Indian stocks extended initial losses triggered by a fresh setback in global markets as trading was halted in mainland China after China's central bank continued to fix the onshore yuan's value lower to the US dollar. At 10:15 IST, the barometer index, the S&P BSE Sensex, was down 361.87 points or 1.42% at 25,044.46. The 50-unit Nifty 50 index was currently down 111.10 points or 1.44% at 7,629.90. The Sensex hit its lowest level in more than 3 weeks when it lost 378.38 points or 1.48% at the day's low of 25,027.95 in morning trade. The barometer index fell 175.98 points or 0.69% at the day's high of 25,230.35 at the onset of the trading session. The Nifty hit its lowest level in more than 3 weeks when it fell 117.85 points or 1.52% at the day's low of 7,623.15 in morning trade. The index lost 66.05 points or 0.85% at the day's high of 7,674.95 at the onset of the trading session.
In overseas stock markets, trading in mainland China was suspended for the rest of the day after the CSI 300 index tumbled more than 7% in early trade, triggering the market's circuit breaker for a second time this week. China's central bank again surprised markets by setting onshore yuan's value lower to the US dollar, sending the domestic stock markets tumbling. The People's Bank of China continued to fix the onshore yuan's value lower to the US dollar, at 6.5646, down 0.51% from the previous day's closing level, the biggest move since 13 August 2015, after the yuan's devaluation.
US stock futures pointed to losses for US stocks at the opening bell. Trading in US index futures indicated that the Dow Jones Industrial Average could slide 168.50 points at the opening bell. US stocks closed sharply lower yesterday, 6 January 2015, pressured by continued concerns about global economic growth, declining oil prices and increased geopolitical tensions.
Closer home, the broad market depicted weakness. There were more than four losers against every gainer on BSE. 1,758 shares declined and 413 shares rose. A total of 60 shares were unchanged. The BSE Mid-Cap index was currently off 1.44%. The BSE Small-Cap index was currently off 1.82%. The decline in both these indices was higher than Sensex's decline in percentage terms.
Metal and mining stocks edged lower amid concerns over China's economic growth. Vedanta (down 4.11%), Jindal Steel & Power (down 3.75%), Tata Steel (down 2.98%), Hindalco Industries (down 2.67%), Steel Authority of India (down 2.4%), Hindustan Zinc (down 3.18%), National Aluminium Company (down 2.85%), JSW Steel (down 1.61%) and NMDC (down 1.43%) declined. China is the world's largest consumer of steel, copper and aluminum.
Meanwhile, the High Grade Copper for March 2016 delivery was currently down 0.91% at $2.069 per pound on the COMEX.
Cement stocks declined. Ambuja Cements (down 2.73%), UltraTech Cement (down 2.03%), Shree Cement (down 1.56%) and ACC (down 1.16%) edged lower.
Grasim Industries was off 1.26% at Rs 3,601.05. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Concerns about Chinese demand sent shares of Tata Motors sliding. The stock was off 3.2% at Rs 354. China is a key market for Tata Motors' British luxury car unit Jaguar Land Rover (JLR).
NBCC rose 0.73% at Rs 1,014.50 after the company announced after market hours yesterday, 6 January 2016, that it has secured contracts worth about Rs 8523 crore in December 2015. Of the total business, the company said works worth Rs 8195 crore were related to project management consultancy (PMC) and projects worth Rs 328 crore were related to the engineering, procurement and construction (EPC) business. In a separate announcement after market hours yesterday, 6 January 2016, NBCC said it has secured a contract worth Rs 294.78 crore from IIT Mandi for construction of academic building, guest house, gymnasium, hospital and auditorium in the IIT Mandi campus.
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