Banking and metal stocks led losses as key benchmark indices extended losses in morning trade. The barometer index, the S&P BSE Sensex was currently down 441.36 points or 1.71% at 25,323.42. The 50-unit CNX Nifty was currently off 148 points or 1.89% at 7,675.
Broad market depicted weakness. There were nearly six losers against every gainer on BSE. The BSE Mid-Cap index was off 2.22%. The BSE Small-Cap index was down 2.6%. The decline in both these indices was higher than Sensex's decline in percentage terms.
In sector trends, banking stocks dropped. Metal and mining stocks also declined. Among individual stocks, Cipla gained after the company announced that its UK arm has entered into definitive agreements to acquire two US-based companies.
Overseas cues were negative. Asian stocks were in red. Trading in US index futures indicated that Dow may slide 108 points at the opening bell today, 4 September 2015.
At 10:22 IST, the S&P BSE Sensex was down 441.36 points or 1.71% at 25,323.42. The 50-unit CNX Nifty was off 148 points or 1.89% at 7,675.
The BSE Mid-Cap index was down 234.10 points or 2.22% at 10,326.11. The BSE Small-Cap index was down 282.26 points or 2.6% at 10,591.29. The decline in both these indices was higher than Sensex's decline in percentage terms.
More From This Section
The market breadth indicating the overall health of the market was quite weak. There were nearly six losers against every gainer on BSE. 1,675 shares declined and 280 shares rose. A total of 56 shares were unchanged.
Banking stocks dropped. Among PSU banks, Bank of India (down 4.72%), Canara Bank (down 4.76%), Union Bank of India (down 4.46%), Punjab National Bank (down 4.73%), Syndicate Bank (down 5.53%), Bank of Baroda (down 5.19%), IDBI Bank (down 5.75%), Andhra Bank (down 4.28%), State Bank of India (down 3.27%) and United Bank of India (down 3.02%) edged lower.
Among private sector banks, Kotak Mahindra Bank (down 4.15%), Yes Bank (down 3.64%), Axis Bank (down 3.83%), IndusInd Bank (down 3.45%), ICICI Bank (down 3.71%) and HDFC Bank (down 2.49%) edged lower.
Metal and mining stocks declined. National Aluminium Company (down 4.82%), Jindal Steel & Power (down 7.81%), Vedanta (down 4.33%), NMDC (down 4.82%), Tata Steel (down 4.14%), JSW Steel (down 3.32%), Hindalco Industries (down 3.3%), Hindustan Zinc (down 2.92%) and Steel Authority of India (down 2.97%) edged lower.
Shares of coal mining giant Coal India dropped 0.98%.
Cipla gained after the company announced that its UK arm has entered into definitive agreements to acquire two US-based companies. The stock rose 0.86% at Rs 662.50. Cipla's UK arm, Cipla EU has entered into definitive agreements to acquire two US-based companies InvaGen Pharmaceuticals Inc., and Exelan Pharmaceuticals Inc. The transaction being subject to certain closing conditions, is valued at $550 million and will be an all cash transaction. As per the agreement, the cash consideration payable for Invagen is $500 million and for Exelan is $50 million.The combined revenue from these transactions is over $200 million for the year ended December 2014 and over $225 million in last twelve months (LTM) ended June 2015. This acquisition will give the company scale in the US generics market through a wide range of product portfolio in CNS, CVS, anti-infectives, diabetes as well as other valued added generics, Cipla said in a statement. Cipla made the announcement during market hours today, 4 September 2015.
Among global events, at a key monetary policy meeting yesterday, 3 September 2015, the European Central Bank (ECB) cut its growth and inflation forecasts, warning of possible further trouble from China and paving the way for an expansion of its already massive one-trillion-euro-plus asset-buying program. The ECB, which left interest rates unchanged, said growth would suffer from fading momentum in emerging markets, particularly China, and falling oil prices could drag the 19-member euro zone back into deflation in coming months.
Powered by Capital Market - Live News