Sensex Falls 286 Points on Selloff in Metal Shares

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The Sensex and Nifty ended sharply lower in trades on Tuesday as selling pressure intensified in the last 30 minutes of trade.

Earlier in the day, the Sensex opened on a flat note but soon after the Reserve Bank of India maintained status quo on the interest rates, the benchmark indices turned volatile and started swinging between gains and losses.

However, a sudden selling pressure emerged in last 30 minutes of trade which led to Sensex plunging as much as 364 points and Nifty going below its crucial psychological level of 7,450.

Siddharth Sedani, assistant vice president advisory with Sharekhan, said the sharp selloff in the market indicated that there was a possibility of redemption pressure by FIIs after two days of buying.

Metal stocks were the worst hit in trades today. The BSE metal index slumped 4.3 per cent; Vedanta was the top loser from this space. The stock crashed 7.8 per cent to Rs 64.90. SAIL, Tata Steel, Jindal Steel, JSW Steel and Hindalco were also among the losers, down 3.5-7.8 per cent each.

Healthcare, power, realty, oil & gas, banking and auto stocks also witnessed selling pressure.

The broader markets also witnessed selling. The BSE mid-cap index fell 1.74 per cent and the small-cap index declined 1.25 per cent.

From the Nifty-50 basket of stocks, 45 stocks declined while 5 stocks advanced.

Cairn India, Tech Mahindra, NTPC, Sun Pharma, Cipla and BHEL were among the top losers, down 4-5 per cent each.

The Sensex finally closed 286 points lower at 24,539 and Nifty slumped 100 points to shut shop at 7,455.

3:26 p.m.: From the Nifty-50 basket of stocks, 47 stocks were advancing while only 3 were advancing. Vedanta was the top loser in the Nifty, down 8.2 per cent to Rs 64.60. Tata Steel, Cairn India, Tech Mahindra, NTPC, Sun Pharma, Cipla, ONGC, BHEL and BPCL were also atrdaing lower by 3.6-7.3 per cent each.

3:18 p.m.: The Sensex fell over 300 points to hit low of 24,512.79 and Nifty slumped 109 points to trade below its crucial psychological level of 7,450 amid a broad-based selloff. Siddharth Sedani, assistant vice president advisory with Sharekhan, says the sharp selloff in the market indicates that there is a possibility of redemption pressure by FIIs after two days of buying.

3:07 p.m.: The stock markets extended selloff in the last 30 minures of trade. The Sensex fell over 200 points 24,624 and the Nifty plunged 75 points to hit low of 7,480.

2:57 p.m.: European equities fell sharply on Tuesday as crude oil prices slipped again on oversupply concerns and companies such as oil major BP disappointed on the earnings front.

Germany’s DAX fell 1.28 per cent, French CAC40 index plunged 1.6 per cent and Britain’s FTSE 100 declined 1.4 per cent.

2:45 p.m.: Metal stocks were witnessing selling pressure in trades today. The BSE Metal index fell 3 per cent; SAIL was the top loser from this space, down 6.8 per cent to Rs 39.80. Tata Steel, Vedanta, Jindal Steel, JSW Steel, Hindalco and Hindustan Zinc were also among the laggards, down 1-6 per cent each.

2:18 p.m.: VRL Logistics shares fell as much as 6 per cent on Tuesday after the Hubballi, Karnataka-based company reported its first ever decline in quarterly profit since listing in April 2015.

VRL Logistics’ net profit declined 1.5 per cent to Rs 24.7 crore, while revenues were flat at Rs 431 crore in the December quarter. (Read)

2:13 p.m.: The stock markets extended losses in the late noon deals. The Sensex fell 164 points to 24,661.09 and the 50-share Nifty declined 60 points to slip below its crucial psychological level of 7,500.

2:00 p.m.: UPL, Sun TV Network, MRPL, Jidal Steel, NALCO, Torrent Pharma, JSW Steel and Glenmark were among the losers from the mid-cap space, down 3-4.6 per cent each.

1:53 p.m.: InterGlobe Aviation which operates budget carrier IndiGo Airlines fell as much as 5 per cent to hit low of Rs 837.95. This is for the first time that shares of InterGlobe Aviation is trading below Rs 850 on the stock exchanges.

1:33 p.m.: The stock markets fell in afternoon trades again as selling pressure was seen across the sectors. The Sensex fell 73 points to 24,752 and the 50-share Nifty was down 28 points at 7,527.

1:25 p.m.: Selling pressure was visible in metal, oil & gas, banking, power, realty, consumer durables and healthcare stocks. On the other hand, some buying was seen in technology stocks.

1:05 p.m.: Tech Mahindra shares fell 4.34 per cent to hit low of Rs 476 after the company post the market hours reported subdued set of third quarter numbers. The company reported net profit of Rs 759 crore on sales of Rs 6,701 crore.

12:45 p.m.: The market breadth was neutral as 1,196 stocks were advancing while 1,173 were declining.

12:30 p.m.: Metal stocks continue to witness selling pressure. The BSE metal index slipped 1.87 per cent; Tata Steel, Vedanta, SAIL Industries, JSW Steel, Jindal Steel, Coal India and Hindustan Zinc were among the losers, down 1.6-3.8 per cent each.

12:20 p.m.: The Reserve Bank of India (RBI) will use all instruments, including open market operations (OMO) to infuse “plentiful” liquidity into the banking system, Governor Raghuram Rajan said on Tuesday, after keeping key rates unchanged in its policy review.

Rajan said a perception that the banking system is facing an “enormous liquidity shortage” is not consistent with reality. (Read)

Post his comments, banking shares witnessed buying interest.

12:07 p.m.: Banking stocks came in high demand in the noon deals. The Bank Nifty which fell 0.77 per cent recovered the lost ground and advanced 0.81 per cent. Bank of Baroda, Punjab National Bank, State Bank of India, Bank of India, Federal Bank and Yes Bank were among the gainers, up 1.5-4.3 per cent each.

11:57 a.m.: Banking Nifty recovers after a knee-jerk reaction on the downside post the Reserve Bank of India’s monetary policy review. Bank Nifty recovered from intraday lows and was up 0.35 per cent.

11:41 a.m.: RBI has asked banks to do provisioning for bad loans adequately, says Governor Raghuram Rajan.

11:39 a.m.: Realty and auto stocks turned flat after the Reserve Bank of India decided to hold key interest rates.

11:33 a.m.: Sensex off day’s low, down 22 points at 24,803 and Nifty was down 17 points at 7,539.

11:20 a.m.: Bank Nifty falls 0.77 per cent post the RBI monetary policy; State Bank of India, ICICI Bank, Bank of India, Yes Bank, Axis Bank, IndusInd Bank and Bank of Baroda were among the losers, down 0.7-1.77 per cent each.

11:14 a.m.: Reserve Bank of India governor Raghuram Rajan expects inflation to be around 5 per cent by the end of 2016-17.

11:12 a.m.: From the Nifty-50 basket of stocks, 33 stocks were declining while 17 were advancing. Vedanta was the top loser in the Nifty, down 4.26 per cent to Rs 67.40. Tech Mahindra, Tata Steel, Cairn India, BPCL, Reliance Industries, Sun Pharma, ICICI Bank and Yes Bank were also among the losers, down over 1 per cent each.

11:08 a.m.: Selling pressure was visible in metal, oil & gas, consumer durables, healthcare and select banking stocks.

11:02 a.m.: The stock markets edged lower in the late morning deals after the Reserve Bank of India kept the key interest rates unchanged. The Sensex fell 61 points to hit low of 24,763.28 and the 50-share Nifty slipped 30 points to 7,525.95.

10:53 a.m.: Stock markets absolutely flat ahead of RBI’s monetary policy. Sensex up 25 points at 24,850 and Nifty holds 7,550.

10:49 a.m.: Metal and oil & gas indices were witnessing selling pressure. The BSE metal index fell 1.8 per cent and the oil & gas index declined 1.52 per cent.

10:46 a.m.: Nomura has initiated buy on Alkem Labs for target of Rs 1,635/share. Nomura says company is a play on steady domestic business. India’s pharma market presents a long term opportunity. Stock trading in-line with sector average at 19.2 times FY17EPS and current valuation is well supported by growth estimates. (Click here for more brokerage calls)

10:33 a.m.: Sharan Bio-Medicine, Kewal Kiran Clothing, 3I Infotech, Surya Laxmi Cotton Mills and Eros Media were among the gainers from the small-cap space, up 7-12.5 per cent each.

10:24 a.m.: The stock markets continued to trade on a flat note in the morning trades ahead of the Reserve Bank of India’s monetary policy review. The Sensex was up 35 points at 24,859 and the Nifty jumped 1 point to 7,557.

9:55 a.m.: Stocks form interest-rate sensitive space such as banking, real estate and auto were trading marginally higher ahead of the Reserve Bank of India’s monetary policy review. The respective indices were up 0.4-0.5 per cent.

9:47 a.m.: United Breweries, Union Bank of India, Torrent Power, Divis Labs, Emami, Havells India, Canara Bank and Allahabad Bak were among the gainers from the mid-cap space, up 1.5-2.85 per cent each.

9:41 a.m.: Bajaj Auto total sales jump 2 per cent in January to 2,93,939 units compared to 2,88,746 units during the same period last year. Shares jump 1.2 per cent to Rs 2,356.

9:35 a.m.: Reserve Bank Governor Raghuram Rajan is expected to leave the repo rate steady at 6.75 per cent in Tuesday’s monetary policy review, according to a Reuters poll.

Economists say Dr Rajan will keep an eye on the forthcoming Budget – particularly the government’s fiscal deficit target – before taking any rate action. Dr Rajan warned on Friday against straying from the path of fiscal consolidation or relaxing the fight against inflation. The timing of Rajan’s safety first message wasn’t lost on analysts. (Read)

9:30 a.m.: The Sensex and Nifty opened on a flat note in trades on Tuesday ahead of the Reserve Bank of India’s first monetary policy review of 2016 which is due later in the day.

The Sensex advanced as much as 68 points to hit high of 24,892.53 and the 50-share Nifty jumped 12 points to hit high of 7,568.20.

Meanwhile, from the Nifty-50 basket of stocks, 29 stocks were declining while 21 were advancing.

Dr Reddy’s Labs was the top Nifty gainer, the stock jumped 1.36 per cent to Rs 3,092. Tata Motors, Adani ports and SEZ, Bharti Airtel, Idea Cellular and Infosys also jumped 1-1.36 per cent each.

On the other hand, ONGC, was the top loser in the Nifty the stock slipped 2.5 per cent to Rs 219. Cairn India, BPCL, GAIL India, Tata Steel, Punjab National Bank and Zee Entertainment were also among the laggards.

On the sectoral front, selling pressure was visible in oil & gas, metal and FMCG stocks. While, some buying interest was visible in pharma, IT, banking and auto stocks.

The broader markets were in-line with the benchmark indices. The BSE mid-cap index was up 0.2 per cent and the small-cap index added 0.35 per cent.

8:15 a.m.: The Sensex and Nifty are likely to open on a flat note in trades on Tuesday tracking subdued trading of Nifty futures on the Singapore Stock Exchange.

Asian shares wobbled on Tuesday as crude oil prices slid on rekindled oversupply fears and after downbeat manufacturing data raised concerns about global momentum.

Most of the Asian share markets were trading on a subdued note. Hong Kong’s Hang Seng was up 0.11 per cent, Japan’s Nikkei slipped 0.01 per cent and South Korea’s KOSPI declined 0.33 per cent. On the other hand, China’s Shanghai Composite advanced 1.8 per cent.

Overnight, strong gains in Facebook and Alphabet helped Wall Street cut losses and stage a late-day rally, with major indexes closing near the unchanged mark.

Stocks had been lower earlier in the day as weak Chinese economic data added to concerns about a global slowdown and oil prices resumed their slide. The manufacturing sector in the world’s second-largest economy contracted in January at the fastest pace since 2012.

The Dow Jones industrial average was down 17.12 points, or 0.1 per cent, to 16,449.18, the S&P 500 had lost 0.86 points, or 0.04 per cent, to 1,939.38 and the Nasdaq Composite had added 6.41 points, or 0.14 per cent, to 4,620.37.

Back home, investors would eagerly watch out for the Reserve Bank of India’s first monetary policy review of 2016 which is due later in the day.

The Reserve Bank of India (RBI) is expected to leave its key interest rate steady at 6.75 per cent and only make one cut this year as rising inflation ties its hands, according to a Reuters poll.

Meanwhile, foreign institutional investors bought shares worth Rs 253.88 crore while domestic institutional investors sold shares worth Rs 535.7 crore on Monday.

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