Market drops for second day in a row
Key benchmark indices dropped for the second day in a row today, 6 October 2016, led by losses in index heavyweights ITC and Infosys. The S&P BSE Sensex fell 114.77 points or 0.41% to settle at 28,106.21. The Nifty 50 index shed 34.40 points or 0.39% to settle at 8,709.55. The Sensex and the Nifty, both, hit their lowest closing level in almost a week. After remaining in positive terrain till afternoon trade, key indices slipped into the red following negative cues from European stocks.
The Sensex fell 114.77 points or 0.41% to settle at 28,106.21, its lowest closing level since 30 September 2016. The index shed 189.76 points or 0.67% at the day's low of 28,031.22. The index rose 107.58 points or 0.38% at the day's high of 28,328.56.
The Nifty shed 34.40 points or 0.39% to settle at 8,709.55, its lowest closing level since 30 September 2016. The index lost 59.30 points or 0.68% at the day's low of 8,684.65. The index rose 37.20 points or 0.42% at the day's high of 8,781.15.
Among sectoral indices on BSE, the S&P BSE Industrials index (down 0.47%), the S&P BSE Auto index (down 0.69%), the S&P BSE Power index (down 1.18%), the S&P BSE Healthcare index (down 0.99%), the S&P BSE Realty index (down 1.48%), the S&P BSE Utilities index (down 0.56%), the S&P BSE Basic Materials index (down 0.47%), the S&P BSE Teck index (down 0.78%), the S&P BSE Finance index (down 0.63%), the S&P BSE Bankex (down 0.7%), and the S&P BSE IT index (down 0.87%) underperformed the Sensex. The S&P BSE Consumer Discretionary Goods & Services index (down 0.3%), the S&P BSE Capital Goods index (down 0.18%), the S&P BSE Consumer Durables index (down 0.35%), the S&P BSE Metal index (up 0.07%), the S&P BSE Energy index (up 1.87%), the S&P BSE Oil & Gas index (up 2.64%), the S&P BSE Telecom index (up 0.45%), and the S&P BSE FMCG index (down 0.35%) outperformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,529 shares declined and 1,345 shares rose. A total of 129 shares were unchanged. The BSE Mid-Cap index fell 0.56%. The BSE Small-Cap index dropped 0.48%. The fall in both these indices was higher than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 3662.48 crore, lower than turnover of Rs 3914.82 crore registered during the previous trading session.
In overseas stock markets, European shares retreated in choppy trade hit by worries that the European Central Bank might wind down the pace of bond-buying before the end of its asset-purchase programme. Asian stocks rose as a healthy US economic report and rising oil prices overnight bolstered investor optimism. Markets in mainland China were closed for a weeklong holiday. US stocks closed with decent gains yesterday, 5 October 2016 on positive economic data. Activity at US service companies expanded in September at the fastest pace in nearly a year, according to a private report. The Institute for Supply Management's services index jumped to 57.1 last month, its highest since October last year, adding to evidence that the world's biggest economy is strengthening and raising expectations the Federal Reserve will soon raise rates from ultralow levels.
Shares of oil production and exploration firms rose as global crude oil prices gained in the previous session. Cairn India (up 2.83%) and Reliance Industries (RIL) (up 2%) gained. Higher crude oil prices would result in increase in realizations from crude sales for oil exploration firms.
ONGC rose 0.73% after the Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, yesterday, 5 October 2016 gave its approval to an acquisition by ONGC Videsh (OVL) for 11% stake in JSC Vankorneft from Rosneft Oil Company (Rosneft), the National Oil Company (NOC) of Russian Federation (Russia). Rosneft operates Vankor fields, with Vankorneft, its wholly owned subsidiary. OVL will be paying an amount of $930 million for acquiring 11% stake in Vankorneft. OVL is an investment arm of ONGC.
The acquisition of stake in Vankorneft will provide 3.2 million metric ton of oil equivalent (MMTOE) to OVL by 2017. It will also provide an opportunity to Indian public sector oil and gas companies to acquire new technologies from Rosneft. The acquisition is in line the ONGC's stated objective of adding high quality international assets to India's Exploration and Production (E&P) portfolio and thereby augmenting India's energy security.
Oil India gained 0.34%. An Indian consortium led by Oil India including Indian Oil Corporation (IOCL) and Bharat PetroResources (BPRL), a 100% subsidiary of BPCL, have successfully completed two landmark acquisitions of producing upstream assets in Russia. The consortium acquired 29.9% stake in LLC Taas-Yuryakh Neftegazodobycha (Taas Yuryakh) and 23.9% stake in JSC Vankorneft (Vankorneft) from Rosneft Oil Company, the national oil company of Russia.
Shares of public sector oil marketing companies also spurted. Shares of BPCL surged 3.87%.
Indian Oil Corporation jumped 5.44% after the company fixed 19 October 2016 as the record date for 1:1 bonus issue. The announcement was made after market hours yesterday, 5 October 2016.
Shares of HPCL gained 3.9%.
In the global commodities markets, Brent for December settlement currently unchanged at $51.86 a barrel. The contract had risen 99 cents or 1.94% to settle at $51.86 a barrel during the previous trading session.
Index heavyweight and cigarette major ITC lost 0.87% to Rs 238.20. The stock hit a high of Rs 242 and low of Rs 236.20 in intraday trade.
Index heavyweight and software major Infosys lost 1.39% to Rs 1,026.65. The stock hit high of Rs 1,041.15 and low of Rs 1,025 in intraday trade.
Most realty stocks edged lower. Omaxe (down 2.28%), Godrej Properties (down 0.37%), Housing Development and Infrastructure (down 3.2%), Unitech (down 0.83%), and Parsvnath Developers (down 2.26%) rose. DLF (down 1.7%) and Indiabulls Real Estate (down 5.89%) fell. Oberoi Realty (up 3.34%), D B Realty (up 4.48%), Sobha (up 1.97%), Prestige Estates Projects (up 0.65%) rose.
Bank stocks also declined. Among public sector banks, UCO Bank (down 1.06%), Bank of Baroda (down 2.86%), Syndicate Bank (down 2.36%), Punjab National Bank (down 1.7%), Corporation Bank (down 1.48%), Allahabad Bank (down 3.04%), State Bank of India (SBI) (down 1.42%), Bank of India (down 2.25%), Union Bank of India (down 1.81%), and United Bank of India (down 0.23%) edged lower.
Among private sector banks, Axis Bank (down 0.89%), HDFC Bank (down 0.13%), Federal Bank (down 1.62%), and ICICI Bank (down 1.58%) edged lower. Kotak Mahindra Bank (up 0.08%) and IndusInd Bank (up 0.59%) gained.
RBL Bank rose 2.96% to Rs 304.30 on reports a foreign brokerage has initiated coverage on the stock with a buy rating with a target price of Rs 350. The brokerage reportedly said that RBL Bank is ready for a take-off in growth. The brokerage expects more than 35% compound annual growth rate (CAGR) loan growth for the bank in next 3 years.
Yes Bank rose 0.1%. According to reports, initial investigations by the stock market regulator Securities & Exchange Board of India (Sebi) found that Yes Bank had violated key norms of the listing obligations and disclosure rules (LODR) relating to misrepresentation of facts and adequate disclosure before it proceeded with the qualified institutional placement (QIP) last month. It may be recalled that Yes Bank had announced on 8 September 2016 its decision to defer the earlier planned QIP of shares citing extreme volatility during trading day on 8 September 2016 because of misinterpretation of new QIP guidelines. The bank had on 7 September 2016 announced opening of QIP of equity shares of face value Rs 10 each to raise up to $1 billion. Yes Bank had fixed Rs 1,371.84 per share as the floor price at that time.
Meanwhile, in its clarification issued to the stock exchanges during market hours today, 6 October 2016, Yes Bank said that as a matter of policy, it does not comment on such speculative stories.
Key indices fell for the second day in a row today, 6 October 2016. The Sensex has declined 228.34 points or 0.8% in two sessions, from a close of 28,334.55 on 4 October 2016. The Sensex has risen 240.25 points or 0.86% in October 2016 so far (till 6 October 2016). The Sensex has risen 1,988.67 points or 7.61% in calendar year 2016 so far (till 6 October 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,611.60 points or 24.94%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 971.07 points or 3.33%. The Sensex is off 1,918.53 points or 6.38% from a record high of 30,024.74 hit on 4 March 2015.
The Sensex fell 114.77 points or 0.41% to settle at 28,106.21, its lowest closing level since 30 September 2016. The index shed 189.76 points or 0.67% at the day's low of 28,031.22. The index rose 107.58 points or 0.38% at the day's high of 28,328.56.
The Nifty shed 34.40 points or 0.39% to settle at 8,709.55, its lowest closing level since 30 September 2016. The index lost 59.30 points or 0.68% at the day's low of 8,684.65. The index rose 37.20 points or 0.42% at the day's high of 8,781.15.
Among sectoral indices on BSE, the S&P BSE Industrials index (down 0.47%), the S&P BSE Auto index (down 0.69%), the S&P BSE Power index (down 1.18%), the S&P BSE Healthcare index (down 0.99%), the S&P BSE Realty index (down 1.48%), the S&P BSE Utilities index (down 0.56%), the S&P BSE Basic Materials index (down 0.47%), the S&P BSE Teck index (down 0.78%), the S&P BSE Finance index (down 0.63%), the S&P BSE Bankex (down 0.7%), and the S&P BSE IT index (down 0.87%) underperformed the Sensex. The S&P BSE Consumer Discretionary Goods & Services index (down 0.3%), the S&P BSE Capital Goods index (down 0.18%), the S&P BSE Consumer Durables index (down 0.35%), the S&P BSE Metal index (up 0.07%), the S&P BSE Energy index (up 1.87%), the S&P BSE Oil & Gas index (up 2.64%), the S&P BSE Telecom index (up 0.45%), and the S&P BSE FMCG index (down 0.35%) outperformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,529 shares declined and 1,345 shares rose. A total of 129 shares were unchanged. The BSE Mid-Cap index fell 0.56%. The BSE Small-Cap index dropped 0.48%. The fall in both these indices was higher than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 3662.48 crore, lower than turnover of Rs 3914.82 crore registered during the previous trading session.
In overseas stock markets, European shares retreated in choppy trade hit by worries that the European Central Bank might wind down the pace of bond-buying before the end of its asset-purchase programme. Asian stocks rose as a healthy US economic report and rising oil prices overnight bolstered investor optimism. Markets in mainland China were closed for a weeklong holiday. US stocks closed with decent gains yesterday, 5 October 2016 on positive economic data. Activity at US service companies expanded in September at the fastest pace in nearly a year, according to a private report. The Institute for Supply Management's services index jumped to 57.1 last month, its highest since October last year, adding to evidence that the world's biggest economy is strengthening and raising expectations the Federal Reserve will soon raise rates from ultralow levels.
Shares of oil production and exploration firms rose as global crude oil prices gained in the previous session. Cairn India (up 2.83%) and Reliance Industries (RIL) (up 2%) gained. Higher crude oil prices would result in increase in realizations from crude sales for oil exploration firms.
ONGC rose 0.73% after the Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, yesterday, 5 October 2016 gave its approval to an acquisition by ONGC Videsh (OVL) for 11% stake in JSC Vankorneft from Rosneft Oil Company (Rosneft), the National Oil Company (NOC) of Russian Federation (Russia). Rosneft operates Vankor fields, with Vankorneft, its wholly owned subsidiary. OVL will be paying an amount of $930 million for acquiring 11% stake in Vankorneft. OVL is an investment arm of ONGC.
The acquisition of stake in Vankorneft will provide 3.2 million metric ton of oil equivalent (MMTOE) to OVL by 2017. It will also provide an opportunity to Indian public sector oil and gas companies to acquire new technologies from Rosneft. The acquisition is in line the ONGC's stated objective of adding high quality international assets to India's Exploration and Production (E&P) portfolio and thereby augmenting India's energy security.
Oil India gained 0.34%. An Indian consortium led by Oil India including Indian Oil Corporation (IOCL) and Bharat PetroResources (BPRL), a 100% subsidiary of BPCL, have successfully completed two landmark acquisitions of producing upstream assets in Russia. The consortium acquired 29.9% stake in LLC Taas-Yuryakh Neftegazodobycha (Taas Yuryakh) and 23.9% stake in JSC Vankorneft (Vankorneft) from Rosneft Oil Company, the national oil company of Russia.
Shares of public sector oil marketing companies also spurted. Shares of BPCL surged 3.87%.
Indian Oil Corporation jumped 5.44% after the company fixed 19 October 2016 as the record date for 1:1 bonus issue. The announcement was made after market hours yesterday, 5 October 2016.
Shares of HPCL gained 3.9%.
In the global commodities markets, Brent for December settlement currently unchanged at $51.86 a barrel. The contract had risen 99 cents or 1.94% to settle at $51.86 a barrel during the previous trading session.
Index heavyweight and cigarette major ITC lost 0.87% to Rs 238.20. The stock hit a high of Rs 242 and low of Rs 236.20 in intraday trade.
Index heavyweight and software major Infosys lost 1.39% to Rs 1,026.65. The stock hit high of Rs 1,041.15 and low of Rs 1,025 in intraday trade.
Most realty stocks edged lower. Omaxe (down 2.28%), Godrej Properties (down 0.37%), Housing Development and Infrastructure (down 3.2%), Unitech (down 0.83%), and Parsvnath Developers (down 2.26%) rose. DLF (down 1.7%) and Indiabulls Real Estate (down 5.89%) fell. Oberoi Realty (up 3.34%), D B Realty (up 4.48%), Sobha (up 1.97%), Prestige Estates Projects (up 0.65%) rose.
Bank stocks also declined. Among public sector banks, UCO Bank (down 1.06%), Bank of Baroda (down 2.86%), Syndicate Bank (down 2.36%), Punjab National Bank (down 1.7%), Corporation Bank (down 1.48%), Allahabad Bank (down 3.04%), State Bank of India (SBI) (down 1.42%), Bank of India (down 2.25%), Union Bank of India (down 1.81%), and United Bank of India (down 0.23%) edged lower.
Among private sector banks, Axis Bank (down 0.89%), HDFC Bank (down 0.13%), Federal Bank (down 1.62%), and ICICI Bank (down 1.58%) edged lower. Kotak Mahindra Bank (up 0.08%) and IndusInd Bank (up 0.59%) gained.
RBL Bank rose 2.96% to Rs 304.30 on reports a foreign brokerage has initiated coverage on the stock with a buy rating with a target price of Rs 350. The brokerage reportedly said that RBL Bank is ready for a take-off in growth. The brokerage expects more than 35% compound annual growth rate (CAGR) loan growth for the bank in next 3 years.
Yes Bank rose 0.1%. According to reports, initial investigations by the stock market regulator Securities & Exchange Board of India (Sebi) found that Yes Bank had violated key norms of the listing obligations and disclosure rules (LODR) relating to misrepresentation of facts and adequate disclosure before it proceeded with the qualified institutional placement (QIP) last month. It may be recalled that Yes Bank had announced on 8 September 2016 its decision to defer the earlier planned QIP of shares citing extreme volatility during trading day on 8 September 2016 because of misinterpretation of new QIP guidelines. The bank had on 7 September 2016 announced opening of QIP of equity shares of face value Rs 10 each to raise up to $1 billion. Yes Bank had fixed Rs 1,371.84 per share as the floor price at that time.
Meanwhile, in its clarification issued to the stock exchanges during market hours today, 6 October 2016, Yes Bank said that as a matter of policy, it does not comment on such speculative stories.
Key indices fell for the second day in a row today, 6 October 2016. The Sensex has declined 228.34 points or 0.8% in two sessions, from a close of 28,334.55 on 4 October 2016. The Sensex has risen 240.25 points or 0.86% in October 2016 so far (till 6 October 2016). The Sensex has risen 1,988.67 points or 7.61% in calendar year 2016 so far (till 6 October 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,611.60 points or 24.94%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 971.07 points or 3.33%. The Sensex is off 1,918.53 points or 6.38% from a record high of 30,024.74 hit on 4 March 2015.
No comments:
Post a Comment