After flip-flopping between gains and losses earlier during the session, the key benchmark indices ended the session with sharp losses after a sudden slide towards the latter part of the trading session. The barometer index, the S&P BSE Sensex, fell 314.95 points or 1.27% at 24,458.02, as per the provisional closing data. The 50-unit Nifty 50 index fell 99 points or 1.31% at 7,437.80, as per the provisional closing data. Stocks of public sector banks and metal and power sector stocks led losses for the two key benchmark indices. In overseas stock markets, Asian and European stocks dropped and US stock index futures pointed at steep losses for US stocks later in the global day.
The Sensex fell 351.44 points or 1.41% at the day's low of 24,421.53 in late trade, its lowest level since 13 January 2016. The barometer index rose 139.67 points, or 0.56% at the day's high of 24,912.64 in early trade. The Nifty fell 109.50 points or 1.45% at the day's low of 7,427.30 in late trade, its lowest level since 13 January 2016. The index rose 29.70 points or 0.39% at the day's high of 7,566.50 in early trade.
The broad market depicted weakness. There were more than five losers against every gainer on BSE. 2,270 shares fell and 415 shares rose. A total of 146 shares were unchanged. The BSE Mid-Cap index was provisionally down 2.79%. The BSE Small-Cap index was provisionally down 3.23%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 2911 crore, lower than turnover of Rs 3151.51 crore registered during the previous trading session.
In overseas stock markets, European stocks edged lower as investor concerns about global growth intensified and oil retreated. Chinese stocks led decline in Asian equities amid worries about slowing growth in China's economy. In mainland China, the Shanghai Composite index ended 3.55% lower. In Hong Kong, the Hang Seng index lost 1.33%. The latest data showed new yuan loans in December were well below the previous month's lending and broad M2 money supply growth also slowed.
US stock index futures pointed at steep losses for US stocks later in the global day. Trading in US index futures indicated that the Dow Jones Industrial Average could fall 204 points at the opening bell today, 15 January 2016. US stocks surged yesterday, 14 January 2016, as a rebound in oil prices allowed the main indexes to claw back much of the steep fall seen in the previous session.
Hindustan Unilever (HUL) edged lower after its third quarter financial performance showed that volume growth for the FMCG major remain muted during the quarter. The stock shed 2.63% at Rs 804.70. HUL profit after tax before exceptional items rose 7% to Rs 1024 crore in Q3 December 2015 over Q3 December 2014. Total income rose 2.87% to Rs 8120.60 crore in Q3 December 2015 over Q3 December 2014. The result was announced during trading hours today, 15 January 2016.
HUL said that underlying volume growth was reported at 6% during the quarter. The growth in the quarter continued to be impacted by the phasing out of excise duty incentives and price de-growth as the benefit of lower commodity costs was passed on to consumers.
In a separate announcement, HUL said that the company has decided to return excess cash to shareholders. The company's board has approved a scheme of arrangement which envisages the transfer of the entire balance of Rs 2187.33 crore standing to the credit of the general reserves to the profit and loss account. The company has built up significant reserves over the years through the transfer of profits to the general reserves pursuant to the provisions of the erstwhile Companies Act, 1956. Given HUL's strong financial position and track record of cash generation, the funds represented by such accumulated general reserves are seen to be in excess of the company's current and anticipated needs. In view of this and to uphold good corporate governance, HUL has proposed a scheme between the company and its shareholders to give effect to the proposed transfer and its subsequent payout. The scheme, besides being shareholder friendly, will also drive the efficiency of the company's balance sheet, the company said in a statement.
Index heavyweight and IT major Infosys extended previous session's gains triggered by the company raising its revenue growth guidance for the year ending 31 March 2016 (FY 2016) at the time of announcement of its third quarter results. The stock rose 1.13% at Rs 1,141.50. The stock hit a high of Rs 1,163.45 and a low of Rs 1136.55 in intraday trade. The stock had risen 4.28% to settle at Rs 1,128.70 yesterday, 14 January 2016.
Bank shares declined. Among PSU banks, Allahabad Bank (down 8.08%), Union Bank of India (down 7.74%), IDBI Bank (down 7.41%), Syndicate Bank (down 7.39%), Andhra Bank (down 6.12%), State Bank of India (down 5.92%), Canara Bank (down 5.73%), Punjab National Bank (down 5.62%), Bank of India (down 3.76%), Bank of Baroda (down 3.74%), Punjab and Sind Bank (down 2.78%), UCO Bank (down 2.72%), Dena Bank (down 2.53%), Indian Bank (down 2.32%), Vijaya Bank (down 1.75%), Bank of Maharashtra (down 1.5%), Central Bank of India (down 0.54%), United Bank of India (down 0.5%) and Corporation Bank (down 0.25%), edged lower.
Among private sector banks, ICICI Bank (down 4.38%), Axis Bank (down 4.16%), Yes Bank (down 1.81%), Kotak Mahindra Bank (down 1.63%), City Union Bank (down 0.72%), HDFC Bank (down 0.72%) and Federal Bank (down 0.62%), edged lower. IndusInd Bank was up 0.6%.
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