Indices fall for 2nd straight day, Nifty shuts below 8,600 mark

After opening on flat note, the Indian stock market closed lower for the second consecutive session. However, the benchmarks fell sharply at the fag end of the day as selling pressure accentuated.

The decline was led by oil & gas, energy, auto, pharma, power and banking stocks. Even the midcap and smallcap stocks were not spared. Sentiment was also dampened tracking weakness in the European markets.

Among the Nifty stocks, Adani Ports, Bank of Baroda, TCS, HCL Tech, Yes Bank, ZEE and Coal India were the gainers whereas Grasim, ACC, Idea Cellular, Ambuja Cements, Lupin, Hero MotoCorp and RIL were among the losers today.

Finally, the BSE Sensex ended with a loss of 310 points at 27,775. The BSE Sensex opened at 28,133 and touched an intra-day high of 28,143 and low of 27,736.

The NSE Nifty closed with a loss of 103 points at 8,575. The NSE Nifty opened at 8,727 hitting a high of 8,728 and low of 8,638.

The India VIX (Volatility) index was down 0.34% at 14.5375. Out of 1,499 stocks traded on the NSE, 1,116 declined and 335 advanced today.

The rupee was trading up 12 paise at 66.71 per US dollar.

On the global front, Japan’s Nikkei and China’s Shanghai Composite closed marginally down, while Hong Kong’s Hang Seng ended in the green.

European shares were trading in red. The FTSE 100 was trading down. DAX and the CAC 40 slipped around 0.3% each.

Mahindra & Mahindra slipped over 2% despite the company reporting 12% rise in standalone net profit at Rs.955.21 crore for the quarter ended June 30, 2016 against Rs.850.09 crore for the same quarter last year.

Birla Group's units Aditya Birla Nuvo and Grasim Industries fell 4% and 6% respectively, on reports that the parent group plans to merge the two companies.

Motherson Sumi Systems dropped 6.4% to Rs.329. The company has posted a net profit of Rs.439.36 crore for the quarter ended June 30, 2016 as compared to Rs. 379.38 crore for the quarter ended June 30, 2015.

Jubilant Life Sciences surged 7% to Rs.367 after it reported 25.85% rise in consolidated net profit at Rs.164.02 crore for the quarter ended June 30, 2016 against Rs.130.33 crore in the same quarter last year.

Tata Chemicals climbed 8.8% to Rs.504 after Yara International ASA entered into an agreement to acquire the Tata Chemicals Babrala urea plant and distribution business in Uttar Pradesh for $400 million on a debt and cash free basis, including normalised net working capital.

Lupin dropped 3.8% to Rs.1545. The company posted a net profit after taxes & minority interest of Rs.8819.5 crore for the quarter ended June 30, 2016 as compared to Rs.5685.5 crore for the quarter ended June 30, 2015.

Aptech Limited slipped 0.54% to Rs.92.35 after Rakesh Jhunjhunwala on Tuesday bought 700,000 shares of the company.

Nitesh Estates Ltd jumped 5.6% to Rs.13.40. The company said in a notice to BSE that it has decided to sell off the land and has finalized the same with a third party for a total consideration of Rs.26.50 crore. The proceeds of the sale will be utilized to reduce the debts of the Company.

RSWM Ltd fell 6.6% to Rs.450. The company reported 22.7% increase in its net profit to Rs.35.68 crore in June quarter as compared to Rs.29.08 crore a year ago. Net sales rose 4.17% to Rs.726.12 crore.

UCO Bank tumbled 3.8% to Rs.41.10. The bank declared a net loss of Rs.440.56 crore in the June quarter, against a net profit of Rs.256.7 crore a year ago. Its gross NPA ratio touched a record 17.19% from 15.43% at end-March and 7.30% in the year-ago period.

Indian Overseas Bank cracked 3.5% to Rs.26.35. The bank reported a Rs.1450.50 crore loss for the quarter ended June 30, 2016 after a fifth of its advances turned bad. The bank reported a net profit of Rs.14.76 crore a year ago. Gross non-performing assets as a ratio of gross advances were 20.48% at the end of June, higher than the 17.4% reported three months earlier.

Sundram Fasteners Ltd rose 6.5% to Rs.227. The company posted 96.18% increase in its net profit in the June quarter and stood at Rs.75.55 crore compared to Rs.38.51 crore a year ago. Net sales rose 13% to Rs.701.88 crore.

JK Tyre & Industries Ltd slipped 2.7% to Rs.102. The company reported a 14.36% decline in its net profit to Rs.100.26 crore against Rs.117.07 crore a year ago.

Adani Ports and Special Economic Zone climbed 7.8% to Rs.258.55. The company posted a net profit of Rs.8357.10 million for the quarter ended June 30, 2016 as compared to Rs.6389.30 million for the quarter ended June 30, 2015.

A total of 45 stocks registered a fresh 52-week high in trades today, whereas 18 stocks touched a new 52-week low on the NSE.

Sensex, Nifty, Midcap, Brent sink 1%; banks, auto shares drag

2:20 pm Earnings:

 M&M has posted a consolidated net profit at Rs 961.6 crore in April-June quarter up 16 percent from corresponding quarter last fiscal. On a standalone basis, its net profit jumped 12 percent to Rs 955 crore. Auto segment margins in Q1 was at 4.3 percent from 7.7 percent year-on-year. Utility vehicle and tractor maker Mahindra and Mahindra's (M&M) first quarter profit on standalone basis was seen rising 2 percent year-on-year to Rs 870 crore, according to average of estimates of analysts polled by CNBC-TV18. Also read - Nifty to confirm 'hanging man' pattern; has trend reversed?

 2:00 pm Market Check :

The sell-off extended in afternoon trade with the equity benchmarks as well as broader markets falling 1 percent each. Banks, auto, healthcare, FMCG and oil stocks remained under pressure on profit booking after the market priced in RBI policy. The 30-share BSE Sensex was down 283.06 points at 27802.10 and the Nifty down 93.35 points at 8584.90. About 1836 shares declined against 747 advancing shares on the Bombay Stock Exchange. Oil prices were lower today. US West Texas Intermediate (WTI) crude oil futures were trading at USD 42.15 per barrel, down 1.5 percent and International Brent crude futures were at USD 44.37 per barrel, down 1.4 percent.

Nifty breaks 8600, Sensex down over 200 pts; ITC, RIL, HDFC drag.

Money control Bureau

10:40 am Market Update:

 Equity benchmarks fell further as the Sensex was down 230.58 points at 27854.58 and the Nifty down 80.05 points at 8598.20. More than two shares declined for every share rising on the BSE. 10:20 am Interview: The Reserve Bank of India's interest rate cuts -- 1.5 percent since early last year -- has helped drive yields lower, enabling banks to book treasury profits and clean up their balance sheets, says Arundhati Bhattacharya, chairperson of State Bank of India. Speaking to CNBC-TV18, Bhattacharya said higher profits would enable banks to make provisions for stressed assets and extend more loans. Treasury gains are those that banks make on money kept in liquid securities such as g-secs. "In fact, we had recently written a note pointing out during the previous economic recovery cycle, 64 percent of bank profits were driven by treasury gains. This time, 16 percent of profits have been driven by treasury gains." Still, she said the RBI's accommodative stance, also with respect to its liquidity stance, would help boost monetary policy transmission. 

10:00 am Market Check:

 Equity benchmarks fell sharply after flat opening, dragged by index heavyweights Reliance Industries, HDFC twins, ITC. The 30-share BSE Sensex was down 163.34 points at 27921.82 and the 50-share NSE Nifty declined 57.80 points to 8620.45. About 1189 shares declined against 803 advancing shares on the BSE. Surendra Goyal of Citi says India has performed in-line with emerging markets this year. "Earnings recovery remains the key, and we remain constructive," he adds.

Live Stock Market Updates - Sensex, Nifty choppy; Telecom, FMCG drag

At 9:36 AM, the S&P BSE Sensex is trading at 28,070 down 15 points, while NSE Nifty is trading at 8,673 down five points.

The BSE Mid-cap Index is trading up 0.08% at 12,791 whereas BSE Small-cap Index is trading up 0.30% at 12,376.

Adani Ports, Tata Steel, Coal India, Bajaj Auto, NTPC, Bharti Airtel and ONGC are among the gainers, whereas ITC, Dr.Reddy's, GAIL, Maruti Suzuki and Asian Paints are losing sheen on BSE.

Some buying activity is seen in realty, metal, power, utilities and consumer durables sectors, while telecom and FMCG are showing weakness on BSE.

The INDIA VIX is up 0.80% at 14.6550. Out of 1,833 stocks traded on the NSE, 597 declined, 812 advanced and 424 remained unchanged today.

A total of 21 stocks registered a fresh 52-week high in trades today, while eight stocks touched a new 52-week low on the NSE.

The Indian rupee opened higher by 16 at 66.68/$ against US Dollar Wednesday as against the previous close of 66.84/$.

RBI Governor Raghuram Rajan left the benchmark repo rate unchanged on Tuesday. The RBI kept the repo rate, the key rate at which the central bank lends money to commercial banks, at 6.5 per cent. Retail inflation in June was 5.77 per cent, well above the 5 per cent target set by the central bank for March 2017.

Asian markets are trading mixed. Hong Kong's Hang Seng and Shanghai Composite are marginally up.The Nikkei 225 is trading in red.

US stocks ended marginally higher Tuesday. The Dow Jones industrial average rose 0.02%, to close at 18,533.05 points. The S&P 500 gained 0.04%, to end at 2,181.74. The Nasdaq closed 0.24% higher.