell to 50 in August from 50.6 in July.
US stocks finished lower yesterday, 31 August 2016, as oil prices fell and promising economic data supported the case for a Federal Reserve rate hike this year. Data showed yesterday, 31 August 2016 the private sector created 177,000 jobs in August, in line with expectations, and contracts to buy previously owned homes surged in July, suggesting the economy was regaining sufficient momentum for the Federal Reserve to raise interest rates this year.
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