Key benchmark indices extended losses and hit fresh intraday low in afternoon trade. At 13:17 IST, the barometer index, the S&P BSE Sensex was down 193.10 points or 0.8% at 23,868.94. The 50-unit Nifty 50 index was currently down 56.05 points or 0.77% at 7,253.25. The Sensex hovered below the psychological 24,000 mark after falling below that mark in early afternoon trade. Weakness in Asian stocks weighed on the domestic bourses.
The Sensex fell 200.04 points or 0.83% at the day's low of 23,862 in afternoon trade. The barometer index jumped 289.79 points or 1.2% at the day's high of 24,351.83 at the onset of the trading session, its highest level since 19 January 2016. The Nifty fell 59.30 points or 0.81% at the day's low of 7,250 in afternoon trade. The index rose 89.40 points or 1.22% at the day's high of 7,398.70 at the onset of the trading session.
The market breadth indicating the overall health of the market was negative. On BSE, 1,323 shares declined and 1,051 shares rose. A total of 166 shares were unchanged. The BSE Mid-Cap index was currently off 0.55%. The fall in this index was lower than Sensex's decline in percentage terms. The BSE Small-Cap index was currently up 0.02%, outperforming the Sensex.
In overseas stock markets, modest early gains in Asian markets were wiped out as bearish sentiment took hold in late afternoon trading as interest rates in Hong Kong climbed and Bank of Japan Governor Haruhiko Kuroda said the bank wasn't considering using negative interest rate policy to help the country's economy. In mainland China, Shanghai Composite ended 3.23% lower after extending losses towards the close of the trading session. In Hong Kong, the Hang Seng index was currently off 1.65%. In Japan, the Nikkei 225 Average ended 2.43% lower. US stocks ended a wild session sharply lower yesterday, 20 January 2016, but trimmed heavier losses scored earlier in the session as a modest bounce off session lows by crude-oil prices provided some relief.
IT stocks were mixed. Tech Mahindra (up 3.02%), Infosys (up 0.71%), and Wipro (up 0.89%) edged higher. HCL Technologies (down 0.17%) and TCS (down 0.61%) declined.
KPIT Technologies dropped 3.78% after consolidated net profit fell 2.12% to Rs 73.49 crore on 0.09% rise in revenue to Rs 812.99 crore in Q3 December 2015 over Q2 September 2015. The result was announced after market hours yesterday, 20 January 2016. KPIT Technologies said that the EBITDA (earnings before interest, taxes, depreciation and amortization) margin improved by 0.57% to 14.59% in Q3 December 2015 compared with 14.02% in Q2 September 2015 despite the loss in revenue due to furloughs.
Shares of metal and mining stocks were mixed. Bhushan Steel (down 0.83%), Vedanta (down 1.02%), NMDC (down 3.09%), Steel Authority of India (down 1.33%), JSW Steel (down 1.12%), and Hindustan Zinc (down 0.9%) edged lower. Jindal Steel & Power (up 1.72%), Hindalco Industries (up 0.07%) and National Aluminium Company (up 0.44%) gained.
Tata Steel rose 0.6% after the company announced that its group company TS Global Minerals Holdings has signed an in-principle agreement with the Government of Quebec. This undertaking should lead to a decision, before 31 March 2016, with respect to a government participation in the direct shipping ore project (DSO Project) in Schefferville area, in the North Shore region, Tata Steel said. Parties also agreed to cooperate in creating favorable conditions in the transit activities of iron ore from Arnaud Junction to the multi-user dock of the Port of Sept-iles.
Tata Steel through its subsidiary Tata Steel Minerals Canada is completing a direct shipping ore project in Schefferville, in which the company has invested more than 1 billion Canadian dollar. The company plans to develop its DSO deposits in Quebec with the Government of Quebec.
Meanwhile, Reserve Bank of India (RBI) Governor Raghuram Rajan has reportedly said that investors will look at stable emerging markets (EM), including India once the volatility in global markets subsides. On the RBI's monetary policy stance next month, Rajan reportedly said that the rest of the world is facing a deflationary environment and that will help India disinflate. The RBI's next monetary policy review is scheduled on 2 February 2016. On the sharp drop in the Indian rupee, Rajan was quoted as saying that the Indian currency has been relatively strong when compared to other EM currencies.
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