Key benchmark indices entered into negative zone from positive zone in early afternoon trade. At 12:15 IST, the barometer index, the S&P BSE Sensex was down 106.52 points or 0.38% at 27,567.08. The decline in the Nifty 50 index was higher than the Sensex's fall in percentage terms. The Nifty was currently down 49.70 points or 0.58% at 8,533.70. The market breadth indicating the overall health of the market turned negative from positive in early afternoon trade. On BSE, 1,279 shares declined and 1,222 shares rose. A total of 164 shares were unchanged. The BSE Mid-Cap index was currently down 0.77%. The decline in this index was higher than Sensex's decline in percentage terms. The BSE Small-Cap index was currently down 0.32%. The decline in this index was lower than Sensex's decline in percentage terms.
The Sensex lost 125.27 points or 0.45% at the day's low of 27,548.33 in early afternoon trade. The barometer index rose 129.61 points or 0.46% at the day's high of 27,803.21 in morning trade, its highest level since 13 October 2016. The Nifty lost 58.85 points or 0.68% at the day's low of 8,524.55 in early afternoon trade, its lowest level since 4 August 2016. The index rose 32 points or 0.37% at the day's high of 8,615.40 in morning trade, its highest level since 13 October 2016.
In overseas stock markets, Asian stocks witnessed a mixed trend. US stocks registered small gains on Friday, 14 October 2016, as investors digested commentary from key Federal Reserve officials while parsing through strong bank earnings and US economic data.
Auto stocks edged lower after public sector oil marketing companies (PSU OMCs) hiked petrol and diesel prices. Eicher Motors (down 2.22%), Bajaj Auto (down 0.96%), Hero MotoCorp (down 1.1%), Tata Motors (down 0.89%), Maruti Suzuki India (down 0.57%) and TVS Motor Company (down 0.17%) edged lower. Ashok Leyland (up 0.12%) edged higher.
PSU OMCs increased petrol and diesel prices with effect from midnight 15 October 2016/16 October 2016. PSU OMCs announced increase in selling price of petrol by Rs 1.34per litre (excluding state levies) and increase in selling price of diesel by Rs 2.37per litre (excluding state levies).
Hike in fuel prices have negative impact on customers' buying decision of automobiles.
Mahindra & Mahindra (M&M) declined 2% at Rs 1,329.90. M&M announced on 15 October 2016 regarding the transfer of Franchisee Division of Mahindra Retail, a subsidiary of the company on a slump sale basis to BrainBees Solutions. The total lump sum consideration for the transfer of Franchisee Division on a slump sale basis is Rs 362.10 crore. The two largest retail players in the largely unorganised $12 billion baby and kids market in India, FirstCry.com (BrainBees Solutions) and Mahindra Retail (BabyOye), have consolidated their business activities to create a dominant presence in this segment. In terms of the structure of the transaction, Mahindra Retail and FirstCry have consolidated their operations, with Mahindra Retail selling its Franchise business to FirstCry, and operating all company stores under a FirstCry master franchisee agreement. FirstCry additionally raises $34 million of new equity capital from the Mahindra Group, Adveq (a large private equity fund), Kris Gopalakrishnan and participation from all existing shareholders.
Pharma stocks declined. Strides Shasun (down 1.24%), Sun Pharmaceutical Industries (down 0.7%), Divi's Laboratories (down 0.61%), Glenmark Pharmaceuticals (down 0.65%), Aurobindo Pharma (down 0.89%), GlaxoSmithkline Pharmaceuticals (down 0.24%), Lupin (down 0.4%), Dr Reddy's Laboratories (down 0.16%), Cadila Healthcare (down 0.09%) and Wockhardt (down 0.88%) edged lower. Ipca Laboratories (up 1.01%), Cipla (up 0.16%) and Alkem Laboratories (up 0.64%) edged higher.
ICICI Bank jumped 6.39% at Rs 257.30 on reports the debt-laden company, Essar Oil agreed to sell an oil unit to a consortium led by Russia's Rosneft. ICICI Bank is amongst the major lenders to Essar Group. Exposure to Essar Group expressed as a percent of respective bank's loan book is highest for ICICI Bank, Axis Bank, Punjab National Bank and State Bank of India, as per reports.
Separately, ICICI Bank announced after market hours on Friday, 14 October 2016 that the board of directors of the bank at its meeting held on 14 October 2016, approved the appointment of Anup Bagchi, presently Managing Director & CEO, ICICI Securities, as Executive Director of ICICI Bank subject to regulatory approvals for a period of five years effective 1 February 2017 or the date of approval of his appointment by the Reserve Bank of India (RBI), whichever is later. Anup Bagchi has been with the ICICI Group since 1992 and has worked in the areas of retail banking, corporate banking and treasury. During his tenure at ICICI Securities, he has led the growth and development of the retail broking, retail financial product distribution and wealth management businesses, ICICI Bank said. Bagchi is not related to any other director of the bank, it added.
The board also took on record, the resignation of Rajiv Sabharwal, Executive Director consequent to his decision to pursue opportunities outside the ICICI Group, effective 31 January 2017. The board also took note of other incidental changes to the senior management positions across the ICICI Group.
On the macro front, data released by the government after market hours on Friday, 14 October 2016 showed that India's trade deficit narrowed to $8.34 billion in September 2016, from $10.17 billion a year earlier. Imports declined 2.54% to $31.22 billion. Exports rose 4.62% to $22.88 billion.
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