After hitting intraday low in afternoon trade, the key benchmark indices recovered from lower levels in mid-afternoon trade. At 14:18 IST, the barometer index, S&P BSE Sensex was down 43.37 points or 0.15% at 28,062.84. The Nifty 50 index was down 10.15 points or 0.12% at 8,699.40. The Sensex was currently hovering a above the psychologically important 28,000 mark. The index swung above and below that level after dropping below that mark in early afternoon trade. Domestic bourses are trading lower in tandem with global stocks as investors looked ahead to a key employment report.
The Sensex fell 141.30 points or 0.5% at the day's low of 27,964.91 in afternoon trade, its lowest level since 3 October 2016. The barometer index rose 49.47 points or 0.18% at the day's high of 28,155.68 in early trade. The Nifty lost 45.75 points or 0.52% at the day's low of 8,663.80 in afternoon trade, its lowest level since 3 October 2016. The index rose 14.15 points or 0.16% at the day's high of 8,723.70 in early trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,341 shares fell and 1,323 shares rose. A total of 228 shares were unchanged. The BSE Mid-Cap index was down 0.07%. The BSE Small-Cap index was off 0.12%. The fall in both these indices was lower than Sensex's decline in percentage terms.
Index heavyweight and housing finance major HDFC lost 1.29% to Rs 1,405.50. The stock hit high of Rs 1,425 and low of Rs 1,398.60 so far during the day.
Index heavyweight and software major Infosys fell 1.23% to Rs 1,014. The stock hit high of Rs 1,032.75 and low of Rs 1,012.20 so far during the day.
Most pharma shares declined. Cipla (down 1.62%), Dr Reddy's Laboratories (down 0.74%), Sun Pharmaceutical Industries (down 0.18%), GlaxoSmithKline Pharmaceuticals (down 0.16%), Aurobindo Pharma (down 0.04%) and Wockhardt (down 0.54%) fell. Alkem Laboratories (up 0.08%), Cadila Healthcare (up 0.31%), Glenmark Pharmaceuticals (up 0.69%), Lupin (up 1.03%) rose.
Bank stocks saw mixed trend. Among private bank stocks, HDFC Bank (down 0.33%), ICICI Bank (down 0.48%), IndusInd Bank (down 0.31%) and Yes Bank (down 0.3%) declined. RBL Bank (up 1.84%) and Axis Bank (up 0.95%) rose.
Kotak Mahindra Bank rose 0.2%. The bank announced that it has revised its base rate downwards by 10 basis points (bps) to 9.4% per annum with effect from 7 October 2016. All categories of loans (other than the exceptions permitted by RBI) will be priced with reference to the revised base rate. The announcement was made after market hours yesterday, 6 October 2016.
Among PSU bank stocks, State Bank of India (SBI) (up 0.72%), Punjab National Bank (up 1.23%), and Union Bank of India (up 0.13%) rose. Corporation Bank (down 1.27%), Bank of Baroda (down 0.3%), Canara Bank (down 0.52%), Vijaya Bank (down 0.37%), Bank of India (down 0.04%) fell.
IDBI Bank rose 2.86% on reports the government is looking to get the bank's stalled disinvestment plan moving again. The Government of India (GoI) has reportedly instructed IDBI Bank's management to bring its stake down to 52%. Retaining a majority, the government hopes, will allow the asset-sale programme smoother passage and eventually help achieve the ambition of transforming IDBI Bank along the lines of Axis Bank, reports suggested. The GoI currently held 73.98% stake in IDBI Bank (as per the shareholding pattern as on 30 June 2016).
Meanwhile, IDBI Bank in its clarification issued to the stock exchanges during market hours today, 7 October 2016 said that it has so far not received any official communication from the government in this regard. Further, the matter has also not been discussed by the board of directors of the bank, it added.
In overseas stock markets, European and Asian stocks declined as investors looked ahead to a key employment report. Markets in China remained closed for the Golden Week public holidays. US stocks closed near the flat line yesterday, 6 October 2016 as investors abstained from making big bets ahead of much-anticipated September jobs report. The US Bureau of Labor Statistics will announce the non farm payrolls report for September 2016 later in the global day today, 7 October 2016. Total nonfarm payroll employment in the United States increased by 151,000 in August of 2016, lower than a upwardly revised 275,000 in July. Investors and traders have been keeping a close eye on economic data as they gauge the likelihood of the US Federal Reserve raising interest rates later this year.
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