Weakness continued on the bourses in mid-afternoon trade, with the two key benchmark indices trading with steep losses. At 14:15 IST, the barometer index, the S&P BSE Sensex, was down 465.17 points or 1.83% at 24,941.16. The decline for the 50-unit Nifty 50 index was higher in percentage terms than the Sensex's slide. The Nifty was currently down 152.50 points or 1.97% at 7,588.50. The Sensex continued to hover below the psychological 25,000 level after falling below that mark earlier during the trading session. A setback in global stocks triggered the latest slide on the domestic bourses.
Trading in mainland China was suspended for the rest of the day after the CSI 300 index tumbled more than 7% in early trade, triggering the market's circuit breaker for a second time this week. China's central bank again surprised markets by setting onshore yuan's value lower to the US dollar, deepening concerns about the economy and sending the domestic stock markets tumbling. The People's Bank of China set the daily yuan reference-exchange rate against the US dollar 0.5% weaker compared with the previous day's closing level, marking the largest adjustment toward yuan weakness since the currency devaluation on 13 August 2015.
European stock markets moved sharply lower on the back of more turbulence in China, where markets were halted for trade after significant losses. US stock futures slumped, indicating a downbeat open on Wall Street as another trading halt in China and sliding oil prices fueled heavy selling. Trading in US index futures indicated that the Dow Jones Industrial Average could slide 306.50 points at the opening bell. US stocks closed sharply lower yesterday, 6 January 2015, pressured by continued concerns about global economic growth, declining oil prices and increased geopolitical tensions.
Closer home, the broad market depicted weakness. There were more than three losers against every gainer on BSE. 2,143 shares declined and 636 shares rose. A total of 87 shares were unchanged. The BSE Mid-Cap index was currently off 2.16%. The BSE Small-Cap index was currently off 2.59%. The decline in both these indices was higher than Sensex's decline in percentage terms. All the nineteen sectoral indices on BSE were in the red.
Shares of oil exploration and production (E&P) companies edged lower as global crude oil price fell sharply. Cairn India (down 7.74%), Oil India (down 3.15%), ONGC (down 5.31%) and Reliance Industries (down 1.82%) declined. Lower crude oil prices would result in lower realizations from crude sales for oil exploration firms.
Shares of state-run oil marketing companies (PSU OMCs) also declined. BPCL (down 2.07%), HPCL (down 1.71%) and Indian Oil Corporation (down 1.15%) edged lower.
More From This Section
In the global commodities markets, crude oil prices fell sharply as rising volatility in the Chinese stock market and further weakness in the Chinese yuan triggered concerns crude demand will be more depressed amid a growing global surplus. Brent for February settlement was currently off $1.69 a barrel at $32.54 a barrel. The contract had lost $2.19 a barrel or 6.01% to settle at $34.23 a barrel during the previous trading session.
FMCG stocks declined. Colgate Palmolive (India) (down 3.44%), Dabur India (down 2.45%), Tata Global Beverages (down 2.96%), Hindustan Unilever (down 2.5%), Jyothy Laboratories (down 1.87%), Marico (down 1.59%), Emami (down 0.99%), Britannia Industries (down 1.38%), GlaxoSmithkline Consumer Healthcare (down 1.78%), Godrej Consumer Products (down 1.27%), Procter & Gamble Hygiene and Health Care (down 0.74%), Nestle India (down 0.73%) and Bajaj Corp (down 3.22%) edged lower.
Bharat Heavy Electricals (Bhel) was off 6.2% at Rs 155.15. The stock hit a high of Rs 164.50 and a low of Rs 155 so far during the day. The company during market hours today, 7 January 2016, announced that it has commissioned two 220/20kV substations in Afghanistan. The project was executed by Bhel on engineering, procurement and construction (EPC) basis.
Lakshmi Overseas Industries surged 16.95% at Rs 20.70 after the company said that a meeting of its board of directors will be held on 11 January 2016, inter alia, for considering issuance of convertible warrants to promoters/promoter group on preferential basis subject to shareholders' approval and necessary regulatory approvals. The announcement was made after trading hours yesterday, 6 January 2016.
Meanwhile, parliamentary affairs minister Venkaiah Naidu was quoted as saying that the government has agreed to accept the conditions laid down by the Congress party to back the proposed goods and services tax bill (GST).
Powered by Capital Market - Live News