Sensex Falls 144 Points On Selloff In Auto, Capital Goods Shares

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Sensex fell nearly 150 points while Nifty closed below its crucial psychological level of 8,550 on the back of selloff in auto, capital goods and metal stocks.

Sensex ended 144 points lower at 27,529.97 and Nifty closed at 8,520.40, down 63 points.

For most part of the day, the benchmark indices traded with a negative bias but the losses were capped owing to buying in heavyweights such as ICICI Bank and State Bank of India.

Two of the biggest lenders to the Essar Group rose after the debt-laden company agreed to sell an oil unit to a consortium led by Russia’s Rosneft. Shares of ICICI Bank jumped 7 per cent, while State Bank of India ended 0.36 per cent higher.

From the Nifty basket of shares, 45 ended lower while six shares managed to close higher.

Zee Entertainment, Idea Cellular, Mahindra & Mahindra, Eicher Motors, Ambuja Cements, Hindalco, Bank of Baroda, Her MotoCorp, Reliance Industries, ACC and Maruti Suzuki were among the laggards.

The broader markets ended on a negative note. The BSE mid-cap index fell 0.95 per cent and the small-cap index closed 0.52 per cent lower.

The overall market breadth was negative as 1,503 stocks closed lower while 1,301 ended higher on the BSE.

3:29 p.m.: Lakshmi Vilas Bank reports net profit of Rs. 64.84 crore compared with Rs. 44.8 crore during the same quarter last year. Net non-performing assets rise to 1.87 per cent of total advances from 1.3 per cent during the previous quarter. Shares fall 1.15 per cent to Rs. 150.

3:24 p.m.: Select banking shares witness buying interest. ICICI Bank and State Bank of India among the gainers.

3:18 p.m.: Heavy selling pressure seen in auto, capital goods, metals and pharma stocks.

3.00 p.m.: Markets extended fall as selling in auto and capital goods shares intensified. The Sensex was down 144 points, while the Nifty traded 60 points lower at 8,523. The Nifty Auto, NSE’s sub-index for auto shares fell over 2 per cent. Mahindra & Mahindra, Eicher Motors were the prominent losers in the auto index, down nearly 3 per cent each.

2:48 p.m.: From the Nifty basket of shares, 45 were declining while 6 were advancing. Zee Entertainment was the top loser from this space, down 3.6 per cent to Rs. 509.50. Mahindra & Mahindra, Idea Cellular, Eicher Motors, Tech Mahindra, Bosch, Hindalco and ACC were also among the laggards.

2:34 p.m.: Auto shares are among the worst hit in trades so far. The BSE Auto index fall nearly 2 per cent on losses in Mahindra & Mahindra, Hero MotoCorp, Eicher Motors, Maruti Suzuki and Bajaj Auto.

2:22 p.m.: Aditya Birla Group firm UltraTech Cement on Monday said that its net profit in second quarter rose 31 per cent on year-on-year basis to Rs. 601.05 crore (on standalone basis) on sales of Rs. 6,134.63 crore.

The Mumbai-based cement maker’s net profit during the same quarter last year came in at Rs. 457.41 crore on sales of Rs. 6,277 crore.

1:14 p.m.: The overall market breadth was neutral as 1,370 stocks were declining while 1,232 were advancing.

12:35 p.m.: Shares of NIIT Technologies fell as much as 4.8 per cent to hit intraday low of Rs. 418.55 after the company’s net profit in the September quarter fell 9 per cent.

NIIT Technologies reported a 9 per cent decline in consolidated net profit at Rs. 58.9 crore for the quarter ended September 30, 2016. The company’s net profit stood at Rs. 64.6 crore during the same quarter in the year ago period.

Its consolidated revenues increased 2 per cent to Rs. 692.9 crore in the reported quarter from Rs. 679.3 crore in the July-September 2015 quarter.

12:02 p.m.: Stock markets edged lower in noon deals on the back of selloff in auto, technology and capital goods shares. Sensex was down 47 points at 27,626 and Nifty was at 8,551, down 32 points.

11:57 a.m.: Shares of ICICI Bank rallied as much as 7.5 per cent to hit intraday high of Rs. 259.90 after Essar Group agreed to sell Essar Oil to a consortium led by Russia’s Rosneft for $12.9 billion.

This is the biggest foreign acquisition ever in India and Russia’s largest outbound deal.

Essar plans to use proceeds from the sale to offset some 50 per cent of the debt on its group companies after the deal is completed.

11:24 a.m.: ICICI Bank surges 7.5 per cent to hit intraday high of Rs. 259.90 after Russia-based consortium buys Essar Oil, leading to deleveraging of balance sheets of Indian corporates.

11:15 a.m.: Broader markets trade broadly in-line with the benchmark indices. The BSE Mid-cap index was up 0.23 per cent and the small-cap index advanced 0.63 per cent. Bajaj Holdings, Kansai Nerolac, Petronet LNG, IDBI Bank, Piramal Enterprises, Marico, NALCO and Adani Enterprises were among gainers from the mid-cap space.

9:45 a.m.: SBI rises 1.4 per cent after the lender said that is board  has approved to dilute up to 5 per cent stake of SBI in SBI Life to a non-promoter entity.

9:18 a.m.: Sensex sees a flattish opening, edges higher by 20 points. ICICI Bank rises over 3 per cent in early trade.

Commenting on Essar Oil-Rosneft deal, ICICI Bank MD & CEO, Chanda Kochhar, said, “This deal is also a significant step in the process of deleveraging the balance sheets of Indian corporates. ICICI Bank has been closely working with various companies including the Essar group to help them deleverage their stressed balance sheets. We will continue working towards this objective with others.”

9:10 a.m.: Correction in Indian markets may not be over yet, FII numbers have to be watched closely, says TS Harihar of HRBV Client Solutions

9:09 a.m.: UltraTech will announce earnings today. Price realisation will keenly watched, says TS Harihar

9:08 a.m.: Asian markets mostly trade lower but bounce off lows. Nikkei down 0.23 per cent

9:02 a.m.: Rupee opens lower at 66.80 per dollar against previous close of 66.70