Don’t miss the latest developments in business and finance.

Indices trade lower in early trade

Image
Capital Market
Last Updated : Dec 19 2016 | 9:47 AM IST

Key benchmark indices edged lower in early trade tracking weakness in Asian stocks. At 9:30 IST, the barometer index, the S&P BSE Sensex, was down 67.61 points or 0.26% at 26,421.95. The Nifty 50 index was currently down 24.85 points or 0.31% at 8,114.60. Banking, auto and realty stocks led losses on the bourses in early trade.

The BSE Mid-Cap index was currently down 0.07%. The BSE Small-Cap index was currently down 0.08%. The decline in these indices was lower than the Sensex's decline in percentage terms.

The market breadth, indicating the overall health of the market, was almost even. On the BSE, 640 shares rose and 641 shares declined. A total of 65 shares were unchanged.

Overseas, most Asian stocks dropped. China's economy will grow at around 6.5% year-on-year in 2017, according to a forecast from government think tank China Academy of Social Sciences (CASS) published today, 19 December 2016. CASS sees quarterly on-year growth of 6.5% in the first and second quarters, and 6.4% in the third and fourth quarters. China's economy has grown at 6.7% for the first three quarters of 2016.

US stocks closed lower on Friday, 16 December 2016, with the Dow Jones Industrial Average swinging to a loss, following reports that a Chinese warship seized an underwater US Navy drone in international waters off the coast of the Philippines. In the latest economic data in US, housing starts tumbled 18.7% in November, while the number is volatile, it pointed to a housing market recovery that remains choppy.

Wall Street stocks had surged since the presidential election in November. The gains have been attributed to expectations that Donald Trump's policy proposals, such as increased infrastructure spending, tax cuts and deregulation, will spur economic growth.

More From This Section

Sun Pharmaceutical Industries (down 1.25%), Hindustan Unilever (down 0.77%) and HDFC (down 0.79%) were among the major losers from the Sensex pack.

NTPC declined 0.41%. National Aluminium Company (Nalco) rose 1.62%. Nalco and NTPC have entered into memorandum of understanding (MoU), for developing power projects and other business collaborations in India. The announcement was made after market hours on Friday, 16 December 2016.

Under the MoU, the companies will float a joint venture namely NTPC-Nalco Power Company (NNPC) to set up power plants. The first such power plant is planned at Gajamara, Odisha with a capacity of 2,400 megawatts (MW) (3X800 MW), at an estimated investment of Rs 14000 crore. The proposed super critical power plant with state-of-the-art technology will supply uninterrupted power to Nalco's smelter at Angul. The process for acquisition of 1,600 acres of land in Gajamara has already commenced.

Axis Bank dropped 0.74% after the bank announced that it has reviewed and decided to reduce the marginal cost of funds based lending rates (MCLR) of the bank by 10 basis points in the overnight tenor and by 15 basis points across all other tenors. The rates were effective from 17 December 2016. The announcement was made after market hours on Friday, 16 December 2016.

Mahindra & Mahindra (M&M) gained 0.21% after the company announced that Mahindra Intertrade (MIL), a wholly owned subsidiary of Mahindra Vehicle Manufacturers (MVML) which in turn is a wholly owned subsidiary of the company, has on 16 December 2016, incorporated a joint venture company named Mahindra MSTC Recycling (Mahindra MSTC).

MSTC Ltd., a Government of India enterprise being the Joint Venturer. Mahindra MSTC has become a 'subsidiary' of MIL and in turn of MVML and of the company with effect from 16 December 2016. The announcement was made on Saturday, 17 December 2016.

Powered by Capital Market - Live News

Also Read

First Published: Dec 19 2016 | 9:20 AM IST

Next Story