Key benchmark indices languished in negative zone with modest losses in afternoon trade. At 13:15 IST, the barometer index, the S&P BSE Sensex, fell 83.18 points or 0.26% at 31,543.45. The Nifty 50 index declined 24.65 points or 0.25% at 9,847.95. Weakness in global stocks amid fresh threats from North Korea weighed on sentiment on the domestic bourses.
Market opened with small gains and soon slipped into the red and hovered near the flat line in morning trade. Stocks extended losses and hit fresh intraday low in mid-morning trade. The Sensex and the Nifty, both, hit their lowest level in four weeks. Indices trimmed losses in early afternoon trade.
The S&P BSE Mid-Cap index rose 0.43%. The S&P BSE Small-Cap index gained 0.62%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was positive. On the BSE, 1,406 shares rose and 960 shares fell. A total of 135 shares were unchanged.
Auto stocks were mixed. Ashok Leyland (up 0.66%), Hero MotoCorp (up 0.42%) and Bajaj Auto (up 0.41%) gained. Eicher Motors (down 0.83%) and Mahindra & Mahindra (down 0.39%) edged lower.
Tata Motors gained 0.54% at Rs 410.40 after media reports suggested that its foreign unit Jaguar Land Rover (JLR) is eyeing potential acquisitions of international automakers. JLR has reportedly been holding internal discussion on acquiring other brands in order to diversify its range of vehicles. It will consider purchases of luxury marques that fit with its current portfolio. The luxury vehicle unit is also said to be exploring acquisitions of technology companies to bolster the roll out of electric vehicles and autonomous driving systems.
Maruti Suzuki India dropped 0.51% at Rs 7,912.05. WagonR, India's popular car from Maruti Suzuki has scaled the unique feat of 20 lakh sales in cumulative wholesales. Launched in 1999, WagonR continues to feature among the top five best selling cars in the country for the last over 10 years. The announcement was made during market hours today, 26 September 2017. With this achievement, WagonR becomes the third model in the country to enter the iconic league of cars like Maruti 800 and Alto, to cross the two-million cumulative sales mark.
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FMCG stocks were mixed. Hindustan Unilever (down 2.91%), Godrej Consumer Products (down 2.05%), Dabur India (down 0.66%), Nestle India (down 0.63%) and Colgate-Palmolive (India) (down 0.27%) edged lower. Tata Global Beverages (up 3.79%), Britannia Industries (up 1.06%), Jyothy Laboratories (up 0.97%), Emami (up 0.37%) and GlaxoSmithkline Consumer Healthcare (up 0.07%) gained.
Meanwhile, Prime Minister Narendra Modi has constituted the Economic Advisory Council to the Prime Minister (EAC-PM). The five-member council consists of economists of high repute and eminence. It consists of Dr. Bibek Debroy, Member, NITI Aayog- Chairman, Dr. Surjit Bhalla- Part-time Member, Dr. Rathin Roy- Part-time Member, Dr. Ashima Goyal- Part-time Member and Ratan Watal, Principal Advisor, NITI Aayog - Member-Secretary.
The EAC-PM is an independent body to give advice on economic and related issues to the Government of India, specifically to the Prime Minister.
Overseas, European stocks opened lower and most Asian stocks dropped taking cues from weak close in US stocks overnight hurt by fresh threats from North Korea and weakness among key technology stocks.
In Europe, after the re-election of Germany's Angela Merkel to a fourth-term in power, the hard task of political negotiations to form a coalition government has begun and could take weeks, if not months, as per reports.
Meanwhile, Developing Asia is on track to grow faster this year and next, the Asian Development Bank said, buoyed by a pick-up in world trade and China's expansion, but it flagged risks from tightening US monetary policy. Developing Asia is expected to grow by 5.9% and 5.8% in 2017 and 2018, respectively, the Manila-based lender said. India's growth was seen at 7% and 7.4% for this year and next, weaker than the July forecasts of 7.4% and 7.6%.
On Wall Street, a sharp selloff in technology stocks dragged down the Nasdaq Composite index by around 1% yesterday, 25 September 2017, with North Korea's latest warnings to Washington adding to the downbeat mood. North Korea's foreign minister said President Donald Trump had declared war on the country and that it reserves the right to take countermeasures, including shooting down US bombers even if they are not in its airspace.
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