Key benchmark indices suffered severe setback on last trading day of the week weighed by losses in index heavyweights ITC and HDFC. The barometer index, the S&P BSE Sensex, lost 329.26 points or 1.24% to settle at 26,230.66. The Nifty 50 index lost 106.10 points or 1.3% to settle at 8,086.80. Both the Sensex and the Nifty settled at their lowest closing level in over one week. Weakness in global stocks weighed adversely on the domestic bourses.
Bank stocks fell across the board. Auto stocks declined. FMCG stocks fell. Realty stocks dropped. Telecom stocks saw mixed trend.
The Sensex lost 329.26 points or 1.24% to settle at 26,230.66, its lowest closing level since 24 November 2016. The Sensex slumped 376.99 points or 1.41% at the day’s low of 26,182.93. The barometer index lost 96.86 points or 0.36% at the day’s high of 26,463.06.
The Nifty lost 106.10 points or 1.3% to settle at 8,086.80, its lowest closing level since 24 November 2016. The Nifty dropped 122.85 points or 1.49% at the day’s low of 8,070.05. The index lost 33.60 points or 0.41% at the day’s high of 8,159.30.
The breadth indicating the overall health of the market was weak. On BSE, 1,794 shares declined and 871 shares rose. A total of 126 shares were unchanged. The BSE Mid-Cap index fell 1.26%. The BSE Small-Cap index fell 1.37%. The fall in both these indices was higher than the Sensex’s decline in percentage terms.
The total turnover on BSE amounted to Rs 2724.78 crore, lower than the turnover of Rs 2776.34 crore registered during the previous trading session.
Adani Ports and Special Economic Zone (down 3.64%), Asian Paints (down 3.13%), and GAIL (India) (down 1.92%) edged lower from the Sensex pack.
Index heavyweight and housing finance major HDFC lost 2.35% to Rs 1,240.05. The stock hit high of Rs 1,259.20 and low of Rs 1,235.65 in intraday trade.
Index heavyweight and cigarette major ITC lost 2.12% to Rs 228.40. The stock hit high of Rs 232.90 and low of Rs 228 so far during the day.
Bank stocks declined across the board. Among public sector bank stocks, State Bank of India (SBI) (down 0.53%), Canara Bank (down 1.76%), Union Bank of India (down 3.76%), Bank of India (down 0.77%), Punjab National Bank (down 1.72%) Syndicate Bank (down 0.9%), Bank of Baroda (down 0.37%), Andhra Bank (down 1.07%), Dena Bank (down 1.3%), and Indian Bank (down 1.76%), declined.
Among private sector banks, Axis Bank (down 1.31%), RBL Bank (down 2.07%), Kotak Mahindra Bank (down 2.83%), Yes Bank (down 0.57%) and HDFC Bank (down 0.41%) declined. ICICI Bank (up 0.12%) rose.
IndusInd Bank lost 2.1%. The bank said it proposes to raise funds by issue and allotment of senior unsecured redeemable non-convertible long term bonds in the nature of debentures (infrastructure bonds) for cash aggregating to Rs 1500 crore on private placement basis.
The borrowing shall be within the overall borrowing limits of the bank as may be approved by the shareholders from time to time. The announcement was made after market hours yesterday, 1 December 2016.
Auto stocks declined. Escorts (down 1.62%), Ashok Leyland (down 3.16%), Mahindra & Mahindra (M&M) (down 1.09%) and Maruti Suzuki India (down 3.56%) fell. Eicher Motors (up 3.15%) gained.
Tata Motors fell 3.5% after the company reported flat sales in November 2016. Tata Motors said its passenger and commercial vehicle total sales in November 2016 were at 38,900 units, almost flat compared with 38,918 vehicles sold in November 2015. The company’s domestic sales of Tata commercial and passenger vehicles declined 6% to 33,274 units in November 2016 over November 2015. Exports surged 57% to 5,626 units in November 2016 over November 2015. The announcement was made after market hours yesterday, 1 December 2016.
Bajaj Auto rose 1.3%. The company said its total sales fell 13% to 2.69 lakh units in November 2016 over November 2015. Bajaj Auto’s domestic sales fell 10% to 1.54 lakh units in November 2016 over November 2015. Exports declined 16% to 1.15 lakh units in October 2016 over October 2015. The announcement was made before trading hours today, 2 December 2016.
Total motorcycle sales fell 12% to 2.37 lakh units in November 2016 over November 2015. Total commercial vehicles sales fell 17% to 32,191 lakh units in November 2016 over November 2015.
Hero MotoCorp rose 0.68% after total sales declined 13.07% to 4.79 lakh units in November 2016 over November 2015. The announcement was made after market hours yesterday, 1 December 2016.
Hero MotoCorp, which posted record festive sales this year, saw a drop in retail sales after the demonetisation initiative when the entire industry also witnessed decline in sales. With the slew of measures being implemented by the government, and several initiatives immediately undertaken by Hero MotoCorp to support its dealers and consumers, the company expects the situation to steadily improve.
TVS Motor Company fell 2.64% after the company reported a 0.19% decline in total sales at 2.24 lakh units in November 2016 over November 2015. The announcement was made after market hours yesterday, 1 December 2016.
TVS Motor Company said that due to the demonetization exercise, the company witnessed a short-term impact on November sales. However, the company is seeing a sales pickup already happening.
Telecom stocks saw mixed trend. Idea Cellular (up 0.75%), Tata Teleservices (Maharashtra) (up 1.94%) and Reliance Communications (up 0.28%) rose.
Bharti Airtel (down 0.11%) and MTNL (down 1.14%) fell.
Shares of Bharti Infratel fell 0.54%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Reliance Industries (RIL) slipped 0.19%. Reliance Jio Infocomm (Jio) announced that it has crossed 5 crore subscribers in just 83 days from commencement of services on 5 September 2016. The average rate of addition of 6 lakh subscribers per day is the fastest achieved by any technology company in the world including the likes of Facebook, WhatsApp and Skype, RIL said. The announcement was made at the fag end of market hours yesterday, 1 December 2016. Reliance Jio Infocomm, doing business as Jio, is a LTE mobile network operator in India. It is a wholly owned subsidiary of RIL.
On this occasion, Jio also announced the launch of ‘Jio Happy New Year Offer (JNO)’, which will be effective from 4 December 2016. All the Jio subscribers will be entitled to certain special benefits under the JNO, which shall comprise of Jio’s Data, Voice, Video and the full bouquet of Jio applications and content, absolutely free, up to 31 March 2017.
The benefits will be available to all subscribers signing up for Jio services up to 3 March 2017. The existing Jio Welcome Offer (JWO) users will continue to enjoy the unlimited benefits under JWO up to 31 December 2016, following which they would be automatically signed-up for the JNO as well.
Coal India shed 0.11%. Coal India and its subsidiaries achieved 93% of targeted production at 50 million tonnes in November 2016. The company achieved 97% of targeted offtake at 48.16 million tonnes in November 2016. The announcement was made after market hours yesterday, 1 December 2016.
Wipro lost 1.61% after the compay was awarded a three-year IT infrastructure services and digital transformation contract by Woodside, an Australian oil and gas company. The announcement was made after market hours yesterday, 1 December 2016.
FMCG stocks fell. Godrej Consumer Products (down 3.19%), GlaxoSmithkline Consumer Healthcare (down 1.39%), Colgate-Palmolive (India) (down 0.51%), Britannia Industries (down 0.76%), Dabur India (down 1.09%), Hindustan Unilever (down 1.55%), Marico (down 0.55%), Nestle India (down 0.3%) and Tata Global Beverages (down 0.25%) declined.
Jyothy Laboratories (up 2.04%), Procter & Gamble Hygiene and Health Care (up 0.77%) and Bajaj Corp (up 0.85%) rose.
Realty stocks dropped. Indiabulls Real Estate (down 0.94%), Housing Development & Infrastructure (down 1.96%), DLF (down 2.31%), Oberoi Realty (down 1.68%), Unitech (down 3.82%), D B Realty (down 3.05%), Prestige Estates Projects (down 1.85%) and Godrej Properties (down 0.23%) edged lower.
Sobha (up 0.02%) and Omaxe (up 0.09%) rose.
Clariant Chemicals (India) fell 3.55% after net profit declined 86.1% to Rs 3.46 crore on 2.1% rise in net sales to Rs 227.62 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 1 December 2016.
Dilip Buildcon lost 11.54% after net profit fell 82.7% to Rs 6.97 crore on 3.5% increase in net sales to Rs 915.66 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 1 December 2016.
IL&FS Transportation Networks fell 5.23% after net profit fell 46% to Rs 57.06 crore on 15.94% decline in total income to Rs 1128.88 crore in Q2 September 2016 over Q2 September 2015. The result was announced during market hours today, 2 December 2016.
AXISCADES Engineering Technologies rose 9.14% after the company signed a strategic agreement with Airbus to provide a range of critical engineering services for all Airbus aircraft programmes as Tier-I supplier. The services will be provided from a dedicated development centre in Bengaluru. The announcement was made after market hours yesterday, 1 December 2016.
Jindal Drilling & Industries fell 8.01% after an arbitration award had been passed against Jindal Drilling & Industries, making it liable to pay $31.76 million with other expenses and interest charges. The company said it is taking necessary steps to contest in relation to the award. The announcement was made after market hours yesterday, 1 December 2016.
Overseas, Asian and European stocks declined on global uncertainties as investors adopted a wait-and-see mood. Later today, 2 December 2016, the US Labor Department will release its closely watched monthly employment report for November. Investors are awaiting US payrolls report for confirmation the US economy continues to strengthen, with an eye on an expected hike in benchmark US interest rates by the Federal Reserve at its meeting on 13-14 December.
Investors are also concerned about Italy’s constitutional referendum on Sunday, 4 December 2016 which could determine whether or not the country will remain in the euro zone. A sharp decline in technology stocks pulled both the Nasdaq and the S&P 500 indexes into the red yesterday, 1 December 2016 while the Dow Jones Industrial Average managed to notch a record closing high with a lift from bank and energy shares.