After extending losses in mid-morning trade, key benchmark indices trimmed losses in early afternoon trade. At 12:17 IST, the barometer index, the S&P BSE Sensex, was down 94.77 points or 0.38% at 24,564.46. The losses for the Sensex were higher in percentage terms than those for the 50-unit Nifty 50 index. The Nifty was currently down 20.05 points or 0.27% at 7,465.25.
The market breadth indicating the overall health of the market was negative. On BSE, 1,289 shares fell and 970 shares rose. A total of 106 shares were unchanged. The BSE Mid-Cap index was currently up 0.21%, outperforming the Sensex. The BSE Small-Cap index was currently down 0.39%. The decline in this index was higher than the Sensex's decline in percentage terms.
In overseas stock markets, Asian stocks witnessed a mixed trend as investors awaited the outcome of European Central Bank's (ECB) monetary policy meeting tomorrow, 10 March 2016. Chinese stocks lost ground in the aftermath of a disappointing trade data announced during the previous trading session. In mainland China, the Shanghai Composite was currently down 2.09%. Hong Kong's Hang Seng was down 0.32%. US stocks snapped five-day winning streak to close lower yesterday, 8 March 2016, as supply woes weighed on oil prices and worries about a prolonged slowdown in China resurfaced.
The ECB is widely expected to announce further easing of monetary policy tomorrow, 10 March 2016, in a bid to boost low inflation and support economic recovery in the euro zone. Expectations are that the ECB will cut its deposit rate further into negative zone from current minus 0.3% and increase its bond-purchase program by euro 10 billion to euro 70 billion a month.
Shares of steel makers declined as steel futures in China dropped after a recent rally. Steel Authority of India (down 3%), Bhushan Steel (down 2.32%), Tata Steel (down 2.28%) and JSW Steel (down 0.58%), edged lower.
Jindal Steel and Power (JSPL) lost 3.7% to Rs 63.80 on reports that a group of foreign lenders of JSPL are exploring the decision of recalling loans adding up to $550 million from the company with the leveraged group failing to comply with loan covenants ahead of the repayment schedule that starts next month. Among other things, this extreme step from the lenders has been triggered by JSPL's inability to service $25 million unsecured loan from a large Japanese bank, reports added.
Most cement shares edged higher. UltraTech Cement (up 1.05%) and Ambuja Cements (up 0.97%), edged higher. ACC was down 0.11%.
Grasim Industries was up 0.96%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Tata Power Company was down 0.09% at Rs 58.75. The company announced during trading hours today, 9 March 2016, that its wholly owned subsidiary Tata Power Renewable Energy has signed a share purchase agreement with Indo Rama Renewables (IRRL) to acquire its wholly owned subsidiary Indo Rama Renewables Jath (IRRLJ), which owns a 30 megawatts wind farm in Sangli district in Maharashtra. IRRLJ has annual turnover of about Rs 35 crore. The acquisition will help Tata Power Renewable Energy expand its wind portfolio.
Shaily Engineering Plastics rose 3.95% after DSP Blackrock Emerging Stars Fund bought 4.5 lakh shares of the company at Rs 500 per share in a bulk deal on the BSE yesterday, 8 March 2016. Haresh Babubhai Shah sold 1.15 lakh shares, Shailesh Pritamlal Gadhia sold 1.44 lakh shares, Swati Sanjay Shah sold 1.49 lakh shares and Tushar Dineshchandra Shah sold 50,000 shares. These shares were sold at an average price of Rs 500 per share. Haresh Babubhai Shah held 1.38% stake while Shailesh Pritamlal Gadhia held 1.79% stake and Swati Sanjay Shah held 2.91% stake in Shaily Engineering Plastics (as per the shareholding pattern as on 31 December 2015).
Future Consumer Enterprise rose 1.17% after the company said that its board of directors in-principally approved entering into a joint venture arrangement with LT Foods for possible opportunities to manufacture, market and distribute rice and other products. Shares of LT Foods were up 1.88%. Future Consumer Enterprise made the announcement after market hours yesterday, 8 March 2016.
Future Consumer Enterprise said that the company's board of directors at a meeting held yesterday, 8 March 2016, considered and has in-principally approved entering into a joint venture arrangement with LT Foods, a company undertaking the business of rice, for possible opportunities to manufacture, market and distribute rice and other products. Future Consumer Enterprise further said that the board of directors of the company was appraised on the perceived strategy for the company. The board was provided with an in-depth understanding for the business opportunities and the plan to build the company as an Indian food and FMCG company for the next generation, Future Consumer Enterprise said.
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