Weakness in global stocks triggered losses for Indian stocks which fell for a fifth day in a row. The barometer index, the S&P BSE Sensex, lost 219.78 points or 0.86% to settle at 25,310.33. The 50-unit Nifty 50 index declined 63.70 points or 0.82% to settle at 7,701.70. The slide for the two key benchmark indices accentuated during the last one hour of trading. The Sensex hit its lowest closing level in more than thirteen weeks. The Nifty hit 13-week closing low. Metal and oil sector stocks led losses for key benchmark indices. Shares of oil exploration and production (E&P) firms declined along with steep slide in global crude oil prices. Metal and mining stocks declined after weak Chinese trade data for November 2015.
In overseas stock markets, Asian and European stocks edged lower as concerns over slowing Chinese growth resurfaced after a disappointing set of trade data from the world's second biggest economy. Energy and materials sector stocks led losses for US equities yesterday, 7 December 2015, as global crude oil prices tumbled in the wake of a decision late last week from the Organization of the Petroleum Exporting Countries to keep crude production running at current levels.
The Sensex lost 219.78 points or 0.86% to settle at 25,310.33, its lowest closing level since 7 September 2015. The index fell 273.32 points or 1.07% at the day's low of 25,256.79. The index rose 12.36 points or 0.04% at the day's high of 25,542.47.
The Nifty shed 63.70 points or 0.82% to settle at 7,701.70, its lowest closing level since 8 September 2015. The index lost 79.95 points or 1.02% at the day's low of 7,685.45. The index rose 5.85 points or 0.07% at the day's high of 7,771.25.
The BSE Mid-Cap index dropped 1.17%. The BSE Small-Cap index lost 1.33%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
Among sectoral indices on BSE, the S&P BSE Industrials index (down 1.04%), the S&P BSE Telecom index (down 1.01%), the S&P BSE Basic Materials index (down 1.95%), the S&P BSE Utilities index (down 2.25%), the S&P BSE Power index (down 1.8%), the S&P BSE Realty index (down 3.69%), the S&P BSE Consumer Durables index (down 1.02%), the S&P BSE Capital Goods index (down 1.46%), the S&P BSE Finance index (down 1.06%), the S&P BSE Healthcare index (down 1.21%), the S&P BSE Oil & Gas index (down 2.14%), the S&P BSE Energy index (down 1.8%),and the S&P BSE Metal index (down 3.25%) underperformed the Sensex. The S&P BSE Teck index (down 0.2%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.69%), the S&P BSE Auto index (down 0.09%), the S&P BSE IT index (down 0.17%), the S&P BSE Bankex (down 0.85%), and the S&P BSE FMCG index (down 0.17%) outperformed the Sensex.
The broad market depicted weakness. More than two stocks fell for each stock that rose on BSE. 1,879 shares fell and 877 shares rose. A total of 149 shares were unchanged.
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The total turnover on BSE amounted to Rs 2754 crore, higher than turnover of Rs 2663.22 crore registered during the previous trading session.
Shares of oil exploration and production (E&P) firms declined along with steep slide in global crude oil prices. Cairn India (down 5.93%), Oil India (down 3.19%), ONGC (down 4.15%) and Reliance Industries (down 1.44%) edged lower. Lower crude oil price would result in lower realization from crude sales for oil exploration firms.
Stocks of public sector oil marketing companies (PSU OMCs) also edged lower. Indian Oil Corporation (down 1.8%), HPCL (down 1.19%) and BPCL (down 0.33%) edged lower.
In the global commodities markets, Brent for January settlement was currently up 44 cents at $41.17 a barrel. The contract had tumbled $2.27 a barrel or 5.27% to settle at $40.73 a barrel during the previous trading session.
Stocks of state-run companies declined. Rural Electrification Corporation (down 4.47%), Engineers India (down 3.5%), BEML (down 2.7%) and MMTC (down 2.43%) declined.
Shares of state-run gas transmission major GAIL (India) tumbled 4.99% at Rs 339.70. The stock hit a high of Rs 357.25 and a low of Rs 337.35 in intraday trade.
Shares of state-run power equipment major Bharat Heavy Electricals lost 2.42% at Rs 165. The stock hit a high of Rs 168.50 and a low of Rs 164.10 in intraday trade.
Shares of state-run coal mining giant Coal India lost 2.93% at Rs 317.95. The stock hit a high of Rs 327.55 and a low of Rs 316.95 in intraday trade.
Index heavyweight and housing finance major HDFC lost 0.96% at Rs 1,174.60. The stock hit a high of Rs 1,185 and a low of Rs 1,170 in intraday trade.
Index heavyweight L&T lost 1.85% at Rs 1,316. The stock hit a high of Rs 1,340.80 and a low of Rs 1,314.20 in intraday trade. L&T during market hours today, 8 December 2015, said that its construction division has secured orders worth Rs 1960 crore across its various businesses.
Dr Reddy's Laboratories dropped 3.44% to Rs 3,070.85. The stock hit high of Rs 3,160 and low of Rs 3,051.
Tata Motors rose 0.75% at Rs 401.95 after the company's British luxury car unit Jaguar Land Rover (JLR) reported 27% rise in retail sales to 46,547 vehicles in November 2015 over November 2014. Retail volumes in China were down 22% in November 2015 over November 2014, reflecting slowdown in the economy, JLR said.
Bank stocks declined. Among public sector banks, UCO Bank (down 1.87%), Syndicate Bank (down 2.54%), Punjab National Bank (down 2.13%), Corporation Bank (down 0.84%), Allahabad Bank (down 3.23%), Bank of Baroda (down 2.41%), Bank of India (down 2.75%), State Bank of India (SBI) (down 1.36%), Union Bank of India (down 2.87%), Canara Bank (down 1.11%), and United Bank of India (down 2.01%) edged lower.
Among private sector banks, Axis Bank (down 0.71%), HDFC Bank (down 1.23%), ICICI Bank (down 0.66%), Federal Bank (down 0.26%), Yes Bank (down 1.28%) and IndusInd Bank (down 1.31%) edged lower. Kotak Mahindra Bank rose 0.51%.
Shares of power generation and power distribution companies edged lower. Torrent Power (down 3.48%), GVK Power & Infrastructure (down 5.73%), Tata Power Company (down 1.32%), NTPC (down 0.19%), Adani Power (down 9.52%), Power Grid Corporation of India (down 0.92%), Reliance Infrastructure (down 4.33%) and Reliance Power (down 5.66%) declined.
NHPC declined 2.54%. The company said during market hours that its 120 megawatts (MW) Sewa-II power generation unit in Jammu & Kashmir has been completely shut down for attending annual maintenance of machines for about 20 days with effect from 7 December 2015.
Metal and mining stocks declined after weak Chinese trade data for November 2015. Hindalco Industries (down 4.35%), Steel Authority of India (down 4.62%), Vedanta (down 4.6%), Hindustan Zinc (down 3.71%), Tata Steel (down 3.61%), NMDC (down 2.38%), Jindal Steel & Power (down 4.81%), JSW Steel (down 1.69%) and National Aluminium Company (down 2.11%) edged lower. China is the world's largest consumer of steel, copper and aluminum.
China's exports fell a worse-than-expected 6.8% last month from a year earlier, a fifth straight month of decline. Imports fell 8.7%, a thirteenth straight monthly drop.
IT major Infosys dropped 0.09% at Rs 1,044.95. The stock was volatile. The stock hit high of Rs 1,062 and low of Rs 1,041.10. The company after market hours yesterday, 7 December 2015, announced that it intends to create 250 new jobs in Ireland over the next three years. This includes 95 roles at a dedicated product-centric research and development centre which will be established by Infosys' subsidiary EdgeVerve Systems in Ireland.
The Sensex and the Nifty fell for fifth day in a row. The Sensex has declined 859.08 points or 3.28% in the preceding five trading sessions from its close of 26,169.41 on 1 December 2015. The Sensex has declined 835.34 points or 3.19% in this month so far (till 8 December 2015). The Sensex has fallen 2,189.09 points or 7.96% in this calendar year so far (till 8 December 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 476.79 points or 1.91%. The Sensex is off 4,714.41 points or 15.7% from a record high of 30,024.74 hit on 4 March 2015.
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