Stocks from banking, telecom and oil sector led losses for key benchmark indices. The barometer index, the S&P BSE Sensex, fell 127.65 points or 0.51% at 24,697.39, as per the provisional closing data. The losses for the 50-unit Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty fell 53.55 points or 0.71% at 7,510.30, as per the provisional closing data. Data showing stepping up of selling of Indian stocks by foreign portfolio investors (FPIs) hit sentiment adversely.
The Sensex and the Nifty traded in negative zone for most part of the trading session. The Sensex hit its lowest level in more than 19 months when it fell 227.93 points or 0.91% at the day's low of 24,597.11 in afternoon trade. The barometer index rose 57.26 points or 0.23% at the day's high of 24,882.30 at the onset of trading session. The Nifty hit its lowest level in almost 18 months when it fell 76.05 points or 1% at the day's low of 7,487.80 in afternoon trade. The index rose 24.45 points or 0.32% at the day's high of 7,588.30 at the onset of trading session.
The broad market depicted weakness. There were almost two losers against every gainer on BSE. 1,847 shares fell and 942 shares rose. A total of 165 shares were unchanged. The BSE Mid-Cap index was provisionally down 0.94%. The BSE Small-Cap index was provisionally down 1.03%. The fall in both these indices was higher than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 2631 crore, lower than turnover of Rs 2917.95 crore registered during the previous trading session.
In overseas stock markets, European shares edged higher as stocks of retailers rose following some positive company updates. Asian stocks witnessed a mixed trend. US stocks eked out small gains yesterday, 11 January 2016, after dipping in and out of negative territory as a deepening rout in oil prices hit the energy sector on the heels of the worst weekly start ever to a new year.
IndusInd Bank fell 3.31% to Rs 906.55. The bank announced during market hours today, 12 January 2016, that its net profit rose 29.92% to Rs 581.02 crore on 22.05% rise in total income to Rs 3766.70 crore in Q3 December 2015 over Q3 December 2014. On absolute basis, IndusInd Bank's gross non-performing assets (NPAs) stood at Rs 681.13 crore as on 31 December 2015, compared with Rs 602.10 crore as on 30 September 2015 and Rs 672.66 crore as on 31 December 2014. The ratio of gross NPAs to gross advances stood at 0.82% as on 31 December 2015 as against 0.77% as on 30 September 2015 and 1.05% as on 31 December 2014. The ratio of net NPAs to net advances stood at 0.33% as on 31 December 2015 as against 0.31% as on 30 September 2015 and 0.32% as on 31 December 2014. The bank's capital adequacy ratio (CAR) as per Basel III norms stood at 16.43% as on 31 December 2015, compared with 16.52% as on 30 September 2015 and 12.39% as on 31 December 2014.
L&T rose 0.53% at Rs 1,181 after the company's construction division won orders worth Rs 1247 crore in the buildings & factories and power transmission & distribution segments. The stock hit a high of Rs 1,199.95 and a low of Rs 1,174 in intraday trade.
Shares of housing finance companies edged lower after stock market regulator Securities and Exchange Board of India (SEBI) lowered the additional exposure limit provided for mutual funds' investment in debt instruments of housing finance companies (HFCs) within the finance sector to 5% of the net asset value (NAV) of the scheme from existing 10%. GRUH Finance (down 5.94%), Indiabulls Housing Finance (down 3.26%), Can Fin Homes (down 3.24%), Dewan Housing Finance Corporation (down 3.24%) and LIC Housing Finance (down 1.83%), edged lower. This is part of the Sebi's decision to tighten norms on mutual funds' investment in debt instruments with a view to mitigate risks arising on account of high levels of exposure in the wake a crisis recently at JPMorgan Asset Management Company due to a payment default on debentures by Amtek Auto.
Index heavyweight and housing finance major HDFC fell 0.92% to Rs 1,152.10. The stock hit high of Rs 1,176 and low of Rs 1,145.60 in intraday trade. The company announced after market hours yesterday, 11 January 2016, that HDFC Standard Life Insurance Company, a material subsidiary of the company, on 10 January 2016, incorporated a wholly-owned subsidiary in the Dubai International Financial Centre (DIFC) called the HDFC International Life and Re Company (HILRCL) with an initial capital outlay of $12.33 million. Further, HILRCL will operate in DIFC, and shall shortly commence its business operations, subject to completion of further regulatory formalities for obtaining the final license from the Dubai Financial Services Authority. HILRCL would be in the business of offering reinsurance capacity to ceding insurers and may also foray into directly underwriting insurance contracts, subject to receipt of necessary approvals. It would initially offer reinsurance capacity in the UAE and subsequently expand to other jurisdictions, using either of the aforesaid business models.
Telecom shares witnessed selling pressure. Reliance Communications (down 4.66%), Idea Cellular (down 4.64%), MTNL (down 2.01%), Bharti Airtel (down 1.65%) and Tata Teleservices (Maharashtra) (down 1.28%), edged lower.
Cement shares also witnessed selling pressure. UltraTech Cement (down 2.14%), Ambuja Cements (down 1.06%) and ACC (down 1%) edged lower.
Grasim Industries was down 1.96%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Data showing stepping up of selling of Indian stocks by foreign portfolio investors (FPIs) hit sentiment on the bourses adversely. Foreign portfolio investors (FPIs) sold shares worth a net Rs 1319.24 crore yesterday, 11 January 2016, as per provisional data released by the stock exchanges. The outflow was substantially higher than the figure of Rs 677.80 crore for the preceding trading session on 8 January 2016.
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