After languishing in red in mid-morning trade, key benchmark indices extended losses in early afternoon trade. At 12:16 IST, the barometer index, the S&P BSE Sensex, was off 101.91 points or 0.42% at 24,353.13. The decline for the 50-unit Nifty 50 index was higher than Sensex's decline in percentage terms. The Nifty was currently off 38.95 points or 0.52% at 7,398.85. The broad market depicted weakness. Weakness in Asian stocks weighed on domestic bourses.
Asian stocks declined after weak US economic data and massive falls in oil prices stoked further worries about a global economic downturn. US stocks dropped sharply during the previous trading session on Friday, 15 January 2016, as oil prices plunged and investors worried about slowing growth in the US.
Closer home, the broad market depicted weakness. There were more than seven losers against every gainer on BSE. 2,149 shares declined and 303 shares rose. A total of 110 shares were unchanged. The BSE Mid-Cap index was currently down 1.54%. The BSE Small-Cap index was currently down 2.85%. The fall in both these indices was higher than the Sensex's decline in percentage terms.
Telecom stocks declined. Bharti Airtel (down 1.34%), Idea Cellular (down 1.91%), Mahanagar Telephone Nigam (down 2.64%) and Tata Teleservices (Maharashtra) (down 3.02%) declined.
Reliance Communications rose 0.48% at Rs 73.40 after the company announced signing of agreements with Reliance Jio Infocomm (RJIL), the telecom arm of Reliance Industries (RIL), for change in spectrum allotment in 800 MHz band across 9 circles from RCom to RJIL and for sharing of spectrum in 800 MHz band across 17 circles. As part of the enhanced strategic collaboration, both the companies also intend to enter into reciprocal intra circle roaming (ICR) arrangements. The spectrum arrangements between RJIL and RCom will result in network synergies, enhanced network capacity and will optimise spectrum utilisation and capex efficiencies. Both operators anticipate considerable savings in operating costs and future investment in networks. The arrangements are subject to liberalisation of RCom spectrum in the 800 MHz band and obtaining requisite approvals. The announcement was made during market hours today, 18 January 2016.
Shares of RIL were off 1.44% at Rs 1,057.70. The stock hit a high of Rs 1,082.45 and a low of Rs 1,056.10 in intraday trade. RIL announces its Q3 December 2015 results tomorrow, 19 January 2016.
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Pharma stocks also dropped. Alkem Laboratories (down 3.8%), Glenmark Pharmaceuticals (down 3.4%), Divi's Laboratories (down 0.79%), Dr Reddy's Laboratories (down 1.84%), Cipla (down 1.24%), Cadila Healthcare (down 1.3%), Ipca Laboratories (down 1.33%), Strides Shasun (down 2.48%), GlaxoSmithkline Pharmaceuticals (down 0.54%) and Sun Pharmaceutical Industries (down 0.09%) edged lower. Lupin (up 0.37%) and Aurobindo Pharma (up 0.38%) edged higher.
Wockhardt slumped 5.11% at Rs 1,222.50 after the company announced that the US Food and Drug Administration (FDA) has made nine observations after inspection of the company's manufacturing unit at Shendra in Aurangabad. Wockhardt said it would send appropriate reply to the inspecting authority viz. USFDA in due course. The company added that the Shendra manufacturing unit is a new facility and presently there is no supply of products from this unit to US markets. The announcement was made after market hours on Friday, 15 January 2016.
Meanwhile, the latest data showed that India's merchandise exports declined for the thirteenth straight month in December 2015. Exports fell 14.7% to $22.30 billion in December 2015 over a year ago, data released by the government today, 18 January 2016 showed. Imports fell 3.9% to $33.96 billion. The trade deficit widened 27.1% to $11.7 billion in December 2015 from $9.18 billion in December 2014.
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