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Key indices tumble in early trade

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Capital Market
Last Updated : Aug 21 2015 | 5:13 PM IST

Key benchmark indices edged lower in early trade tracking weakness in Asian markets and overnight sharp decline in US equities. The barometer index, the S&P BSE Sensex was currently off 376.01 points or 1.36% at 27,231.81. The market breadth indicating the overall health of the market was quite weak.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 1007.26 crore yesterday, 20 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 567.87 crore yesterday, 20 August 2015, as per provisional data.

In overseas markets, Asian stocks edged lower today, 21 August 2015. US stocks closed sharply lower yesterday, 20 August 2015, as investors weighed continued uncertainty about the timing of a rate hike and concerns about global growth headed by slowing in China.

At 9:18 IST, the S&P BSE Sensex was down 376.01 points or 1.36% at 27,231.81. The index fell 435.41 points at the day's low of 27,172.41 in early trade. The index fell 165 points at the day's high of 27,442.82 in early trade.

The CNX Nifty was down 130.25 points or 1.56% at 8,242.50. The index hit a low of 8,239.55 in intraday trade. The index hit a high of 8,305.40 in intraday trade.

The BSE Mid-Cap index was down 201.65 points or 1.78% at 11,163.23. The BSE Small-Cap index was down 192.16 points or 1.65% at 11,488.65. The decline in both these indices was higher than Sensex's decline in percentage terms.

The market breadth indicating the overall health of the market was quite weak. On BSE, 1,166 shares declined and 169 shares rose. A total of 22 shares were unchanged.

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Infosys was off 0.37% at Rs 1,134. Infosys after market hours yesterday, 20 August 2015, announced that the company has launched three enhanced service offerings in Design Thinking, Platforms and Knowledge-Based IT (KBIT). These services are aimed at helping clients address a non-disruptive renewal and simplification of their existing landscapes, Infosys said. These services will also help clients in introduction of new offerings and business models in a dynamic business environment and create a culture of innovation in their organization, Infosys said in a statement. These three new service offerings will help bring together existing Infosys services to serve strategic priorities of global businesses, the Indian IT major said.

Infosys also plans to offer platforms to address the Internet of Things (IoT) and Application Programming Interface (API) requirements of its clients. Dr. Vishal Sikka, Chief Executive Officer, Infosys said that the launch of the three new service offerings is an important step to further accelerate the execution of the company's strategy to renew existing services and move into entirely new areas.

Lupin was off 1.24% at Rs 1,868.65. Lupin announced after market hours yesterday, 20 August 2015, that it has received final approval for its Fenofibrate Tablets 54 mg and 160 mg from the United States Food and Drugs Administration (FDA) to market a generic version of Teva's Fenofibrate Tablets, 54 mg and 160 mg. Lupin's US subsidiary, Lupin Pharmaceuticals Inc. would commence promoting the product shortly in the US. Lupin's Fenofibrate Tablets 54 mg and 160 mg is the AB rated generic equivalent of the current reference listed drug, Fenofibrate Tablets 54 mg and 160 mg of Teva. It is indicated as an adjunct to diet to reduce elevated LDLC, Total-C, TG and Apo B, and to increase HDL-C in adult patients with primary hypercholesterolemia or mixed dyslipidemia and for treatment of adult patients with severe hypertriglyceridemia. Fenofibrate Tablets 54 mg and 160 mg has US sales of $156 million as per IMS MAT June 2015.

Tech Mahindra was off 1.93% at Rs 548.75. Tech Mahindra and Mahindra Finance announced in a joint statement issued after market hours yesterday, 20 August 2015, that the Reserve Bank of India (RBI) has granted in-principle approval to Tech Mahindra to setup a payments bank. The payments bank will be operated as an equal joint venture between Tech Mahindra and Mahindra Finance.

India's weather office, the India Meteorological Department (IMD), said in a daily report issued yesterday, 20 August 2015, that for the country as a whole, cumulative rainfall during this year's monsoon season was 9% below the Long Period Average (LPA) until 20 August 2015. Region wise, the rainfall was 20% below the LPA in South Peninsula, 10% below the LPA in Central India, 7% below the LPA in East & Northeast India and 1% below the LPA in Northwest India until 20 August 2015.

Separately, the IMD released a weekly monsoon report yesterday, 20 August 2015. The IMD in its extended range forecast till 8 September 2015 said that above normal rainfall activity is likely over northeast and adjoining east India on many days till beginning of September. Normal rainfall activity likely over south peninsula during 20 to 24 August and 4 to 8 September 2015, the IMD said. Below normal rainfall activity likely over plains of northwest and central India on many days, the IMD said.

The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.

In overseas markets, Asian stocks edged lower today, 21 August 2015. Key indices in Japan, China, Hong Kong, Taiwan, South Korea, Singapore and Indonesia were off 1.94% to 2.75%.

US stocks closed sharply lower yesterday, 20 August 2015, as investors weighed continued uncertainty about the timing of a rate hike and concerns about global growth headed by slowing in China.

The number of Americans filing new applications for unemployment benefits unexpectedly rose last week. Initial claims for state unemployment benefits increased 4,000 to a seasonally adjusted 277,000 for the week ended Aug. 15, the Labor Department said yesterday, 20 August 2015.

US existing home sales climbed in July to their prerecession pace. Existing-home sales rose 2% last month from June to a seasonally adjusted rate of 5.59 million, the National Association of Realtors said yesterday, 20 August 2015.

In Europe, Greece's Prime Minister Alexis Tsipras has announced he is resigning and has called an early election. Tsipras, who was only elected in January, said he had a moral duty to go to the polls now a third bailout had been secured with European creditors, as per reports.

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First Published: Aug 21 2015 | 9:22 AM IST

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