Key benchmark indices reversed trend and ended with modest losses after trading in positive terrain till mid-afternoon trade. The barometer index, the S&P BSE Sensex, lost 155.89 points or 0.59% to settle at 26,236.87. The Nifty 50 index fell 41.10 points or 0.5% to settle at 8,102.05. Selling was triggered in mid-afternoon trade, even as the indices traded in positive terrain till then on the heels of a largely positive pulse in Asian markets and amidst modestly higher closing on the Wall Street overnight. The Reserve Bank of India's (RBI) decision to hold key interest rates steady pulled key indices into the negative zone.
Bank stocks edged lower after the Reserve Bank of India (RBI) kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.25%. Auto shares were mixed. Pharma stocks declined.
The Sensex lost 155.89 points or 0.59% to settle at 26,236.87, its lowest closing level since 2 December 2016. The index rose 148.07 points or 0.56% at the day's high of 26,540.83. The index fell 227.94 points or 0.86% at the day's low of 26,164.82.
The Nifty fell 41.10 points or 0.5% to settle at 8,102.05, its lowest closing level since 2 December 2016. The index rose 47.30 points or 0.58% at the day's high of 8,190.45. The index fell 65.65 points or 0.81% at the day's low of 8,077.50.
The BSE Mid-Cap index lost 0.16%. The BSE Small-Cap index fell 0.51%. The decline in both these indices was lower than the Sensex's decline in percentage terms.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,523 shares fell and 1,085 shares rose. A total of 181 shares were unchanged.
The total turnover on BSE amounted to Rs 2547.64 crore, higher than turnover of Rs 2203.48 crore registered during the previous trading session.
Among the sectoral indices on the BSE, the BSE Healthcare index (down 1.7%), the BSE Bankex index (down 1.07%) and the BSE Realty index (down 1.49%) underperformed the Sensex. The BSE Auto index (up 0.42%) and the BSE Oil & Gas index (up 0.9%) outperformed the Sensex.
Bank stocks edged lower after the Reserve Bank of India (RBI) kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.25%.
Among public sector banks, Bank of Baroda (down 2.71%), Bank of India (down 2.18%), Punjab National Bank (down 1.94%), Andhra Bank (down 1.74%), Canara Bank (down 1.71%), State Bank of India (down 1.47%), Union Bank of India (down 1.36%) and IDBI Bank (down 0.88%) edged lower. Vijaya Bank (up 0.34%) and United Bank of India (up 0.24%) edged higher.
Among private sector banks, Axis Bank (down 2%), HDFC Bank (down 1.01%), Federal Bank (down 0.29%), IndusInd Bank (down 0.55%), Yes Bank (down 0.28%), Kotak Mahindra Bank (down 0.25%) and RBL Bank (down 0.85%) edged lower.
ICICI Bank fell 1.05%. The bank announced after market hours yesterday, 6 December 2016, that the committee of executive directors of the bank is scheduled to have a meeting on 9 December 2016, to consider fund raising in single/multiple tranches in any currency through public/private placement by way of issuances of debt instruments etc. for the remaining period of the financial year ending 31 March 2017 (FY 2017).
On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, 7 December 2016, the Monetary Policy Committee (MPC) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.25%. Consequently, the reverse repo rate under the LAF remains unchanged at 5.75%, and the marginal standing facility (MSF) rate and the bank rate at 6.75%.
The decision of the MPC is consistent with an accommodative stance of monetary policy in consonance with the objective of achieving consumer price index (CPI) inflation at 5% by Q4 March 2017 and the medium-term target of 4% within a band of plus or minus 2%, while supporting growth.
Auto shares were mixed. Eicher Motors (up 3.8%), TVS Motor Company (up 1.2%), Hero MotoCorp (up 1.31%), Tata Motors (up 0.88%), Mahindra & Mahindra (up 0.77%) and Escorts (up 0.2%), edged higher. Maruti Suzuki India (down 0.46%), Bajaj Auto (down 0.76%) and Ashok Leyland (down 1.67%) edged lower.
Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing.
Pharma stocks declined. Sun Pharmaceutical Industries (down 5.96%), Wockhardt (down 1.31%), Alkem Laboratories (down 1.3%), Aurobindo Pharma (down 1.09%), Cadila Healthcare (down 0.99%), Strides Shasun (down 0.98%), GlaxoSmithkline Pharmaceuticals (down 0.93%), Cipla (down 0.79%) and Dr Reddy's Laboratories (down 0.11%) edged lower. Ipca Laboratories (up 0.94%), Divi's Laboratories (up 0.91%) and Glenmark Pharmaceuticals (up 0.23%) edged higher.
Lupin was down 1.33%. The company announced after market hours yesterday, 6 December 2016, that its US subsidiary, Lupin Pharmaceuticals, Inc. received final approval for its Desoximetasone Ointment USP, 0.25% from the United States Food & Drug Administration (USFDA) to market a generic version of Taro Pharmaceuticals, Inc's Topicort Ointment, 0.25%. It is indicated for the relief of the inflammatory and pruritic manifestations off corticosteroid responsive dermatoses. Topicort had annual US sales of $14.4 million as per IMS MAT September 2016 data.
The Sensex has fallen 415.94 points or 1.56% in calendar year 2016 so far (till 7 December 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 3,742.26 points or 16.63%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 2,840.41 points or 9.76%. The Sensex is off 3,787.87 points or 12.61% from a record high of 30,024.74 hit on 4 March 2015.
Overseas, European and Asian shares edged higher as investors covered short positions and looked to the upcoming policy meeting of the European Central Bank (ECB) scheduled on Thursday, 8 December 2016, for comfort after a referendum defeat tipped Italy into political turmoil. US stocks registered modest gains yesterday, 6 December 2016, with the Dow Jones Industrial Average finishing at an all-time high for a second day in a row.
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