Key benchmark indices extended losses and hit fresh intraday low in afternoon trade after European stocks opened lower. At 13:15 IST, the barometer index, the S&P BSE Sensex was down 210.70 points or 0.78% at 26,809.96. The Nifty 50 index was currently down 54.50 points or 0.66% at 8,218.55. The Sensex remained below the psychologically important 27,000 mark so far during the day after sliding below that mark in early trade. The market sentiment was affected adversely on worries that the recent gains in crude oil prices could adversely impact India's fiscal deficit situation and increase fuel price inflation as India imports about 80% of its crude requirements. Weakness in Asian stocks also dampened sentiment.
In global commodities markets, crude oil prices firmed up buoyed by a fall in US crude inventories, a weaker dollar and strong demand. Brent for August settlement was currently up 9 cents at $52.60 a barrel. The contract had risen $1.07 a barrel or 2.08% to settle at $52.51 a barrel during the previous trading session.
The Sensex dropped 233.86 points or 0.87% at the day's low of 26,786.80 in afternoon trade, its lowest level since 6 June 2016. The index fell 25.75 points or 0.09% at the day's high of 26,994.91 at the onset of the trading session. The Nifty fell 61.20 points or 0.74% at the day's low of 8,211.85 in afternoon trade, its lowest level since 6 June 2016. The index rose 0.3 points at the day's high of 8,273.35 at the onset of the trading session.
In overseas markets, European shares fell in early trade today, 9 June 2016, dropping for a second straight day, with a fall in Vodafone weighing on the telecom sector and Essentra hit by a profit warning. Asian stocks declined as investors weigh risks amid the Federal Reserve's cautious stance about tightening rates. Data showed that China's consumer inflation rose less than forecast in May as pressure from high food prices eased, while producer prices recovered more than forecast. The consumer price index (CPI) rose 2% in May, compared with a 2.3% increase in April. The producer price index (PPI) fell 2.8% in May, easing from a 3.4% drop in April, and rose 0.5% month-on-month. US stocks rose yesterday, 8 June 2016 with Dow Jones Industrial Average rising above 18,000 for the first time since April as a weaker dollar lifted some commodity-related shares.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1218 shares rose and 1141 shares declined. A total of 171 shares were unchanged. The BSE Mid-Cap index was currently down 0.10%. The decline in this index was higher than the Sensex's decline in percentage terms. The BSE Small-Cap index was currently up 0.26%, outperforming the Sensex.
FMCG shares were mixed. Bajaj Corp (up 2.80%), Tata Global Beverages (up 0.72%), Jyothy Laboratories (up 0.30%), Godrej Consumer Products (up 0.18%) and Nestle India (up 0.13%), edged higher. Britannia Industries (down 0.01%), Procter & Gamble Hygiene & Health Care (down 0.33%), Colgate Palmolive (India) (down 0.69%), GlaxoSmithKline Consumer Healthcare (down 0.75%), Dabur India (down 0.83%), Marico (down 1.4%) and Hindustan Unilever (down 2.15%), edged lower.
Cement shares were mixed. ACC (up 0.30%) and UltraTech Cement (up 0.18%), edged higher.
Ambuja Cements was down 1.6%. Grasim Industries was down 0.11%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Granules India rose 2.25% after the company said its wholly owned subsidiary Granules Pharmaceuticals, Inc has acquired the exclusive rights from USpharma Windlas, LLC to market and distribute four products in US. USpharma Windlas through its subsidiaries holds abbreviated new drug applications (ANDAs) for Fingolimod, Prasugrel, Dronedarone and Lurasidone. USpharma Windlas believes it to be a first applicant to file ANDAs containing paragraph IV certifications for three of these products. USpharma Windlas will receive milestone payments and share of the profits from commercial sales. Granules Pharmaceuticals, Inc. will be responsible for the marketing and distribution of the products in the United States, subject to final approval by the US Food and Drug Administration (USFDA). According to IMS Health data, the annual US sales for four products are approximately $4.4 billion. The announcement was made during market hours today, 9 June 2016.
Tube Investments of India rose 0.87% after the bicycles division of the company announced the inauguration of its bicycle manufacturing factory in Rajpura, Punjab today, 9 June 2016. Tube Investments of India's bicycles division TI Cycles of India announced the inauguration of its state-of-the-art-bicycle manufacturing factory in Rajpura, Punjab today, 9 June 2016 to cater to the growing demand in the North and East Indian markets. TI Cycles of India is one of the leading bicycles manufacturers in India. Tube Investments of India said that the Rajpura plant is a greenfield project and is set up with the support of the Government of Punjab. The plant has been built with a capital expenditure of Rs 105 crore and has the capacity to manufacture 2.50 lakh cycles per month, with the ability to expand when required, Tube Investments of India said. It is a state-of-the-art plant with the most modern bake-on-bake painting technology, the company said. The plant will have three modern painting lines with German applicators. This new plant at Rajpura will further enhance the company's ability to bring in innovative new products to cater to changing consumer needs. It will also help the company to continually improve the quality of its products on par with best in the world, it added. The announcement was made after market hours yesterday, 8 June 2016.
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