Weakness continued on the bourses in early afternoon trade. At 12:16 IST, the barometer index, the S&P BSE Sensex, was down 379.40 points or 1.32% at 28,417.85. The Nifty 50 index was down 127 points or 1.43% at 8,739.70. The market sentiment was weak due to negative global cues. The broad market depicted weakness. There were more than two losers against every gainer on BSE. 1,776 shares fell and 634 shares rose. A total of 134 shares were unchanged. The BSE Mid-Cap index was currently down 2.18%. The BSE Small-Cap index was currently down 1.39%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
In overseas stock markets, Asian markets edged lower as investors were spooked by rising bond yields and talk the Federal Reserve might be serious about lifting US interest rates as early as next week. US stocks tumbled on Friday, 9 September 2016, as investor nervousness increased following a nuclear test by North Korea and Federal Reserve officials' comments lifted rate hike bets. North Korea conducted its fifth and biggest nuclear test on Friday, 9 September 2016, and said it had mastered the ability to mount a warhead on a ballistic missile, drawing condemnation from the United States as well as China, North Korea's main ally. Further pressure on the US equity market came after Boston Fed President Eric Rosengren said the US central bank faced increasing risks if it waited too much longer to raise interest rates.
Cement shares edged lower. Ambuja Cements (down 3.3%), ACC (down 2.56%) and UltraTech Cement (down 2.56%), edged lower.
Grasim Industries was down 0.7%. Grasim has exposure to cement sector through its holding in UltraTech Cement. Grasim Industries said that board of directors on Saturday, 10 September 2016 approved the proposal to increase the limit for investment in the equity share capital of the company by registered foreign portfolio investors from 24% to 30% of the company's paid-up equity share capital of the company. The announcement was made on Saturday, 10 September 2016.
Most pharmaceutical shares edged lower. Wockhardt (down 2.23%), IPCA Laboratories (down 1.74%), Cadila Healthcare (down 1.49%), Aurobindo Pharma (down 1.48%), Dr Reddy's Laboratories (down 1.23%), Lupin (down 1.21%), Glenmark Pharmaceuticals (down 1.02%), Divi's Laboratories (down 0.88%), Piramal Enterprises (down 0.63%), GlaxoSmithKline Pharmaceuticals (down 0.54%) and Sun Pharmaceutical Industries (down 0.53%), edged lower. Alkem Laboratories (up 0.21%) and Strides Shasun (up 0.69%), edged higher.
Drug major Cipla was down 1.26% at Rs 574.20 on turning ex-dividend today, 12 September 2016, for dividend of Rs 2 per share for the year ended 31 March 2016 (FY 2016).
Siyaram Silk Mills lost 5.48% to Rs 1,216 after net profit fell 22% to Rs 10.03 crore on 5.6% decline in net sales to Rs 280.44 crore in Q1 June 2016 over Q1 June 2015. The result was announced on Saturday, 10 September 2016.
Reliance Defence & Engineering dropped 4.99% to Rs 61.90 after the company reported net loss of Rs 134.50 crore in Q1 June 2016 compared with net loss of Rs 167.27 crore in Q1 June 2015. Total income dropped 34.21% to Rs 74.18 crore in Q1 June 2016 over Q1 June 2015. The result was announced on Saturday, 10 September 2016.
Zuari Agro Chemicals slumped 5.05% to Rs 175.70 after the company reported net loss of Rs 40.05 crore in Q1 June 2016 compared with net profit of Rs 1.88 crore in Q1 June 2015. Net sales declined 37.2% to Rs 976.42 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours on Friday, 9 September 2016.
Zuari Agro Chemicals said that due to volatility in the market, the board of directors of the company at its meeting held on Friday, 9 September 2016, decided to defer the rights issue which was proposed earlier till such time as the board deems fit.
Jaiprakash Associates fell 5.37% to Rs 11.46 after the company reported net loss of Rs 602.95 crore in Q1 June 2016 higher than net loss of Rs 482.43 crore in Q1 June 2015. Total income decreased 26.99% to Rs 1747.76 crore in Q1 June 2016 over Q1 June 2015. The result was announced on Friday, 9 September 2016.
Separately, Jaiprakash Associates said on Saturday, 10 September 2016 that Unit-2 of 660 megawatts (MW) of 1,980 MW Bara Supercritical Thermal Power Project, being implemented by Prayagraj Power Generation Company has successfully commenced commercial operations on 10 September 2016. Prayagraj Power Generation Company is a material un-listed subsidiary of Jaiprakash Power Ventures (JPVL), which is a subsidiary of Jaiprakash Associates. Shares of JVPL dropped 2.41% to Rs 4.85.
India's stock market remains closed tomorrow, 13 September 2016, on account of Bakri Id.
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