Thursday 22 December 2016

Sensex falls below 26K, down 258 points

The Nifty slipped below the 8,000 mark for the first time since November 25.

The Indian stock market continued to trade lower after Asian markets suffered modest losses taking cues from a lackluster day on Wall Street as investors locked in gains in thin trade ahead of the upcoming holidays. Investors will keep an eye on the two-day GST Council meet which begins later in the day. The GST Council will discuss drafts of the model GST, integrated GST and states' compensation Bills.

At 12:50 PM, the S&P BSE Sensex is trading at 25,980 down 262 points, while NSE Nifty is trading at 7,997 down 64 points.

A total of five stocks registered a fresh 52-week high in trade today, while 23 stocks touched a new 52-week low on the NSE.

Out of 1,885 stocks traded on the NSE, 1,272 declined, 254 advanced and 359 remained unchanged today.

The BSE Mid-cap Index is trading down 1.41% at 11,816, whereas BSE Small-cap Index is trading down 1.27% at 11,800.

All the BSE sectoral indices were trading in the negative territory.

Sun Pharma, Tata Motors, Wipro and Cipla are among the gainers, whereas ONGC, Axis Bank, GAIL, HDFC and Dr Reddy's are losing sheen on BSE.

The INDIA VIX is up 4.86% at 15.4200.

Vedanta Ltd is currently trading at Rs 217.5, down by Rs 8.55 or 3.78% from its previous closing of Rs 226.05 on the BSE. The scrip opened at Rs 225.5 and has touched a high and low of Rs 225.5 and Rs 216.4 respectively. So far 5426444 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 67016.91 crore.

Wockhardt Ltd is currently trading at Rs 660.15, down by Rs 11.25 or 1.68% from its previous closing of Rs 671.4 on the BSE.

Sun Pharmaceutical Industries is trading in green on the BSE.  Sun Pharmaceutical and includes its subsidiaries or associate companies announced its plans to acquire a branded oncology product, Odomzo, from Novartis.

Empee Distilleries soared 3.5% to Rs 55.20 on the BSE. The company's board meeting is scheduled to be held on December 26, to consider and approve sale of 1,95,12,997 equity shares of Rs 10 each held by the company in Empee Hotels (unlisted entity).

SPARC jumped 3.4% after the pharma company has received a Complete Response Letter (CRL) from the USFDA for the New Drug Application (NDA) for Xelpros, Latanoprost BAK-free eyedrops.

South Indian Bank slipped 0.48%. The bank said its board has approved issuing one equity share for every three equity shares held by shareholders on rights basis.

Godrej Properties slipped 1%. RKN Enterprises has acquired 39,86,400 shares, or 1.84% stake in Godrej Properties from Rishad K Naoroji.

KDDL rallied 5.3% after the company has allotted 2,64,150 zero coupon convertible warrants at premium of Rs 255 per share to Swades Capital LLC, a promoter group entity.

Nitesh Estates advanced 1%. Nitesh Estates has informed bourses that the company has redeemed 700 non convertible debentures (Unlisted NCD) out of 1,250 non convertible debentures held by IDFC Limited for the aggregate value of Rs 70 crore.

IFCI Ltd tanked 2.6%. The company said it has raised benchmark lending rate by 0.1% point (10 basis points) to 8.6%.

Alankit soared 3%. Alankit has informed stock exchanges that the company has been appointed as E-KYC User Agency (KUA) for the usage of Aadhaar Authentication Services provided by UIDAI to provide Aadhaar Enabled Services to company beneficiaries, clients and customers.

The Indian rupee opened higher by eight paise at 67.82 per dollar versus previous close of 68.90.

Greenback has lost some ground against Yen, while Sterling has been shaky this week, with values sinking to one-month low of $1.2313 at one point of time yesterday. Recent trajectory in Pound is clearly influenced by Scottish push for independence from UK in order to maintain access to EU’s single market. Meanwhile, Euro has managed some recovery, deriving cues from reports that Italian parliament approved US$21bn bailout plan to recapitalize country's beleaguered banks.

It could take another three months to get over the negative shock of demonetisation but this could get compensated by a positive impact in FY18, says a senior adviser to PM Modi.

The finance ministry is bracing up for a heated discussion today as the Parliamentary Standing Committee on Finance will face a volley of questions regarding the ill-preparedness of the demonetization drive. RBI Governor will be called at a later date by the committee.

Meanwhile, RBI’s Monetary Policy Committee minutes suggest Q3 assessment is likely to be clouded by withdrawal of bank notes; GVA growth has been revised from 7.6% to 7.1%.

The demonetisation impact on growth will be ‘transient and uncertain’. The rupee saw some relief with the dollar cooling against other emerging currencies. 

Gold manage to shine a little after days of dullness. A dull day is in store for the market. The Dow failed yet again to cross the psychological 20,000 mark and ended in the red.

Asian indices opened flat to marginally weak as US indices also had a rather quiet session with the Dow Jones ending marginally in the red. Pullback in oil prices & yields edging lower were the theme for the day as US$ also saw profit booking. Emerging markets continue to be the favorite punching bag on both currency & equity front as investors exit seeking better opportunities in US equity & bonds.

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