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Indices languish in red

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Key benchmark indices languished in the negative terrain in afternoon trade. At 13:20 IST, the barometer index, the S&P Sensex, was down 252.11 points or 0.95% at 26,309.48. The 50 index was currently off 83.10 points or 1.01% at 8,109.80. Weakness in Asian stocks weighed adversely on the domestic bourses.

The slumped 270.27 points or 1.01% at the day's low of 26,289.65 in early afternoon trade, its lowest level since 28 November 2016. The barometer index lost 114.40 points or 0.43% at the day's high of 26,445.52, at the onset of the trading session. The dropped 89.05 points or 1.08% at the day's low of 8,103.85 in early afternoon trade, its lowest level since 28 November 2016. The index lost 38.75 points or 0.47% at the day's high of 8,154.15, at the onset of the trading session.

Overseas, Asian markets declined on global uncertainties as investors adopted a wait-and-see mood. Later today, 2 December 2016, the US Labor Department will release its closely watched monthly employment report for November. Investors are awaiting US payrolls report for confirmation the US economy continues to strengthen, with an eye on an expected hike in benchmark US interest rates by the Federal Reserve at its meeting on 13-14 December.

Investors are also concerned about Italy's constitutional referendum on Sunday, 4 December 2016 which could determine whether or not the country will remain in the euro zone. A sharp decline in technology stocks pulled both the Nasdaq and the S&P 500 indexes into the red yesterday, 1 December 2016 while the Dow Jones Industrial Average managed to notch a record closing high with a lift from bank and energy shares.

Closer home, the broad market depicted weakness. There were more than two losers for every gainer. On BSE, 1,665 shares declined and 719 shares rose. A total of 115 shares were unchanged. The Mid-Cap index was currently off 0.87%. The Small-Cap index was currently off 0.94%. The fall in both these indices was lower than the Sensex's decline in percentage terms.

Bank stocks declined across the board. Among public sector bank stocks, State Bank of India (SBI) (down 0.8%), Canara Bank (down 2.18%), Union Bank of India (down 4.03%), Bank of India (down 1.75%), Punjab National Bank (down 1.98%) Syndicate Bank (down 0.98%), Indian Overseas Bank (down 0.6%), Bank of Baroda (down 0.9%), Andhra Bank (down 1.16%), Oriental Bank of Commerce (down 2.29%), Dena Bank (down 0.72%), and Indian Bank (down 1.68%), declined.

Among private sector banks, Axis Bank (down 1.26%), ICICI Bank (down 0.29%), Kotak Mahindra Bank (down 2.98%), Yes Bank (down 0.91%), and HDFC Bank (down 0.88%) declined.

IndusInd Bank lost 1.93%. The bank said it proposes to raise funds by issue and allotment of senior unsecured redeemable non-convertible long term bonds in the nature of debentures (infrastructure bonds) for cash aggregating to Rs 1500 crore on private placement basis.

The borrowing shall be within the overall borrowing limits of the bank as may be approved by the shareholders from time to time. The announcement was made after market hours yesterday, 1 December 2016.

Most FMCG stocks declined. Tata Global Beverages (down 0.9%), Marico (down 0.71%), Britannia Industries (down 0.64%), Hindustan Unilever (HUL) (down 1.89%), Dabur India (down 0.93%), GlaxoSmithkline Consumer Healthcare (down 1.73%), Godrej Consumer Products (down 3.64%), and Nestle India (down 0.97%) declined. Procter & Gamble Hygiene and Health Care (up 1.28%), Colgate Palmolive India (up 0.01%), Jyothy Laboratories (up 0.75%), and Bajaj Corp (up 0.9%) gained.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, December 02 2016. 13:10 IST