Banking and power sector stocks led decline for key benchmark indices which remained in negative zone throughout the trading session. The barometer index, the S&P BSE Sensex, fell 202.19 points or 0.74% at 27,051.25, as per the provisional closing data. The 50-unit CNX Nifty fell 61.70 points or 0.75% at 8,171.20, as per the provisional closing data. High volatility was witnessed during the latter part of the trading session as the Sensex regained the psychological 27,000 mark after falling below that level in intraday trade. The market may continue to remain volatile tomorrow, 29 October 2015, as traders roll over positions in the futures & options (F&O) segment from the near month October 2015 series to November 2015 series. The October 2015 derivatives contracts are set to expire tomorrow, 29 October 2015. The Sensex and the Nifty edged lower for third day in a row.
Weakness in Asian stocks weighed on sentiment on the domestic bourses. The Sensex hit its lowest level in almost two weeks when it fell 333.48 points or 1.22% at the day's low of 26,919.96 in late trade. The Nifty also hit its lowest level in almost two weeks when it fell 101.01 points or 1.22% at the day's low of 8,131.80 in late trade.
In overseas equity markets, stocks in China and Indonesia led decline in Asian markets as investors turned cautious ahead of the outcome of a monetary policy review from the US Federal Reserve which could provide clues about the timing of the Fed's first interest rate hike in a decade. The Fed is widely expected to leave benchmark interest rates unchanged near zero at its two-day monetary policy meeting which concludes today, 28 October 2015. European stocks edged higher after Sweden's central bank Riksbank extended its bond-buying program to boost inflation. US stocks edged lower for a second consecutive trading session yesterday, 27 October 2015, on a combination of slumping oil prices, soft economic data and mixed earnings.
The market breadth indicating the overall health of the market was negative. On BSE, 1,485 shares declined and 1,161 shares rose. A total of 188 shares were unchanged. The BSE Mid-Cap index provisionally fell 0.55%. The BSE Small-Cap index provisionally fell 0.01%. The fall in both these indices was lower than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 2693 crore, lower than turnover of Rs 2809.03 crore registered during the previous trading session.
Power sector stocks declined. NTPC (down 2.15%), Tata Power Company (down 1.9%), Reliance Infrastructure (down 1.58%), Reliance Power (down 1.21%), CESC (down 1.09%), Power Grid Corporation of India (down 2.43%), NHPC (down 0.28%), Jaiprakash Power Ventures (down 2.01%), Adani Power (down 1.32%) and JSW Energy (down 3.89%) edged lower.
Coal India fell 0.6%. GAIL (India) slipped 1.45%. Rashtriya Chemicals & Fertilizers (RCF) shed 0.4%. Coal India during market hours today, 28 October 2015, announced that Coal India (CIL), GAIL (India), Rashtriya Chemicals & Fertilizers (RCF) and Fertilizer Corporation of India (FCL) have entered into a joint venture agreement to establish and operate new coal gasification based fertilizer complex (ammonia urea complex) at Talcher along with power plant and associated facilities at Talcher unit of FCIL.
Axis Bank tumbled on concerns regarding the private sector bank's slippages in Q2 September 2015. The stock dropped 7.11% at Rs 484.25. The stock hit high of Rs 495.70 and low of Rs 477 in intraday trade. The stock had ended almost unchanged after seeing intraday volatility yesterday, 27 October 2015, in the wake of the announcement of the bank's second quarter results. According to a post earnings research report of a domestic brokerage, Axis Bank sold loans aggregating about Rs 1820 crore to asset reconstruction companies (ARCs) for net consideration of about Rs 650 crore in Q2 September 2015. Axis Bank's gross slippages were Rs 589 crore or 1% of loans in Q2 September 2015 which was lower than gross slippages of Rs 1190 crore or 2.1% of loans in Q1 June 2015. However, adjusted for Rs 1820-crore sale to ARCs, gross slippages were about Rs 2400 crore or 4% of loans in Q2 September 2015, according to the brokerage. Axis Bank's net profit rose 18.93% to Rs 1915.64 crore on 13.75% rise in total income to Rs 12001.01 crore in Q2 September 2015 over Q2 September 2014. The result was announced during market hours yesterday, 27 October 2015.
Concerns about Axis Bank's slippages weighed on stocks of other banks. ICICI Bank (down 4.04%), IndusInd Bank (down 3.1%), Yes Bank (down %) declined. HDFC Bank (up 0.04%) and Kotak Mahindra Bank (up 1.69%) rose.
Among PSU bank stocks, State Bank of India (SBI) (down 2.67%), Union Bank of India (down 1.44%), Bank of India (down 1.71%), Punjab National Bank (down 2.75%), Bank of Baroda (down 2.26%) and Canara Bank (down 2.36%) fell. IDBI Bank rose 0.23%.
Hero MotoCorp slipped 0.12%. Hero MotoCorp has launched its new scooter Duet in the southern markets. The company has launched two versions of the scooter, with the base LX version priced at Rs 48,400 ex-showroom Bangalore and the higher version VX priced at Rs 49,900 ex-showroom Bangalore.
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