Key benchmark indices settled with modest losses after witnessing bouts of intraday volatility amid mixed global cues and in absence of local triggers. The barometer index, the S&P BSE Sensex, dropped 66.72 points or 0.25% at 26,307.98, as per the provisional closing data. The Nifty 50 index shed 21.95 points or 0.27% at 8,082.40, as per the provisional closing data. Bank stocks led losses. Key indices extended losses for the fifth straight day today, 20 December 2016.
A bout of volatility was witnessed in late trade after indices earlier extended intraday losses after slipping into the red in mid-morning trade. Initially, a steady start was seen for the trade in positive terrain amid mixed cues in Asian stocks. The Nifty had hit lowest level in more than two-weeks and the Sensex had hit lowest level in almost two-weeks in mid-afternoon trade.
The BSE Mid-Cap index provisionally fell 1.4%. The BSE Small-Cap index provisionally dropped 0.92%. The decline in both these indices was higher than the Sensex's decline in percentage terms. The broad market depicted weakness. There were more than two losers against every gainer on BSE. 1,756 shares fell and 850 shares rose. A total of 147 shares were unchanged.
The Sensex lost 133.27 points or 0.5% at the day's low of 26,241.43 in mid-afternoon trade, its lowest level since 7 December 2016. It rose 60.86 points or 0.23% at the day's high of 26,435.56 in early trade. The Nifty lost 41.60 points or 0.51% at the day's low of 8,062.75 in mid-afternoon trade, its lowest level since 5 December 2016. It rose 19.75 points or 0.24% at the day's high of 8,124.10 in early trade.
The total turnover on BSE amounted to Rs 2459.30 crore, slightly higher than turnover of Rs 2422.75 crore registered during the previous trading session.
Bank stocks witnessed selling pressure. Among public sector bank stocks, State Bank of India (SBI) (down 2.26%), Canara Bank (down 1.88%), Union Bank of India (down 3.6%), Bank of India (down 2.22%), Punjab National Bank (down 2.33%) Syndicate Bank (down 2.94%), Indian Overseas Bank (down 0.4%), Bank of Baroda (down 2.07%), Andhra Bank (down 1.89%), Oriental Bank of Commerce (down 2.12%), Dena Bank (down 1.19%), and Indian Bank (down 4.12%), declined.
Among private sector banks, Axis Bank (down 1.16%), ICICI Bank (down 2.02%), Kotak Mahindra Bank (down 0.28%), IndusInd Bank (down 0.91%), and Yes Bank (down 2.6%) declined. HDFC Bank rose 0.79%
Mercator rose 5.78% after the company said that one of its vessels has secured a time charter contract of total value of about Rs 120 crore. The period of contract is four years, inclusive of charterers options and the charter will commence from January 2017. The announcement was made during market hours today, 20 December 2016.
Bajaj Hindusthan Sugar rose 0.21% after the company said that the board of directors of the company at a meeting held on 20 December 2016, approved sale and transfer of co-generation power business of aggregating capacity of 449 megawatts (MW) located at 14 locations to Lalitpur Power Generation Company (LPGCL), a group company for a lumpsum consideration in cash of approximately Rs 1800 crore, as a going concern on slump sale basis in accordance with the business transfer agreement to be entered into with LPGCL.
Entire amount of cash consideration is proposed to be utilised by the company towards advance repayment of its existing term debt. The proposed sale and transfer of co-generation power business will be subject to approval of members, lenders and all other statutory /regulatory authorities, the company said in a statement. The announcement was made during trading hours today, 20 December 2016.
Overseas, European stocks were mixed amid volatility, with Italian banks among the biggest gainers after news the country's government is preparing a bailout package for struggling lenders. Asian stocks were mixed after the Bank of Japan (BOJ) kept monetary policy steady while offering a brighter view of the economy today, 20 December 2016.
Japan's Nikkei 225 Average ended 0.53% higher. The BOJ maintained the 0.1% interest it charges on a portion of excess reserves that financial institutions park with the central bank. It also left unchanged its 10-year government bond yield target of around zero percent. Japan's economy is projected to grow 1.5% in inflation-adjusted terms in the fiscal year starting in April, thanks to a gradual uptick in the global economy and a recent weakening of the yen against the dollar.
US stocks closed with modest gains yesterday, 19 December 2016, in low volume trade as traders bought some recently less-favored sectors, while some top postelection plays lagged. In the economic news, the flash US Markit PMI services for December was 53.4, down slightly from 54.6 in November.
In her first speech after raising interest rates for only the second time this decade, Federal Reserve Chairwoman Janet Yellen said the US has the strongest jobs market in nearly a decade, and there are indications wage growth is picking up. But Yellen also noted the economy is growing more slowly than in past recoveries and productivity growth has been disappointing. Yellen was speaking at a University of Baltimore commencement ceremony.
The Federal Reserve had raised rates for the second time in a decade last week and surprised by forecasting three rate hikes for 2017, more than the consensus two
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
