Metal stocks and index heavyweights ITC and L&T led losses for key benchmark indices. The barometer index, the S&P BSE Sensex, fell 196.19 points or 0.77% at 25,384.15, as per the provisional closing data. The losses for the 50-unit Nifty 50 index were lower in percentage terms than those for the Sensex. The Nifty fell 47.95 points or 0.62% at 7,736.70, as per the provisional closing data. The two key benchmark indices lost ground during the latter part of the trading session after seeing a range bound movement until afternoon trade. Weakness in global stocks weighed on domestic bourses.
The Sensex hit its lowest level in more than three weeks when it fell 222.64 points or 0.87% at the day's low of 25,357.70 in mid-afternoon trade. The barometer index rose 52.23 points or 0.2% at the day's high of 25,632.57 in afternoon trade. The Nifty hit 3-week low when it fell 63.45 points or 0.81% at the day's low of 7,721.20 in mid-afternoon trade, its lowest level since 16 December 2015. The index rose 16.30 points or 0.2% at the day's high of 7,800.95 in afternoon trade.
In overseas stock markets, European stocks edged lower as investors continued to fret over slowing economic growth in China. US stock futures pointed to sharp losses at the opening bell after weak Chinese services data cemented fears of an economic slowdown in the world's second largest economy. Trading in US index futures indicated that the Dow Jones Industrial Average could slide 180.50 points at the opening bell today, 6 January 2015.
Asian equities edged lower as China continued guiding the yuan lower and after the outcome of a monthly survey pointed to weakness in China's services sector. Fresh geopolitical concerns over the Korean Peninsula also weighed on sentiment in Asian markets after an announcement from North Korea that it had successfully conducted a hydrogen-bomb test.
Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 1,513 shares declined and 1,404 shares rose. A total of 114 shares were unchanged. The BSE Mid-Cap index was provisionally down 0.39%. The BSE Small-Cap index was provisionally down 0.43%. The decline in both these indices was lower than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 3799 crore, higher than turnover of Rs 3522.50 crore registered during the previous trading session.
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Metal and mining stocks witnessed across the board decline after a monthly survey pointed to weakness in China's services sector. Vedanta (down 4%), Hindustan Zinc (down 3.05%), NMDC (down 2.57%), Hindalco Industries (down 2.84%), Jindal Steel & Power (down 2.76%), JSW Steel (down 2.48%), Tata Steel (down 2.12%), Steel Authority of India (down 2.06%) and National Aluminium Company (down 0.9%) edged lower. China is the world's largest consumer of steel, copper and aluminum.
Latest data showed that the Caixin China services purchasing managers' index (PMI) fell to a 17-month low of 50.2 in December 2015 from 51.2 in November 2015.
Mahindra & Mahindra (M&M) fell 2.04% at Rs 1,222.65. The stock hit a high of Rs 1,254 and a low of Rs 1,218.10 in intraday trade. The company during market hours today, 6 January 2016, announced the launch of Imperio, its premium, aspirational pick-up vehicle. Imperio is developed to cater to the transportation needs of small and medium businesses. Imperio will be available in two model variants of single cabin and double cabin and in 3 colours. The vehicle is priced at Rs 6.25 lakh ex-showroom Thane, Mumbai for single cabin BS3 variant.
Index heavyweight Reliance Industries (RIL) rose 2.43% at Rs 1,029.50 on reports that a foreign brokerage has maintained conviction buy on the stock. Commercial launch of broadband services from RIL's telecom unit Reliance Jio Infocomm last month could provide a big positive swing for the company going ahead, the brokerage reportedly said.
Index heavyweight and cigarette major ITC fell 3.02% at Rs 314.90. The stock hit a high of Rs 325.90 and a low of Rs 314.80 in intraday trade.
L&T fell 1.52% at Rs 1,238.30. The stock was volatile. The stock hit high of Rs 1,261 and low of Rs 1,237 in intraday trade. The company during market hours today, 6 January 2016, announced that its construction division has secured orders worth Rs 2871 crore across various businesses.
Meanwhile, the outcome of a monthly survey showed that growth in India's services sector accelerated last month. The Nikkei India Services PMI rose to a 10-month high of 53.6 in December 2015.
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