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Market slips into negative zone

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Capital Market
Last Updated : Sep 14 2016 | 11:28 AM IST

After opening higher, key benchmark indices slipped into negative terrain in morning trade. At 10:19 IST, the barometer index, the S&P BSE Sensex, was down 33.60 points or 0.12% at 28,319.94. The Nifty 50 index was down 11.15 points or 0.13% at 8,704.45.

The Sensex fell 62.21 points, or 0.22% at the day's low of 28,291.33 in morning trade. The index rose 62.87 points, or 0.22% at the day's high of 28,416.41 in early trade. The Nifty fell 17.90 points, or 0.21% at the day's low of 8,697.70 in morning trade, its lowest level since 9 September 2016. The index rose 22 points, or 0.25% at the day's high of 8,737.60 in early trade.

In overseas stock markets, most Asian shares declined today, 14 September 2016, bruised by a fall in oil prices on renewed worries about a supply glut and as investors grew nervous about the diminishing capacity of the world's major central banks to shore up economic growth. The US market edged lower yesterday, 13 September 2016, as equities suffered a sharp sell-off amid a slump in energy shares and uncertainty about the Federal Reserve's plans for monetary policy.

Back home, the market breadth, indicating the overall health of the market, was strong. On BSE, 1,290 shares rose and 714 shares fell. A total of 106 shares were unchanged. The BSE Mid-Cap index was currently up 0.24%. The BSE Small-Cap index was currently up 0.37%. Both these indices outperformed the Sensex.

Cement shares were in demand. Ambuja Cements (up 0.86%), UltraTech Cement (up 0.66%) and ACC (up 0.60%), edged higher.

Grasim Industries was up 0.65%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

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Most metal shares edged higher. Jindal Steel & Power (up 1.48%), Hindustan Zinc (up 1.39%), Vedanta (up 1.21%), Bhushan Steel (up 0.84%), Steel Authority of India (up 0.63%), NMDC (up 0.53%), Hindalco Industries (up 0.46%) and Hindustan Copper (up 0.31%), edged higher. JSW Steel was down 0.38%.

Tata Steel was down 1.90% after dismal Q1 results. On a consolidated basis, Tata Steel reported net loss of Rs 3183.07 crore in Q1 June 2016, higher than net loss of Rs 316.91 crore in Q1 June 2015. Total income fell 5.5% to Rs 26542.83 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours on Monday, 12 September 2016.

Tata Steel's consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) rose 21% to Rs 3270 crore in Q1 June 2016 over Q1 June 2015 due to improved operating performance across India, Europe, and South East Asia. EBITDA margin expanded to 12.4% in Q1 June 2016 from 9.6% in Q1 June 2015. Tata Steel said that the company recognised loss of Rs 3296 crore in Q1 June 2016 on account of divestment of Long Steel UK.

National Aluminium Company (Nalco) was down 0.96% after the company's net profit fell 22.55% to Rs 135.01 crore on 3.26% rise in total income to Rs 1682.63 crore in Q1 June 2016 over Q1 June 2015. The announcement was made after market hours yesterday, 11 September 2016.

Glenmark Pharmaceuticals rose 0.74% to Rs 881.60 after the company announced that it has been granted final approval by the United States Food & Drug Administration for Diclofenac Sodium Gel, 3%. Diclofenac Sodium Gel, 3% is a generic version of Solaraze Gel, 3% of Fougera Pharmaceuticals Inc. According to IMS Health sales data for the 12 month period ending July 2016, the Solaraze Gel, 3% market achieved annual sales of around $297.90 million in the US. The announcement was made before market hours today, 14 September 2016.

On the economic front, India's industrial production (IIP) fell 2.4% in July 2016 over July 2015. Industrial production expanded 2.1% in June 2016 over June 2015. The data was announced after market hours on Monday, 12 September 2016.

India's inflation data based on consumer price index (CPI) for August 2016 slowed to 5.05% in August 2016. CPI accelerated to 6.07% in July 2016 from 5.77% in June 2016. The data was announced after market hours on Monday, 12 September 2016.

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First Published: Sep 14 2016 | 10:16 AM IST

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