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Broader market slumps

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Capital Market
Last Updated : Jan 14 2016 | 12:01 AM IST

A bout of volatility was witnessed as key benchmark indices trimmed losses after extending intraday slide. At 12:15 IST, the barometer index, the S&P BSE Sensex, was currently off 130.34 points or 0.53% at 24,551.69. The 50-unit Nifty 50 index was down 39.15 points or 0.52% at 7,471.15. The broad market depicted weakness.

The Sensex hit its lowest levels in more than 19 months when it fell 202.12 points or 0.81% at the day's low of 24,479.91 in early afternoon trade. The barometer index rose 227.19 points or 0.92% at the day's high of 24,909.22 in morning trade, its highest level since 11 January 2016. The Nifty hit its lowest levels in almost 18 months when it fell 57.10 points or 0.76% at the day's low of 7,453.20 in early afternoon trade. The index rose 75.65 points or 1% at the day's high of 7,585.95 in morning trade.

The broad market depicted weakness. There were more than six losers against every gainer on BSE. 2,267 shares fell and 368 shares rose. A total of 136 shares were unchanged. The BSE Mid-Cap index was currently down 1.46%. The BSE Small-Cap index was currently down 3.02%. The decline in both these indices was higher than the Sensex's decline in percentage terms.

In overseas markets, most Asian shares were trading higher after Chinese trade data beat expectations. However, stocks fell in mainland China. The Shanghai Composite was currently off 1.85%. China's exports rose 2.3% in December 2015 from a year earlier in yuan terms, after a drop of 3.7% in November 2015. Imports fell 4% in December 2015 in yuan terms from a year earlier, compared with a 5.6% decrease in November 2015.

US stock index futures indicated further gains for US stocks later in the global day. Trading in US index futures indicated that the Dow could rise 120 points at the opening bell today, 13 January 2016. US stocks edged higher yesterday, 12 January 2016, as investors bought shares of consumer, technology and health-care companies, even as the energy sector slipped.

Index heavyweight and engineering & construction major L&T was down 3.39% at Rs 1,139.65. The stock hit a high of Rs 1,192 and a low of Rs 1,128.70 so far during the day.

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Index heavyweight Reliance Industries was up 0.77% at Rs 1,053.10. The stock hit a high of Rs 1,064.80 and a low of Rs 1,050.30 so far during the day. The company will announce Q3 results on 19 January 2016.

Index heavyweight and IT major Infosys was up 1.14% at Rs 1,062. The stock hit a high of Rs 1,076.50 and a low of Rs 1,050 so far during the day. The company will announce Q3 results tomorrow, 14 January 2016.

TCS extended initial losses triggered by weak Q3 results. The stock was currently off 2.76% at Rs 2,259.95. The stock hit a high of Rs 2,327.95 and a low of Rs 2,258 so far during the day. TCS' consolidated net profit fell 0.03% to Rs 6083 crore on 0.73% growth in revenue to Rs 27364 crore in Q3 December 2015 over Q2 September 2015. The result was announced after market hours yesterday, 12 January 2016.

Commenting on the Q3 performance, Chief Executive Officer and Managing Director, N Chandrasekaran said that all its industry segments have exhibited growth in a traditionally weak quarter additionally accentuated by the impact of the Chennai floods. The company's international business has grown smartly in constant currency terms with North America and Europe leading the way among major markets and Latin America among growth markets.

Bank stocks edged lower. Among PSU bank stocks, IDBI Bank (down 4.95%), Bank of India (down 2.87%), Punjab and Sind Bank (down 2.7%), Bank of Baroda (down 2.68%), Corporation Bank (down 2.68%), Punjab National Bank (down 2.66%), Central Bank of India (down 2.55%), Canara Bank (down 2.34%), Allahabad Bank (down 2.2%), Andhra Bank (down 1.77%), State Bank of India (down 1.65%), Indian Bank (down 1.4%), Vijaya Bank (down 1.37%), United Bank of India (down 1.18%), Syndicate Bank (down 1.02%), Union Bank of India (down 0.83%), Dena Bank (down 0.77%) and UCO Bank (down 0.49%) edged lower. Bank of Maharashtra was up 0.65%.

Among private sector banks, Axis Bank (down 1.8%), ICICI Bank (down 0.8%), HDFC Bank (down 0.34%) and Kotak Mahindra Bank (down 0.17%), edged lower. Yes Bank (up 0.01%), City Union Bank (up 0.06%) and Federal Bank (up 2.69%) edged higher.

IndusInd Bank rose 2.43% to Rs 934.65 after the bank announced that it has partnered with online payment solution leader PayU India to redefine the digital experience for Indian consumers, by bringing the full suite of consumer banking products online and powering the same through payment innovations and online eco-systems enabled by PayU India. This partnership is aimed at bridging the gap between conventional banking world and the new age online payment systems, the bank said. Announcements about the new products and services under the partnership will be made in the next 4-6 months time, the two companies said in a joint press release after hours yesterday, 12 January 2016.

Most FMCG shares edged lower. Tata Global Beverages (down 3.88%), Jyothy Laboratories (down 2.36%), Procter & Gamble Hygiene & Health Care (down 1.58%), Dabur India (down 1.43%), Britannia Industries (down 1.36%), Bajaj Corp (down 1.34%), Godrej Consumer Products (down 1.07%), Hindustan Unilever (down 0.56%), Nestle India (down 0.48%) and GlaxoSmithKline Consumer Healthcare (down 0.46%), edged lower. Marico (up 0.50%) and Colgate Palmolive (India) (up 1.48%) edged higher.

On the macro front, the latest data showed that India's industrial production witnessed a contraction during the festive Diwali month in November 2015 due to high base effect. Industrial Production declined 3.2% in November 2015 over a year ago period. The output of the manufacturing sector declined 4.4% in November 2015, contributing to the decline in industrial production. The government disclosed the data after market hours yesterday, 12 January 2016.

Another data showed that inflation based on the consumer price index (CPI) accelerated last month. The all-India general consumer price index (CPI) inflation inched up to 5.61% in December 2015 from 5.41% in November 2015. Among the CPI components, inflation of food and beverages increased to 6.3% in December 2015 from 6.1% in November 2015 contributing to the rise in CPI inflation. The core CPI inflation rose to 4.5% in December 2015 from 4.2% in November 2015. The government disclosed the data after market hours yesterday, 12 January 2016.

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First Published: Jan 13 2016 | 12:16 PM IST

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