Banking, telecom and index heavyweights ITC and Infosys led modest-to-strong losses for key benchmark indices. The barometer index, the S&P BSE Sensex, fell 231.94 points or 0.87% to settle at 26,515.24. The Nifty 50 index fell 90.95 points or 1.10% to settle at 8,170.80. Weakness in European stocks weighed on sentiment on the domestic bourses. Adding to global cues, domestic data over the weekend showing decline in the industrial production in October affected investors' sentiment.
Overseas, European stocks edged lower as investors await another rate decision from the US Federal Reserve later this week. Asian stocks witnessed a mixed trend. In Japan, the Nikkei 225 index closed 0.84% higher. Japan's October core machinery orders rose for the first time in three months to beat expectations, government data showed. Core orders, regarded as an indicator of capital spending in the coming six to nine months, rose 4.1% in October from the previous month.
US major stock indices continued their recent winning streak, closing at all-time highs on Friday, 9 December 2016. All major indexes have been hitting record highs since the election amid hopes that the Trump administration will usher in tax cuts, deregulation and fiscal stimulus.
Back home, the Sensex fell 231.94 points or 0.87% to settle at 26,515.24, its lowest closing level since 7 December 2016. The index fell 21.87 points, or 0.08% at the day's high of 26,725.31. The index fell 278.59 points, or 1.04% at the day's low of 26,468.59.
The Nifty 50 index fell 90.95 points or 1.10% to settle at 8,170.80, its lowest closing level since 7 December 2016. The index fell 31.10 points, or 0.38% at the day's high of 8,230.65. The index fell 107.30 points, or 1.30% at the day's low of 8,154.45.
The BSE Mid-Cap index lost 1.11%. The decline in this index was higher than the Sensex's decline in percentage terms. The BSE Small-Cap index fell 0.73%. The decline in this index was lower than the Sensex's decline in percentage terms.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,533 shares declined and 1,097 shares rose. A total of 148 shares were unchanged.
The total turnover on BSE amounted to Rs 2095.26 crore, lower than turnover of Rs 2399.56 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Auto index (down 1.73%), the S&P BSE Bankex (down 1.67%), the S&P BSE Consumer Discretionary Goods & Services index (down 1.54%), the S&P BSE Finance index (down 1.45%), the S&P BSE Basic Materials index (down 1.31%), the S&P BSE Telecom index (down 1.28%), the S&P BSE FMCG index (down 1.2%) and the S&P BSE Oil & Gas index (down 1.14%), undderperformed the Sensex. The S&P BSE Consumer Durables index (down 0.77%), the S&P BSE Industrials index (down 0.68%), the S&P BSE Teck index (down 0.62%), the S&P BSE Energy index (down 0.56%), the S&P BSE Realty index (down 0.5%), the S&P BSE Healthcare index (down 0.46%), the S&P BSE IT index (down 0.41%), the S&P BSE Metal index (down 0.27%), the S&P BSE Capital Goods index (down 0.21%), the S&P BSE Power index (down 0.1%) and the S&P BSE Utilities index (down 0.07%), outperformed the Sensex.
Index heavyweight and cigarette major ITC lost 1.38% at Rs 232.55. The stock hit a high of Rs 236 and a low of Rs 232.30 in intraday trade.
Index heavyweight and software major Infosys fell 1% at Rs 977.50. The stock hit a high of Rs 981.50 and a low of Rs 965.45 in intraday trade.
Telecom stocks declined. Reliance Communications (down 2.44%) and Bharti Airtel (down 1.21%) edged lower.
Bharti Infratel fell 1.73% to Rs 351.90. Bharti Infratel is a telecom tower arm of Bharti Airtel.
Idea Cellular declined 1.56%. The company said it proposes to issue non-convertible debentures amounting to Rs 1500 crore on private placement basis. The tenure of debentures is 5 years with a coupon/interest of 7.57% per annum. The announcement was made after market hours on Friday, 9 December 2016.
Bank stocks declined. Among the public sector banks, Punjab National Bank (down 3.18%), Canara Bank (down 3.03%), Union Bank of India (down 1.98%), IDBI Bank (down 1.95%), Bank of Baroda (down 1.94%), Syndicate Bank (down 1.91%), Indian Bank (down 1.65%), Allahabad Bank (down 1.35%), Andhra Bank (down 1.34%), Bank of India (down 1.15%), Dena Bank (down 1.15%), Corporation Bank (down 0.99%), United Bank of India (down 0.71%), Bank of Maharashtra (down 0.51%), UCO Bank (down 0.29%) and Punjab & Sind Bank (down 0.2%), edged lower. Vijaya Bank rose 1.41%.
State Bank of India (SBI) fell 0.98% to Rs 263.40. The bank announced that the executive committee of the central board (ECCB) of the bank at a meeting held on Friday, 9 December 2016, approved divestment of 3.9 crore equity shares constituting 3.9% stake in SBI Life Insurance Company at a price of Rs 460 per share, subject to all regulatory approvals. The announcement was made after market hours on Friday, 9 December 2016.
Among private sector banks, Kotak Mahindra Bank (down 2.15%), Yes Bank (down 2.13%), ICICI Bank (down 1.38%), HDFC Bank (down 1.19%), Federal Bank (down 1.05%), RBL Bank (down 0.94%) and City Union Bank (down 0.78%), edged lower.
Axis Bank fell 2.56%. The bank announced the acquisition of shares representing 13.67% of the total paid up capital in Assets Care and Reconstruction Enterprise from IFCI at Rs 31 per share for cash aggregating Rs 22.72 crore. The announcement was made after market hours on Friday, 9 December 2016.
IndusInd Bank fell 2.41%. The bank announced that the finance committee of the board on Friday, 9 December 2016, allotted 15,000 unsecured redeemable non-convertible bonds in the nature of debentures for an amount of Rs 1500 crore, to the identified investors on private placement basis. The announcement was made after market hours on Friday, 9 December 2016.
On the macro front, India's industrial production declined 1.9% in October 2016 over October 2015. Twelve out of 22 industry groups in the manufacturing sector showed negative growth in October 2016. The data was released by the government after market hours on Friday, 9 December 2016.
The Sensex has risen 397.70 points or 1.52% in calendar year 2016 so far (till 12 December 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 4,020.63 points or 17.87%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 2,562.04 points or 8.81%. The Sensex is off 3,509.50 points or 11.69% from a record high of 30,024.74 hit on 4 March 2015.
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