The Indian equity market fell to the lowest level in a month due to sustained selling across the board, the market, which opened lower this morning, reacting to PM Narendra Modi’s hinted tax hike on stock market income.
The Indian benchmark indices are expected to remain volatile ahead of the expiry of December series F&O contracts, as investors roll over their positions to the January series. The near month contracts will expire on the coming December 29.
NSE Nifty closed with a loss of 77.50 points at 7,908, while BSE Sensex ended with a loss of 234 points at 25,807.
The NSE Nifty fell about 1% on Monday to a seven-month low weighed by metal, realty, pharma, banking and auto stocks. The BSE Midcap and Smallcap closed down by 2% each.
Markets are factoring in that economic activity will take longer to normalise following the demonetisation drive. ICRA has revised its forecast for GVA growth in FY17 to 6.6 pc. The Finance Minister soothed frayed nerves over the weekend as he clarified that the government had no intention to impose tax on long-term capital gains from trading in shares. Sections of the media, had misinterpreted Prime Minister Narendra Modi’s speech, the FM said.
Meanwhile, the PM is expected to announce ‘radical reforms’ and said the government will not shy away from taking difficult decisions that are in national interest. An early budget is also expected to improve productivity, Modi said.
Heavy selling pressure was witnessed in pharma, finance, oil & gas, IT, metal, telecom, teck, consumer durables, auto and capital goods stocks.
On the global front, Asian markets were trading mixed. China’s Shanghai Composite index fell 0.84% to 3,279 on Monday morning, while Japan’s Nikkei fell 0.09% to 19,412. Major global markets remained shut on account of Christmas and Boxing Day holidays.
In Europe, the FTSE 100 and CAC 40 were trading marginally higher, while DAX is trading in red.
Shares of Pharmaceuticals stocks slipped on BSE and NSE. Divis Lab cracked 11.6% to Rs 765 on BSE. The stock is top losers on BSE. The BSE Healthcare slipped 2.6% or 376 points at 14,329 as against the previous close of 14,572. The BSE Healthcare opened at 14,595 and hits a high of 14,598.61 and a low of 14,282.05.
Panacea Biotec climbed 3.7% after the pharma company announce launch of Tetravalent Vaccine Easyfour-TT for active primary immunization and booster dose against diphtheria, tetanus and pertussis (DTP) and Haemophilus Influenza Type B (Hib). The stock is currently trading at Rs 120.95, up by Rs 6.05 or 5.27% from its previous closing of Rs 114.9 on the BSE.
NTPC Ltd has informed BSE that the Unit-1 of 800 MW of Kudgi Super Thermal Power Project of NTPC Limited in Karnataka has been commissioned on December 25, 2016. This is the first 800 MW unit commissioned by NTPC. The stock closed down by 1%.
Welspun Enterprises zoomed 4.4% on the BSE. Welspun Enterprises Ltd, formerly Welspun Projects Ltd, part of the US $ 2.3 billion Welspun Group, announced its plans to divest its stake in Welspun Energy.
Sasken Communication Technologies Limited has informed the Exchange that the Buyback Committee of the Board of Directors, inter alia, considered fixed the buyback price of Rs 410 (the buyback price) and the total consideration for buyback to be Rs 12,004.31 lakh (the buyback size) excluding the transaction costs viz. brokerage, applicable taxes such as securities transaction tax, service tax, stamp duty etc. The stock slipped 4.4% on the BSE.
Engineers India tumbled 6.6% on the BSE due to profit taking. The shares had hit 52-week high of 324.80 rupees on Friday.
Cox & Kings dropped 3.4% as Copthall Mauritius Investment sold 3.16 million shares, or its entire 1.8% stake in the company at Rs 172.18 per share in a block deal on BSE on Friday.
MMTC gained 1.7% on the BSE amid heavy volumes for the second consecutive trading day.
Gold was trading at Rs 26,936 per 10 gms and silver was trading at Rs 38,891 per kg.
The rupee was trading up four paise at 67.78 per US dollar.
Out of 1,454 stocks traded on the NSE, 1,221 declined and 189 advanced today.
Top 5 Nifty Gainers: CIPLA (1.86%), Lupin Ltd. (1.77%), Adani Ports & Sez (1.35%), TCS (1.35%) and Sun Pharma (1.14%).
Top 5 Nifty Losers: Bharti Airtel (-0.81%), Hero Motocorp (-0.65%), HDFC (-0.50%), GAIL (-0.27%) and Coal India (-0.23%)
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