After an initial sharp slide, key benchmark indices recovered during the course of the trading session. Trading for the day ended with the barometer index, the S&P BSE Sensex, registering a modest loss of 97.41 points or 0.38% at 25,622.17. The 50-unit CNX Nifty lost 30.50 points or 0.39% to settle at 7,788.10. Trend in overseas stock markets continued to drive sentiment on the domestic bourses. Intraday rebound on the domestic bourses accentuated towards the fag end of the trading session as European stocks recovered and as trading in US index futures indicated a recovery for US stocks from previous trading session's sharp slide. However, by the time trading in India was over, US index futures had trimmed a lion's portion of its gains and intraday recovery in European stocks did not sustain.
Closer home, banking and auto stocks led the recovery for key benchmark indices. The Sensex and the Nifty fell sharply in early trade taking cues from weakness in Asian stocks. The Sensex lost 432.08 points in early trade and the Nifty plunged 140.10 points in initial trade. Stocks in China and Japan led decline in Asian equities after weak Japanese economic data and as a report showing a record rise in job openings in the United States in July sparked worries about a potential interest-rate hike from the US Federal Reserve. Higher US interest rates will reduce the attraction of riskier emerging-markets assets.
The Sensex fell 97.41 points or 0.38% to settle at 25,622.17, its lowest closing level since 8 September 2015. The index lost 432.08 points at the day's low of 25,287.50 in early trade. The index rose 14.12 points at the day's high of 25,733.70 at fag end of the trading session.
The Nifty lost 30.50 points or 0.39% to settle at 7,788.10, its lowest closing level since 8 September 2015. The Nifty lost 140.10 points at the day's low of 7,678.50 in early trade. The Nifty rose 1.25 points at the day's high of 7,819.85 at fag end of the trading session.
The BSE Mid-Cap index rose 0.65%. The index outperformed the Sensex. The BSE Small-Cap index fell 0.4%. The fall in the index was higher than Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was negative. On BSE, 1,478 shares fell and 1,123 shares rose. A total of 113 shares were unchanged.
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The total turnover on BSE amounted to Rs 2486 crore, lower than turnover of Rs 2952.52 crore registered during the previous trading session.
Among sectoral indices on BSE, the S&P BSE Consumer Durables index (down 1.76%), the S&P BSE Teck index (down 0.79%), the S&P BSE Metal index (down 0.77%), the S&P BSE IT index (down 0.74%) and the S&P BSE Realty index (down 0.61%), underperformed the Sensex. The S&P BSE Power index (down 0.19%), the S&P BSE Oil & Gas index (down 0.17%), the S&P BSE Bankex (down 0.13%), the S&P BSE Healthcare index (down 0.06%), the S&P BSE FMCG index (up 0.02%), the S&P BSE Auto index (up 0.70%) and the S&P BSE Capital Goods index (up 0.92%), outperformed the Sensex.
Bank stocks ended on a mixed note after recovering from initial slide. Among private sector bank stocks, IndusInd Bank (up 1.98%), Axis Bank (up 0.04%), HDFC Bank (up 0.24%), ICICI Bank (up 1.63%), Kotak Mahindra Bank (up 0.74%), Federal Bank (up 0.5%) and Yes Bank (up 0.28%) edged higher.
Among public sector banks, Canara Bank (down 2.39%), IDBI Bank (down 1.15%), Bank of India (down 1.92%), Union Bank of India (down 1.59%), State Bank of India (SBI) (down 0.69%) and Punjab National Bank (down 0.7%) fell. Bank of Baroda rose 0.03%.
Metal and mining stocks dropped after the latest data showed that China's consumer inflation edged up and producer prices fell last month. Hindalco Industries (down 2.35%), Hindustan Copper (down 1.51%), Hindustan Zinc (down 1.93%) edged lower. China is the world's largest consumer of steel, copper and aluminum.
NMDC fell 3.07% to Rs 101.05 on profit booking after the stock rose 10.43% in the preceding two trading sessions to Rs 104.25 yesterday, 9 September 2015, from a recent low of Rs 94.40 on 7 September 2015.
National Aluminium Company rose 1.45%.
China's consumer inflation in edged up in August, but producer prices fell for the 42nd straight month in the latest sign that deflation remains a significant risk for the world's second-largest economy. China's consumer price index (CPI) rose 2% in August 2015 from the year before, up from 1.6% in July 2015, data published Thursday, 9 September 2015, by the country's National Bureau of Statistics revealed. China's producer price index (PPI) -- a gauge of factory-gate prices -- declined 5.9% in August from a year earlier, worsening from a 5.4% year-over-year drop in July. This marks the forty-second consecutive month of declines.
Vedanta rose 0.05% to Rs 99.90. The stock was volatile. The stock hit high of Rs 100.15 and low of Rs 95.10. Shares of Cairn India rose 1.64% at Rs 152.15. Global credit rating agency Standard & Poor's has placed its ratings on London-headquartered Vedanta Resources PLC on credit watch with negative implications. According to Standard & Poor's (S&P), the merger of Cairn India with Vedanta is critical for Vedanta Resources PLC to withstand a weakness in global commodity prices. Vedanta Resources PLC is a London-headquartered oil and metals company with most of its operations in India. According to S&P, the merger of Cairn India with Vedanta will strengthen Vedanta Resources PLC's financial metrics. According to the rating agency, there is uncertainty about the conclusion of the merger of Cairn India with Vedanta Ltd. The uncertainty will remain until a voting on the merger by the shareholders of the two companies. S&P expects the voting on the merger to take place in the latter half of Q3 December 2015.
Steel stocks declined. Jindal Steel & Power (down 2.33%), Steel Authority of India (down 3.32%) and JSW Steel (down 0.06%) dropped. Tata Steel rose 1.38%. The Director General of Safeguards has recommended imposition of provisional safeguard duty of 20% on import of hot-rolled flat products of non-alloy and other alloy steel in coils of a width of 600 MM or more for a period of 200 days. The Board of Safeguards headed by the Commerce Secretary will take a final call on the imposition of the safeguard duty. The safeguard duty is a global safeguard measure to protect the domestic industry and once imposed the levy is applicable on import of the product from all countries.
IT stocks dropped. TCS (down 0.22%), HCL Technologies (down 2.52%), Infosys (down 0.76%) and Wipro (down 1.47%) edged lower. Tech Mahindra rose 0.21%.
L&T rose 1.79% to Rs 1,621. The stock hit high of Rs 1,823.50 and low of Rs 1,556.15.
Index heavyweight and housing finance major HDFC fell 1.31% to Rs 1,171. The stock hit high of Rs 1,175 and low of Rs 1,149.95.
Index heavyweight and cigarette major ITC slipped 0.1% to Rs 313.90. The stock hit a high of Rs 315.60 and low of Rs 310.60.
Index heavyweight Reliance Industries (RIL) trimmed intraday losses. The stock shed 0.35% to Rs 870, also its intraday high. The stock hit a low of Rs 856.
Power sector stocks witnessed mixed trend. Torrent Power (up 0.29%), Tata Power Company (up 3.21%), Adani Power (up 1.13%), Reliance Infrastructure (up 1.43%), JSW Energy (up 5.57%) and Reliance Power (up 0.92%) gained. NHPC (down 2.99%), CESC (down 1.95%) and Power Grid Corporation of India (down 1.94%) declined.
Shares of state-run power generation major NTPC shed 0.95%. The company after market hours yesterday, 9 September 2015, announced that the company proposes to raise up to Rs 400 crore with an option to retain over subscription of up to Rs 300 crore from public issue of tax-free secured redeemable non-convertible bonds during the year ending 31 March 2016. The government has authorized the company to raise up to Rs 1000 crore through tax free bonds, including Rs 700 crore through public issue.
Shares of state-run power equipment major Bharat Heavy Electricals (Bhel) gained 1.97% to Rs 217.05. The stock hit high of Rs 217.60 and low of Rs 205.50.
Shares of auto companies edged higher. Eicher Motors (up 3.96%), Ashok Leyland (up 0.17 %) and Maruti Suzuki India (up 0.22%) rose.
Tata Motors advanced 3.07% to Rs 355.50. The stock hit high of Rs 356.50 and low of Rs 331.45. Tata Motors' British luxury car unit Jaguar Land Rover (JLR) reported a 3% decline in sales at 29,327 units in August 2015 over August 2014. JLR's retail sales in China were adversely affected by the explosion at the Tianjin port on 12 August 2015. Sales of Jaguar rose 5% to 5,335 units in August 2015 over August 2014. Land Rover sales dropped 5% to 23,992 units in August 2015 over August 2014.
Mahindra & Mahindra (M&M) rose 0.62%. The company has announced the launch of a new sports utility vehicle (SUV), the TUV 300. The SUV will be available in 7 variants, with the basic variant costing Rs 6.90 lakh ex-showroom Pune.
Shares of two-wheeler makers rose. Bajaj Auto (up 2.07%) and TVS Motor Company (up 1.02%) gained. Hero MotoCorp shed 0.03%.
Indian stocks have been on a roller coaster ride after a near 6% slide for the Sensex and the Nifty in a single trading session on 24 August 2015. Recovery in global stocks triggered a rebound on the domestic bourses recently. The Sensex jumped 825.77 points or 3.31% in the preceding two trading sessions to settle at 25,719.58 on Wednesday, 9 September 2015, from its close of 24,893.81 on Monday, 7 September 2015. The Sensex has lost 660.92 points or 2.51% in this month so far (till 10 September 2015). The Sensex has fallen 1,877.25 points or 6.82% in this calendar year so far (till 10 September 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 788.63 points or 3.17%. The Sensex is off 4,402.57 points or 14.66% from a record high of 30,024.74 hit on 4 March 2015.
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