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Telecom, cement stocks edge lower

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Capital Market
Last Updated : Nov 11 2015 | 12:01 AM IST

Key benchmark indices continue to hover in the negative terrain amid volatility in morning trade. At 10:18 IST, the barometer index, the S&P BSE Sensex was off 168.67 points or 0.65% at 25,952.73. The Sensex was currently trading below the psychological 26,000 level. The 50-unit Nifty 50 index was off 60.65 points or 0.77% at 7,854.55. The losses for the Nifty were higher than those of Sensex in percentage terms.

In overseas stock markets, Asian stocks edged lower following a global sell-off in offshore markets on expectations of the US Federal Reserve hiking interest rates at its next monetary policy review in December 2015. US equities closed lower yesterday, 9 November 2015, as investors weighed a possible Federal Reserve rate hike in December.

Investors in emerging markets, including India are worried that once the Fed starts raising interest rates, it will drain liquidity from global emerging markets and redirect it to developed economies. The Fed has held its benchmark short-term interest rate near zero since December 2008. The ultra-loose monetary policy in the US has encouraged heavy investment in higher-yielding emerging markets. The next monetary policy review from the Fed is scheduled on 15-16 December 2015. The Fed-funds futures market is now pricing in 68% probability of an increase in US benchmark interest rate in December 2015.

Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,012 shares rose and 836 shares declined. A total of 78 shares were unchanged. The BSE Mid-Cap index was currently down 0.48%. The decline in this index was lower than Sensex's decline in percentage terms. The BSE Small-Cap index was currently up 0.25%, outperforming the Sensex.

Cement stocks declined. Ambuja Cements (down 1.95%), ACC (down 0.62%) and UltraTech Cement (down 0.82%) edged lower. Shree Cement (up 0.74%) edged higher.

Grasim Industries was off 1.22%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

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Telecom stocks edged lower. Reliance Communications (down 2.52%), Idea Cellular (down 1.45%), Bharti Airtel (down 0.67%) and Tata Teleservices (Maharashtra) (down 0.61%) declined. Mahanagar Telephone Nigam (up 0.84%) edged higher.

Hindalco Industries was off 2.51% at Rs 77.80. The stock hit a high of Rs 78.30 and a low of Rs 77.45 so far during the day. The company is scheduled to announce its Q2 September 2015 earnings today, 10 November 2015.

Wipro lost 0.99% at Rs 554.60. The stock hit a high of Rs 561.45 and a low of Rs 551.90 so far during the day. Wipro before market hours today, 10 November 2015, announced a partnership with Apttus, the category-defining Quote-to-Cash cloud solution provider, to deliver best-in-class contract lifecycle management (CLM), configure-price-quote (CPQ) & revenue management solutions to clients across industries.

The Cabinet Committee on Parliamentary Affairs (CCPA) yesterday, 9 November 2015, recommended convening of winter session of Parliament from 26 November 2015 till 23 December 2015.

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First Published: Nov 10 2015 | 10:22 AM IST

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