A bout of volatility was witnessed as key benchmark indices slipped into the red after briefly regaining positive zone in morning trade. At 10:18 IST, the barometer index, the S&P BSE Sensex was off 46.54 points or 0.18% at 25,483.57. The decline for the Sensex was higher in percentage terms compared with the fall in the 50-unit Nifty 50 index. The Nifty was currently off 7.35 points or 0.09% at 7,758.05. The market breadth indicating the overall health of the market was positive. On BSE, 1,126 shares rose and 911 shares declined. A total of 110 shares were unchanged. The BSE Mid-Cap index was currently off 0.01%. The decline in this index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index was currently up 0.1%, outperforming the Sensex.
In overseas stock markets, Asian stocks edged lower after steep slide in global crude oil prices yesterday, 7 December 2015. US stocks declined yesterday, 7 December 2015, weighed by a sharp decline in energy stocks as oil plunged to a near-seven-year low.
Metal and mining stocks declined. Vedanta (down 2.3%), Hindalco Industries (down 1.64%), Hindustan Zinc (down 1.98%), NMDC (down 0.55%), Tata Steel (down 0.8%), JSW Steel (down 0.16%), Steel Authority of India (down 0.43%) and Jindal Steel & Power (down 0.53%) edged lower. National Aluminium Company (up 0.25%) edged higher.
Shares of state-run oil marketing companies (PSU OMCs) edged higher after steep decline in global crude oil prices. BPCL (up 0.68%) and HPCL (up 0.2%) edged higher. Indian Oil Corporation (down 0.75%) edged lower.
Decline in crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports. The government has already decontrolled pricing of petrol and diesel.
In the global commodities markets, Brent for January settlement was currently up 21 cents at $40.94 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.
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In the foreign exchange market, the partially convertible rupee was currently hovering at 66.78, compared with its close of 66.735 during the previous trading session.
ITC rose 0.89% at Rs 316.35 after the company said that its step-down subsidiary Greenacre Holdings (GHL) has acquired 87.06% of the equity share capital of Classic Infrastructure & Development (CIDL), an associate of Russell Credit (RCL), at an aggregate consideration of Rs 11.38 crore. GHL is a wholly owned subsidiary of RCL and RCL is a wholly owned subsidiary of ITC. The announcement was made after market hours yesterday, 7 December 2015.
CIDL is engaged in the business of property maintenance & management and its networth as on 31 March 2015 and profit after tax for the year ended on that date were Rs 8.44 crore and Rs 20.16 lakh, respectively, ITC said.
Essar Oil was off 0.31% at Rs 211. The stock hit a high of Rs 212 and a low of Rs 208.70 so far during the day. Essar Oil fixed floor price of Rs 146.05 per share to delist the company from stock exchanges. The reverse book building will be held between 15 December 2015 and 21 December 2015. The announcement was made after market hours yesterday, 7 December 2015.
Eicher Motors rose 0.82% at Rs 16,361.60 after the company said it has resumed production of motorcycles at its Thiruvottiyur and Oragadam plants on 7 December 2015. These two units were shut since 1 December 2015 due to heavy rains and flooding in Chennai. However, due to a high rate of absenteeism by the company's employees and issues with its local suppliers, the company will be running at approximately 50% capacity this week and plan to be back up to 100% capacity by next week, Eicher Motors said. The announcement was made before market hours today, 8 December 2015.
Eicher Motors said that prima facie, there is no damage to equipment or property due to rains and floods in Chennai and all employees are safe and secure. The company suffered production loss of 7,200 motorcycles due to the closure of both the manufacturing facilities between 1 December 2015 to 6 December 2015, Eicher Motors said. Many parts of the supply chain still continue to be affected due to the aftermath of floods, the company said. Due to the rains, the company lost production of 4,000 motorcycles in November 2015, Eicher Motors said.
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