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Sensex Falls 238 Points as Pharma Stocks Drag; Infosys Surges on Stellar Q1

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Sensex Falls 238 Points as Pharma Stocks Drag; Infosys Surges on Stellar Q1
The Sensex ended sharply lower in trades on Tuesday led by losses in pharma, FMCG and banking stocks.

The Sensex closed 238 points lower at 28,182 and the Nifty fell 74 points to settle at 8,529, below its crucial psychological level of 8,600.

The Sensex and Nifty traded on a highly volatile note as a slew of Nifty companies announced their first quarter numbers. 

Infosys surprised the Street by announcing stellar first quarter numbers for FY16. The tech giant posted its best quarterly earnings in nearly four years. 

In constant currency terms, Infosys posted sequential revenue growth of 4.4 per cent, beating its bigger competitor TCS, which earlier this month reported a 3.5 per cent constant currency revenue growth.

The results led to huge buying interest in Infosys shares and its stock closed 11.5 per cent higher at Rs 1,116.

On the other hand, Sun Pharma shares plunged 15 per cent to shut shop at Rs 805 after the company post the market hours on Monday said that its 2016 sales would be flat.

HDFC Bank shares fell 1.5 per cent to Rs 1,098 as its net profit failed to meet estimates on account of higher provisioning for bad loans. 

Hindustan Uniliver also missed the earnings estimates as the company posted net profit of Rs 1,059 crore against estimate of Rs 1,130 crore. HUL shares ended 2.4 per cent lower at Rs 891. The company said there was downward pressure in pricing which led slower growth in revenue.

On the sectoral front, selling was visible across the board barring IT stocks. Healthcare stocks were the worst hit, the BSE healthcare index slumped nearly 6 per cent. On the other hand, the BSE IT index surged 4.6 per cent. 

The broader markets also came under selling pressure. The BSE mid-cap and small-cap indices fell 1.4 and 1.6 per cent each respectively.

From the Nifty-50 basket of stocks, 40 stocks declined while 10 stocks advanced.

The overall breadth on the BSE was negative as 1,882 stocks declined while 947 stocks advanced.

3:30 p.m.: The Sensex provisionally closed 231 points lower at 28,188 and Nifty slipped 72 points to end at 8,531.

3:20 p.m.: Losses in Sun Pharma accounted for 176 points cut on the Sensex. ITC, HDFC Bank, Reliance Industries, ICICI Bank and Axis Bank accounted for over 100 points cut on the Sensex.

3:12 p.m. Lancelot D'Cunha, CEO of ITI Wealth Management, said markets are taking a pause after the recent run-up. He expects markets to consolidate in the near term.

3:07 p.m.:
Markets extend losses with Sensex down nearly 250 points. All the sectoral indices on the BSE, except the IT index, are trading in losses.

2:56 p.m.: The BSE oil & gas index fell 1.6 per cent; ONGC, Cairn India, Indian Oil, BPCL, GAIL India and Reliance Industries slipped 1-3 per cent each.

2:40 p.m.: The Sensex fell 100 points to 28,317 and Nifty slipped 26 points to 8,576 on the back of selling in pharma, banking and FMCG stocks. However, the losses on the benchmark were capped as gains in Infosys were supporting the index.

2:19 p.m.: HUL Q1 sales at Rs 7,970 crore compared to estimate of Rs 8,310 crore. Operating margin at 17.9 per cent compared to 16.6 per cent.

2:10 p.m.: Hindustan Uniliver Q1 net profit at Rs 1,059 crore compared to estimate of Rs 1,130 crore. Hindustan Uniliver shares fell 2.7 per cent to Rs 888 post results.

2:06 p.m.: Nifty 8,600 strike price put option was the most active put option on the NSE. The premium on the contract fell 4.3  per cent to Rs 59.30. 7.5 lakh shares were added to the open interest of 4.2 million shares.

2:00 p.m.: Most of the sectors were facing the heat of selling pressure in the afternoon trades. Healthcare, banking, metal, oil & gas, realty and FMCG stocks were among the worst hit. On the other hand, IT stocks were witnessing buying interest.

1:45 p.m.: The overall breadth on the BSE turned negative as 1,517 stocks were declining while 1,092 were advancing.

1:30 p.m.: Shares of Tinplate Company of India surged 17 per cent to hit intraday high of Rs 70.90 after the company said that its net profit for the first quarter doubled to Rs 22.8 crore.

1:20 p.m.: Shares of Kitex Garments fell 9 per cent to Rs 904 after the company post the market hours on Monday said that its net profit came on at Rs 16 crore compared to Rs 14.4 crore during the first quarter of FY15.

1:11 p.m.: Shares of Asian Paints fell 1.5 per cent to Rs 839 post first quarter results.

1:08 p.m.: Asian Paints Q1 net profit at Rs 455 crore compared to Rs 339 crore in the first quarter of FY15. Net sales came in at Rs 3,580 crore compared to Rs 3,320 crore (YOY).

12:55 p.m.: Sasken Communication Technologies shares advanced nearly 10 per cent to hit intraday high of Rs 249.90 after the company said that its net profit for the first quarter jumped over two fold to Rs 9.8 crore.

12:35 p.m.: Infosys, Bharti Airtel, HCL Technologies, Wipro, Tech Mahindra and Zee Entertainment were among the top gainers on the Nifty. On the other hand, Sun Pharma, Lupin, Vedanta, Tata Steel, HUL and Grasim Industries were among the prominent laggards.

12:25 p.m.: Shares of CCL Products advanced 12 per cent to hit high of Rs 218.65 after the company post the market hours on Monday said that its net profit for the first quarter of FY16 rose nearly 50 per cent to Rs 30 crore.

12:14 p.m.: Unitech, Sun Pharma, Ashok Leyland, Infosys, Suzlon Energy, IFCI and HDIL were the most actively traded stocks on the National Stock Exchange.

12:02 p.m.: The Sensex and Nifty edged lower in the noon deals as banking stocks came under mild selling pressure after HDFC Bank's first quarter earnings.

11:39 a.m.: HDFC Bank Q1 net profit at Rs 2,696 crore compared to estimates of Rs 2,733 crore. Gross non-performing assets at 0.95 per cent compared to 0.93 per cent during the previous quarter. HDFC Bank Q1 total income at Rs 16,500 crore.

11:30 a.m.: The Sensex turned choppy in the early noon deals after the Parliament's session began. The Sensex was down 20 points at 28,400 and the Nifty was jumped 3 points to 8,607.

11:26 a.m.: The overall breadth was neutral as 1,121 stocks were advancing while 1,173 were declining.

11:14 a.m.: Hindustan Uniliver fell 2.2 per cent to Rs 892 ahead of its first quarter earnings. The BSE FMCG index was down 1.1 per cent.

11:04 a.m.: The BSE mid-cap index was trading falt, up 0.03 per cent; Unitech, CONCOR, Glenmark, Oberoi Realty, J P Power Ventures and Neyveli Lignite were among the top losers, down 1-6 per cent each.

10:55 a.m.: Vishal Sikka, CEO on Infosys says we are very confident about our organic capability, which we will complement with acquisitions.

10:40 a.m.: The Sensex and Nifty were trading on a flat note with positive bias. The Sensex was up 54 points and the Nifty advanced 21 points.

Infosys was the top gainer on the Nifty but the gains on the benchmark were capped as Sun Pharma was facing the heat of selling pressure.

Meanwhile, the monsoon session of Parliament will start from 11:00 a.m. fate of key legislations such as land bill, implementation of goods and services tax and the real estate bill will be decided in this session of Parliament.

10:15 a.m.: Bharti Airtel shares surge 4.3 per cent to hit intraday high of Rs 448 after telecom company Orange said that it is planning to buy four African subsidiaries of Bharti Airtel.

10:10 a.m.: Sanjeev Hota, IT analysts at Sharekhan, says Infosys' Q1 numbers are better than estimates on all fronts, but the key thing to watch out is whether they are able to maintain the growth rate. 

"We need to see how fast Infosys is catching up with the industry growth rate," he added. Sharekhan has a target price of Rs 1,150 on Infosys, which they are likely to revise post management commentary on Q1 performance.  

10:05 a.m.: Infosys on Tuesday beat June quarter sales and profit estimates, leading to a 15 per cent bump-up in its shares. India's second biggest outsourcer reported 4.4 per cent rise in constant currency revenue growth, beating estimates of 2.5-3 per cent growth. (Read)

9:55 a.m.: The Sensex jumped nearly 100 points to hit intraday high of 28,518 and the Nifty was up 24 points at 8,627. The upmpove in the markets was led by Infosys. 

9:50 a.m.: Shares of Sun Pharmaceutical Industries slumped as much as 16 per cent to Rs 799 on Tuesday after India's largest drugmaker issued an earnings warning. Sun Pharma said its revenue in fiscal 2016 would be flat at best as it struggles to fix manufacturing problems at Ranbaxy Laboratories, which it bought last year. (Read)

9:47 a.m.: Gaurang Shah of Geojit BNP Paribas said Infosys has posted stellar numbers, which should lift market sentiments.

9:45 a.m.: Dhananjay Sinha of Emkay Global told NDTV that Infosys has put up its best show in six quarters.

9:40 a.m.: The broader markets were trading in-line with the benchmark indices. The BSE mid-cap index was down 0.05 per cent and the small-cap index was up 0.14 per cent.

9:35 a.m.: On the sectoral front, selling pressure was visible in pharma, realty, oil & gas and banking stocks. On the other hand, IT, consumer durables and metal stocks were witnessing some buying interest.

From the Nifty-50 basket of stocks, 30 stocks were declining while 20 were advancing.

Sun Pharma, UltraTech Cement, Tata Power, Lupin, Grasim Industries, Asian Paints, ONGC and GAIL India were also among the laggards.

While, Infosys, Bharti Airtel, HCL Technologies, Zee Entertainment, Wipro and Coal India were among the gainers.

9:20 a.m.: The Sensex and Nifty edged lower in the opening deals as Sun Pharma was witnessing heavy selling pressure. The shares of Sun Pharma fell 14 per cent to Rs 813.

9:17 a.m.: Sensex jumped 79 points to 28,499 and the Nifty touched high of 8,630.Infosys shares surged 9 per cent on better than expected Q1 results while the gains were capped on the benchmark indices as Sun Pharma shares plunged over 10 per cent after the company gave a profit warning.

9:08 a.m.: Infosys first quarter numbers beat estimates. Consolidated revenue came in at Rs 14,354 crore versus estimate of Rs 14,066 crore and net profit came in at Rs 3,030 crore compared to estimate of Rs 3,019 crore.

9:05 a.m.: Markets will react more to the Parliament session and less to Infosys earnings, says Gaurang Shah of Geojit BNP Paribas. He continues to be cautious about markets in the short to medium term, and bullish from a long-term perspective.

9:03 a.m.: Sun Pharma shares crash 10 per cent to Rs 852 after the company gave profit warning post the markets hours yesterday.

9:00 a.m.: Rupee opens lower at 63.70/dollar against Monday's close of 63.66.

8:50 a.m.: Foreign institutional investors (FIIs) purchased shares worth Rs 714 crore while domestic institutional investors sold shares worth Rs 848 crore.

8:40 a.m.: Below are the stocks which will be in focus today: 

Sun Pharmaceuticals Industries: Sun Pharma is likely face pressure in trades today after the company gave a profit warning post the market hours yesterday. Sun Pharma said on Monday that its revenue in fiscal year 2016 would be flat at best as it struggles to fix manufacturing problems at Ranbaxy Laboratories, which it bought last year.

The company might also decide to shed some low-margin businesses that it believes don't hold long-term value, it said. (Click here for full report)

Bharti Airtel: Bharti Airtel will be in focus today as reports suggest that Bharti is in talks with Orange to sell some businesses in Africa.

8:35 a.m.: The SGX Nifty was trading absolutely flat ahead of Infosys earnings. SGX Nifty was up 5 points at 8,630.

8:20 a.m.: Below are the earnings expectations of analysts polled by NDTV: 

HDFC Bank: India' second largest private sector lender, HDFC Bank will declare its first quarter numbers today. Analysts expect the bank to post net profit of Rs 2,733 crore compared to Rs 2,233 crore in the same quarter last year. The gross non-performing assets are expected to remain unchanged at 0.9 per cent.

Hindustan Uniliver: Hindustan Uniliver's net profit is expected to come in at Rs 1,114 crore compared to Rs 1,056 crore (YOY) on sales of Rs 8,317 crore. 

Asian Paints: Analysts expect Asian Paints to post sales of Rs 3,609 crore and net profit should come in at Rs 408 crore. 

Eicher Motors: Eicher Motors is expected to post of Rs 2,806 crore and the profit is expected to come in at Rs 223 crore.

Cairn India: Cairn India is expected to post net profit of Rs 972 crore on sales of Rs 2,845 crore.

8:05 a.m.: Blue-chip IT company Infosys will be declaring its first quarter numbers in a short while. According to brokers polled by NDTV, Infosys is likely to post revenues of $2,216 million in the June quarter, a 2.9 per cent sequential rise in constant currency terms. (Click here for full report)

7:55 a.m.: Meanwhile, the Asian markets were trading on a mixed note. Shanghai Composite and Shanghai Shenzen were down 0.2 per cent each. On the other hand, Nikkei and Hang Seng were trading on a flat note with a positive bias.

Overnight, Wall Street finished little changed on Monday as a better-than-expected start to corporate earnings season boosted investor confidence, but gains were curbed by a drop in commodities.

The Dow Jones industrial average rose 13.96 points, or 0.08 per cent, to 18,100.41, the S&P 500 gained 1.64 points, or 0.08 per cent, to 2,128.28 and the Nasdaq Composite added 8.72 points, or 0.17 per cent, to 5,218.86. (Click here for full report)

7:45 a.m.: The Nifty is likely to open on a flat note in trades on Tuesday tracking flat trading of Nifty on the Singapore Stock Exchange. The SGX Nifty was down 0.02 per cent or 1 point at 8,624. 

However, the movement on the benchmark indices would be highly volatile as a slew of blue-chip companies such as Infosys, HDFC Bank, HUL, Asian Paints and Eicher Motors will be declaring their first quarter earnings later in the day.

Traders will also watch out for the monsoon session of Parliament which will start from today. Fate of key legislations such as implementation of GST and land bill will be closely watched out for in this session of Parliament.

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