Metal, auto sector stocks and index heavyweights ITC and HDFC led losses for key benchmark indices. The barometer index, the S&P BSE Sensex, lost 248.03 points or 0.85% to settle at 28,797.25. The decline in the Nifty 50 index was higher than the Sensex's fall in percentage terms. The Nifty fell 85.80 points or 0.96% to settle at 8,866.70. The Sensex settled below the psychologically important 29,000 level after falling below that level in early trade. Weakness in global stocks weighed on sentiment on the domestic bourses.
Bank stocks declined. Yes Bank dropped after the bank announced deferring its proposed qualified institutional placement (QIP) of shares. Steel Authority of India edged lower after the company reported higher net loss in Q1 June 2016 compared to net loss in Q1 June 2015. Jindal Steel & Power dropped after the company reported higher net loss in Q1 June 2016 compared to net loss in Q1 June 2015.
In overseas stock markets, Asian and European stocks edged lower after the European Central Bank (ECB) decided not to extend the deadline of its bond-buying program after the conclusion of its monetary policy meeting yesterday, 8 September 2016. Also, reports on earthquake in North Korea possibly due to an explosion from a nuclear test in that nation weighed on sentiment. US stocks closed lower yesterday, 8 September 2016, as the outcome of ECB's latest monetary policy meeting suggested that central banks have little left to spur up demand.
The Sensex lost 248.03 points or 0.85% to settle at 28,797.25, its lowest closing level since 2 September 2016. The index rose 17.62 points or 0.06% at the day's high of 29,062.90. The index lost 290.20 points or 0.99% at the day's low of 28,755.08.
The Nifty 50 index fell 85.80 points or 0.96% to settle at 8,866.70, its lowest closing level since 2 September 2016. The index fell 13.35 points or 0.14% at the day's high of 8,939.15. The index lost 93.80 points or 1.04% at the day's low of 8,858.70.
The BSE Mid-Cap index lost 0.99%. The decline in this index was higher than the Sensex's decline in percentage terms. The BSE Small-Cap index fell 0.47%. The decline in this index was lower than the Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was negative. On BSE, 1,609 shares declined and 1,148 shares rose. A total of 193 shares were unchanged.
The total turnover on BSE amounted to Rs 3548 crore, lower than turnover of Rs 3978.93 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Auto index (down 1.48%), the BSE Bankex index (down 1.01%) and the BSE Metal index (down 1.77%) underperformed the Sensex. The BSE IT index (up 0.41%) and the BSE Oil & Gas index (up 0.92%) outperformed the Sensex.
Bank stocks declined. Among public sector banks, Indian Bank (down 2.63%), Union Bank of India (down 1.81%), State Bank of India (down 1.47%), Bank of Baroda (down 1.63%) and Bank of India (down 0.44%) edged lower. Punjab National Bank (up 1.68%) edged higher.
IDBI Bank rose 5.22% on reports that Asian Development Bank (ADB) has held talks with the government to acquire stake in the state-run bank. According to media reports, multilateral agency ADB has held talks with the government to acquire stake in IDBI Bank as negotiations with World Bank arm International Financial Corporation (IFC) have slowed down. ADB, along with IFC and Commonwealth Development Corporation (CDC) were in the fray to buy into IDBI Bank, where the government is open to cutting its stake below 51%, something it can't do in other state-run lenders, given restrictions imposed by the law, reports suggested. ADB is expected to acquire 10-15% stake in the bank, reports added. The government is looking to reduce its stake in IDBI Bank as part of a strategy to rework its functioning as it is seen to have fallen short of expectations, reports suggested. The Government of India currently holds 73.98% stake in IDBI Bank (as per the shareholding pattern as on 30 June 2016).
Among private sector banks, Axis Bank (down 2.54%), Kotak Mahindra Bank (down 0.09%) and IndusInd Bank (down 0.46%) edged lower.
Index heavyweight HDFC Bank was up 0.09% at Rs 1,290.55. The stock hit a high of Rs 1,293.80 and a low of Rs 1,279.05 in intraday trade.
ICICI Bank was down 0.8%. The bank after market hours yesterday, 8 September 2016, said that the proposed initial public offer (IPO) of its subsidiary, ICICI Prudential Life Insurance Company (ICICI Pru Life) has been approved by Registrar of Companies, Maharashtra on 8 September 2016. The offer will open for subscription on 19 September 2016 and close on 21 September 2016. The price band has been fixed at Rs 300-334 per equity share.
Separately, ICICI Bank during market hours today, 9 September 2016 said that the IPO includes a reservation of upto 1.81 crore equity shares for purchase by ICICI Bank shareholders (the reserved category) who fall under the category of individuals and HUFs being public equity shareholders of the bank as on date of the red herring prospectus filed by ICICI Pru Life with the Registrar of Companies, Maharashtra on 7 September 2016.
Yes Bank was down 4.01% after the bank announced after market hours yesterday, 8 September 2016 that due to extreme volatility in the stock price yesterday, 8 September 2016, because of misinterpretation of new qualified institutional placement (QIP) guidelines, the bank has been advised by its appointed Merchant Bankers to defer its proposed QIP. It may be recalled that the bank had announced on 7 September 2016 opening of QIP to raise up to $1 billion. The bank had announced Rs 1,371.84 per share as the floor price for the QIP.
Auto stocks edged lower. Bajaj Auto (down 1.83%), Hero MotoCorp (down 2%), TVS Motor Company (down 2.35%), Tata Motors (down 1.98%), Eicher Motors (down 1.67%), Maruti Suzuki India (down 1.48%), Ashok Leyland (down 0.68%) and Mahindra & Mahindra (down 1.24%) declined.
Index heavyweight and cigarette major ITC fell 2.49% at Rs 258.70. The stock hit a high of Rs 264.40 and a low of Rs 257.45 in intraday trade.
Index heavyweight and housing finance major HDFC lost 1.84% at Rs 1,410.85. The stock hit a high of Rs 1,437.35 and a low of Rs 1,398 in intraday trade.
Metal and mining stocks edged lower as copper prices declined in global commodities markets. Hindalco Industries (down 4.48%), National Aluminium Company (down 1.79%), Vedanta (down 2.08%), JSW Steel (down 1.55%), Tata Steel (down 2.08%), Hindustan Zinc (down 1.36%), Hindustan Copper (down 2.55%) and NMDC (down 1.12%) declined.
High Grade Copper for December 2016 delivery was currently down 0.05% at $2.099 per pound on the COMEX.
Steel Authority of India (Sail) dropped 5.68% after company reported net loss of Rs 535.52 crore in Q1 June 2016, higher than net loss of Rs 248.18 crore in Q1 June 2015. Total income fell 3.84% to Rs 9327.36 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hour yesterday, 8 September 2016.
Jindal Steel & Power (JSPL) fell 1.73% after the company reported consolidated net loss of Rs 1082.15 crore in Q1 June 2016, higher than net loss of Rs 542.42 crore in Q1 June 2015. Total income rose 4.34% to Rs 4686.60 crore in Q1 June 2016 over Q1 June 2015. Higher revenues in Jindal Power (JPL) & Oman helped consolidated turnover rise 6% to Rs 4655 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 8 September 2016.
Hindustan Composites jumped 15% after net profit rose 94.79% to Rs 12.35 crore on 41.82% rise in net sales to Rs 51.07 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 8 September 2016.
The Sensex has risen 345.08 points or 1.21% in this month so far (till 9 September 2016). The Sensex has risen 2,679.71 points or 10.26% in calendar year 2016 so far (till 9 September 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 6,302.64 points or 28.01%. The Sensex is off 1,227.49 points or 4.08% from a record high of 30,024.74 hit on 4 March 2015.
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