Sensex, Nifty hit lowest closing level in almost 2 weeks
Losses for stocks of pharma and IT companies and index heavyweight HDFC outweighed gains for stocks of telecom firms, private sector banks and index heavyweight Reliance Industries (RIL), with the two key benchmark indices registering small losses. The barometer index, the S&P BSE Sensex, fell 65.94 points or 0.26% to settle at 24,900.46. The 50-unit Nifty 50 index fell 18.10 points or 0.24% to settle at 7,597. The Sensex failed to hold the psychologically important 25,000 mark after surpassing that level in intraday trade. The Sensex and the Nifty, both, hit their lowest closing level in almost two weeks. The two key benchmark indices dropped for the second day in a row.
Drug maker Lupin edged lower in volatile trade after media reports suggested that the United States Food and Drug Administration (USFDA) has issued Form 483 observations after concluding inspection of Lupin's Mandideep unit in Madhya Pradesh. Tata Steel edged higher on reports that the company's board will meet today, 29 March 2016, where it is widely expected to announce restructuring or selling of some of the European units and job cuts to save costs. In overseas stock markets, European shares reversed initial gains as weakness in oil prices and uncertainty over monetary policy in the United States prompted traders to lock in gains. Earlier during the global day Asian stocks ended on a mixed note ahead of a speech from Federal Reserve Chairwoman Janet Yellen on US economic outlook and monetary policy. Yellen will deliver a speech at the Economic Club of New York today, 29 March 2016. Markets globally expect Yellen to drop hints about future rate hike path.
The Sensex fell 65.94 points or 0.26% to settle at 24,900.46, its lowest closing level since 17 March 2016. The barometer index rose 112.95 points, or 0.45% at the day's high of 25,079.35. The Sensex fell 130.84 points, or 0.52% at the day's low of 24,835.56.
The Nifty fell 18.10 points or 0.24% to settle at 7,597, its lowest closing level since 17 March 2016. The Nifty rose 37.80 points, or 0.50% at the day's high of 7,652.90. The index fell 32.85 points, or 0.43% at the day's low of 7,582.25.
The market breadth indicating the overall health of the market was weak. On BSE, 1,699 shares declined and 947 shares rose. A total of 163 shares were unchanged. The BSE Mid-Cap index fell 0.21%. The fall in this index was lower than Sensex's decline in percentage terms. The BSE Small-Cap index fell 0.27%. The fall in this index was higher than Sensex's decline in percentage terms.
Among the sectoral indices on BSE, the S&P BSE Healthcare index (down 2.59%), the S&P BSE Capital Goods index (down 0.99%), the S&P BSE Power index (down 0.83%), the S&P BSE Utilities index (down 0.76%), the S&P BSE IT index (down 0.41%), the S&P BSE FMCG index (down 0.39%) underperformed the Sensex. The S&P BSE Teck index (down 0.14%), the S&P BSE Industrials index (down 0.07%), the S&P BSE Finance index (down 0.06%), the S&P BSE Basic Materials index (down 0.01%), the S&P BSE Oil & Gas index (up 0.13%), the S&P BSE Realty index (up 0.2%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.32%), the S&P BSE Bankex (up 0.39%), the S&P BSE Metal index (up 0.4%), the S&P BSE Energy index (up 0.86%), the S&P BSE Auto index (up 0.89%) and the S&P BSE Telecom index (up 1.59%) outperformed the Sensex. The S&P BSE Consumer Durables index ended unchanged at 11,140.09, underperforming the Sensex.
The total turnover on BSE amounted to Rs 3201 crore, higher than turnover of Rs 2741.47 crore registered during the previous trading session.
Pharmaceuticals shares edged lower. Glenmark Pharmaceuticals (down 4.78%), Cipla (down 3.9%), IPCA Laboratories (down 3.34%), Dr Reddy's Laboratories (down 3.02%), Strides Shasun (down 2.12%), Sun Pharmaceutical Industries (down 2.07%), Aurobindo Pharma (down 1.29%), Cadila Healthcare (down 1.13%), GlaxoSmithKline Pharmaceuticals (down 0.77%) and Piramal Enterprises (down 0.66%), edged lower. Divi's Laboratories (up 0.37%), Wockhardt (up 1.05%) and Alkem Laboratories (up 1.33%), edged higher.
Drug maker Lupin edged lower in volatile trade after media reports suggested that the United States Food and Drug Administration (USFDA) has issued Form 483 observations after concluding inspection of Lupin's Mandideep unit in Madhya Pradesh. The stock fell 6.23% at Rs 1,402. The stock was volatile. The scrip hit a high of Rs 1,494 and a low of Rs 1,294.05 in intraday trade. Lupin clarified to the stock exchanges during trading hours that the USFDA inspected its Mandideep manufacturing facilities last month. Lupin said that there were total three observations from the USFDA after the inspection. As the site has both dosage form facility and active pharmaceutical ingredient (API) facility, two separate Form 483s were issued with two observations each. One of the observations was common to both these facilities. Lupin said that these observations are minor in nature and it has already addressed these observations. The company said that the management believes that the outcome of the USFDA audit will be a voluntary action and there will be no remediation required.
One of the observations erroneously quoted in news reports relates to the use of non-conforming intermediate for making API prior to 2015. This was done based on laboratory trials and scientific rationale that further processing steps were capable of producing desired quality API. All API batches and drug product batches manufactured using such APIs complied with the specifications and hence were released to market, Lupin said. Appropriate corrective and preventative actions were already implemented in 2015 and were verified by the USFDA investigator, the company said. As an abundant precaution, the company has recalled batches manufactured from this period. There is no material financial impact of the recall, according to Lupin. Lupin further said that it does not expect any disruption to product supply from the Mandideep facility. There are no pending applications from the facility, it added.
Tata Steel rose 1.10% to Rs 303.35 on reports that the company's board will meet today, 29 March 2016, where it is widely expected to announce restructuring or selling of some of the European units and job cuts to save costs.
Index heavyweight Reliance Industries (RIL) rose 1.51% to Rs 1,035.90. The stock hit a high of Rs 1,040.90 and a low of Rs 1,022.40 in intraday trade.
Index heavyweight and housing finance major HDFC fell 1.51% to Rs 1,125.60. The stock hit a high of Rs 1,142.35 and a low of Rs 1.123.35 in intraday trade.
Index heavyweight and cigarette major ITC fell 0.39% to Rs 321. The stock hit a high of Rs 327.10 and a low of Rs 319.20 in intraday trade.
Index heavyweight and IT major Infosys fell 0.89% to Rs 1,194. The stock hit a high of Rs 1,217.50 and a low of Rs 1,191.60 in intraday trade. Infosys is set to announce its Q4 March 2016 results on 15 April 2016.
Stocks of public sector banks witnessed a mixed trend. Central Bank of India (up 3.45%), Bank of India (up 0.37%), Bank of Baroda (up 1.15%) and State Bank of India (up 0.45%) edged higher. Dena Bank (down 3.27%), Vijaya Bank (down 2.71%), Union Bank of India (down 0.04%), Punjab National Bank (down 0.79%), Andhra Bank (down 0.4%), Allahabad Bank (down 0.29%), IDBI Bank (down 0.37%), Canara Bank (down 1.45%) and United Bank of India (down 0.26%) declined.
Stocks of private sector banks edged higher. Axis Bank (up 1.47%), HDFC Bank (up 0.52%), Kotak Mahindra Bank (up 0.72%) and Yes Bank (up 0.31%) edged higher.
ICICI Bank was down 0.6% at Rs 223.90. The stock hit a high of Rs 227 and a low of Rs 222.20 in intraday trade.
IndusInd Bank rose 1.74% to Rs 932.50. Ashok Leyland rose 1.81% to Rs 106.60. Ashok Leyland announced before market hours today, 29 March 2016, that it has on 28 March 2016 sold 32.63 lakh equity shares of IndusInd Bank in the open market at a price of Rs 915.96 per share.
Auto stocks were mixed. Maruti Suzuki India (up 2.47%), Eicher Motors (up 1.29%), Hero MotoCorp (up 0.38%) rose. Mahindra & Mahindra (M&M) (down 0.91%), Bajaj Auto (down 0.48%) and TVS Motor Company (down 0.1%) declined.
Tata Motors rose 2.27% to Rs 371.50. Tata Motors in a press release dated 27 March 2016 said it has secured a follow-on contract for the supply of additional 619 units of the Tata 6X6 high-mobility, multi-axle truck from the Indian Army.
Adani Ports and Special Economic Zone rose 0.95%. The company at fag end of the trading session announced that it has raised Rs 500 crore from issue non-convertible debentures (NCDs) on private placement basis.
Stocks of public sector firms edged lower. Bharat Heavy Electricals (Bhel) (down 1.94%), GAIL (India) (down 2.84%), Power Grid Corporation of India (down 0.86%), ONGC (down 0.3%) and Oil India (down 1.01%) edged lower.
NTPC fell 1.86% to Rs 126.95. The company announced after market hours yesterday, 28 March 2016, that unit-3 of 660 megawatts (MW) of Mouda Super Thermal Power Station of NTPC has been commissioned on 28 March 2016. With this, the total installed capacity of Mouda Super Thermal Power Station has become 1,660 MW. The total installed capacity of NTPC on standalone basis has become 40,012 MW and that of NTPC group has become 46,653 MW.
Telecom stocks were in demand. Idea Cellular (up 1.61%), MTNL (up 0.59%) and Bharti Airtel (up 1.36%) edged higher. Reliance Communications (down 1.5%) and Tata Teleservices (Maharashtra) (down 0.76%) declined.
Key indices dropped for the second day in a row. The Sensex has lost 436.10 points or 1.72% in two trading sessions from its close of 25,337.56 on 23 March 2016. The Sensex has risen 1,903.46 points or 8.27% in this month so far (till 29 March 2016). The Sensex has fallen 1,213.08 points or 4.64% in calendar year 2016 so far (till 29 March 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the Sensex has risen 2,408.85 points or 10.7%. The Sensex is off 4,192.15 points or 14.4% from a 52-week high of 29,094.61 hit on 15 April 2015. The Sensex is off 5,118.28 points or 17.04% from a record high of 30,024.74 hit on 4 March 2015.