Live: Sensex closes below 17k; Renuka, DLF, ICICI Bank lead fall

3.30 p.m: Sensex closed at the day’s low falling by 236 points over the previous day’s close at 16,882 while Nifty closed the day at 5068 down 80 points.

A jump in government yield in Spain and Italy led to sell-off across global markets. European markets are trading nearly 2 percent lower as Spain’s yield crossed 6 percent while Italy has moved above 7 percent.

Kingfisher addressed media to bring forward their point that they are not seeking a bailout but need more funds from banks as working capital loans. Though Kingfisher Airline stock held on throughout the day and infact closed near the day’s high, Jet Airways closed 8.7 percent lower. Further Kingfisher’s group company McDowell also slipped by 11 percent at Rs 770.

Real Estate and Banking counters saw selling in the second half of the day with HDIL losing 9 percent and DLF falling by 7.5 percent. Banking shares like Axis Bank and ICICI Bank fell by over 4 percent.

More from Investing

MSMEs are breaking the traditional convention. Look who’s funding them Scale-up your startup without an investor! Here’s how

Cipla was the biggest gainer among frontline stocks rising by 6.30 percent to close the day at Rs 306.25. Renuka Sugar continued with its slide closing 11 percent lower at Rs 34.15.

BHEL along with Aurobindo Pharma, Crompton Greaves and a number of sugar counters have touched a yearly low. BHELwhich announced its results on Monday, failed to impress the market though its profits were higher, as the company took a hit on its order flows.

Sensex down 250 pts, Kingfisher moves higher

2.45 p.m: After Italy, Spain’s bond yield have also started moving higher. While Italy’s yield have again crossed 7 percent, those in Spain has crossed 6 percent.

European markets are down nearly 1.5 to 2 percent as Eurozone debt fears resurfaced with higher bond yields.

Sensex trades 200 points lower at 16,915 while Nifty is down 73 points at 5075.

While Kingfisher management continue their press conference and try to clarify present their case, markets have been spooked by the dismal scenario in the airline sector. Jet Airways have been punished by pushing the stock down over 8 percent to Rs 237.80. McDowell meanwhile is down 13 percent at Rs 753.50. However, Kingfisher has moved higher by 3 percent after the management completed its press conference.

Among the frontline stocks that have fallen are Renuka which is down 9.5 percent, HDIL which is down 8 percent and DLF is down 6 percent. Banking stocks trade lower with Axis Bank falling the most by 4.3 percent and ICICI Bank falling by 4.13 percent.

Sensex below 17,000, down 200 pts, Jet Airways falls 9%

2.00 p.m: With the markets languishing in a narrow range, markets have given way. Sensex is down 111 points at 17,007 while Nifty is down 41 points at 5109.

As Kingfisher management try to justify their stance on cancellation of flights and why the company does not need a bailout by new loans, market has started punishing group companies. McDowell is down 10 percent at Rs 777. Kingfisher meanwhile is languishing at Rs 21.5 up by 0.7 percent.

Jet Airways meanwhile has fallen by over 9 percent at Rs 238 as Kingfisher management highlight the challenges ahead for the sector.

Among the biggest frontline losers are Renuka which is down 10 percent, real estates companies like HDIL and DLF are down 6 percent and 5 percent respectively. Tata Steel is down 3.3 percent, Reliance is down 1.5 percent.

A fall in European markets have led to a fall in Indian markets. Sensex is down 130 points at 16,986 while Nifty is down 51 points at 5096. European markets are down nearly 1.5 percent as Spain bond yields have moved higher.

Kingfisher moves ahead of press conference

1.45 p.m: Kingfisher Airlines has started its press conference where the company will be disclosing its way out of the financial mess. The stock trades 2 percent higher at Rs 21.90.

Sensex trades 3 points higher at 17,122 while Nifty is 8 points lower at 5139.

Rupee touches new low, bond yields nears 9%

1.00 p.m: Markets continue to remain lackluster with Sensex trading 22 points higher at 17,140 while Nifty trades at 5141, down 7 points.

Tata Motors and Cipla are among the top gainers in the market gaining by 3 percent and 6.5 percent respectively.

Rupee meanwhile has hit a new 32 month low of 50.70 against the dollar. Bond yields on the 10 year 2021 paper has moved higher to 8.93 percent.

Though the market has not fallen much, overall breadth of the market is extremely negative with nearly 4 stocks falling for every one rising.

Morgan upgrades Cipla, stock up 6%

11.45 a.m: Morgan Stanley has upgraded Cipla due to better growth visibility. Rating has been upgraded to Over-weight from Equal-weight as Morgan Stanley believes that a confluence of factors will drive earnings. The company is increasingly utilising its Indore SEZ, contribution of which can increase to Rs 500 crore per quarter from the current level of Rs 150 crore. Improving product mix and benefits of a weak rupee augurs well for the stock, says Morgan who have a price target of Rs 346.

Sensex meanwhile trades flat is at 17,101 down 17 points while Nifty trades at 5133 down 15 ponts.

Petrol price rollback hit refining counters

10.45 a.m: Markets trade in a narrow range with Sensex trading 25 points lower over previous day’s close at 17,095. Nifty is down 16 points at 5132.

Cipla continues to be the top gainers, rising 6 percent at Rs 305.30 as the company announced a better than expected results on Monday.

Refining companies feel the pressure as they as being ’told’ to reduce petrol price hike ahead of winter session of parliament. BPCL trades 3 percent lower, while HPCL is down 2 percent and IOC is down 1.7 percent. Rollback timing could not have been worst as brent crude has risen to $112 per barrel and rupee has touched a new 32 month low of 50.67 against the dollar. Refiners had ealrier said that they will have to shut down their operations by December if they are not funded for their under recovery.

Banking stocks too are under pressure after RBI is reported to have said that it favours higher deposit rates and lower lending rates in order to boost savings. Banking NIM’s will take a beating if banks are asked to follow this. SBI trades 0.4 percent lower at Rs 1745, ICICI Bank was down by 1 percent at Rs 812.45.

Renuka Sugar, continues to fall after it posted a loss of over Rs 600 crore. The stock which lost 25 percent of its value on Monday is trading 8 percent lower at Rs 35.30.

Rupee touches 30 month low; Cipla gains on results

9.45 a.m: Indian markets opened marginally in the red since then have recovered from their low. BSE Sensex currently trades at 17,127 higher by 8 points, while NSE Nifty is down by 3 points at 5145.

Action has once again shifted to the forex market, where rupee has touched a new 30 month low of 50.57 against the dollar.

Tata Motors, which announced its results on Monday opened lower, but has moved higher since. It currently trades at Rs 180 up by 1.25 percent.

Kingfisher Airlines, trades flat as reports suggest there can be some change is top management. The stock is at Rs 21.50 up by 0.7 percent.

Tata Power trades 5.6 percent lower at Rs 95.65, the biggest loser among frontline stocks. The company had announced its results on Monday with a loss of Rs 1220 crore due to losses in forex, provision for impairment and loss in Maithon.

Cipla is the top gainer among frontline stocks, rising by 4.6 percent at Rs 301 after the company announced a better than expected results on Monday. Margin expansion and better product mix led to a 17 percent growth in profits of the company.

Subdued start for Indian markets, Kingfisher to stay in focus

9.00 a.m: A rise in Italian and Spain bond yields have renewed European debt fears leading to a fall across world markets. Though the fall is marginal, the European debt issue will take a lot of time to resolve. Asian markets trade 0.5 percent lower than their previous close.

Indian markets too can open marginally lower but will be guided by European opening.

A marginal decline in domestic numbers of Tata Motors, which announced its results post market closing on Monday, was offset by better numbers from its international operations. The company, like most others in this quarter was hit by forex loss of over Rs 400 crore. The stock can move higher after an initial decline, provided markets remain strong.

Kingfisher Airlines continues to be in news. With banks now taking a tougher stand, the counter can see pressure after bailout prospects resulted in the stock moving higher on Monday.

[caption id=“attachment_130985” align=“alignleft” width=“380” caption=“Reuters.”]  [/caption]

A likely reduction in petrol prices by Rs 2 per litre can see some selling in refining counters as the companies have been complaining about under-recoveries. Reports say that this round of reduction has been prompted by a government nudge to reflect the marginal drop in crude oil prices.

Maruti can witness some buying interest after the company decided to increase prices of its diesel cars by Rs 10,000. Diesel cars account for nearly 24 percent of the company’s sales.

Gujarat Gas had witnessed selling pressure after its promoter, British Gas, was reported to be keen on selling its 65 percent stake in the company. Newspaper reports say that GAIL is interested in buying out the stake. Other players interested in the company are the Reliance-BP combine, which can utilise the vast client network of the company.

BHEL’s results tough are good has been better than expected as the company has changed its accounting practices. Higher other income and lower tax resulted in better than expected bottomline numbers. However, weak order flow remains a concern. The stock can see some selling pressure even if it opens higher.