3:30 pm Market closing:
After a late trade recovery, the market ended flat. The Nifty ended tad below 7800, down 30.50 points or 0.4 percent at 7788.10. The Sensex was down 97.41 points or 0.4 percent at 25622.17. Tata Motors, Bajaj Auto, L&T, BHEL and ICICI Bank were top gainers in the Sensex. Among the losers were Hindalco, HUL, Wipro, Dr Reddy’s and HDFC.
Banks, capital goods and auto stocks lend strong support.
3:15 am Market check: The Sensex is down 80.01 points or 0.3 percent at 25639.57, and the Nifty down 17.80 points or 0.2 percent at 7800.80.
About 1006 shares have advanced, 1546 shares declined, and 121 shares are unchanged.
3:10 pm P-Notes: Investments through Participatory Notes (P-Notes) into India’s capital market dropped to Rs 2.72 lakh crore (about USD 41 billion) at the end of July. P-Notes, mostly used by overseas HNIs (High Net Worth Individuals), hedge funds and other foreign institutions, allow such investors to invest in Indian markets through registered foreign institutional investors (FIIs). This saves time and cost for them, but the flip side is the route can also be used for round-tripping of black money.
According to Sebi data, total value of P-Note investment in Indian markets (equity, debt and derivatives) declined to Rs 2.72 lakh crore at July-end, from Rs 2.75 lakh crore in the previous month. Prior to that, investments through P-Notes had hit a seven-year high of Rs 2.85 lakh crore in May. This was the highest investment since February 2008, when the cumulative value stood at Rs 3.23 lakh crore.
2:59 pm Market Update: The Sensex dropped 205.29 points or 0.80 percent to 25514.29 and the Nifty fell 64.50 points or 0.82 percent to 7754.10.
About 897 shares have advanced, 1607 shares declined, and 115 shares are unchanged on the BSE.
2:50 pm Buzzing stocks: Suven Life, Mirc Electronics, Reliance Communications, Neuland Labs, IL&FS Investment, Subex, Fortis Healthcare, Container Corporation, Wockhardt and CEAT rallied 5-14 percent.
2:40 pm PwC on auto numbers: Abdul Majeed, Partner PwC and auto expert said, “There are many positive indicators for a reasonable growth in the overall automotive sector this fiscal such as low inflation, softening in oil prices, gradual recovery in urban and rural demand, expected moderation in the interest rates in the second half and also better off-take in the upcoming festive season.”
The OEMs in passenger cars who have robust new product launch strategy and are launching product in key segments such as small cars, compact SUV, and hatchback will grow more compared to others, he added.
SIAM said domestic passenger vehicle sales in August grew by 3.99 percent to 2.2 lakh units year-on-year and commercial vehicle sales rose by 7.58 percent to 52,198 units. However, 2-wheeler sales dropped 2.98 percent to 13 lakh units in the month gone by.
According to Majeed, MHCV sales will continue the significant growth trend in anticipation of pick up in the overall economic activity. There is also a pent up demand in this segment. Scooters will continue to reflect robust growth due to urban demand and also on account of it becoming family mobility vehicle which can be used by anyone in family.
2:30 pm TRAI on call drops: Sectoral regulator TRAI today said it will come out with recommendations on call drops and compensation to consumers by mid-October. The Telecom Regulatory Authority of India (TRAI) has already floated a consultation paper in the regard.
“We have sought comments from operators till September 21 and counter comments by September 28 after which there will be an open house discussion. I expect that by October 10-15, we will give the final recommendations in this regard,” TRAI Chairman RS Sharma told reporters on the sidelines of an Assocham event.
The regulator yesterday held a meeting with CEOs of telecom operators to address the problem. Sharma said after 15 days, drive tests will be conducted in Delhi and Mumbai to determine if there is any improvement in services provided by operators.
2:20 pm M&M launches TUV300: Homegrown auto major Mahindra & Mahindra (M&M) today launched compact SUV TUV300 at an introductory price starting at Rs 6.9 lakh (ex-showroom Pune), as it aims to strengthen its market share in the utility vehicles segment.
TUV300, which comes only with a diesel engine, is priced up to Rs 9.12 lakh for the top-end variant which showcases the AMT (auto gear shift) technology.
“The TUV300 embodies Mahindra’s tough and rugged DNA which makes me confident that it will be a brand creator in its segment and find favour both in India and globally,” M&M Group Chairman Anand Mahindra told reporters here.
TUV300 will take on the likes of Ford EcoSport and Renault Duster that are priced between Rs 7.88 lakh and Rs 13.54 lakh (ex-showroom Delhi).
Besides, it will also compete with compact crossovers such as Toyota Etios Cross, Hyundai i20 Active and Fiat Avventura, which are priced in a range of Rs 6.23 lakh and Rs 8.89 lakh (ex-showroom Delhi).
2:00 pm Market Check
The market continued to see profit booking after two-day rally, though it showed some recovery from day’s low. The Sensex declined 256.28 points or 1 percent to 25463.30 and the Nifty fell 82.80 points or 1.06 percent to 7735.80.
The BSE Midcap recovered smartly, trading flat while Smallcap lost 0.8 percent. More than two shares declined for every share advancing on the Bombay Stock Exchange.
HDFC was the biggest contributor to Sensex’s fall, down nearly 3 percent followed by Infosys, HDFC Bank, SBI, Reliance Industries, Lupin, ONGC, Axis Bank and HUL with 1-2 percent loss.
Global markets remained weak today. Hang Seng lost more than 560 points while Nikkei slipped 2.5 percent after core machinery orders fell 3.5 percent in July while in China, producer price index declined 5.9 percent, the 42nd consecutive month of declines. European markets were down 1 percent.
The rupee weakened to 66.52 against a close of 66.40 a dollar in previous session on sustained dollar demand from importers and weak domestic equities.