Key benchmark indices traded in a narrow range in negative zone in afternoon trade. At 13:15 IST, the barometer index, the S&P BSE Sensex was down 255.56 points or 0.98% at 25,894.68. The losses for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was currently down 99.45 points or 1.23% at 7,974.65. The Sensex was currently hovering below the psychological 26,000 mark after falling below that mark in morning trade. The Nifty was currently trading below the psychological 8,000 level after sliding below that mark in mid-morning trade.
The recent selling by the foreign portfolio investors (FPIs) of Indian stocks weighed on sentiment. FPIs sold shares worth a net Rs 926.32 crore on Friday, 18 November 2016, as per provisional data released by the stock exchanges. FPIs were net sellers for the seventh straight session. Likely short term negative impact on the economy of recent demonetization of higher denomination notes by the Indian government and worries that the recently elected US president Donald Trump's policies stance - from protectionism and fiscal expansion - will boost inflation and lead the Federal Reserve to raise interest rates more than expected continued to weigh on sentiment. Investors fear that the higher interest rates in the US will spark capital outflows from the emerging equity markets.
In overseas stock markets, Asian stocks witnessed a mixed trend. US stock market finished lower on Friday, 18 November 2016, but higher for the week as Wall Street heads into a holiday-shortened week when the focus will be on a slew of economic data and fresh scrutiny of a suddenly surging US dollar and rising interest rates. A recent rally sparked by bullishness about President-elect Donald Trump's potential pro-growth fiscal policies helped pushed stocks back toward record levels. Friday's trading was subdued as investors pulled back and focused on remarks made on the previous day by Federal Reserve Chairwoman Janet Yellen that pointed to a hike in interest rates next month.
Closer home, the broad market depicted weakness. There were more than five losers against every gainer on BSE. 2,062 shares fell and 386 shares rose. A total of 144 shares were unchanged. The BSE Mid-Cap index was currently down 2.08%. The BSE Small-Cap index was currently down 2.56%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
Bank stocks were in red. Among public sector banks, Bank of Baroda (down 7.84%), Punjab National Bank (down 7.28%), Union Bank of India (down 4.61%), State Bank of India (down 4.48%), Bank of India (down 3.46%) and IDBI Bank (down 3.14%) declined.
Among private sector banks, IndusInd Bank (down 4.71%), Yes Bank (down 4.4%), Kotak Mahindra Bank (down 2.62%), ICICI Bank (down 2.44%), RBL Bank (down 1.62%), Axis Bank (down 1.31%) and HDFC Bank (down 0.93%) edged lower.
Cement stocks declined. Ambuja Cements (down 1.46%), ACC (down 1.27%) and UltraTech Cement (down 1.07%) edged lower. Shree Cement (up 1.29%) edged higher.
Grasim Industries was off 3.16%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Panacea Biotec rose 1.61% after the company received Establishment Inspection Report (EIR) from the United States Food and Drug Administration (USFDA) for its oncology parenteral and oral solids dosage formulation facilities at Baddi in Himachal Pradesh. The announcement was made during market hours today, 21 November 2016.
Panacea Biotec has state-of-the-art pharmaceutical formulation facility located at Baddi for oral solids and oncology parenteral formulations. The company has been supplying products in US markets for approved abbreviated new drug applications (ANDAs) manufactured in oral solids dosage facility. A number of ANDAs submitted by the company, referring these facilities, are also at various stages of approval by USFDA.
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