After languishing in red in mid-morning trade, key benchmark indices extended losses in early afternoon trade. At 12:27 IST, the barometer index, the S&P BSE Sensex, was off 207.54 points or 0.79% at 25,913.86. The losses for Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was currently off 73.75 points or 0.93% at 7,841.45. The Sensex was currently trading below the psychological 26,000 level, having alternately moved above and below that mark in intraday trade. Earlier, the Sensex fell below the psychological 26,000 level in early trade.
The market breadth indicating the overall health of the market turned negative from positive in early afternoon trade. On BSE, 1,218 shares declined and 1,076 shares rose. A total of 107 shares were unchanged. The BSE Mid-Cap index was currently off 0.91%. The decline in this index was higher than Sensex's decline in percentage terms. The BSE Small-Cap index was currently off 0.14%. The decline in this index was lower than Sensex's decline in percentage terms.
Overseas cues were negative. Asian stocks edged lower amid strengthening prospects for higher US interest rates as soon as December and the latest signal of China's weakening economy. The latest data showed that China's consumer price index rose 1.3% in October from a year earlier, slower than a 1.6% rise in September. The reading, on the heels of weak export data over the weekend, is the latest indication of China's slowdown and flagging domestic demand.
Meanwhile, stronger-than-expected US employment report for October 2015 has increased the odds of a Federal Reserve rate increase in December. The Fed-funds futures market is now pricing in 68% probability of an increase in US benchmark interest rate in December 2015. Investors in emerging markets, including India are worried that once the Fed starts raising interest rates, it will drain liquidity from global emerging markets and redirect it to developed economies. The Fed has held its benchmark short-term interest rate near zero since December 2008. The ultra-loose monetary policy in the US has encouraged heavy investment in higher-yielding emerging markets. The next monetary policy review from the Fed is scheduled on 15-16 December 2015.
Auto stocks edged higher on renewed buying. Bajaj Auto (up 2.03%), Mahindra & Mahindra (up 1.17%), Hero MotoCorp (up 1.16%), Ashok Leyland (up 0.45%), Maruti Suzuki India (up 0.95%), Tata Motors (up 0.11%) and TVS Motor Company (up 0.12%) gained. Eicher Motors (down 1.06%) edged lower.
Pharma stocks declined. GlaxoSmithkline Pharmaceuticals (down 1.47%), Divi's Laboratories (down 0.57%), Lupin (down 0.74%), Cipla (down 0.75%), Ipca Laboratories (down 0.51%) and Wockhardt (down 0.89%) edged lower. Strides Arcolab (up 0.89%) and Glenmark Pharmaceuticals (up 0.35%) edged higher.
Dr Reddy's Laboratories edged lower, with the stock extending its recent sharp decline triggered by warning from the US drug watchdog over three of its plants. The stock was off 4.36% at Rs 3,351.90. The stock had slumped 17.58% in the preceding two trading sessions to settle at Rs 3,504.60 yesterday, 9 November 2015, from Rs 4,252.60 on 5 November 2015.
Sun Pharmaceutical Industries (Sun Pharma) lost 2.76% at Rs 736, with the stock extending previous trading session's decline triggered by the company reporting weak Q2 September 2015 results. The stock had fallen 5.82% to settle at Rs 756.90 yesterday, 9 November 2015.
NHPC rose 3.09% to Rs 18.35 after net profit surged 72.6% to Rs 1180.87 crore on 21% rise in total income to Rs 2813.71 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours yesterday, 9 November 2015.
Pfizer rose 0.96% to Rs 2,462 after net profit surged 3402.3% to Rs 61.64 crore on 6.4% increase in net sales to Rs 506.45 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours yesterday, 9 November 2015
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