Key benchmark indices settled with small losses after witnessing sudden slide in late trade today, 21 December 2016, with indices continuing with their recent string of losses. The barometer index, the S&P BSE Sensex, fell 65.60 points or 0.25% at 26,242.38, as per the provisional closing data. The Nifty 50 index fell 22.80 points or 0.28% at 8,059.60, as per the provisional closing data. Key indices dropped for the sixth straight session in a row today, 21 December 2016. The Senses hit two-week low in late trade. The Nifty hit almost four-week low in late trade.
Earlier in the session, the two key indices had hovered within a narrow range in positive terrain till mid-afternoon trade amid lacklustre trade and intermittent bouts of volatility sighting absence of any significant global cues.
The Sensex lost 94.47 points or 0.35% at the day's low of 26,213.51 in late trade, its lowest level since 7 December 2016. The index rose 88.02 points or 0.33% at the day's high of 26,396 in mid-afternoon trade. The Nifty fell 29.15 points or 0.36% at the day's low of 8,053.25 in late trade, its lowest level since 25 November 2016. The index rose 30.15 points or 0.37% at the day's high of 8,112.55 in morning trade.
The BSE Mid-Cap index provisionally fell 0.16%. The decline in this index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index provisionally rose 0.03%, outperforming the Sensex. The market breadth, indicating the overall health of the market, turned negative from positive in late trade. On the BSE, 1,390 shares fell and 1,198 shares rose. A total of 169 shares were unchanged.
The total turnover on BSE amounted to Rs 2213.68 crore, lower than turnover of Rs 2470.27 crore registered during the previous trading session.
Among sectoral stocks, IT stocks dropped. Infosys (down 0.73%), Tech Mahindra (down 0.38%), TCS (down 1.31%), Wipro (down 0.88%) and HCL Technologies (down 1.57%) edged lower.
NIIT Technologies rose 1.22% after the company said it concluded consultation process with government entity and has entered into settlement agreement. The announcement was made after market hours yesterday, 20 December 2016. In Q1 June 2016, NIIT Technologies made a provision of Rs 36.13 crore for amounts outstanding in respect of a government contract, where the programme was put on hold to resolve certain project issues.
In the latest announcement, the company said that it has concluded the consultation process with the said government entity and has entered into a settlement agreement. Accordingly, this may result in partial reversal of the provision outlined in the said note in the current financial year.
Bata India declined 0.69% after the company said that its board of directors at a meeting held today, 21 December 2016 considered and approved introduction of a voluntary retirement scheme (VRS) for all eligible employees/ workers at its Faridabad unit.
The status of implementation of VRS and financial impact thereof will be ascertained and communicated in due course. The company believes that implementation of the VRS will be beneficial for it in the long term, Bata India said. The announcement was made during trading hours today, 21 December 2016.
Overseas, European stocks were mixed amid volatility. Asian stocks were mixed amid volatility after overnight advances in US stocks. Mainland China's Shanghai Composite ended 1.11% higher. Japan's Nikkei 225 Average settled 0.26% lower for the day.
The Japanese government raised its overall assessment of the domestic economy for the first time in 21 months today, 21 December 2016, though it still took a cautious line on uncertainties in the global economy. The government said in its monthly report for December that the economy is continuing on a moderate recovery path. Previously, the government said there were spots of weakness while noting that a gradual recovery was under way.
US stocks closed with modest gains yesterday, 20 December 2016, with the Dow Jones Industrials Average and Nasdaq hitting their latest in a series of records, as the market's recent upward trend, led by a rally in bank stocks continued unabated. The market extended a rally fuelled by hopes of stronger economic growth under Donald Trump's presidency.
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