Sensex, Nifty settle at one-week low on negative global cues

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Key benchmark indices logged small losses on last trading day of the week led by decline in index heavyweights HDFC and Infosys. The barometer index, S&P BSE Sensex fell 45.07 points or 0.16% to settle at 28,061.14. The Nifty 50 index fell 11.95 points or 0.14% to settle at 8,697.60. The Sensex settled above the psychologically important 28,000 mark. The index swung above and below that level after dropping below that mark in early afternoon trade. Small decline pushed the Sensex and the Nifty to one-week closing low. Domestic bourses declined in tandem with global stocks as investors looked ahead to US jobs data for September 2016.

The Sensex fell 45.07 points or 0.16% to settle at 28,061.14, its lowest closing level since 30 September 2016. The Sensex fell 141.30 points or 0.5% at the day’s low of 27,964.91. The barometer index rose 49.47 points or 0.18% at the day’s high of 28,155.68.

The Nifty 50 index fell 11.95 points or 0.14% to settle at 8,697.60, its lowest closing level since 30 September 2016. The Nifty lost 45.75 points or 0.52% at the day’s low of 8,663.80. The index rose 14.15 points or 0.16% at the day’s high of 8,723.70.

Closer home, the market breadth indicating the overall health of the market was just about negative. On BSE, 1,397 shares fell and 1,378 shares rose. A total of 222 shares were unchanged. The BSE Mid-Cap index rose 0.01%, outperforming the Sensex. The BSE Small-Cap index slipped 0.02%. The fall in this index was lower than Sensex’s decline in percentage terms.

The total turnover on BSE amounted to Rs 3334.91 crore, lower than turnover of Rs 3674.61 crore registered during the previous trading session.

Among the sectoral indices on BSE, the S&P BSE Telecom index (down 0.94%), the S&P BSE IT index (down 0.82%), the S&P BSE Oil & Gas index (down 0.65%), the S&P BSE Teck index (down 0.56%), the S&P BSE Energy index (down 0.36%), the S&P BSE Healthcare index (down 0.27%), the S&P BSE Consumer Durables index (down 0.25%), the S&P BSE Finance index (down 0.21%), the S&P BSE Capital Goods index (down 0.21%), the S&P BSE Power index (down 0.2%) underperformed the Sensex. The S&P BSE Utilities index (down 0.14%), the S&P BSE Realty index (down 0.13%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.12%), the S&P BSE FMCG index (down 0.07%), the S&P BSE Bankex (down 0.03%), the S&P BSE Basic Materials index (up 0.41%), the S&P BSE Auto index (down 0.62%), the S&P BSE Industrials index (up 0.71%), the S&P BSE Metal index (up 1%) outperformed the Sensex.

IT stocks declined ahead of US jobs data for September 2016. US is the biggest outsourcing market for the Indian IT firms. Oracle Financial Services Software (down 0.76%), Tech Mahindra (down 0.48%), Wipro (down 0.54%), MphasiS (down 0.16%), TCS (down 0.5%), Hexaware Technologies (down 0.97%) fell. HCL Technologies (up 0.62%), MindTree (up 0.03%) rose.

Index heavyweight and software major Infosys fell 1.43% to Rs 1,011.95. The stock hit high of Rs 1,032.75 and low of Rs 1,010.05 in intraday trade.

Index heavyweight and housing finance major HDFC lost 1.11% to Rs 1,408. The stock hit high of Rs 1,425 and low of Rs 1,398.60 in intraday trade.

Bank stocks saw mixed trend. Among private bank stocks, HDFC Bank (down 0.13%), ICICI Bank (down 0.4%), and Yes Bank (down 0.4%) declined. IndusInd Bank (up 0.43%), RBL Bank (up 1.33%) and Axis Bank (up 0.45%) rose.

Kotak Mahindra Bank rose 0.31%. The bank announced that it has revised its base rate downwards by 10 basis points (bps) to 9.4% per annum with effect from 7 October 2016. All categories of loans (other than the exceptions permitted by RBI) will be priced with reference to the revised base rate. The announcement was made after market hours yesterday, 6 October 2016.

South Indian Bank lost 3.23% after net profit rose 18.35% to Rs 110.52 crore on 4.57% growth in total income to Rs 1596.08 crore in Q2 September 2016 over Q2 September 2015. The result was announced during market hours today, 7 October 2016. The bank’s provisions and contingencies surged 90.2% to Rs 128.33 crore in Q2 September 2016 over Q2 September 2015.

South Indian Bank’s gross non-performing assets (NPAs) stood at Rs 1745.28 crore as on 30 September 2016 compared with Rs 1651.60 crore as on 30 June 2016 and Rs 892.25 crore as on 30 September 2015. The bank’s ratio of gross NPAs to gross advances stood at 3.96% as on 30 September 2016, in line with 3.96% as on 30 June 2016 and 2.24% as on 30 September 2015. The ratio of net NPAs to net advances stood at 2.77% as on 30 September 2016 as against 2.89% as on 30 June 2016 and 1.39% as on 30 September 2015.

Among PSU bank stocks, State Bank of India (SBI) (up 0.55%), Vijaya Bank (up 0.86%), Bank of India (up 0.09%), Punjab National Bank (up 0.99%) rose. Corporation Bank (down 1.5%), Bank of Baroda (down 0.46%), Canara Bank (down 0.45%) and Union Bank of India (down 0.17%) fell.

IDBI Bank rose 3.08% on reports the government is looking to get the bank’s stalled disinvestment plan moving again. The Government of India (GoI) has reportedly instructed IDBI Bank’s management to bring its stake down to 52%. Retaining a majority, the government hopes, will allow the asset-sale programme smoother passage and eventually help achieve the ambition of transforming IDBI Bank along the lines of Axis Bank, reports suggested. The GoI currently held 73.98% stake in IDBI Bank (as per the shareholding pattern as on 30 June 2016).

Meanwhile, IDBI Bank in its clarification issued to the stock exchanges during market hours today, 7 October 2016 said that it has so far not received any official communication from the government in this regard. Further, the matter has also not been discussed by the board of directors of the bank, it added.

Telecom stocks saw mixed trend. Reliance Communications (up 2.27%) and Tata Teleservices (Maharashtra) (up 5.67%) rose. MTNL (down 0.76%) fell.

Bharti Airtel fell 1.01%. The company before market hours today, 7 October 2016 announced that it has acquired 173.8 Mhz spectrum across 1800/2100/2300 MHz bands for a total consideration of Rs 14244 crore in the latest spectrum auction conducted by the Department of Telecom, Government of India. Airtel said it has further strengthened its pan-India spectrum portfolio and secured its spectrum requirements for the next 20 years. The company now has 4G and 3G spectrum in all circles, giving it the widest mobile broadband footprint across the country.

Idea Cellular rose 0.06% after the company announced before market hours today, 7 October 2016 that the company has successfully completed its pan-India mobile broadband footprint and significantly boosted its capacity spectrum portfolio in the recently concluded spectrum auction conducted by DOT, Government of India. Idea is now well equipped to offer 4G services on its own spectrum across 20 service areas including 9 new service areas. It has also procured 3G spectrum in Bihar & Rajasthan extending its capability to offer 3G services to 15 service areas.

Shares of Bharti Infratel fell 2.96%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

Tata Motors rose 2.62% after the company said Jaguar Land Rover retail sales rose 28% to 61,047 units in September 2016 over September 2015. The announcement was made during trading hours today, 7 October 2016. Tata Motors said September’s performance has been driven by strong sales of the Land Rover Discovery, Discovery Sport, the Range Rover Evoque and the Jaguar F-PACE, as well as solid sales in China. Jaguar Land Rover (JLR) delivered solid retail sales growth across all key regions year on year, with China up 50%, Europe up 32%, UK up 30%, North America up 23% and other overseas markets up 3%. Jaguar retail sales rose 70% to 17,640 units in September 2016 over September 2015. Land Rover retail sales rose 17% to 43,407 units in September 2016 over September 2015.

Mahindra & Mahindra (M&M) rose 0.11%. The company said that it has received an intimation from Mahindra Holidays & Resorts India (MHRIL), a listed subsidiary of the company that Are Semesterby A AB, Are Semesterby B AB, Are Semesterby C AB and Are Semesterby D AB have ceased to be subsidiaries of Holiday Club Sweden AB, Sweden and in turn of Holiday Club Resorts Oy, Finland and in turn of MHRIL and in turn of M&M. The announcement was made during market hours today, 7 October 2016.

Most metal & mining stocks gained. JSW Steel (up 0.11%), Hindustan Zinc (up 0.16%), Jindal Steel & Power (up 1.07%), Steel Authority of India (Sail) (up 4.39%), and National Aluminum Company (up 1.87%) gained. Vedanta (down 1.27%), Hindustan Copper (down 0.17%) and Hindalco Industries (down 0.13%) fell.

Tata Steel gained 4.39% after the company announced that its hot metal production rose 17% to 3.12 million tonnes in Q2 September 2016 over Q2 September 2015. Crude steel production rose 13% to 2.82 million tonnes in Q2 September 2016 over Q2 September 2015. Saleable steel production increased by 11% to 2.71 million tonnes in Q2 September 2016 over Q2 September 2015. The company’s sales rose 12.44% to 2.62 million tonnes in Q2 September 2016 over Q2 September 2015. The announcement was made after market hours yesterday, 6 October 2016.

NMDC rose 1.64% after the company reported increase in production and sales of iron ore in September 2016 over August 2016. NMDC reported 19.16% increase in iron ore production to 13.93 million tonnes in September 2016 over August 2016. The company reported 22.43% increase in iron ore sales to 15.83 million tonnes in September 2016 over August 2016. The announcement was made during trading hours today, 7 October 2016.

High Grade Copper for December 2016 delivery was currently down 0.09% at $2.1535 per pound on the COMEX.

Indian Oil Corporation fell 1.35% to Rs 640.70 on profit booking after a recent rally. Shares of Indian Oil Corporation (IOCL) rose 13.46% in five trading sessions to settle at Rs 649.45 yesterday, 6 October 2016, from its close of Rs 572.40 on 29 September 2016. Shares of IOCL jumped 5.44% to Rs 649.45 yesterday, 6 October 2016, after the company fixed 19 October 2016 as the record date for 1:1 bonus issue. The announcement was made after market hours on Wednesday, 5 October 2016.

Bharat Forge rose 2.69% on reports that a foreign brokerage has upgraded the stock to buy from sell. The foreign brokerage reportedly sees likelihood of a cyclical recovery for Bharat Forge. New business’ contribution could increase post FY 2018, it said. The brokerage expects Bharat Forge stock to deliver 70% return in next two and half years.

G M Breweries lost 7.64% after net profit rose 17.9% to Rs 11.12 crore on 6.5% decline in net sales to Rs 87.67 crore in Q2 September 2016 over Q2 September 2015. G M Breweries’ bottom line growth in Q2 September 2016 was boosted by surge in non-operational income. Other income spurted 4100% to Rs 1.26 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 6 October 2016.

Deepak Nitrite fell 4.48% after the company said it has received an order from the Telangana State Pollution Control Board for closure of one of its three units situated at Hyderabad. The announcement was made after market hours yesterday, 6 October 2016. Deepak Nitrite makes diamino stilbene disulfonic acid (DASDA) at its facility at Hyderabad and the unit for which order has been received, is a processing unit. The company’s DASDA production will be affected due to the order. The company said it is taking all the necessary effective steps to correct the anomalies pointed out by the authorities in the manufacturing system. Efforts are being put to get the closure notice revoked within a week or so. There will not be any major impact on service to DASDA customers. The week long interruption in production shall not have any major impact on the optical brightening agents production also, as adequate inventories are available, the company added.

Fiem Industries rose 1.55% after the company said it signed echnology license and assistance agreement with Aisan Industry Co and Toyota Tsusho Corp to make Canister. Fiem Industries announced that it has signed a technology license and assistance agreement (TAA) with Aisan Industry Co., Ltd., Japan and Toyota Tsusho Corporation, Japan for manufacturing of ‘Canister’. Fiem Industries see this as a big opportunity of diversification into new product line. The company aims to supply the Canister to all its existing original equipment manufacturers (OEM) as well as target new customers. Canister is an emission control system product which will have huge market in India due to implementation of stricter emission norms for two-wheelers and three-wheelers as it will become mandatory from 1 April 2017. The Canister will be manufactured by Fiem Industries with the technical support of Aisan Industry Co., Ltd for two-wheelers and three-wheelers in Indian market. The announcement was made after market hours yesterday, 6 October 2016.

In overseas stock markets, European and Asian stocks declined as investors looked ahead to a key employment report. Markets in China remained closed for the Golden Week public holidays. US stocks closed near the flat line yesterday, 6 October 2016 as investors abstained from making big bets ahead of much-anticipated September jobs report. The US Bureau of Labor Statistics will announce the non farm payrolls report for September 2016 later in the global day today, 7 October 2016. Total nonfarm payroll employment in the United States increased by 151,000 in August of 2016, lower than a upwardly revised 275,000 in July. Investors and traders have been keeping a close eye on economic data as they gauge the likelihood of the US Federal Reserve raising interest rates later this year.