Weakness persisted on the bourses in afternoon trade. At 13:15 IST, the barometer index, the S&P BSE Sensex, was off 209.06 points or 0.77% at 26,826.79. The 50-unit CNX Nifty was off 56.30 points or 0.69% at 8,121.10. The Sensex continued to hover below the psychological 27,000 mark after falling below that level earlier during the trading session.
The market breadth indicating the overall health of the market was negative. On BSE, 1,422 shares fell and 1,068 shares rose. A total of 117 shares were unchanged. The BSE Mid-Cap index was down 0.93%. The fall in the index was higher than Sensex's decline in percentage terms. The BSE Small-Cap index was down 0.36%. The fall in the index was lower than Sensex's decline in percentage terms.
There was lack of clear direction from overseas markets. Asian stocks were mixed, European stocks nudged higher and trading in US index futures pointed to lower opening of US stocks later in the global day. European stocks edged higher in volatile trade as weak exports data from Germany fueled expectations that the European Central Bank will launch more easing measures. The weak exports data comes close on the heels of recent weak German manufacturing orders data. Trading in US index futures indicated that the Dow Jones Industrial Average could slide 112 points at opening bell today, 8 October 2015. In Asia, stocks in mainland China edged higher, catching up to a rally in global equities as trading resumed after a week-long break. The Shanghai Composite ended with a gain of 2.97%.
Index heavyweight and cigarette maker ITC shed 2.96% to Rs 336.05 on reports that the Uttar Pradesh (UP) state government has decided to ban the sale of loose cigarette sticks in the state. The stock hit high of Rs 347 and low of Rs 335.50 so far during the day. UP is India's most populous state, and contributes 3-4% to ITC's volumes, according to reports.
Shares of other cigarette makers also declined. Godfrey Phillips India (down 1.74%) and VST Industries (down 1.03%) fell.
Index heavyweight and engineering and construction major L&T fell 0.8% to Rs 1,532. The stock hit high of Rs 1,550 and low of Rs 1,521 so far during the day.
Index heavyweight Reliance Industries (RIL) declined 0.44% to Rs 909.80. The stock hit high of Rs 915 and low of Rs 899.55 so far during the day.
Pharma shares declined. Cadila Healthcare (down 1.25%), Glenmark Pharmaceuticals (down 2.91%), Lupin (down 1.66%), Sun Pharmaceutical Industries (down 0.69%), GlaxoSmithKline Pharmaceuticals (down 0.66%), Aurobindo Pharma (down 0.78%) and Wockhardt (down 1.04%) declined. Dr Reddy's Laboratories rose 0.57%.
Cipla slipped 0.06%. The company announced after market hours yesterday, 7 October 2015, that Cipla (EU), a wholly owned subsidiary of the company, has entered into a definitive agreement with Biopharma SPA for establishing a joint venture company in Algeria. The joint venture company will manufacture and market respiratory products facilitating Cipla's front-end presence in Algeria. As per Cipla's announcement made in February this year when it had announced a binding term sheet for establishing the joint venture in Algeria, Cipla (EU) will hold a 40% stake in the joint venture company while the remainder will be held by a Biopharm-led Algerian consortium. Cipla had also announced at that time that its initial investment in the joint venture company is estimated at $6 million and that the joint venture company will make an investment of up to $15 million for the construction of a manufacturing facility.
Bharti Infratel lost 4.74% to Rs 410.05 on profit booking after recent steep rally. Shares of Bharti Infratel had rallied 21.33% in the preceding four trading sessions to settle at Rs 430.45 yesterday, 7 October 2015, from a recent low of Rs 354.75 on 30 September 2015.
Tyre stocks declined. Apollo Tyres (down 1.69%), CEAT (down 2.12%), Goodyear India (down 1.32%), JK Tyre & Industries (down 1.43%), MRF (down 1.73%) and TVS Srichakra (down 1.34%) edged lower.
Shilpi Cable Technologies rose 4.01% after the company announced that it has entered into a joint venture with the New Zealand-based Eyecom Telecommunications Equipments to introduce Base Station Antenna (BSA) products for 2G/3G/4G for marking its foray into the next generation technology of radio frequency (RF). Eyecom Telecommunications Equipments is one of the leading RF path technology solution providers globally. The announcement was made during trading hours today, 8 October 2015.
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