Trading for the week ended on a negative note as weakness in global stocks pulled Indian stocks lower. The barometer index, the S&P BSE Sensex, fell 284.56 points or 1.1% to 25519.22, as per the provisional closing data. The Nifty 50 index fell 82.40 points or 1.05% at 7,761.95, as per the provisional closing data. The two key benchmark indices snapped a 4-day winning streak.
The Sensex and the Nifty extended losses in late trade. The Sensex fell 322.27 points or 1.24% at the day's low of 25,481.51 in late trade. The barometer index fell 14.27 points or 0.06% at the day's high of 25,789.51 in early trade. The Nifty fell 91 points or 1.16% at the day's low of 7,753.35 in late trade. The index fell 8.20 points or 0.1% at the day's high of 7,836.15 in early trade.
Meanwhile, the government has lowered its growth forecast for the year ending 31 March 2016 (FY 2016) to 7-7.5% from 8.1-8.5% estimated in February. The revised forecast is as per the mid-year economic review tabled by the government in parliament today, 18 December 2015. The mid-year economic review reiterated that the government would meet its fiscal deficit target of 3.9% and revenue deficit target of 2.8% for the current fiscal.
According to mid-year economic review, India's macroeconomic stability has improved considerably, cushioning the economy against possible adverse external shocks. Meanwhile, the real economy is showing signs of recovery. At the same time, the improvement in growth has been uneven, powered only by private consumption and public investment. The report states that the nominal GDP growth has been declining sharply and the demand outlook going forward is mixed, which runs the risk of intensifying corporate debt burdens and impeding the investment revival that is so urgently needed.
Weakness in overseas stocks weighed on domestic bourses. Asian and European shares fell after losses for US stocks overnight. Japanese stocks edge lower amid high volatility. The Nikkei 225 Average lost 1.9%. The Bank of Japan surprised financial markets by announcing additional measures to its three-year old easing program after the conclusion of two-day monetary policy meeting.
The market breadth indicating the overall health of the market turned negative from positive in late trade. On BSE, 1,399 shares fell and 1,301 shares rose. A total of 206 shares were unchanged. The BSE Mid-Cap index provisionally rose 0.08%, outperforming the Sensex. The BSE Small-Cap index provisionally fell 0.24%. The decline in this index was lower than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 2818 crore, lower than turnover of Rs 3149.45 crore registered during the previous trading session.
Index heavyweight Reliance Industries fell 1.72% at Rs 991. The stock hit a high of Rs 1,009 and a low of Rs 990.15 in intraday trade.
Index heavyweight and cigarette major ITC fell 1.08% at Rs 317. The stock hit a high of Rs 323 and a low of Rs 316.70 in intraday trade.
IT stocks edged lower after reports suggested that a bill proposing doubling of visa fees on highly skilled foreign workers will come up for vote in the US Congress today, 18 December 2015. HCL Technologies (down 1.66%), TCS (down 1.45%), Tech Mahindra (down 1.12%), MindTree (down 0.62%), Wipro (down 0.4%) and Persistent Systems (down 0.02%), edged lower. Oracle Financial Services Software (up 0.04%), Hexaware Technologies (up 0.08%) and MphasiS (up 0.19%), edged higher.
Index heavyweight and IT major Infosys fell 2.08% at Rs 1,083.90. The stock hit a high of Rs 1102.95 and a low of Rs 1080.10 in intraday trade.
US Congress is set to pass a Bill that will effectively double the fees for H1B and L1 visas to $4,000 and $4,500, according to media reports. Investors are concerned that companies in the US relying on highly skilled foreign workers will have to pay more for their visas.
Shares of Bajaj Auto dropped 1.95% at Rs 2,475.10 after a sharp slide in Argentina's currency peso. The peso tumbled more than 25% yesterday, 17 December 2015, after the new government of President Mauricio Macri reportedly said that it would lift currency controls to attract investors and kick-start the economy. Reports suggest that Argentina is a key export market for two-wheeler major Bajaj Auto. The company gets around 20% of its revenue from exports to Latin America, as per reports.
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