A range bound movement was witnessed as key benchmark indices languished in negative zone in mid-morning trade. At 11:17 IST, the barometer index, the S&P BSE Sensex was down 38.93 points or 0.14% at 26,971.21. The 50-unit CNX Nifty was down 17.75 points or 0.22% at 8,161.75. The Sensex was currently trading below the psychological 27,000 level after falling below that level in early trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,136 shares rose and 1,018 shares fell. A total of 124 shares were unchanged. The BSE Mid-Cap index was up 0.1%. The BSE Small-Cap index was up 0.12%. Both these indices outperformed the Sensex.
Bank stocks edged lower after Reserve Bank of India (RBI) Governor Raghuram Rajan was quoted as saying yesterday, 15 October 2015, that the central bank will take a close look at the asset quality of lenders. Among PSU banks, Oriental Bank of Commerce (down 2.54%), Bank of Baroda (down 1.7%), Indian Overseas Bank (down 0.94%), Union Bank of India (down 1.43%), Syndicate Bank (down 0.8%), Punjab National Bank (down 0.4%), IDBI Bank (down 0.32%), Canara Bank (down 0.7%) and Bank of India (down 0.88%) declined. State Bank of India (up 0.2%) and Corporation Bank (up 0.56%) gained.
Among private sector banks, ICICI Bank (down 0.86%), Axis Bank (down 0.74%), IndusInd Bank (down 0.47%), Yes Bank (down 0.63%) and Kotak Mahindra Bank (down 0.44%) edged lower. HDFC Bank (up 0.69%) edged higher.
Rajan has also urged banks to recognise all bad loans, according to reports. Rajan made these comments at the time of addressing a news briefing after the conclusion of the RBI board meeting in Mizoram yesterday, 15 October 2015, according to reports.
Telecom stocks also dropped after the Telecom Regulatory Authority of India (TRAI) issued an amendment to the Telecom Consumers Protection Regulations, 2012, mandating the mobile service providers to provide compensation to the consumers for call drops with effect from 1 January 2016. Idea Cellular (down 2.59%) and Mahanagar Telephone Nigam (down 0.27%) edged lower. Tata Teleservices (Maharashtra) (up 4.81%) and Reliance Communications (up 2.5%) edged higher.
Mobile service providers will have to give credit of one rupee for each call drop in the account of the consumer. This is, however, limited to three dropped calls in a day.
Bharti Airtel was down 2.28% at Rs 343.45. The company before market hours today, 16 October 2015, said that the agreements for sale of tower assets in Africa between Bharti Airtel Malawi Holdings B.V. & ors. and Eaton Towers (Lilongwe) Limited & ors. has lapsed and therefore stands terminated. It may be recalled that Bharti Airtel had on 8 September 2014 announced an agreement with Eaton Towers, a leading independent telecoms tower company in Africa, for divestment of over 3,500 telecoms towers from Airtel to Eaton Towers.
Meanwhile, a special Central Bureau of Investigation (CBI) court has discharged all accused, including Bharti Airtel in the 2002 additional telecom spectrum scam because the court found no incriminating material on record against the accused.
Subros rose 3.69% at Rs 89.90 after the company said it has received its first major order of about Rs 15 crore from the Indian Railways to supply cab mounted HVAC (heating, ventilation and air conditioning) unit. The announcement was made after market hours yesterday, 15 October 2015.
Meanwhile, data released by the government after market hours yesterday, 15 October 2015, showed that India's merchandise exports declined for tenth straight month in September 2015. Merchandise exports dropped 24.3% to $21.85 billion in September 2015 over September 2014. Imports dipped 25.4% to $32.32 billion. The trade deficit narrowed 27.6% to $10.5 billion in September 2015 from $14.47 billion in September 2014.
In overseas stock markets, Chinese and Japan stocks edged higher on stimulus hopes in the wake of recent weak economic data in those countries. US stocks surged yesterday, 15 October 2015, as falling US consumer prices added to the batch of disappointing economic data that reduces the odds of an interest-rate increase this year from the Federal Reserve.
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