At 11:20 IST, the barometer index, the S&P BSE Sensex, was down 323.02 points or 0.7% at 45,780.75. The Nifty 50 index slipped 95.90 points or 0.71% at 13,433.95.
The Sensex rose 3.33% in the past five consecutive sessions while the Nifty climbed 4.32% in seven straight days till 9 December 2020.
The correction was wide spread. The S&P BSE Mid-Cap index and the S&P BSE Small-Cap index lost 0.82% each.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 886 shares rose and 1744 shares fell. A total of 139 shares were unchanged.
On Wednesday, Foreign portfolio investors (FPIs) bought shares worth Rs 3,564.23 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 2,493.10 crore in the Indian equity market, on a provisional basis.
COVID-19 Update:
The expert committee of the Central Drugs Standard Control Organisation (CDSCO) on Wednesday sought additional safety and efficacy data from the Serum Institute of India and Bharat Biotech for their coronavirus disease (Covid-19) vaccine, after deliberating upon their applications seeking authorisation for the shots.
Total COVID-19 confirmed cases worldwide stood at 68,848,383 with 1,568,734 deaths. India reported 3,72,293 active cases of COVID-19 infection and 1,41,772 deaths while 92,53,306 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
The Union Cabinet chaired by the Prime Minister, Narendra Modi gave its approval for the proposal of Securities & Exchange Board of India (SEBI) to sign a bilateral Memorandum of Understanding (MOU) with Financial and Commission de Surveillance du Secteur Financier (CSSF), Luxembourg. The MoU is likely to strengthen cross border cooperation in the area of securities regulations and facilitate mutual assistance, contribute towards efficient performance of the supervisory functions aid in imparting technical domain knowledge and enable effective enforcement of the laws and regulations governing the securities markets of India and Luxembourg.
Buzzing Segment:
Cements stocks were under pressure on reports that the Competition Commission of India (CCI) has initiated an investigation against cement companies in India including Ambuja Cements regarding alleged anti-competitive behaviour. The media also reported that CCI has conducted searches at offices of cement companies as CCI suspected them of running a price cartel.
The Ramco Cements (down 3.9%), Dalmia Bharat (down 3.87%), Deccan Cements (down 3.41%), JK Cement (down 2.83%), Shree Cement (down 2.08%), UltraTech Cement (down 2.06%), Ambuja Cement (down 1.76%), Heidelbergcement India (down 1.7%), India Cements (down 1.6%) and ACC (down 1.29%), and were top losers in cement space.
Stocks in Spotlight:
Agrochemical firm UPL slumped 14.95% to Rs 418.70 after a whistleblower reportedly alleged that the promoters have siphoned off money.
According to the media report, the whistleblower alleged that UPL entered into rent deals with the shell company owned by its employees and paid crores of rupees in rent for properties held by the latter, which was earlier owned by UPL chief Jaidev Shroff himself. The whistle-blower also claimed that shell entities were used to carry out other illegal transactions, reports added.
Varroc Engineering was up 0.64%. The automotive component maker has acquired the balance 30% stake in its Romanian unit from its joint venture partner for 1.05 million euros (about Rs 9.3 crore) in cash. The acquisition of the stake in Varroc-Elba Electronics S.R.L from Romania's Elba SA is part of an ongoing group consolidation exercise, the auto-parts maker said in a filing on Wednesday. Varroc-Elba has now become a step-down subsidiary of Varroc Engineering.
Global Markets:
Most Asian stocks were trading lower on Thursday as investors kept an eye on Brexit trade talks as well as ongoing negotiations in the U.S. for a coronavirus relief package.
In US, stocks fell on Wednesday, retreating from the record highs set earlier in the day, as tech shares struggled and traders weighed the prospects of new fiscal stimulus. All three averages also touched fresh intraday records.
A three-hour meeting between U.K. and European Union leaders on Wednesday evening failed to break an impasse in Brexit trade talks. British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen agreed that a firm decision should be made by Sunday about the future of the talks, as per reports.
The U.K. left the EU in January but agreed to keep the same standards and regulations until the end of the year. That was intended for both sides to have time to develop new trading arrangements. The transition period is due to end in three weeks and there are growing concerns that a new agreement may not be ready by then.
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