Volatility ruled the roost in afternoon trade as the key benchmark indices trimmed losses after a steep intraday sell-off triggered by reports of India conducting surgical strikes against Pakistan. At 13:25 IST, the barometer index, the S&P BSE Sensex was down 284.86 points or 1.01% to 28,007.95. The Nifty 50 index was down 91.45 points or 1.05% to 8,653.70. The Sensex regained the psychological 28,000 mark in volatile trade after hitting an intraday low below that level in afternoon trade.
As per reports, the Indian Army conducted surgical strikes on terror launch pads yesterday, 28 September 2016 night across the Line of Control (LoC) in Pakistan, killing several terrorists and causing significant casualties to their hideouts.
The broad market depicted weakness. There were more than five losers against every gainer on BSE. 2,215 shares rose and 382 shares fell. A total of 163 shares were unchanged. The BSE Mid-Cap index was currently down 2.6%. The BSE Small-Cap index was currently down 3.28%. The fall in both these indices was higher than Sensex's decline in percentage terms.
In overseas stock markets, European stocks rose in early trade as investor sentiment was buoyed by a surge in the oil price after major oil producers agreed to cut production levels. Asian stocks rose tracking higher finish of US stocks yesterday, 28 September 2016 after the Organization of the Petroleum Exporting Countries (OPEC) took an important step toward a cap on crude-oil output, which helped in lifting oil prices. OPEC said yesterday, 28 September 2016 that it would reduce output to a range of 32.5-33.0 million barrels per day (bpd), a reduction of 0.7-2.2% from OPEC estimates of its current output at 33.24 million bpd. In economic data, US orders for durable or long-lasting goods flattened out in August after a sizable gain in the prior month, pointing to ongoing difficulties for American manufacturers.
Metal and mining stocks fell. Vedanta (down 2.66%), JSW Steel (down 2.55%), Tata Steel (down 2.2%), Steel Authority of India (Sail) (down 5.13%), National Aluminium Company (down 4.53%), Hindustan Zinc (down 0.7%), Jindal Steel & Power (down 6.38%), Hindalco Industries (down 3.4%), NMDC (down 6.05%) edged lower.
Hindustan Copper fell 4.44% to Rs 62.45 as the offer for sale by the Government of India through the stock exchanges mechanism began at 9:15 IST today, 29 September 2016. The government is offering a 7% stake in the company through a two-day offer for sale (OFS) which ends tomorrow, 30 September 2016. The government has set a floor price of Rs 62 per share, a 5.12% discount to the stock's Wednesday's closing share price of Rs 65.35 on BSE. While the trading window is open for non-institutional investors today, 29 September 2016, retail investors can subscribe tomorrow, 30 September 2016. Retail investors will be allocated shares at a 5% discount to the cut-off price, the company said. The OFS, comprising 6.47 crore shares, will help the government raise Rs 401.54 crore. The government's stake will decline to 82.95% following the sale. The Government of India holds 89.95% stake in Hindustan Copper (as per shareholding pattern as on 30 June 2016). The announcement was made after market hours yesterday, 28 September 2016.
Pharma shares declined. Cadila Healthcare (down 3.08%), Cipla (down 0.99%), Dr Reddy's Laboratories (down 1.77%), Glenmark Pharmaceuticals (down 3%), Lupin (down 1.11%), Sun Pharmaceutical Industries (down 2.26%), Alkem Laboratories (down 3.35%), GlaxoSmithKline Pharmaceuticals (down 0.83%), Aurobindo Pharma (down 3.56%) declined.
Also Read
Wockhardt lost 2.58%. The company announced that inspection of the company's manufacturing unit at L-1, Chikalthana, Aurangabad, Maharashtra by UK Medicines and Healthcare products Regulatory Agency (MHRA) has since been completed without any critical observations and the approval status of the said unit continues. The announcement was made during trading hours today, 29 September 2016.
Shares of ICICI Prudential Life Insurance Company were trading at Rs 306 on BSE, a discount of 8.38% over the initial public offer price of Rs 334. The stock debuted at Rs 329, a discount of 1.5% to the initial public offer (IPO) price. So far the stock hit a high of Rs 333.90 and low of Rs 297.10. On BSE, so far 1.04 crore shares were traded on the counter. ICICI Prudential Life Insurance Company had priced the IPO at the top end of the Rs 300 to Rs 334 price band. The bidding for the IPO concluded on 21 September 2016. The issue received bids for 138.77 crore shares and it was subscribed 10.48 times. ICICI Prudential is the largest private sector life insurer in India by total premium and assets under management at 31 March 2016. ICICI Prudential is a joint venture between ICICI Bank and Prudential Corporation Holdings, a part of the Prudential Group, an international financial services group. The company is one of the first private sector life insurance companies in India. It commenced operations in October 2000 and offers a range of life insurance, health insurance and pension products and services.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content