Intraday recovery witnessed during afternoon trade proved short lived as key benchmark indices weakened once again in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex, was off 184.38 points or 0.71% at 25,702.24. The fall in 50-unit CNX Nifty 50 index was higher in percentage terms than Sensex's fall. The Nifty 50 index was off 63.70 points or 0.81% at 7,800.45. Key indices fell today, 4 December 2015, in line with drop in global stocks after the European Central Bank (ECB)'s stimulus package announced after policy meet yesterday, 3 December 2015, fell well short of markets' high expectations.
The market breadth indicating the overall health of the market was negative. On BSE, 1,406 shares fell and 1,208 shares rose. A total of 167 shares were unchanged. The BSE Mid-Cap index was currently off 0.76%. The decline in the index was higher in percentage terms than the Sensex's fall. The BSE Small-Cap index was currently off 0.25%. The decline in the index was lower in percentage terms than the Sensex's fall.
In overseas markets, European stocks edged lower in early trade after Asian stocks settled lower as the European Central Bank (ECB)'s stimulus package fell well short of markets' high expectations. US stocks dropped yesterday, 3 December 2015 as the ECB disappointed market hopes for greater stimulus. The ECB cut its deposit rate deeper into negative territory and extended its asset buys by six months, as expected. But some market participants had hoped for greater stimulus.
The ECB President Mario Draghi after a policy meet yesterday, 3 December 2015, announced the central bank would extend its massive 60 billion euro ($63.5 billion) a month bond-buying scheme to at least March 2017. The ECB cut its deposit rate further into negative territory by 10 basis points to a fresh low of -0.3%, down from -0.2%.
Sugar stocks declined. Bajaj Hindusthan (down 0.81%), Balrampur Chini Mills (down 2.75%) and Shree Renuka Sugars (down 2.74%) declined.
Auto stocks declined. Mahindra & Mahindra (M&M) (down 2.1%), Ashok Leyland (down 1.14%), Maruti Suzuki India (down 0.15%), Eicher Motors (down 1.23%), Bajaj Auto (down 0.37%) and Tata Motors (down 0.05%) declined. Hero MotoCorp (up 0.01%) and TVS Motor Company (up 0.6%) gained.
Coromandel International rose 0.1%. The company said its complex fertiliser manufacturing unit at Ennore in Tamil Nadu has been shut down due to flooding in and around the plant. The announcement was made during market hours today, 4 December 2015. The company said it is assessing the situation and the operations would resume once the situation improves. Disruption of operations at its Ennore unit for a short period is not likely to have any significant impact on its turnover or profit, Coromandel International said. The company has adequate insurance cover against any natural calamities, it added.
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MphasiS lost 3.06% to Rs 482.10 after reports that a foreign brokerage has downgraded the stock to sell. The foreign brokerage reportedly feels that the recent price rally in MphasiS has more to do with market's appetite for mid-cap IT firms and not much about any turnaround in the company's fundamentals. After Q2 September 2015 results, MphasiS share price has witnessed a jump despite no material improvement in growth or margin profile but it continues to face declining revenues from its largest client HP, the brokerage reportedly said. Shares of MphasiS had rallied 18.94% to settle at Rs 497.30 yesterday, 3 December 2015, from Rs 418.10 on 20 October 2015, after the company announced its Q2 September 2015 results before market hours on 21 October 2015.
SJVN rose 4.11% after the company said it signed a memorandum of understanding (MoU) on 3 December 2015 with the Saurya Urja Company of Rajasthan for allocation of land in the solar parks being developed by them in Jodhpur and Jaisalmer. The company plans to set up cumulative 300 megawatts solar capacity in these solar parks. The announcement was made during trading hours today, 4 December 2015.
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