After an intraday slide, the key benchmark indices staged a recovery in mid-afternoon trade. At 14:25 IST, the barometer index, the S&P BSE Sensex, was down 151.04 points or 0.58% to 25,889.66. The Nifty 50 index was currently down 53.70 points or 0.67% at 7,932.05. The Sensex was currently trading below the psychological 26,000 mark, after sliding below that level at the onset of the day's trading session. Market sentiment was impacted after Prime Minister Narendra Modi on Saturday, 24 December 2016, hinted at increase in taxes on income from stock market.
After opening lower, the key benchmark indices lost ground quickly on the first trading day of the week, as market reacted to statements made by Prime Minister Narendra Modi on Saturday, 24 December 2016, hinting at increase in taxes on income from stock markets. Later, indices hovered in a narrow range near their intraday lows and languished In the red so far during the session.
However, Finance Minister Arun Jaitley clarified on Sunday, 25 December 2016 stating that media reports of Modi's speech are erroneous, adding further that the government has no plans to introduce long-term capital gains tax on share transactions.
The side counters continued their recent drubbing. The BSE Mid-Cap index was currently down 1.63%. The BSE Small-Cap index was currently down 1.49%. The fall in both these indices was higher than the Sensex's decline in percentage terms.
The broad market depicted weakness with over three losers against every gainer on BSE. 1,929 shares fell and 565 shares rose while a total of 139 shares were unchanged.
Index heavyweight and cigarette major ITC rose 0.02% to Rs 224.85. The stock was volatile. The stock hit a high of Rs 225.65 and low of Rs 222.05 so far during the day.
FMCG stocks fell. Marico (down 2.19%), Britannia Industries (down 0.91%), GlaxoSmithkline Consumer Healthcare (down 0.54%), Colgate-Palmolive (India) (down 0.73%), Dabur India (down 0.3%), Nestle India (down 0.66%), Tata Global Beverages (down 1.22%), Procter & Gamble Hygiene and Health Care (down 1.09%), Jyothy Laboratories (down 1.42%) and Bajaj Corp (down 0.07%) fell. Godrej Consumer Products (up 0.22%), Hindustan Unilever (up 1.23%) rose.
Divi's Laboratories fell 10.76% to Rs 772.90, extending Friday's slump triggered by media reports of adverse observations from the US drug regulator made on its Vizag facility in Andhra Pradesh. Shares of Divi's Laboratories slumped 21.87% to Rs 866.10 on Friday, 23 December 2016, following media reports of adverse observations from the US Food and Drug Administration (USFDA) made on its Vizag facility in Andhra Pradesh. Divis Laboratories is in the process of replying to the observations raised by USFDA. Due process of reply to these observations requires Divis Laboratories to respond in detail and this is being done in time, the company said in a response to the clarification sought by the stock exchanges on the steep fall. These observations have not impacted the company's operations, the company added. USFDA inspected the Unit-2 plant from 29 November 2016 to 6 December 2016 and issued a Form 483 with five observations pertaining to breaches in data integrity, improper controls and violations of current good manufacturing practices (cGMP). The company issued the clarification after market hours on Friday, 23 December 2016.
Gujarat Pipavav Port tumbled 4.7% to Rs 123.60 on reports that a foreign brokerage has maintained reduce rating on the stock with a target price of Rs 110.
Overseas, Asian stocks were trading on a mixed note in light trading amid most Asian markets remaining closed on account of Christmas. All the major European stock markets, many Asian markets including Hong Kong, Australia, Singapore, Indonesia and Malaysia, and the stock markets in the US are closed today, 26 December 2016 in observance of Christmas holiday.
US stocks ended a thinly traded session higher on Friday, 23 December 2016 boosted by healthcare companies. In the latest economic data, new home sales rose 5.2% in November, advancing to their second-highest pace since early 2008. Separately, the final December reading on consumer sentiment rose, the latest sign of postelection optimism.
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