Tuesday 15 November 2016

Nifty shuts below 200-DMA

The Indian equity market ended in the red as indices extended their losing streak for the second consecutive trading session. Nifty ended below the 200-DMA. The stock market dropped to a near five-month low and closed lower for the second straight session as automakers, real estate, metal and FMCG companies continued to extend their losses on the anticipated slowdown in spending as a result of the nationwide cash crunch. Also, negative global cues, depreciating rupee and lower crude oil prices dampened the sentiment.

The stock market continued its downfall after a three day break on Tuesday as dollar hit a 11 month high amid investors' hopes that US Federal Reserve may raise interest rates, resulting in funds flowing from emerging markets assets to the US.

Heavy selling pressure was witnessed in auto, realty, Bank Nifty, FMCG, Financial  Services, metal and media stocks, while PSU bank and IT stocks were among the gainers on NSE.

Among the 50-stocks of Nifty, Bank of Baroda, SBI, Idea Cellular, Dr Reddy's, Wipro, ONGC and Power Grid were among the gainers on NSE, whereas Tata Motors,Grasim, Tata Motors DVR, IndusInd Bank and Tata Steel were among the losers today.

Finally, the BSE Sensex ended with a loss of 514 points at 26,305. The BSE Sensex opened at 26,810, touched an intra-day high of 26,809.61 and low of 26,254.

The NSE Nifty closed with a loss of 188 points at 8,108. The NSE Nifty opened at 8,285 hitting a high of 8,289 and low of 8,094.

On the economy front, India’s WPI for the month of October unexpectedly fell to 3.39%, from 3.57% in September. Food inflation stood at 4.34% on a year-on-year basis, while fuel and power inflation in October stood at 6.18%.

The India VIX (Volatility) index was up 16% at 20.1450. Out of 1,526 stocks traded on the NSE, 969 declined and 498 advanced today.

The rupee was trading down 44 paise at 67.68 per US dollar.

Sentiments remained down-beat with many agencies criticizing the government over demonetization of Rs 500 and Rs 1,000 notes, saying the move had led to 'financial chaos' across the country as well as condemning the fact that the decision was taken without proper planning or preparation. Also, the sudden decline in money supply and simultaneous rise in bank deposits post demonetization is going to adversely impact consumption in the economy in the short term and may lead to a lower GDP growth. 

Asian markets closed mixed on Tuesday amid rising fears of a rate hike by the US Federal Reserve. Nikkei 225 and Shanghai Composite closed in red while Hang Seng gained 0.5%.

In Europe, the DAX was trading marginally up. The CAC 40 and FTSE 100 gained 0.4% each.

Jet Airways fell 10.6% to Rs 380 on the BSE. The company posted a net profit of Rs 108 crore for the quarter ended September 30, 2016 as compared to Rs 87.6 crore for the quarter ended September 30, 2015.

AIA Engineering Ltd gained 1% on the BSE. The company posted a net profit of Rs 112 crore for the quarter ended September 30, 2016 as compared to Rs 99 crore for the quarter ended September 30, 2015.

Corporation Bank soared 13% to Rs 47.65 on the BSE after the bank posted a net profit of Rs 206 crore for the quarter ended September 30, 2016 as compared to Rs 188 crore for the quarter ended September 30, 2015.

Tata Motors tanked 10%. The company posted a net profit after tax, share of profit of joint ventures and associates of Rs 848 crore for the quarter ended September 30, 2016 as compared to net loss of Rs 1,740 crore for the quarter ended September 30, 2015.

Suzlon Energy rallied 5.3%. The company has posted a net profit of Rs 238 crore for the quarter ended September 30, 2016 as compared to net loss of Rs 202 crore for the quarter ended September 30, 2015.

A total of seven stocks registered a fresh 52-week high in trade today, whereas 71 stocks touched a new 52-week low on the NSE.

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