Market continued to languish in negative zone in the afternoon trade. At 13:15 IST, the barometer index, the S&P BSE Sensex, fell 253.58 points or 0.8% at 31,346.18. The Nifty 50 index dropped 77.50 points or 0.79% at 9,794. Federal Reserve Chairwoman Janet Yellen hinting at possible hike in US interest rates increased worries of pull out of money from risky assets in emerging markets like India.
The market opened with decent gains but soon slipped into the red in morning trade. Indices extended losses and hit fresh intraday low in mid-morning trade with the Sensex and Nifty, both, hitting their lowest level in more than four weeks. Stock languished in the red in early afternoon trade.
The S&P BSE Mid-Cap index fell 0.73%. The S&P BSE Small-Cap index fell 0.75%. The decline in both the indices was lower than the Sensex's fall in percentage terms.
The broad market depicted weakness. There were more than two losers for every gainer on BSE. 1,596 shares fell and 748 shares rose. A total of 133 shares were unchanged.
IT stocks were mixed. Tech Mahindra (up 2.35%), Oracle Financial Services Software (up 0.55%) and HCL Technologies (up 0.21%) edged higher. Infosys (down 0.7%), Wipro (down 0.43%) and Persistent Systems (down 0.05%) edged lower.
TCS rose 1.17% at Rs 2,503.80 after the company said that its UK-based subsidiary, Diligenta, secured a 15 year partnership with Scottish Widows, Lloyds Banking Group's Life and Pensions business. Diligenta is a leading life and pensions BPS provider in the UK. The announcement was made after market hours yesterday, 26 September 2017.
Under the terms of this agreement, Diligenta will support Scottish Widows to provide end-to-end policy administration services for its 4 million heritage customers. Diligenta will provide Scottish Widows these services based on TCS BaNCS, its digitally-enabled, end-to-end policy administration platform, to manage its assets in life, pensions and investment products.
Auto stocks declined. Ashok Leyland (down 1.05%), Tata Motors (down 0.75%), Eicher Motors (down 0.67%), Maruti Suzuki India (down 0.55%), Hero MotoCorp (down 0.19%), Mahindra & Mahindra (down 0.16%) and Bajaj Auto (down 0.08%) fell. TVS Motor Company (up 0.93%) and Escorts (up 0.26%) gained.
Punjab National Bank (PNB) fell 1.39% at Rs 135.05. The bank said it has approached board for permission to raise Basel III compliant debt instrument - perpetual additional Tier I capital bonds to the extent of Rs 3000 crore and Tier-II bonds up to Rs 3000 crore in its meeting being held today, 27 September 2017. The announcement was made during market hours today, 27 September 2017.
Divis Laboratories tumbled 7.78% at Rs 886.90 after media reports suggested that the company's Vizag unit 2 received six observations from the US drug regulator. According to media reports, after inspecting the plant between 11 and 19 September 2017, the US Food and Drug Administration (USFDA) issued six observations, including failure in testing individual batches and inadequate cleaning instructions. The USFDA reportedly pointed out that the company has failed to test individual batches of final active pharmaceutical ingredient (API) with conformity with all appropriate specifications and the lab failures have not been thoroughly investigated.
Among other observations, the company reportedly failed to validate the manufacturing cleaning length of time and there are inadequate cleaning instructions for major equipment. Batch records are not always recorded, according to the regulator.
Overseas, European stocks opened higher on growing expectations of another rate hike in the United States before the year-end. Asian stocks were mixed amid positive economic data in China and as investors hoped for progress on major tax reform in the United States. Annual profits at China's industrial companies rose 24% in August, accelerating from the previous month in an indication economic growth remains in good heart even as signs emerge of fading momentum following a robust first half.
US stock-market indices relinquished earlier gains to close little changed yesterday, 26 September 2017, with the Dow Industrials Average extending a losing streak to a fourth session. Investors appeared to shrug off comments from Federal Reserve Chairwoman Janet Yellen, who cautioned against moving too slowly on interest rates. Yellen said there is a risk that the labor market could become overheated, causing an inflation problem down the road.
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