Key benchmark indices extended fall and hit fresh intraday low in early afternoon trade, with the barometer index, the S&P BSE Sensex and the Nifty 50 index hitting 2-1/2 week low. At 12:15 IST, the Sensex was down 350.51 points or 1.32% at 26,285.24. The losses for the Nifty were lower in percentage terms than those for the Sensex. The Nifty was currently down 98.55 points or 1.21% at 8,071.50. Weakness in Asian stocks hit market sentiment adversely. Weak industrial production data for April 2016 released by the government after market hours on Friday, 10 June 2016 also weighed on the sentiment.
The Sensex lost 373.48 points or 1.4% at the day's low of 26,262.27 in early afternoon trade, its lowest level since 26 May 2016. The index dropped 167.48 points or 0.62% at the day's high of 26,468.27 in early trade. The Nifty lost 106.15 points or 1.29% at the day's low of 8,063.90 in early afternoon trade, its lowest level since 26 May 2016. The index fell 58.45 points or 0.71% at the day's high of 8,111.60 in early trade.
In overseas markets, Asian stocks were sharply lower ahead of central bank meetings in the US and Japan this week. In Hong Kong, the Hang Seng index was currently down 2.82%. In Japan, the Nikkei 225 index closed 3.51% lower. The Shanghai Composite index was currently down 2.03%. Data released today, 13 June 2016 showed that growth in China's fixed-asset investment and retail sales cooled unexpectedly in May, but factory output growth was steady, doing little to clear up uncertainty over prospects for the world's second-largest economy. US stocks declined on Friday, 10 June 2016 as nervousness over an impending vote that could see the UK leave the European Union, as well as a drop in oil prices, spurred a global selloff.
Closer home, the broad market depicted weakness. There were more than two losers against every gainer on BSE. 1,584 shares declined and 709 shares rose. A total of 116 shares were unchanged. The BSE Mid-Cap index was currently down 1.12%. The BSE Small-Cap index was currently down 1.05%. The fall in both these indices was lower than the Sensex's decline in percentage terms.
Metal and mining stocks declined. Vedanta (down 3.56%), JSW Steel (down 1.76%), Tata Steel (down 3.69%), Steel Authority of India (Sail) (down 2.22%), National Aluminium Company (down 0.36%), Jindal Steel & Power (down 4.27%), Hindalco Industries (down 3.21%), NMDC (down 1.31%) and Hindustan Copper (down 1.71%) edged lower. Hindustan Zinc rose 0.52%.
Copper edged higher in the global commodities market. High Grade Copper for July 2016 delivery was currently up 1.45% at $2.06 per pound on the COMEX.
TCS fell 1.27%. TCS during market hours today, 13 June 2016 announced a global partnership with Randstad Global IT Solutions, to design and deploy one of the world's largest end-to- end public cloud marketplaces for IT infrastructure services.
Realty stocks dropped. DLF (down 3.73%), Indiabulls Real Estate (down 4.1%), Housing Development and Infrastructure (down 3.62%), D B Realty (down 1.78%), Sobha (down 1.18%), Godrej Properties (down 1.65%) and Oberoi Realty (down 2.58%) declined. Hubtown was trading unchanged Rs 100. Unitech jumped 15.69%.
Fortis Healthcare fell 3.09% after the company said its subsidiary has received an order to deposit Rs 503.36 crore for non-compliance of conditions of land allotment lease. Fortis Healthcare announced after market hours on Friday, 10 June 2016, that one of its subsidiaries, Escort Heart Institute & Research Centre (EHIRCL), has received an order from The Directorate General of Health Services (DHS). The DHS has ordered to deposit Rs 503.36 crore towards recovery of unwarranted profit made by EHIRCL for alleged non-compliance of the conditions of allotment/lease of land since its allotment in 1982. EHIRCL believes that the impugned order in its view is legally flawed and untenable. The EHIRCL management will challenge the same in the High Court of Delhi or such relevant authority to seek suitable legal remedies available to it under law.
A2Z Infra Engineering rose 5.65% after the company said it won a contract worth $13.56 million from Nepal Electricity Authority. A2Z Infra Engineering announced after market hours on Friday, 10 June 2016, that a contract has been awarded from Nepal Electricity Authority (a Government of Nepal Undertaking) for expansion of distribution network in the Western Region of Nepal for contract price aggregating to $13.56 million.
On the macro front, data released after market hours on Friday, 10 June 2016 showed that India's industrial production (IIP) contracted by 0.8% in April 2016. Factory output measured in terms of the IIP had expanded by 3% in April 2015. The electricity generation surged at two-year high pace of 14.6%, while the mining output also moved up 1.4% in April 2016. However, the manufacturing sector production dipped 3.1% contributing to the decline in industrial output in April 2016. The IIP growth in March 2016 has been revised upwards to 0.3% in the first revision compared with 0.05% reported provisionally. Meanwhile, the growth in January 2016 has been revised downwards to -1.6% at the final revision from -1.5% at first revision and reported provisionally.
Meanwhile, the government is scheduled to unveil the consumer price index (CPI) data (rural, urban and combined) for the month of May 2016 at 17:30 IST today, 13 June 2016. The all-India General CPI inflation surged to 5.39% in April 2016 (new base 2012=100) from six months low of 4.8% recorded in March 2016.
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