This Article is From Jul 09, 2015

Sensex Falls Over 100 Points on Selling in IT, Oil & Gas Stocks

Sensex Falls Over 100 Points on Selling in IT, Oil & Gas Stocks
The Sensex fell 114 points to settle at 27,573 and the Nifty slipped 34 points to shut shop at 8,328 on the back of selling in technology and oil & gas stocks.

For the most part of the day, the Sensex traded on a flat note in narrow range. Gains in markets were capped as losses in blue-chip stocks such as TCS, Infosys, BPCL, ONGC and Reliance Industries overshadowed gains registered by Larsen & Toubro, ICICI Bank and HDFC Bank.

The broader markets also came under selling pressure in late trades. The BSE mid-cap and small-cap indices which outperformed the benchmark indices slipped 0.3 per cent each.

From the Nifty-50 basket of stocks, 29 stocks declined while 21 stocks advanced.

BPCL was the top Nifty loser, the stock fell 5.4 per cent to close at Rs 866. Vedanta, TCS, Bajaj Auto, Infosys, Tata Motors and Cairn India were also among the laggards, down 1.77-6.67 per cent each.

On the other hand, BHEL, L&T, Hero MotoCorp, Hindalco and ACC advanced 1-3 per cent each.

The overall breadth was positive as 1,532 stocks advanced while 1,284 stocks declined.

3:30 p.m.: The Sensex provisionally closed 85 points lower at 27,602 and the Nifty slipped 28 points to settle at 8,335.

3:25 p.m.: The capital goods stocks were witnessing buying. The BSE capital goods index surged 2 per cent; Suzlon Energy, BHEL, Larsen & Toubro, Mahindra CIE and Crompton Greaves were among the top gainers, up 1.7-6.2 per cent each.

3:16 p.m.: Oil & gas stocks extend losses; the BSE oil & gas index fell 2 per cent. BPCL, Indian Oil, HPCL and Oil India fall 2-5.5 per cent each.

3:14 p.m.: Broader markets also came under selling pressure. The BSE mid-cap and small-cap indices slipped 0.3 per cent each. Essar Oil, MRPL, United Breweries, UPL, Bajaj Finserv, Cummins India, HPCL and Bajaj Holdings were the top losers from the mid-cap space.

3:07 p.m.: Ruchit Jain of Angel Broking says that Nifty is unlikely to correct significantly from the current levels. 8,250 is a major support for Nifty one should buy Nifty around 8,250 and at current levels the market will witness stock specific moves.

2.50 p.m.: Markets extend losses; Sensex down 100 points at 27,587.23 and Nifty fell 0.4 per cent (33 points) to 8,329.75. The IT sub-index of NSE, CNX IT is down 1.65 per cent.

2.35 p.m.: Eros International Media shares fell 20 per cent to hit lower circuit at Rs 430 after gaining around 11 per cent to Rs 597 as its management clarified that there is no stake sale plan to Fullerton.

"We continue to evaluate strategic opportunities as part of ongoing business operations and confirm that Eros International Media Limited has neither had any discussions nor signed any agreements for such opportunities (other than already disclosed to the stock exchanges). We will continue to comply with the obligations under the listing agreement," the company said in a clarification given to exchanges.

2:06 p.m.: IT bellwether TCS will report its first-quarter earnings later today. Anand Rathi Securities has suggested an option strategy for trading in TCS shares ahead of its quarterly earnings. (Read)

1:56 p.m.: The small-cap stocks were witnessing some buying interest. Bhushan Steel, La Opala, GTL, Venkys, Gravita, Educomp and Suzlon Energy were among the top gainers from this space.

1:45 p.m.: BSE oil & gas index fell 1.45 per cent; BPCL, Indian Oil, HPCL, Oil India, ONGC, Reliance Industries and Cairn India were among the prominent losers.

1:34 p.m.: The last time Tata Consultancy Services reported its quarterly results, its shares posted their biggest one-day loss in six months. India's biggest outsourcer missed sales estimates, while its profits beat estimates mainly on account of higher other income. TCS' attrition rose for a fourth straight quarter.

According to Nomura, TCS has missed revenue growth expectations in the last three quarters because of segment-specific weakness in energy, telecom and insurance verticals. (Click here for full report)

1:14 p.m.: Nifty was trading on absolutely flat note. China's markets recovered and on the commodities front base metal prices stabilised after cracking yesterday. 

Dealers told NDTV, that cash volumes were low in the first half of trade and Nifty is expected to remain flat on the back of low volumes. PSU s and defensive stocks were witnessing some amount of buying.

12:57 p.m.: Tech Mahindra bucked the weak trend in IT stocks by rising as much as 1.7 per cent on the BSE on Thursday. Tech Mahindra has announced that it has entered into a tie-up with PNMsoft, a global provider of intelligent business process management (BPM) solutions. (Read)

12:46 p.m.: 8K Miles Software Services shares surged over 8 per cent to an intraday high of Rs 920 on Thursday as the company reported strong growth in its earnings for the first quarter of FY16.

12:44 p.m.: European markets open on a positive note. French CAC 40 index advanced 0.6 per cent, Germany's DAX jumped 0.5 per cent and Britain's FTSE100 was also up 0.5 per cent.

12:33 p.m.: Markets edge lower on the back of weakness in IT and oil & gas stocks. The Sensex fell 36 points to 27,650 and the Nifty slipped 13 points to 8,349.

12:20 p.m.: Eros International Media shares surged 11 per cent to hit intraday high of Rs 598 on reports that Eros International Media is in talks to sell 10 per cent stake in Eros Now to Fullerton Fund Management. The deal is pegged at about $800 million and it is beneficial for Eros as it will add to the revenues of the company.

12:14 p.m.: KNR Construction shares surge 7.3 per cent to hit high of Rs 618 after the company won order from the Madhya Pradesh government.

12:04 p.m.: Vedanta shares fall for sixth day in a row. The stock has plunged nearly 20 per cent to hit 52-week low of Rs 140 on the back of selloff in the Chinese stock markets. Shares of metal companies depend on demand of metal products from China and with stock market crash the demand for metal products from China is likely to take a hit.

Motilal Oswal has maintained its neutral stance n Vedanta for target of Rs 177. MOSL says that Vedanta-Cairn merger as at risk from commodity prices and this will imply a risk to swap ratio. MOSL adds that stock performance too has diverged and risk of swap ratio rejection has increased.

11:40 a.m.: Samiran Chakraborty, chief economist with Standard Chartered says that India is looking relatively better than other economies.

11:30 a.m.: Bhushan Steel shares were locked in upper circuit of 20 per cent at Rs 66 after the lenders approved Rs 30,000 crore loan restructuring plan.

11:25 a.m.: Suzlon Energy's shares have surged 8 per cent to Rs 23.45 on the NSE on the back of huge volumes. Suzlon Energy shares were the most actively traded shares on the NSE. As many as 4.12 million shares have changed hands on the exchange.

11:20 a.m.: The Chinese stock markets and Hang Seng were witnessing a relief rally after China's securities regulator banned shareholders with large stakes in listed firms from selling.

The Shanghai Composite index surged 5.6 per cent, Shenzen index was up 6.2 per cent and the Hang Seng advanced 4.6 per cent.

11:17 a.m.: The markets were trading on an absolutely flat note ahead of TCS earnings. The Sensex was up 26 points at 27,714 and the Nifty jumped 4 points to 8,367.

Shares of TCS were facing the heat of selling ahead of Q1 result announcement. The stock fell 2 per cent to Rs 2,545. 

Analysts expect India's largest outsourcing company to post sales of Rs 25,326 crore compared to Rs 24,219 crore during the previous quarter and net profit is expected at Rs 5,421 crore compared to Rs 5,905 crore in the previous quarter.

11:12 a.m.: Tata Motors shares fall for sixth day in a row, stock has fallen more than 10 per cent to hit fresh 52-week low of Rs 394.25. The stock has been facing the heat of selling pressure as the company depends highly on Chinese markets for sale of its luxury vehicles Jaguar Land Rover and with stock market crash in China demand for its luxury car will take a hit.

11:04 a.m.: Domestic brokerage Prabhudas Lilladher says that the first quarter of FY16 will be subdued and earnings will start improving from the end of second quarter.

11:01 a.m.: Market Expert Prakash Diwan says that market may move higher and test 8,600, 8,700. The could be led by earnings. In yesterday's downfall, buying was seen in mid-caps which indicates that there is buying interest in the markets.

10:49 a.m.: Yes Bank shares advanced nearly 3 per cent to hit high of Rs 820 after the bank challenged the UBS report on Yes Bank which said that loans approved to stressed companies by Yes Bank have increased by 300 per cent in last three years. UBS also said that the rising credit cost of Yes Bank was not priced in earlier. (Read)

10:40 a.m.: Fruit drinks maker Manpasand Beverages made a tepid debut on the bourses on Thursday. On the NSE, Manpasand Beverages opened at Rs 300, down over 6 per cent from its issue price of Rs 320. (Read)

10:37 a.m.: IT stocks were facing the heat of selling pressure ahead of TCS first quarter numbers. The BSE IT index was the top sectoral loser down 1.2 per cent. TCS shares fell 2 per cent to Rs 2,544. Infosys, OFSS, Wipro and Mphasis were also among the losers.

10:33 a.m.: Essar Oil shares surged as much as 5.1 per cent on Thursday to Rs 198.35 after Russia's Rosneft signed a deal to acquire up to 49 per cent stake in its Vadinar oil refinery.

Refining accounts for over 95 per cent of Essar Oil's overall business. Rosneft also hinted at plans to increase the refinery's capacity to 45 million tonnes (900,000 barrels per day) by 2020. (Read)

10:10 a.m.: Manpasand Beverages makes strong debut on stock exchanges, jumps 11% to Rs 319.

9:54 a.m.: Nilesh Shah of Envision says that companies are likely to post weak first quarter numbers and Nifty may reach 7950-8000 levels.

9:48 a.m.: TCS slipped 2.2 per cent to Rs 2,536 ahead of its first quarter results which are due later in the day.

9:45 a.m.: The broader markets were also trading on a flat note. The BSE mid-cap index was up 0.25 per cent and the small-cap index advanced 0.4 per cent.

Torrent Power, Alstom T&D, IDBI Bank, Apollo Hospitals, Tata Communications, Glenmark and Union Bank were among the top mid-cap gainers.

9:37 a.m.: From the Nifty-50 basket of stocks, 28 were advancing while 22 were declining.

Tata Motors was the top loser among the Nifty stocks. The stock fell 2.5 per cent to Rs 395. BPCL, TCS, Bajaj Auto, IndusInd Bank, HDFC Bank, Infosys, Axis Bank, Tata Steel, ONGC, Maruti Suzuki and Reliance Industries were also among the laggards.

On the other hand, Bharti Airtel, Yes Bank, Larsen & Toubro and Tech Mahindra were among the gainers on the Nifty.

9:20 a.m.: The Indian markets opened on a flat note in the opening deals as caution prevailed amid ongoing concerns in the Chinese stock markets. The Sensex advanced 2 points to 27,689 and the Nifty jumped 2 points to 8,365.

Meanwhile, selling pressure was visible in most of the sectors. Banking, metal, oil & gas, power, auto and IT indices were quoting in red

9:10 a.m.: The Sensex was down 6 points at 27,681 and Nifty was up 2 points at 8,365 in the pre-market session.

9:06 a.m.: 8K Miles: 8K Miles Q1 earnings came in line with the expectations. Total income came in at Rs 50.6 crore compared to Rs 42.6 crore.

9:04 a.m.: Axis Bank, Bajaj Auto, Bajaj Finance and Eclerx will go ex-dividend today.

9:00 a.m.: Rupee opens higher at 63.54/dollar against Wednesday's close of 63.59.

8:54 a.m.: Credit Suisse has maintained outperform on Larsen & Toubro for target price of Rs 2,175 per share. (Click here for more brokerage calls)

8:35 a.m.: TCS will be announcing its first quarter results for FY16. Analysts expect company to post sales of Rs 25,326 crore compared to Rs 24,219 crore during the previous quarter and net profit is expected at Rs 5,421 crore compared to Rs 5,905 crore in the previous quarter.

8:30 a.m.: Manpasand Beverages shares will be listed on the exchanges today. Manpasand Beverages manufactures fruit drinks known as Mango Sip, Fruits-Up and Manpasand ORG.

8:25 a.m.: The foreign institutional investors sold Indian shares worth Rs 354.32 crore on Wednesday while the domestic institutional investors sold shares worth Rs 346.7 crore.

In the derivative segment, the FIIs sold index futures worth Rs 270 crore and also sold stock futures worth Rs 90 crore.

8:15 a.m.: Asian equities extended losses on Thursday as concerns over China's market turmoil spread, while the safe-haven yen shot to a seven-week high as global risk appetite ebbed.

MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.2 per cent, hovering near a 17-month low struck the previous day. (Read)

8:10 a.m.: Overnight, the U.S. stocks ended sharply lower on Wednesday as market turmoil in China eclipsed Greece's debt crisis, while the New York Stock Exchange suffered a major outage.

Fears that a rout in Chinese stocks could seriously harm the country's economy and spread beyond its borders pushed the S&P 500 below its 200-day moving average for the first time since October and into negative territory for 2015.

The Dow Jones industrial average fell 261.49 points, or 1.47 per cent, to end at 17,515.42. The S&P 500 lost 34.65 points, or 1.66 per cent, to 2,046.69 and the Nasdaq Composite dropped 87.70 points, or 1.75 per cent, to 4,909.76. (Click here for full report)

8:05 a.m.: Meanwhile, China's securities regulator took the drastic step of banning shareholders with stakes of more than 5 per cent from selling shares for the next six months in a bid to halt a plunge in stock prices that is starting to roil global financial markets.

The China Securities Regulatory Commission (CSRC) said on its website late on Wednesday that it would deal severely with any shareholders who violated the rule. (Click here for full report)

8:00 a.m.: The Sensex and Nifty are likely to witness a flat opening in trades today on the back of weak global sentiment which prevailed after continuous selloff in the Chinese stock markets.

The Nifty which is traded on the Singapore Stock Exchange also known as the SGX Nifty was indicating a flat start for the Indian markets. The SGX Nifty was up 0.05 per cent at 8,369.

(With Agency inputs)