A bout of volatility was witnessed as key benchmark indices extended losses after trimming losses in afternoon trade. At 13:15 IST, the barometer index, the S&P BSE Sensex, was down 197.68 points or 0.77% at 25,606.10. The Nifty 50 index was down 59.35 points or 0.76% at 7,785. The Sensex fell 202.47 points or 0.78% at the day's low of 25,601.31 in afternoon trade. The barometer index fell 14.27 points or 0.05% at the day's high of 25,789.51 in early trade. The Nifty fell 61.15 points or 0.77% at the day's low of 7,783.20 in afternoon trade. The index fell 8.20 points or 0.1% at the day's high of 7,836.15 in early trade.
Meanwhile, the government has lowered its growth forecast for the year ending 31 March 2016 (FY 2016) to 7-7.5% from 8.1-8.5% estimated in February. The revised forecast is as per the mid-year economic review tabled by the government in parliament today, 18 December 2015, according to reports. The mid-year economic review reiterated that the government would meet its fiscal deficit target of 3.9% and revenue deficit target of 2.8% for the current fiscal.
Overseas cues were negative. Asian stocks were in the red after losses for US stocks overnight. Japanese stocks edge lower amid high volatility. The Nikkei 225 Average lost 1.9%. The Bank of Japan surprised financial markets by announcing additional measures to its three-year old easing program after the conclusion of two-day monetary policy meeting.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,271 shares rose and 1,199 shares fell. A total of 216 shares were unchanged. The BSE Mid-Cap index was currently up 0.29%. The BSE Small-Cap index was currently up 0.08%. Both these indices outperformed the Sensex.
Cement stocks declined. UltraTech Cement (down 2.01%), Shree Cement (down 1.3%) and ACC (down 0.37%) edged lower. Ambuja Cements (up 0.2%) edged higher.
Grasim Industries was off 1.05%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
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Telecom stocks edged higher. Tata Teleservices (Maharashtra) (up 3.41%), Reliance Communications (up 0.48%), Idea Cellular (up 0.6%) and Bharti Airtel (up 0.03%) gained. Mahanagar Telephone Nigam (down 1.78%) edged lower.
Mahindra & Mahindra (M&M) rose 0.01% at Rs 1,247.05 after the company unveiled its much awaited compact sports utility vehicle (SUV) Mahindra KUV100. The stock was volatile. The stock hit a high of Rs 1,253 and a low of Rs 1,235.60 so far during the day. Mahindra KUV100 will be available in 7 colors, the company said. M&M also unveiled an all new, world-class engine family named mFALCON, marking its entry into the ground up petrol space. The announcement was made during market hours today, 18 December 2015.
Shares of Bajaj Auto dropped 1.67% at Rs 2,482.15 after a sharp slide in Argentina's currency peso. The peso tumbled more than 25% yesterday, 17 December 2015, after the new government of President Mauricio Macri reportedly said that it would lift currency controls to attract investors and kick-start the economy. Reports suggest that Argentina is a key export market for two-wheeler major Bajaj Auto. The company gets around 20% of its revenue from exports to Latin America, as per reports.
Syndicate Bank rose 1.78% at Rs 88.50 after the bank said that its issue of unsecured, redeemable non-convertible Basel III compliant debentures was fully subscribed. Syndicate Bank said it has issued unsecured, redeemable non-convertible Basel III compliant, 10-year tier II bonds in the nature of debentures for inclusion in tier II capital aggregating to Rs 750 crore on private placement basis. The debentures carried a face value of Rs 10 lakhs and coupon rate of 8.62% per annum, which will be payable annually. The issue opened for subscription yesterday, 17 December 2015 and closed today, 18 December 2015. The date of maturity of debentures is 18 December 2025. Allotment of debentures takes place today, 18 December 2015. The bank made the announcement during market hours today, 18 December 2015.
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