Fresh selling in index pivotals pulled the key benchmark indices to intraday low in mid-morning trade. At 11:30 IST, the barometer index, the S&P BSE Sensex, was down 301.79 points or 0.84% at 35,723.75. The Nifty 50 index was down 98.85 points or 0.92% at 10,681.70
The Sensex was trading below the psychological 36,000 mark after sliding below that level in early trade. Volatility struck bourses in early trade as the key benchmark indices sink in the red after opening in the positive zone. Key indices extended fall in morning trade.
The S&P BSE Mid-Cap index was down 1.81%. The S&P BSE Small-Cap index was down 1.9%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 438 shares rose and 1752 shares fell. A total of 100 shares were unchanged.
Back home, ICICI Bank (down 5%), Yes Bank (down 3.98%), Bajaj Auto (down 2.69%), Bajaj Finance (down 2.57%) and SBI (down 2.47%) edged lower from the Sensex pack.
Zee Entertainment Enterprises rose 8.63%, following the company issuing a clarification on Sunday, 27 January 2019. With reference to news appearing in the media quoting, "A link has emerged between Essel Group and a company being probed for suspect demonetisation deposits", Zee Entertainment Enterprises clarified on Sunday, 27 January 2019, that Zee has no connection whatsoever with any alleged transactions contained in the article published by the media.
With regard to the allegation of involvement of other Essel Group entities contained in the report, upon verification with other Essel group entities, the Essel Group had already confirmed that Nityank Infrapower and Multiventures is an independent company and does not belong to Essel Group. Queries relating to demonetisation, if any from SFIO were directed to Nityank. Information/documents relating to certain transactions were sought by Serious Fraud Investigation Office (SFIO) - the investigating agency in July/August 2018 from certain Essel Group entities and requisite information/documents were provided. In view of above, since all sought by SFIO has been provided by Essel Group entities and no further information has been subsequently sought, the matter stands closed for Essel Group entities.
Media reports alleging involvement of Essel Group entities in the SFIO investigation against Nityank is being done only with malicious intent and legal action as advised/appropriate are being initiated in this regard, the company added.
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Emami lost 4.81%. Emami has announced acquisition of a leading personal care brand, Creme 21 of Germany having major business in Middle-East and other focus markets. The brand has been acquired at less than 1.5 times of its sales. This international acquisition is in line with the company's strategy for growth through inorganic route. Creme 21 offers skin care and body care products such as creams and lotions, shower gels, sun care range, men's range, etc.
With current sale at over Euro 8 million and gross margin of over 50%, Emami expects to take this brand on an aggressive growth trajectory. The acquisition is being funded from internal accruals. The announcement was made after market hours on Friday, 25 January 2019.
Overseas, Asian stocks were trading higher after US President Donald Trump temporarily re-opened the US government. China's industrial profit dropped for the second straight month in December. Profits of big Industrial companies fell 1.9% on year to 680.83 billion yuan ($100.94 billion) in December, said the National Bureau of Statistics on Monday. In November, industrial profits declined 1.8% from a year earlier.
US stocks gained ground on Friday in a broad-based rally as investors were heartened by news that Washington would move to temporarily end the longest US government shutdown in history.
US President Donald Trump and congressional leaders had reached a deal to reopen the federal government for three weeks while talks continue over Trump's demands for money to build a wall along the US border with Mexico. Trump announced the agreement to break the 35-day impasse as delays at airports and widespread disruptions heightened the urgency to end the partial shutdown.
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