Sensex slumps 300 points; Realty, Banking stocks drag

The SENSEX slipped below the 26,000 level by falling over 300 points in mid-session trade Monday, pulled down mainly by financial stocks.

The Sensex pared gains after rallying as much as 120 points in morning trade on Monday, led by losses for HDFC, Infosys, TCS and Maruti Suzuki. The domestic market fluctuated between gains and losses as energy producers advanced, while automakers and lenders declined.

The NIFTY50 reclaimed the 8,100 mark but immediately turned volatile ahead of expiry of November futures & options contracts due on Thursday.

At 12:46 PM, the S&P BSE Sensex is trading at 25,836, down 314 points, while NSE Nifty is trading at 7,960, down 114 points. It is the first time Nifty dropped below 8,000 since June 2016.

The BSE Mid-cap Index is trading down 2.23% at 11,803, whereas BSE Small-cap Index is trading down 2.69% at 11,550.

Holding ground in the gloomy market were WIPRO, INFY, ONGC while POWERGRID, SBI, HDFC bore the brunt through the first hour of trading.

Only IT index is trading in green, while realty, banking, auto, metal, financial and FMCG were in red.

The INDIA VIX is up 6.13% at 18.8975. Out of 1,885 stocks traded on the NSE, 1,384 declined, 226 advanced and 275 remained unchanged today.

A total of three stocks registered a fresh 52-week high in trade today, while 53 stocks touched a new 52-week low on the NSE.

RASHTRIYA CHEMICALS AND FERTILIZERS LTD fell 3% after the company reported a marginal fall in net profit at Rs 43 crore for the quarter ended September 30. Its net profit stood at Rs 45.6 crore in the year-ago period.

PANACEA BIOTECH rallied 2% after the pharma company announce receipt of Establishment Inspection Report (EIR) from the USFDA indicating the formal closure of the cGMP and Pre­ Approval Inspection conducted by USFDA, at its Oncology Parenteral and Oral Solids Dosage formulation facilities at Malpur, Baddi in Himachal Pradesh.

Cadila Healthcare slipped 1.5%. Zydus Cadila has received the final approval from the USFDA to market for Metronidazole Tablets USP in strengths of 250 mg and 500 mg. The drug which is used to treat infections caused by bacetria will be produced at the group's formulations manufacturing facility at Baddi.

MAWANA SUGARS soared 12.6% to Rs 48 on the BSE. The Board of Directors of the Company has agreed to sell one of the operating units of the Company viz. Titawi Sugar Complex (TSC) in Uttar Pradesh as a going concern on an 'As is Where is What is' basis to Indian Potash Limited.

Techno Electric & Engineering Company gained 2% after the company has received an approval for sale/disposal of 45 MW Wind Power assets of the company, subject to approval of shareholders and other relevant authorities. The board of director at its meeting held on November 19, 2016 has approved for the same.

HPL ELECTRIC AND POWER hits 10% lower circuit at Rs 91. The company announced that the Company has reduced its debt around Rs 320 crore from IPO proceeds. 

PNB fell 6.6%. The bank has cut interest rate on fixed deposits by up to 0.25% in line with competition.

INDIA CEMENT tanked 3%. The company reported a 62% jump in standalone net profit at Rs 62 crore for the quarter ended September 30, 2016. It had posted a net profit of Rs 38.5 crore in the year-ago period.

HDFC and Unitech are trading lower on the BSE. With Unitech defaulting on loan repayment, housing finance major HDFC said it has sold the realty firm's outstanding loan of Rs 869 crore to JM Financial Asset Reconstruction Company (JMFARC).

NHPC dipped 2%. The Company has posted a net profit of Rs 1,554.7 crore for the quarter ended September 30, 2016 where as the same was at Rs 1215.7 crore for the quarter ended September 30, 2015.

NBCC slumped 3.5%. NBCC reported a consolidated net profit of Rs 69 crore against net profit of Rs 68 crore in the corresponding quarter last year.

Bharat Forge tanked 3.5%. The company announced the acquisition of US-based Walker Forge Tennessee, for a total consideration of USD14mn. Bharat Forge has made this acquisition through its US subsidiary.

Infosys advanced 0.5%. The IT company has invested Rs 145 mn in a start-up UNSILO. The investment is done through Infosys innovation fund.

Alembic Pharmaceutical is trading marginally higher on the BSE. The company has received approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Telmisartan and Amlodipine Tablets.

Sensex, Nifty flat in early trade

At 9:15 AM, the S&P BSE Sensex is trading at 26,182 up 31 points, while NSE Nifty is trading at 8,087 up 13 points.

The Indian rupee opened marginally higher by two paise at 68.11/$ against the previous close of 68.13/$.

US markets closed in the red on Friday but Asian markets are in a better mood at the start of the week. Centre and states yet have issues to clear on GST and a crucial meet will take place later this week. The rupee movement will be in focus today.

Asian markets ex Japan opened weak as consolidation seems to be on the cards for this week. The Japanese 'Nikkei" index traded well over 18000 as it entered a new Bull market with the index rising 20% from its recent lows. Strength in US$ & rise in yields is seeing money exit emerging markets & chase higher returns in the developed markets with Japanese stocks seeing huge buying.

After falling close to 3 pc last week, the market will hope for some recovery. We’ve not had a positive week for a month now and unless there is meaningful improvement in foreign fund inflows, the indices may continue to languish in a range.

Meanwhile, SEBI is mulling relaxation of norms to permit FPIs to invest in unlisted NCDs and securitized debt instruments. Indian firms raised less than Rs. 3000 cr through QIPs in the first half this year and September alone brought in over Rs.2200 cr last year, the same time-zone saw Rs.12685 cr. being raised.

The Prime Minister mentioned about interest rates going lower after the demonetization drive and corporates may borrow money through bond sales in the coming days.