After a negative opening, key benchmark indices declined further and hit fresh intraday low in morning trade. At 10:16 IST, the barometer index, the S&P BSE Sensex, was down 408.36 points or 1.48% at 27,109.32. The Nifty 50 index was down 137.20 points or 1.61% at 8,388.55. A sudden spike in US bond yields to a 10-month high rattled emerging equity markets.
The Sensex fell 412.53 points, or 1.50% at the day's low of 27,105.15 in morning trade, its lowest level since 9 November 2016. The index fell 172.83 points, or 0.63% at the day's high of 27,344.85 in early trade. The Nifty fell 141.45 points, or 1.66% at the day's low of 8,384.30 in morning trade, its lowest level since 9 November 2016. The index fell 65.15 points, or 0.76% at the day's high of 8,460.60 in early trade.
In overseas stock markets, most Asian shares edged lower as US bond yields soared on expectations US President-elect Donald Trump's policies would stoke inflation. Investors fear that a higher interest rates under incoming President Donald Trump will spark capital outflows from the emerging equity markets.
In US, the Dow Jones Industrial Average rallied to a record close yesterday, 10 November 2016, as investors continued to revise their strategies and reposition portfolios in response to Donald Trump's unexpected presidential election victory.
Back home, the broad market depicted weakness. There were more than four losers against every gainer on BSE. 1,693 shares fell and 372 shares rose. A total of 84 shares were unchanged. The BSE Mid-Cap index was currently down 2.73%. The BSE Small-Cap index was currently down 2.04%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
Metal shares edged lower. Bhushan Steel (down 2.65%), Steel Authority of India (down 1.9%), NMDC (down 1.84%), National Aluminium Company (down 1.79%), JSW Steel (down 1.4%), Tata Steel (down 1.24%), Hindalco Industries (down 1.17%), Jindal Steel & Power (down 1.12%), Hindustan Zinc (down 1.04%), Hindustan Copper (down 0.67%) and Vedanta (down 0.61%), edged lower.
Meanwhile, copper price edged higher in the global commodities markets. High Grade Copper for December 2016 delivery was currently up 0.35% at $2.56 per pound on the COMEX.
Telecom shares declined. MTNL (down 2.43%), Bharti Airtel (down 1.93%), Idea Cellular (down 1.92%), Tata Teleservices (Maharashtra) (down 1.64%) and Reliance Communications (down 1.61%), edged lower.
Telecom tower infrastructure provider Bharti Infratel was down 4.64%
Adani Ports and Special Economic Zone (APSEZ) was down 2.28% to Rs 287. The company announced before trading hours today, 11 November 2016, that pursuant to the powers delegated to the finance committee by the board of directors of Adani Ports and Special Economic Zone, the finance committee has approved the preliminary offering circular in relation to a proposed issuance of foreign currency denominated bonds by the company. Further, the company has appointed intermediaries for organizing investor meetings for the proposed foreign currency denominated bonds issue. The foreign currency denominated bonds offering may follow, subject to market conditions. The company has been rated Baa3 by Moody's, BBB- by S&P and BBB- by Fitch and expects the same ratings for its foreign currency denominated bonds.
Adani Enterprises was down 2% to Rs 63.85. In response to the clarification sought with reference to recent news item captioned, Adani project in Australia gets exemption under New Water laws,the company clarified before trading hours today, 11 November 2016, that the Adani's Australian coal mine project has been going through its approval process. A number of approvals were obtained in the last 12 months. In December 2015, the Land Court of Queensland (Australia) recommended that the Queensland State Minister grants a mining lease to Adani's Carmichael mine. Since the start of 2016, in relation to the Project, the company received the mining lease approval and the Environmental Authority.
The Queensland State Government proposed a legislation into Queensland parliament requiring the mining entities to seek separate water licenses, The proposed legislation included a requirement for the water license applications to go through a 'public notification' process. The final legislation allows exemption, as a transitional provision for the advanced projects, from the public notification process, if the project has already been through an Environmental Impact Assessment (EIS) process and a Land Court objections hearing in which objectors tested the groundwater modelling undertaken by the project proponent with expert evidence of their own.
As the Project has already gone through the EIS and the Land Court process, and has passed all scientific and legal examinations to ensure rigorous measures are in place to manage water impact, the Project's associated water license application would not be subject to public notification. However, Adani will be required to apply for the associated water license.
Adani together with other mining companies and other interested parties were invited by the Queensland parliament's Agriculture and Environment Committee to make representation in relation to the proposed water bill, Adani also attended the committee hearing on 12 October 2016. Further, Adani together with local regional council and various industry bodies in Queensland had made a representation to the Queensland government in relation to the rigorous approvals process that the Project had been subject to.
The Australian Parliament on 10 November 2016 passed a state government amendment to the Environmental Protection (Underground Water Management) And Other Legislation Amendment Bill. The exemption from the public notification recognizes the significant work Adani has already done to manage water impacts and avoids unintended and unnecessary duplication and further delay of the project. This is a legislative amendment and not a legal approval step. Consequently, the company did not consider it to be a significant event warranting intimation to the stock exchange, the company said in a statement.
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