After languishing in negative zone in early afternoon trade, key benchmark indices extended losses in afternoon trade. At 13:18 IST, the barometer index, the S&P BSE Sensex, was off 172.72 points or 0.64% at 26,867.04. The 50-unit CNX Nifty was off 50.50 points or 0.62% at 8,120.70. The Sensex continued to trade below the psychological 27,000 mark after falling below that level earlier during the trading session. The Sensex hit two-week low when it fell 178.33 points or 0.65% at the day's low of 26,861.43 in afternoon trade. The Nifty hit its lowest level in more than two weeks when it fell 52.30 points, or 0.64% at the day's low of 8,118.90 in afternoon trade.
Indian stocks may remain volatile during the remaining part of the trading session as traders roll over positions in the futures & options (F&O) segment from the near month October 2015 series to November 2015 series. The October 2015 derivatives contracts are set to expire today, 29 October 2015.
The market breadth indicating the overall health of the market turned negative from positive in afternoon trade. On BSE, 1,233 shares fell and 1,159 shares rose. A total of 198 shares were unchanged. The BSE Mid-Cap index was currently off 0.15%. The BSE Small-Cap index was currently off 0.08%. The fall in both these indices in percentage terms was lower than the Sensex's decline.
Shares of some state-run companies declined. Bharat Heavy Electricals (down 4.66%), Power Finance Corporation (down 2.92%), Power Grid Corporation of India (down 2.33%), Container Corporation of India (down 2.24%), Coal India (down 1.94%), GAIL (India) (down 1.86%), Rural Electrification Corporation (down 1.8%), NTPC (down 1.27%) and ONGC (down 0.24%) edged lower.
Index heavyweight and cigarette major ITC was down 1.54% to Rs 349.30. The stock hit a high of Rs 354.40 and a low of Rs 347.90.
Another index heavyweight and IT major Infosys was down 1.16% to Rs 1,138. The stock hit a high of Rs 1,155 and a low of Rs 1,136.60.
Ambuja Cements edged lower in choppy trade after announcing weak Q3 results. The stock was down 0.65% at Rs 207.40. The stock hit a high of Rs 210.45 and a low of Rs 202.45 so far during the day. Ambuja Cements' net profit fell 35.6% to Rs 154 crore on 4.3% decline in net sales to Rs 2095 crore in Q3 September 2015 over Q3 September 2014. The result was announced after market hours yesterday, 28 October 2015. The company's operating EBITDA (earnings before interest, taxation, depreciation and amortization) fell 21.1% to Rs 310 crore in Q3 September 2015 over Q3 September 2014. Ambuja Cements attributed the decline in bottom line during the quarter to lower operating EBITDA and due to additional depreciation charge of Rs 28 crore on implementation of Schedule II of the Companies Act, 2013. The bottom line in Q3 September 2015 was also affected adversely by the company making a provision of Rs 40 crore in the profit and loss account towards contribution to District Mineral Foundation and National Mineral Exploration Trust as per the Mines and Mineral (Development and Regulation) Amendment Act, 2015. This includes Rs 27 crore up to previous quarters.
On future business outlook, Ambuja Cements said that the long term outlook for cement demand remains positive considering the government's focus on housing, concrete roads, smart cities and infrastructure development. Ambuja Cements said it will continue to focus on improving operational efficiencies.
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Metal shares witnessed a mixed trend as investors awaited a possible announcement from an economic meeting in Beijing. NMDC (up 1.69%), Vedanta (up 0.90%), JSW Steel (up 0.80%), Bhushan Steel (up 0.68%), Tata Steel (up 0.38%) and Hindustan Zinc (up 0.19%) edged higher. Hindalco Industries (down 0.71%), Steel Authority of India (down 0.74%), Hindustan Copper (down 0.85%), National Aluminium Company (down 1.26%) and Jindal Steel & Power (down 2.33%) edged lower. China is the world's largest consumer of steel, copper and aluminum.
A four-day meeting of China's Communist Party concludes today, 29 October 2015. The leaders are expected to announce a draft of the 13th Five Year Plan -- a sprawling blueprint that sets the direction for China's economic and social development.
In overseas stock markets, Asian stocks edged lower after the US Federal Reserve signalled after the conclusion of a regular two-day monetary policy review yesterday, 28 October 2015, that it may increase its policy rates at the next meeting in December 2015. After a hawkish statement from the Fed, the Fed-funds futures market is now pricing in 43% probability of an increase in US benchmark interest rate in December 2015, compared with a 34% chance before the announcement. The Fed kept its benchmark interest rate unchanged near zero.
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