Further losses took key indices sharply lower in afternoon trade. The barometer index, the S&P BSE Sensex, was currently off 436.36 points or 1.66% at 25,846.73. Data showing slowdown in India's economic growth and weakness in global stocks hit sentiment on the domestic bourses adversely. The Sensex and the 50-unit CNX Nifty, both, hit their lowest level in almost a week. The Sensex was currently hovering below the psychological 26,000 level. Earlier, the Sensex regained the psychological 26,000 level after falling below that level in early trade.
The broad market depicted weakness. There were more than three losers against every gainer on BSE. The BSE Mid-Cap index was off 1.79%. The BSE Small-Cap index was off 1.53%.
Metal shares edged lower after twin surveys showed China's manufacturing sector in the grip of its worst slump in several years. Maruti Suzuki India edged lower after announcing new product launch. Mahindra & Mahindra (M&M) slipped after announcing monthly sales figures. Ashok Leyland declined after declaring monthly sales numbers. Yes Bank edged lower after announcing new business initiatives.
Data showing slowdown in growth in India's gross domestic product (GDP) growth to 7% in Q1 June 2015 from 7.5% in Q4 March 2015 weighed on investor sentiment.
In overseas markets, Asian and European shares edged lower after twin surveys showed China's manufacturing sector in the grip of its worst slump in several years, raising fresh fears about the health of its economy. US stocks declined yesterday, 31 August 2015, reflecting continuing concerns about the Chinese economy and uncertainty over US interest rates.
At 13:20 IST, the S&P BSE Sensex was down 436.36 points or 1.66% at 25,846.73. The index lost 454.48 points at the day's low of 25,828.61 in afternoon trade, its lowest level since 26 August 2015. The index fell 142.02 points at the day's high of 26,141.07 at the onset of the trading session.
The CNX Nifty was down 132.90 points or 1.67% at 7,838.40. The index hit a high of 7,929.10 in intraday trade. The index hit a low of 7,837.90 in intraday trade, its lowest level since 26 August 2015.
The market breadth indicating the overall health of the market was quite weak. There were more than three losers against every gainer on BSE. 1,915 shares declined and 538 shares rose. A total of 93 shares were unchanged.
The BSE Mid-Cap index was off 178.69 points or 1.79% at 10,541.93. The fall in both this index was higher than the Sensex's decline in percentage terms. The BSE Small-Cap index was off 167.95 points or 1.53% at 10,803.32. The fall in both this index was lower than the Sensex's decline in percentage terms.
Maruti Suzuki India was down 1.31% to Rs 4,113.05. The car major during trading hours today, 1 September 2015, announced the launch of Ciaz SHVS (Smart Hybrid Vehicle by Suzuki), India's first hybrid diesel car. SHVS uses an integrated starter engine and an advance high capacity battery to churn out fuel efficiency of 28.09 kilometer per litre. The Ciaz SHVS variants will cost between Rs 8.23 lakh to Rs 10.17 lakh (ex-showroom Delhi).
Maruti's total sales rose 6.4% to 1.17 lakh units in August 2015 over August 2014. Domestic sales rose 8.6% to 1.06 lakh units in August 2015 over August 2014. Exports dropped 11.1% to 11,083 units in August 2015 over August 2014. The company announced the August sales numbers during market hours today, 1 September 2015.
M&M was down 1.88% to Rs 1,200. M&M's total tractor sales declined 22% to 11,699 units in August 2015 over August 2014. Domestic tractor sales fell 22% to 10,751 units in August 2015 over August 2014. Exports fell 26% to 948 units in August 2015 over August 2014. The announcement was made during trading hours today, 1 September 2015.
Separately, M&M said its total automobile sales rose 1% to 35,634 units in August 2015 over August 2014. Domestic automobile sales fell 3% to 32,122 units in August 2015 over August 2014. Exports rose 73% to 3,512 units in August 2015 over August 2014. The announcement was made during trading hours today, 1 September 2015.
Ashok Leyland was down 1.27% to Rs 89.40. The company's total sales rose 39% to 11,544 units in August 2015 over August 2014. Sales of Medium and Heavy Commercial Vehicles (M&HCV) rose 53% to 8,903 units in August 2015 over August 2014. Light Commercial Vehicles (LCV) sales rose 6% to 2,641 units in August 2015 over August 2014. The announcement was made during trading hours today, 1 September 2015.
TCS was up 1.32% to Rs 2,599. The company announced during trading hours today, 1 September 2015, that it has inaugurated a Japan-centric delivery center in Pune. The facility will cater to the specific business needs of Japanese companies.
Yes Bank was down 3.08% at Rs 668.25. The bank announced during trading hours today, 1 September 2015, that it has redesigned its organizational structure to further accelerate its focus on retail and Small and Medium Enterprises (SME). The changes will maximize internal synergies as these businesses further scale-up over the next 5 years.
Metal shares edged lower after twin surveys showed China's manufacturing sector in the grip of its worst slump in several years. Jindal Steel & Power (down 2.8%), Hindustan Copper (down 2.44%), Steel Authority of India (down 2.4%), Hindalco Industries (down 2.37%), Tata Steel (down 1.8%), Bhushan Steel (down 1.62%), NMDC (down 1.44%), JSW Steel (down 1.23%), Vedanta (down 1.01%) and Hindustan Zinc (down 0.28%), edged lower. National Aluminium Company was up 0.31%. China is the world's largest consumer of steel, copper and aluminum.
On the macro front, India's gross domestic product (GDP) growth at constant (2011-12) prices slowed down to 7% in Q1 June 2015 from 7.5% growth recorded in Q4 March 2015, government data released after market hours yesterday, 31 August 2015 showed. Quarterly gross value added (GVA) at Basic Price at constant (2011-2012) prices exhibited recovery in growth to 7.1% in Q1 June 2015 from 6.1% growth recorded in Q4 March 2015.
Another data released by government after market hours yesterday, 31 August 2015 showed that the Eight Core Industries, carrying 38% weight in the Index of Industrial Production (IIP), recorded 1.1% growth in July 2015, showing moderation from 3% growth recorded in the previous month. Its cumulative growth during April to July, 2015-16 was 2.1%.
Meanwhile, the outcome of a monthly survey showed slowdown in growth in India' manufacturing sector last month. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) fell to 52.3 in August 2015 from July's six-month high reading of 52.7. A reading above 50 indicates an expansion in manufacturing activity, while a reading below 50 indicates a contraction.
In overseas markets, European shares edged lower in early trade today, 1 September 2015, after weak manufacturing data from China raised fresh concerns over the health of its economy and hit Asian markets. Key benchmark indices in UK, France and Germany were down by 1.50% to 2.10%.
Asian stocks edged lower today, 1 September 2015, after activity in China's manufacturing sector slowed markedly in August, twin surveys showed today, 1 September 2015, the latest sign that the world's second largest economy is fast losing momentum. Key benchmark indices in Singapore, Taiwan, Japan, Indonesia and South Korea fell by 0.32% to 3.84%. In mainland China, the Shanghai Composite was off 1.23%. In Hong Kong, the Hang Seng index was off 1.65%.
Trading in US index futures indicated that the Dow could slide 271 points at the opening bell today, 1 September 2015. There is uncertainty in global markets as to the timing of the first interest rate hike in a decade from the US Federal Reserve.
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