Key benchmark indices extended fall and hit fresh intraday low in morning trade after seeing a gap-down opening on weak Asian stocks. At 10:17 IST, the barometer index, the S&P BSE Sensex was down 280.28 points or 1.05% at 26,355.47. The losses for the Nifty 50 index were lower in percentage terms than those for the Sensex. The Nifty was currently down 75.50 points or 0.92% at 8,094.55. The Sensex hit 2-1/2 week low. The Nifty hit over two week low. Weak industrial production data for April 2016 released by the government after market hours on Friday, 10 June 2016 also weighed on the sentiment.
The Sensex lost 298.57 points or 1.12% at the day's low of 26,337.18 in morning trade, its lowest level since 26 May 2016. The index dropped 167.48 points or 0.62% at the day's high of 26,468.27 in early trade. The Nifty lost 84 points or 1.02% at the day's low of 8,086.05 in morning trade, its lowest level since 27 May 2016. The index fell 58.45 points or 0.71% at the day's high of 8,111.60 in early trade.
In overseas markets, Asian stocks were sharply lower ahead of central bank meetings in the US and Japan this week. In Hong Kong, the Hang Seng index was currently down 2.54%. In Japan, the Nikkei 225 index was currently down 2.91%. In mainland China, the Shanghai Composite index was currently down 0.78%. Data released today, 13 June 2016 showed that growth in China's fixed-asset investment and retail sales cooled unexpectedly in May, but factory output growth was steady, doing little to clear up uncertainty over prospects for the world's second-largest economy. US stocks declined on Friday, 10 June 2016 as nervousness over an impending vote that could see the UK leave the European Union, as well as a drop in oil prices, spurred a global selloff.
Closer home, the broad market depicted weakness. There were more than two losers against every gainer on BSE. On BSE, 1,273 shares declined and 611 shares rose. A total of 94 shares were unchanged. The BSE Mid-Cap index was currently down 0.8%. The BSE Small-Cap index was currently down 0.73%. The fall in both these indices was lower than the Sensex's decline in percentage terms.
Capital goods stocks edged lower. L&T (down 1.94%), Bharat Heavy Electricals (Bhel) (down 2.71%), BEML (down 1.53%), Bharat Electronics (down 1.21%), ABB India (down 0.4%), Crompton Greaves (down 1.21%), Siemens (down 1.54%) and Thermax (down 0.97%) fell.
Auto stocks declined. Tata Motors (down 3.5%), Mahindra & Mahindra (M&M) (down 0.77%), Eicher Motors (down 1.05%), Ashok Leyland (down 0.14%), Bajaj Auto (down 0.79%) and Hero MotoCorp (down 1.35%) declined. TVS Motor Company rose 0.54%.
Maruti Suzuki India fell 0.91%. The company announced that it has resumed production today, 13 June 2016 morning at its facilities in Gurgaon and Manesar after the maintenance closure. The maintenance closure had been advanced by three weeks to June 6-11, following a fire at the Manesar facilities of its suppliers, Subros on 29 May 2016, Maruti Suzuki India said. The announcement was made during market hours today, 13 June 2016.
On the macro front, data released after market hours on Friday, 10 June 2016 showed that India's industrial production (IIP) contracted by 0.8% in April 2016. Factory output measured in terms of the IIP had expanded by 3% in April 2015. The electricity generation surged at two-year high pace of 14.6%, while the mining output also moved up 1.4% in April 2016. However, the manufacturing sector production dipped 3.1% contributing to the decline in industrial output in April 2016. The IIP growth in March 2016 has been revised upwards to 0.3% in the first revision compared with 0.05% reported provisionally. Meanwhile, the growth in January 2016 has been revised downwards to -1.6% at the final revision from -1.5% at first revision and reported provisionally.
Meanwhile, the government is scheduled to unveil the consumer price index (CPI) data (rural, urban and combined) for the month of May 2016 at 17:30 IST today, 13 June 2016. The all-India General CPI inflation surged to 5.39% in April 2016 (new base 2012=100) from six months low of 4.8% recorded in March 2016.
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