Banking and telecom stocks led losses as key benchmark indices slumped in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was currently off 585.46 points or 2.23% at 25,697.63. Data showing slowdown in India's economic growth and weakness in global stocks hit sentiment on the domestic bourses adversely. The 50-unit CNX Nifty hit one week low. The Sensex hit its lowest level in almost a week. The Sensex was currently hovering below the psychological 26,000 level. Earlier, the Sensex regained the psychological 26,000 level after falling below that level in early trade.
The broad market depicted weakness. There were more than four losers against every gainer on BSE. The BSE Mid-Cap index was off 2.38%. The BSE Small-Cap index was off 2.46%.
Index heavyweight and housing finance major HDFC dropped. Index heavyweight and cigarette major ITC declined. Realty and cement stocks declined.
Data showing slowdown in growth in India's gross domestic product (GDP) growth to 7% in Q1 June 2015 from 7.5% in Q4 March 2015 weighed on investor sentiment.
In overseas markets, Asian and European shares edged lower after twin surveys showed China's manufacturing sector in the grip of its worst slump in several years, raising fresh fears about the health of its economy. Trading in US index futures indicated that the Dow could slide 390 points at the opening bell today, 1 September 2015.
At 14:19 IST, the S&P BSE Sensex was down 585.46 points or 2.23% at 25,697.63. The index lost 589.62 points at the day's low of 25,693.47 in mid-afternoon trade, its lowest level since 26 August 2015. The index fell 142.02 points at the day's high of 26,141.07 at the onset of the trading session.
The CNX Nifty was down 194.60 points or 2.44% at 7,776.70. The index hit a low of 7,776.10 in intraday trade, its lowest level since 25 August 2015. The index hit a high of 7,929.10 in intraday trade.
The market breadth indicating the overall health of the market was quite weak. There were more than four losers against every gainer on BSE. 2,069 shares declined and 492 shares rose. A total of 88 shares were unchanged.
The BSE Mid-Cap index was off 255.87 points or 2.38% at 10,478.55. The BSE Small-Cap index was off 270.32 points or 2.46% at 10,700.95. The fall in both these indices was higher than the Sensex's decline in percentage terms.
Index heavyweight and housing finance major HDFC dropped 2.91% to Rs 1,154.25. The stock hit high of Rs 1,180 and low of Rs 1,146.80 so far during the day.
Index heavyweight and cigarette major ITC fell 2.57% to Rs 317. The stock hit a high of Rs 324.50 and low of Rs 315.70 so far during the day.
Cement stocks fell. UltraTech Cement (down 3.23%), Ambuja Cements (down 0.58%) and ACC (down 0.84%) declined. Shree Cement rose 1.38%.
Grasim Industries was off 1.75% at Rs 3,378.75. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Realty stocks declined sharply. DLF (down 4.15%), Indiabulls Real Estate (down 5.25%), Housing Development and Infrastructure (down 3.25%), D B Realty (down 2.55%), Unitech (down 3.79%), Sobha (down 0.95%), Godrej Properties (down 5.37%), Oberoi Realty (down 2.76%) and Parsvnath Developers (down 2.73%) declined.
On the macro front, India's gross domestic product (GDP) growth at constant (2011-12) prices slowed down to 7% in Q1 June 2015 from 7.5% growth recorded in Q4 March 2015, government data released after market hours yesterday, 31 August 2015 showed. Quarterly gross value added (GVA) at Basic Price at constant (2011-2012) prices exhibited recovery in growth to 7.1% in Q1 June 2015 from 6.1% growth recorded in Q4 March 2015.
Another data released by government after market hours yesterday, 31 August 2015 showed that the Eight Core Industries, carrying 38% weight in the Index of Industrial Production (IIP), recorded 1.1% growth in July 2015, showing moderation from 3% growth recorded in the previous month. Its cumulative growth during April to July, 2015-16 was 2.1%.
Meanwhile, the outcome of a monthly survey showed slowdown in growth in India's manufacturing sector last month. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) fell to 52.3 in August 2015 from July's six-month high reading of 52.7. A reading above 50 indicates an expansion in manufacturing activity, while a reading below 50 indicates a contraction.
In overseas markets, European shares edged lower today, 1 September 2015, after weak manufacturing data from China raised fresh concerns over the health of its economy and hit Asian markets. Key benchmark indices in UK, France and Germany were down by 2.68% to 1.34%.
The eurozone's manufacturing sector continued to grow in August, as ongoing expansion in Germany, Italy, Spain, the Netherlands, Austria and Ireland offset the continuing contractions in France and Greece, data released today, 1 September 2015 showed. Markit's final eurozone manufacturing Purchasing Managers' Index was 52.3 in August, below an earlier flash reading that suggested it had held steady at July's 52.4.
Asian stocks edged lower today, 1 September 2015, after activity in China's manufacturing sector slowed markedly in August, twin surveys showed today, 1 September 2015, the latest sign that the world's second largest economy is fast losing momentum. Key benchmark indices in Singapore, Taiwan, Japan, Indonesia and South Korea fell by 0.73% to 3.84%. In mainland China, the Shanghai Composite was off 1.23%. In Hong Kong, the Hang Seng index was off 2.24%.
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