Sensex sinks 184 pts, Nifty ends at 8725; Auto, Realty drag
Tata Motors crashed 10 percent as analysts worried over company's hedging losses that may continue for next 3-4 quarters.
3:30 pm Market Closing: Benchmark indices closed lower on Wednesday despite positive global cues, weighed by auto, pharma, infra and metals stocks.
The 30-share BSE was down 183.75 points at 28155.56 and the 50-share NSE Nifty fell 67.60 points to 8724.70. About three shares declined for every share rising on the BSE.
Tata Motors plunged 10 percent and Sun Pharma was down 4 percent after earnings missed analysts' estimates. ICICI Bank, L&T, Adani Ports and Maruti Suzuki fell 1-2 percent while ITC, HDFC Bank, TCS, Reliance Industries and HDFC gained.
3:20 pm M&M production output: Home-grown auto major Mahindra and Mahindra is hiking production of its trucks with the introduction of a second shift at its Chakan plant to meet increased orders for the Blazo vehicles.
The company, which today introduced a service support initiative for its commercial vehicles on the Delhi-Mumbai service corridor, will sell trucks only under the Blazo range once the BS IV emission norms kick in from April 1 this year.
"We have been selling on an average around 500 units a month and last month we sold 616 units. Considering the orders for our Blazo trucks, we have added a second shift so that from this month and March we produce more vehicles," Nalin Mehta, CEO Mahindra Truck and Bus Division and Managing Director, Mahindra Truck and Bus Ltd told PTI.
3:15 pm Market Update: Equity benchmarks extend losses again, with the Sensex down 196.17 points at 28143.14 and the 50-share NSE Nifty falling 71.25 points to 8721.05.
More than three shares declined for every share rising on the BSE.
2:45 pm Dividend: Power utility CESC today said its board has declared an interim dividend of Rs 10 per share (100 per cent) for the year ending March 31, 2017.
The dividend will be paid on and from March 6, 2017, the company said in a BSE filing.
CESC on February 10, 2017, had reported a 4.83 percent rise in standalone net profit at Rs 152 crore for the third quarter ended December 31, 2016.
The company is engaged in generation and distribution of electricity.
2:35 pm Drug recall: Drug firms Dr Reddy's Labs and Aurobindo Pharma have separately started recalling few quantities of two different drugs from the US market as they are found to be not up to the mark.
According to a notification issued by the US Food and Drug Authority, Dr Reddy's is recalling Olanzapine tablets USP of 2.5 mg while Aurobindo is recalling Pantoprazole Sodium for Injection, 40mg per vial from the market.
Both the recalls are voluntarily initiated by respective companies, the FDA said.
Dr Reddy's is recalling 5,904 bottles of Olanzapine 30-count bottles from the market. Aurobindo is recalling Pantoprazole Sodium for Injection, 40mg per vial, single-dose of 29,800 vials under Class-III classification.
2:20 pm Interview: KK Singh, Chairman and Managing Director of Rolta India, said that its conscious decision to decline contracts for third party-based projects had contributed to a flattish third quarter.
Speaking to CNBC-TV18, Singh said the company wanted to do more IP work and had been undertaking more system integration work in the third quarter, which it wanted to reduce it as it affected the bottomline.
In earnings reported earlier, net profit was down 22.5 percent at Rs 98.7 crore against Rs 127.3 crore quarter-on-quarter, while total income was up 0.2 percent at Rs 343.9 crore versus Rs 343.2 crore.
Singh said foreign exchange loss at Rs 16 crore was also a factor, while there was a lot of stress on financial costs because of a defence project.
He said discussions were still on among bondholders to negotiate a debt restructuring after the software services provider failed to make interest payments, but no solution had been arrived at as yet.
Also read - When Jhunjhunwala grilled Tata Motors on its hedging policy
2:00 pm Market Check
The market has recovered from day's low in afternoon trade amid positive global cues. ITC shares led the recovery, up 1.5 percent followed by HDFC Bank, HDFC and Reliance Industries.
The 30-share BSE Sensex was down 131.11 points at 28208.20 and the 50-share NSE Nifty fell 48.55 points to 8743.75.
About 2126 shares declined against 621 advancing shares on the BSE.
Tata Motors crashed 9.5 percent as analysts worried over company's hedging losses that may continue for next 3-4 quarters.
Sun Pharma slipped nearly 4 percent after lower-than-expected earnings in Q3.
European bourses were higher after Janet Yellen, the chair of the US Federal Reserve, hinted at a possible rate hike next month.