Amid a divergent trend among various index constituents, key benchmark indices hovered in negative zone in afternoon trade. At 13:15 IST, the barometer index, the S&P BSE Sensex, was down 54.91 points or 0.22% at 24,604.32. The losses for the Sensex were higher in percentage terms than those for the 50-unit Nifty 50 index. The Nifty was currently down 7.20 points or 0.1% at 7,478.10.
The Sensex fell 207.63 points, or 0.84% at the day's low of 24,451.60 in early trade, its lowest level since 3 March 2016. The index fell 19.37 points or 0.07% at the day's high of 24,639.86 in early afternoon trade. The Nifty 50 index fell 61 points, or 0.81% at the day's low of 7,424.30 in early trade, its lowest level since 3 March 2016. The index rose 2.55 points, or 0.03% at the day's high of 7,487.85 in early afternoon trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,269 shares fell and 1,067 shares rose. A total of 127 shares were unchanged. The BSE Mid-Cap index was currently up 0.27%, outperforming the Sensex. The BSE Small-Cap index was currently down 0.35%. The decline in this index was higher than the Sensex's decline in percentage terms.
Metal and mining stocks edged lower as global commodity prices fell after a recent rebound. Vedanta (down 4.76%), Hindalco Industries (down 3.91%), NMDC (down 3.23%), Steel Authority of India (down 3.12%), Hindustan Copper (down 2.3%), Tata Steel (down 1.66%), Hindustan Zinc (down 1.6%), National Aluminium Company (down 1.42%) and JSW Steel (down 0.94%) declined.
Jindal Steel & Power (JSPL) lost 2.94% at Rs 64.30 on reports that a group of foreign lenders of JSPL are exploring the decision of recalling loans adding up to $550 million from the company with the leveraged group failing to comply with loan covenants ahead of the repayment schedule that starts next month. Among other things, this extreme step from the lenders has been triggered by JSPL's inability to service $25 million unsecured loan from a large Japanese bank, reports added. In its clarification issued during market hours today, 9 March 2016, JSPL said that it has been working with all banks/institutions towards various options, including the 5/25 scheme to meet all obligations in the wake of weak financial performance of the company in the last four quarters. JSPL attributed the company's weak financial performance to falling steel prices.
Auto stocks edged higher. Ashok Leyland (up 0.33%), Mahindra & Mahindra (up 0.72%), TVS Motor Company (up 0.28%), Eicher Motors (up 0.31%), Hero MotoCorp (up 0.2%) and Bajaj Auto (up 0.02%) rose. Tata Motors (down 0.69%) declined.
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Lupin rose 0.29% at Rs 1,822.05 after the company announced that it has completed the acquisition of privately held US based GAVIS Pharmaceuticals LLC and Novel Laboratories Inc. (GAVIS). The acquisition enhances Lupin's scale in the US generic market and also broadens the company's pipeline in dermatology, controlled substance products and other high-value and niche generics. The announcement was made during market hours today, 9 March 2016.
In overseas stock markets, Asian stocks witnessed a mixed trend as investors awaited the outcome of European Central Bank's (ECB) monetary policy meeting tomorrow, 10 March 2016. Chinese stocks lost ground in the aftermath of a disappointing trade data announced during the previous trading session. In mainland China, the Shanghai Composite closed 1.34% lower. Hong Kong's Hang Seng was currently down 0.18%. US stocks snapped five-day winning streak to close lower yesterday, 8 March 2016, as supply woes weighed on oil prices and worries about a prolonged slowdown in China resurfaced.
The ECB is widely expected to announce further easing of monetary policy tomorrow, 10 March 2016, in a bid to boost low inflation and support economic recovery in the euro zone. Expectations are that the ECB will cut its deposit rate further into negative zone from current minus 0.3% and increase its bond-purchase program by euro 10 billion to euro 70 billion a month.
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