Sensex Plummets 500 Points, Tata Motors Tank 9% Post Q2 Result

Indian share market fell in the afternoon session on worries about capital outflows as US bond yields surged and the dollar strengthened. Sentiment also continued to be weighed down by the government's move last week to withdraw higher-denomination bank notes  and slow replenishment in new bills. 

At the closing bell, the BSE Sensex stood lower by 514 points, while the NSE Nifty finished down by 188 points. Meanwhile, the S&P BSE Mid Cap & the S&P BSE Small Cap finished down by 3.9% and 4.7% respectively. Losses were largely seen in auto, metal and realty stocks.

Tata Motors share price slumped as much as 9.9% after second-quarter profit missed estimates by a wide margin due to a weak performance at its Jaguar Land Rover unit. The company hit its lowest level since July 7 who is currently mired in a corporate power struggle.  

Asian markets finished mixed as of the most recent closing prices.

The rupee fell and was trading at 67.72 against the US$ in the afternoon session. Oil prices were trading at US$ 44.45 at the time of writing

Power Grid Corporation of India’s share price finished on an optimistic note (up 0.7) after it was reported that the company is planning to build energy highways across the country in order to meet a projected growth in demand and ease the load on the national grid.

In this regard, the company has planned investment of Rs 1.12 trillion, with the energy highways costing Rs 580 billion and the HVDC systems Rs 120 billion each.

Stocks from power sector languished in red with JSW Energy and Reliance Infrastructure share price leading the losses.

In another development, after 2 months fall, export rose by 4.62% to US$ 22.88 billion in September backed by higher growth in engineering and gems & jewellery sectors. The exports recorded in the same month last year stood at US$ 21.87 billion. 

Commerce and Industry Minister Nirmala Sitharaman has reiterated that there is definitely prospect for the exporters, who are struggling in depressed demand globally, as India’s export for the month of September has shown very significant development. This news has brought hope to exporters who are battling depressed demand globally. 

 

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Sensex Plunges 700 Points, SBI Slumps 2.7% on Weak Q2 Result

Share market in India fell more than 2.4% in today’s trading session tracking losses in global markets as US bond yields surged on expectations that newly elected US President Donald Trump's policies would stoke inflation. At the closing bell, the BSE Sensex stood lower by 699 points, while the NSE Nifty finished down by 229 points. Meanwhile, the S&P BSE Mid Cap & the S&P BSE Small Cap finished down by 3.6% and 3.4% respectively. Losses were largely seen in auto, consumer durables and realty stocks.

The Nifty IT index fell 2%, its biggest weekly fall since mid-February, on worries about what Trump’s election would mean for the export-dependent sector.

The rupee was trading at 67.03 against the US$ in the afternoon session. Oil prices were trading at US$ 44.39 at the time of writing.

According to an article in The Economic Times, Sugar production in India, the world's second largest producer after Brazil, is estimated to decline by 10.27% to 22.52 million tonnes in ongoing season, but stock availability will be sufficient to meet the domestic demand. The country's sugar production had declined to 25.1 million tonnes in the 2015-16 season (October-September) due to drought in major growing states. 

While the domestic sugar consumption is estimated at about 25.5 million tonnes, the stock position at the close of the 2016-17 season is likely to be at 4.73 million tonnes, which will be carried forward for the next season. 

Sugar stocks languished in red today with Rajshree Sugar and Triveni Engineering & Industries leading the losses. 

Moving on to bank stocks. SBI share price plunged 2.7% in the afternoon session after the bank posted reported a 34.6% slide in its second quarter net profit as provisions against bad loans doubled from last year.

Net NPAs were at 4.19% in the September quarter compared to 4.05% in the previous quarter and 2.14% in the same quarter last year.

 

Selling activity was seen across majority of the PSU banks with Indian Bank and Andhra Bank leading the losses.

 

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Sensex Finishes on a Strong Note; Banks Rally

Indian share market rebounded in today’s trade mirroring gains in Asia and on Wall Street overnight, as markets reassessed the economic implications of Republican Donald Trump's shock U.S. presidential election victory.  At the closing bell, the BSE Sensex stood higher by 265 points, while the NSE Nifty finished up by 94 points. Meanwhile, the S&P BSE Mid Cap & the S&P BSE Small Cap finished up by 1.7% and 1.8% respectively. Gains were largely seen in metal, PSU and bank stocks.

Bank stocks rallied 3.7% as banks are expected see improved liquidity when people start tendering cash after the government decided to withdraw 500 and 1,000 rupee notes.

According to an article in The Economic Times, Coal India Ltd (CIL) has allocated 24.9 million tonnes (MT) of coal under spot e-auction in the first six months of the current fiscal, down 7.7% from the year ago period. The decline comes amid government's goal to secure availability of coal to meet the demand of various sectors of the economy including power.

In another development, as many as 15 power plants did not lift any coal from Coal India in September, foregoing the 2.6 million tonnes of stock. This resulted in thermal plants across the country receiving delivery of only 80% of the coal allotted to them during the month.

Coal India Share price finished the day up by 4.1% on the BSE. 

Moving on to news from stocks in tyre sector. According to a leading financial daily, Apollo Tyres is planning to set-up a new manufacturing facility in Andhra Pradesh to manufacture tyres for two-wheeler and pick-up vehicles. The company is likely to invest around Rs 5 billion in the new facility. 

The company reported a marginal drop in its net profit for the quarter ended September to Rs 2.05 billion, compared with 2.15 million in the same quarter last financial year. The revenue too fell sharply to Rs 23.03 million during the period, against Rs 25.21 million in the year-ago period, due to sharp drop in sales in the commercial vehicles segment.

Apollo Tyres share price finished the day up by 0.4% on the BSE.

You can read a more detailed Indian Stock Market Update here. For terms of use, visit here.