Key benchmark indices extended intraday losses in afternoon trade. At 13:15 IST, the barometer index, the S&P BSE Sensex, was down 220.78 points or 0.85% at 25,831.03. The Nifty 50 index was currently down 72.10 points or 0.9% at 7,961.20. The Sensex continued to trade below the psychological 26,000 mark after falling below that mark in early trade. The Nifty traded below the psychological 8,000 level. Investors fear that upbeat US economic data strengthened the prospect for higher US interest rate raising fear that higher interest rates in the US will spark capital outflows from the emerging equity markets.
The Sensex lost 240.84 points or 0.92% at the day's low of 25,810.97 in afternoon trade, its lowest level since 22 November 2016. The barometer index shed 2.67 points or 0.01% at the day's high of 26,049.14 in opening trade. The Nifty lost 73.05 points or 0.9% at the day's low of 7,960.25 in afternoon trade, its lowest level since 22 November 2016. The index shed 19.65 points or 0.24% at the day's high of 8,013.65 in early trade.
The market breadth indicating the overall health of the market turned negative from positive in afternoon trade. On BSE, 1,164 shares declined and 1,158 shares rose. A total of 165 shares were unchanged. The BSE Mid-Cap index was currently down 0.75%. The BSE Small-Cap index was currently down 0.34%. The losses for both these indices were lower in percentage terms than those for the Sensex.
Cement stocks were mixed. Shree Cement (down 2.2%) and Ambuja Cements (down 0.23%) edged lower. ACC (up 1.01%) and UltraTech Cement (up 0.83%) edged higher.
Grasim Industries was up 0.12%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Stocks of public sector banks were mixed. Bank of Baroda (up 1.51%), State Bank of India (up 0.73%) and Punjab National Bank (up 0.04%) edged higher. IDBI Bank (down 1.39%), Indian Bank (down 0.92%) and Corporation Bank (down 0.22%) edged lower.
Stocks of private sector banks edged lower. Kotak Mahindra Bank (down 2.33%), ICICI Bank (down 1.92%), RBL Bank (down 0.92%), HDFC Bank (down 0.72%), Yes Bank (down 0.53%) and IndusInd Bank (down 0.16%) declined.
Axis Bank was down 1.51%. The bank said that its board allotted 18,000 unsecured redeemable non-convertible subordinated debentures aggregating to Rs 1800 crore on a private placement basis. The debentures will be listed on the wholesale debt market segment of the BSE and National Stock Exchange of India. The announcement was made after market hours yesterday, 23 November 2016.
IT major TCS was up 1.27% after the company said it will implement a unified global process blueprint for ASML, aiming to simplify business processes, improve operational efficiency and elevate stakeholder experience. ASML is one of the world's leading manufacturers of chip-making equipment. The announcement was made during market hours today, 24 November 2016.
Maithan Alloys surged 11.48% at Rs 237 on BSE, after a large bulk deal of 55.05 lakh shares was executed on the scrip at Rs 214.80 per share in opening trade on BSE.
In overseas stock markets, most Asian stocks edged lower as upbeat economic data strengthened the prospect for higher US interest rate. Investors fear that higher interest rates in the US will spark capital outflows from the emerging equity markets. US stocks closed mixed yesterday, 23 November 2016, as investors digested a number of economic data, including minutes from the Federal Reserve's November meeting. The Dow Jones Industrial Average and S&P 500 indices hit record closing high. The minutes released yesterday, 23 November 2016, back the consensus view on Wall Street that the Fed is poised to raise rates in December. Policymakers left borrowing costs unchanged earlier this month, just days before Republican Donald Trump triumphed in the November 8 presidential contest. Voting members of the Fed's rate-setting committee saw equal risks the economy would overshoot or undershoot their forecasts for continued growth and a tightening labor market. Almost all of them continued to judge that near-term risks to the economic outlook were roughly balanced, according to the minutes. The US stock market will remain closed today, 24 November 2016, because of the Thanksgiving holiday.
US weekly jobless claims increased 18,000 to a seasonally adjusted 251,000 for the week ended 19 November 2016, the Labor Department said. The claims have now been below 300,000, a threshold associated with a healthy labor market, for 90 straight weeks. Meanwhile, the Commerce Department said US durable goods increased 4.8% in October, well above a consensus estimate. Other data released included the IHS Markit manufacturing index for November, which showed a slight increase to 53.9 from 53.4 in October. A reading above 50 signals expansion within the sector. New home sales for October fell 1.9%, while consumer sentiment came in at 93.8, above estimate.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
