After languishing in the red near their intraday low, key benchmark indices pared almost entire intraday losses in mid-morning trade. At 11:30 IST, the barometer index, the S&P BSE Sensex, was almost unchanged at 25,979.23. The Nifty 50 index was currently down 10.15 points or 0.13% at 7,968.95. Weakness in Asian stocks affected sentiment adversely today, 23 December 2016.
After opening lower tracking weak Asian cues, indices turned positive for a brief period in early trade but soon took a u-turn and extended their losses in morning trade with the Sensex hitting more than four-week low and the Nifty hitting 4-1/2 week low.
Among side indices, the BSE Mid-Cap index was currently down 0.13%. The BSE Small-Cap index was currently down 0.11%. The decline in these indices was higher than the Sensex's decline in percentage terms.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,095 shares fell and 1,010 shares rose. A total of 134 shares were unchanged.
Telecom stocks witnessed selling pressure. Reliance Communications (RCom) (down 3.07%), Bharti Airtel (down 0.44%), and Idea Cellular (down 0.98%) declined. Tata Teleservices (Maharashtra) rose 0.99%.
Shares of Bharti Infratel rose 0.53%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Cement stocks were mixed. Shree Cement (down 1.65%), Ambuja Cements (down 0.72%), and UltraTech Cement (down 2.32%) declined. ACC rose 0.14%.
Grasim Industries gained 0.12%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Aurionpro Solutions rose 1.03% after the company announced that Goodpack has selected the company's SCMProFit product suite, an industry leading cloud-based, fully-integrated supply chain platform, delivering state-of-the-art order management, depot operation, freight and transportation.
The platform will help Goodpack manage inventory positions and movement across more than 190 depots in 18 countries and 5,000 inventory hubs worldwide. The announcement was made after market hours yesterday, 22 December 2016.
Welspun Enterprises fell 3.91% to Rs 59.05 after the company said that with a view of utilising the company's substantial cash reserves and in order to enhance shareholder value, the board has approved buy back of 25% of the company's share capital. The buyback would be at Rs 62 per share in cash for an aggregate consideration not exceeding Rs 270 crore, Welspun Enterprises said.
The promoter group, except the foreign co-promoters holding 2.17%, have indicated their intention to participate in the proposed buyback, the company said. The announcement was made after market hours yesterday, 22 December 2016.
Goodluck India rose 5.32% after the company said that its board will meet on 27 December 2016 to allot warrants convertible into equal number of equity shares to promoters on preferential basis. The announcement was made after market hours yesterday, 22 December 2016.
Overseas, Asian stocks suffered modest losses as Wall Street took a breather yesterday, 22 December 2016, from its relentless rise since the US election. Overnight, US equities posted their first back-to-back daily declines of the month in light trading ahead of the Christmas weekend. Wall Street stocks had witnessed an unabated rally since the US election on expectations that Donald Trump's promised fiscal stimulus will boost economic growth and company profits.
Among economic data in US, Gross domestic product increased at a 3.5% annual rate instead of the previously reported 3.2% pace, the Commerce Department said in its third GDP estimate. In another data point, Consumer spending, which accounts for more than two-thirds of US economic activity, rose 0.2% in November, below the estimates.
Meanwhile in Europe, the Italian government approved a decree today, 23 December 2016, to bail out Monte dei Paschi di Siena after the world's oldest bank failed to win investor backing for a desperately needed capital increase. Prime Minister Paolo Gentiloni said his Cabinet had authorised a 20 billion-euro ($20.9 billion) fund to help lenders in distress - first and foremost Monte dei Paschi.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
