Banking and metal stocks led sell-off on the bourses. The barometer index, the S&P BSE Sensex, was off 624.81 points or 2.38% at 25,658.28, as per provisional closing data. The 50-unit CNX Nifty was down 185.45 points or 2.33% at 7,785.85, as per provisional closing figures. Data showing slowdown in India's economic growth and weakness in global stocks hit sentiment on the domestic bourses adversely. The Sensex provisionally settled below the psychological 26,000 level. Earlier, the Sensex regained the psychological 26,000 level after falling below that level in early trade.
The broad market depicted weakness. There were more than three losers against every gainer on BSE. The BSE Mid-Cap index lost 1.96%. The BSE Small-Cap index shed 2.17%.
Metal shares edged lower after twin surveys showed China's manufacturing sector in the grip of its worst slump in several years.
Earlier, the Sensex and the Nifty, both, hit one-week low in mid-afternoon trade as these two key benchmark indices extended intraday losses.
In overseas markets, Asian and European shares edged lower after twin surveys showed China's manufacturing sector in the grip of its worst slump in several years, raising fresh fears about the health of its economy. Trading in US index futures indicated that the Dow could slide 390 points at the opening bell today, 1 September 2015.
As per provisional data, the S&P BSE Sensex was down 624.81 points or 2.38% at 25,658.28. The index lost 703.21 points at the day's low of 25,579.88 in mid-afternoon trade, its lowest level since 25 August 2015. The index fell 142.02 points at the day's high of 26,141.07 at the onset of the trading session.
The CNX Nifty was down 185.45 points or 2.33% at 7,785.85. The index hit a low of 7,746.50 in intraday trade, its lowest level since 25 August 2015. The index hit a high of 7,929.10 in intraday trade.
The market breadth indicating the overall health of the market was quite weak. There were more than three losers against every gainer on BSE. 2,086 shares declined and 597 shares rose. A total of 87 shares were unchanged.
The BSE Mid-Cap index was off 210.59 points or 1.96% at 10,523.83. The BSE Small-Cap index was off 237.89 points or 2.17% at 10,733.38. The fall in both these indices was lower than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 2519 crore, higher than turnover of Rs 2199.30 crore registered during the previous trading session.
Bank stocks declined. ICICI Bank shed 2.54%. State Bank of India (SBI) declined 3.16%. The Reserve Bank of India (RBI) after market hours yesterday, 31 August 2015, named SBI and ICICI Bank as domestic systemically important banks (D-SIBs). Under this framework, the additional Common Equity Tier 1 (CET1) requirements as a percentage of Risk Weighted Assets (RWAs) applicable to ICICI Bank is 0.2% while for State Bank of India (SBI) it is 0.6%. The additional Common Equity Tier 1 (CET1) requirements applicable to D-SIBs will be applicable from 1 April 2016 in a phased manner and would become fully effective from 1 April 2019. The additional CET1 requirement is in addition to the capital conservation buffer.
This is the first time that the RBI has named D-SIBs. The RBI will release the list of D-SIBs every year.
Among private bank stocks, Kotak Mahindra Bank (down 5.85%), Axis Bank (down 5.22%), IndusInd Bank (down 3.14%) and Yes Bank (down 2.97%) declined.
HDFC Bank lost 3.03% on reports the bank has slashed base rate by 35 basis points to 9.35% from 9.7% earlier. The base rate is the minimum lending rate charged by a bank.
Among PSU bank stocks, IDBI Bank (down 5.94%), Bank of India (down 5.38%) and Union Bank of India (down 5.03%) dropped.
Canara Bank fell 6.59% after the bank's board of directors approved reduction in the base rate by 10 basis points to 9.9% from 10% with effect from 3 September 2015. The announcement was made after market hours yesterday, 31 August 2015.
Bank of Baroda lost 6.31% to Rs 173 after the bank said it has fixed issue price at Rs 192.74 per share for preferential allotment of shares to the Government of India (GoI). GoI will infuse capital funds to the tune of Rs 1786 crore in Bank of Baroda through the preferential allotment of equity shares.
Punjab National Bank tanked 7.28% after global credit rating agency Fitch downgraded the bank's Viability Rating by one notch to 'bb', citing growing risk to the bank's capital position from its mounting stressed assets. Fitch believes that PNB's recovery could prove to be more protracted than other similar-sized peers because of large stressed assets.
Metal and mining shares edged lower after twin surveys showed China's manufacturing sector in the grip of its worst slump in several years. Jindal Steel & Power (down 3.98%), Hindustan Copper (down 3.85%), Steel Authority of India (down 6.39%), Hindalco Industries (down 5.62%), Tata Steel (down 3.98%), NMDC (down 0.5%), JSW Steel (down 2.38%), Vedanta (down 4.46%) and Hindustan Zinc (down 1.1%), edged lower. National Aluminium Company was unchanged at Rs 32.30. China is the world's largest consumer of steel, copper and aluminum.
India's gross domestic product (GDP) grew 7% in Q1 June 2015, slower than 7.5% expansion registered in Q4 March 2015, according to the data released by the government after trading hours yesterday, 31 August 2015. Another data showed slowdown in core sector growth in July 2015 to 1.1% in July 2015 from 3% growth in June 2015. Meanwhile, the outcome of a monthly survey showed slowdown in growth in India's manufacturing sector last month.
In overseas markets, European shares edged lower in today, 1 September 2015, after weak manufacturing data from China raised fresh concerns over the health of its economy and hit Asian markets. Key benchmark indices in UK, France and Germany were down by 2.43% to 2.72%.
The eurozone's manufacturing sector continued to grow in August, as ongoing expansion in Germany, Italy, Spain, the Netherlands, Austria and Ireland offset the continuing contractions in France and Greece, data released today, 1 September 2015 showed. Markit's final eurozone manufacturing Purchasing Managers' Index was 52.3 in August, below an earlier flash reading that suggested it had held steady at July's 52.4.
Asian stocks edged lower today, 1 September 2015, after activity in China's manufacturing sector slowed markedly in August, twin surveys showed today, 1 September 2015, the latest sign that the world's second largest economy is fast losing momentum. Key benchmark indices in Singapore, Taiwan, Japan, Indonesia and South Korea fell 1.32% to 3.84%. In mainland China, the Shanghai Composite lost 1.23%. In Hong Kong, the Hang Seng index shed 2.24%.
Powered by Capital Market - Live News
