After languishing in negative zone in morning trade, key benchmark indices extended losses in mid-morning trade. At 11:16 IST, the barometer index, the S&P BSE Sensex, was down 136.42 points or 0.54% at 25,194.07. The losses for the 50-unit Nifty 50 index were lower in percentage terms than those for the Sensex. The Nifty was currently down 34.50 points or 0.45% at 7,680.40. Asian stocks witnessed a subdued trend following lackluster cues overnight from US markets and geopolitical concerns following the deadly terror attacks in Brussels yesterday, 22 March 2016.
The Sensex fell 158.07 points or 0.62% at the day's low of 25,172.42 in mid-morning trade. The barometer index fell 8.39 points or 0.03% at the day's high of 25,322.10 in opening trade. The Nifty fell 39.40 points or 0.51% at the day's low of 7,675.50 in mid-morning trade. The index rose 3.35 points or 0.04% at the day's high of 7,718.25 at the onset of the trading session.
The market breadth indicating the overall health of the market turned negative from positive in mid-morning trade. On BSE, 1,083 shares declined and 1,013 shares rose. A total of 136 shares were unchanged. The BSE Mid-Cap index was currently off 0.07%. The fall in this index was lower than the Sensex's decline in percentage terms.The BSE Small-Cap index was currently up 0.19%, outperforming the Sensex.
In overseas stock markets, Asian stocks were trading lower following lackluster cues overnight from US markets and geopolitical concerns following the deadly terror attacks in Brussels yesterday, 22 March 2016. Most US stocks fell yesterday, 22 March 2016, as a decline in financial and consumer-staples shares weighed on the main benchmarks.
Shares of index heavyweight Reliance Industries (RIL) lost 2.06% to Rs 1,026.95 on profit booking. The stock hit high of Rs 1,047 and low of Rs 1,023 so far during the day. Shares of RIL had gained 3.24% in the preceding three trading sessions to settle at Rs 1,048.50 yesterday, 22 March 2016, from its close of Rs 1,015.55 on 17 March 2016.
Stocks of public sector banks (PSU banks) dropped after global credit rating ageny Standard & Poor's (S&P) reportedly said in a latest report on Indian banks that stand-alone credit profiles and ratings on some PSU banks could get lowered, given their weakening asset quality and capitalisation. Punjab National Bank (down 1.63%), Bank of Baroda (down 1.64%), State Bank of India (SBI) (down 0.53%), Canara Bank (down 0.78%), Andhra Bank (down 1.36%), Bank of India (down 0.66%) and Union Bank of India (down 1.57%) dropped. IDBI Bank rose 2.48%.
Stocks of private sector banks also edged lower. HDFC Bank (down 0.89%), Kotak Mahindra Bank (down 0.09%), ICICI Bank (down 0.9%), and Axis Bank (down 0.81%) declined. IndusInd Bank (up 0.58%) and Yes Bank (up 1%) rose.
S&P has reportedly said in its report that Indian banks have sizeable capital needs to support growth and meet Basel III requirements. According to the rating agency, private sector banks rated by it are better placed than their PSU peers on this front. Most PSU banks will have to rely on external capital infusion, given their reduced ability to generate internal capital, largely because of the pressure on asset quality in the past few years, the rating agency has reportedly said.
FMCG stocks declined. Britannia Industries (down 1.22%), GlaxoSmithkline Consumer Healthcare (down 1.36%), Colgate-Palmolive (India) (down 1.21%), Dabur India (down 0.28%), Hindustan Unilever (down 1.02%), Marico (down 1%), Nestle India (down 0.7%), Tata Global Beverages (down 0.7%), Jyothy Laboratories (down 0.26%) edged lower. Procter & Gamble Hygiene and Health Care (up 1.44%), Godrej Consumer Products (up 0.1%) and Bajaj Corp (up 0.17%) rose.
Shares of Aditya Birla Group companies edged higher. Hindalco Industries (up 3.28%), Idea Cellular (up 2.35%), UltraTech Cement (up 0.82%), Grasim Industries (up 0.7%) and Aditya Birla Nuvo (up 1.26%) rose.
Tata Chemicals fell 1.03% after the company announced temporary shutdown of operations at its fertiliser plant at Babrala in Uttar Pradesh for the purpose of the planned, regular, major maintenance program from 22 March 2016 for about 30 days. It added that this would not have material financial impact on the company. The announcement was made after market hours yesterday, 22 March 2016.
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