Key benchmark indices languished in negative zone in mid-afternoon trade. At 14:15 IST, the barometer index, the S&P BSE Sensex was down 89.12 points or 0.32% at 27,584.48. The decline in the Nifty 50 index was higher than the Sensex's fall in percentage terms. The Nifty was currently down 47.10 points or 0.55% at 8,536.30. Weakness in European stocks weighed on sentiment on the domestic bourses. The market breadth indicating the overall health of the market was negative. On BSE, 1,382 shares declined and 1,276 shares rose. A total of 179 shares were unchanged. The BSE Mid-Cap index was currently down 0.56%. The decline in this index was higher than Sensex's decline in percentage terms. The BSE Small-Cap index was currently down 0.17%. The decline in this index was lower than Sensex's decline in percentage terms.
In overseas stock markets, European stocks edged lower as investors remained cautious ahead of earnings, key data and a European Central Bank (ECB) meeting later this week. 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.
FMCG stocks were mixed.
Dabur India (down 2.2%), Nestle India (down 1.23%), Colgate-Palmolive (India) (down 1.04%), Tata Global Beverages (down 1.05%), Britannia Industries (down 0.54%), Jyothy Laboratories (down 0.35%), GlaxoSmithkline Consumer Healthcare (down 0.08%) and Bajaj Corp (down 0.04%) edged lower. Procter & Gamble Hygiene and Health Care (up 0.44%), Emami (up 0.47%), Hindustan Unilever (up 0.48%), Marico (up 0.71%) and Godrej Consumer Products (up 0.07%) edged higher.
Capital goods stocks declined. Havells India (down 3.85%), Crompton Greaves (down 1.99%), GE T&D India (down 1.9%), Suzlon Energy (down 1.71%), L&T (down 1.17%), Thermax (down 0.81%), Bharat Heavy Electricals (down 0.75%), BEML (down 0.71%), Siemens (down 0.47%), Bharat Electronics (down 0.45%) and AIA Engineering (down 0.06%) edged lower. Praj Industries (up 0.24%) and ABB India (up 0.01%) edged higher.
UltraTech Cement was down 1.36% at Rs 3,983.40. The stock was volatile. The stock hit a high of Rs 4,069.55 and a low of Rs 3,965 so far during the day. On a consolidated basis, the company's net profit rose 25.05% to Rs 614 crore on 2.52% decline in net sales to Rs 5709 crore in Q2 September 2016 over Q2 September 2015. The result was announced during market hours today, 17 October 2016.
With regard to future business outlook, UltraTech Cement said that the government's thrust on developing infrastructure spending, good monsoons, development of smart cities leading to growth in housing demand in Tier-I and Tier-II cities, slower pace of new capacity addition augur well for the cement industry. The company added that it is well positioned across the country to meet the expected rise in cement demand and participate in the next phase of growth in the country.
Separately, UltraTech Cement announced after market hours on Friday, 14 October 2016 that it is proposing to issue secured redeemable non-convertible debentures (NCDs) amounting to Rs 300 crore on private placement basis. The tenure of debentures is five years. The interest offered on debentures is 7.15% per annum.
eClerx Services rose 1.49% at Rs 1,541 after the company fixed 28 October 2016 as the record date for ascertaining entitlement for buyback of equity shares. eClerx Services said that the share buyback committee of board of directors of the company at its meeting held on Friday, 14 October 2016, determined the final buyback price of Rs 2,000 per share and the final amount for buyback to be Rs 234 crore. With the buyback price of Rs 2,000 per share and buyback size of Rs 234 crore, the total number of shares to be bought back in the buyback shall be 11.70 lakh equity shares, representing about 2.87% of the total issued and paid-up equity capital of the company as on 31 March 2016. The company will buy back shares on proportionate basis from existing shareholders through the tender offer route.
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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