Key benchmark indices extended losses and hit fresh intraday low in afternoon trade as European stocks declined in early trade there. At 13:25 IST, the barometer index, the S&P BSE Sensex, was down 445.60 points or 1.59% at 27,636.74. The Nifty 50 index was currently down 133.10 points or 1.53% at 8,575.70. Weakness in global stocks spoiled investors sentiment in Indian market.
The Sensex hit its lowest level in 13 weeks. The Nifty Nifty hit its lowest level in almost two weeks. The Sensex fell 446.67 points, or 1.59% at the day's low of 27,635.67 in afternoon trade, its lowest level since 4 August 2016. The index fell 39.72 points, or 0.14% at the day's high of 28,042.62 in early trade. The Nifty fell 141.60 points, or 1.63% at the day's low of 8,567.20 in afternoon trade, its lowest level since 30 September 2016. The index fell 27.25 points, or 0.31% at the day's high of 8,681.55 in early trade.
The broad market depicted weakness. There were more than two losers against every gainer on BSE. 1,969 shares fell and 716 shares rose. A total of 99 shares were unchanged. The BSE Mid-Cap index was currently down 1.79%. The BSE Small-Cap index was currently down 1.9%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
Bank stocks dropped. Among private bank stocks, HDFC Bank (down 1.6%), Kotak Mahindra Bank (down 1.04%), RBL Bank (down 2.42%), Yes Bank (down 1.13%) and Axis Bank (down 2.07%) declined.
IndusInd Bank was down 0.56%. The bank's net profit rose 25.75% to Rs 704.26 crore on 23.97% increase in total income to Rs 4439.72 crore in Q2 September 2016 over Q2 September 2015. The bank's gross non-performing assets (NPAs) stood at Rs 899.01 crore as on 30 September 2016 as against Rs 860.64 crore as on 30 June 2016 and Rs 602.10 crore as on 30 September 2015. The ratio of gross NPAs to gross advances stood at 0.90% as on 30 September 2016 as against 0.91% as on 30 June 2016 and 0.77% as on 30 September 2015. The ratio of net NPAs to net advances stood at 0.37% as on 30 September 2016 as against 0.38% as on 30 June 2016 and 0.31% as on 30 September 2015. The bank's provisions and contingencies (excluding tax provisions) rose 35.29% to Rs 213.88 crore in Q2 September 2016 over Q2 September 2015. The result was announced on Wednesday, 12 October 2016. It is to be noted that the stock market was shut on Tuesday, 11 October 2016 and Wednesday, 12 October 2016.
ICICI Bank declined 3.46%. The bank announced on Wednesday, 12 October 2016, that it has notified The Bank of New York Mellon (Trustee) that all outstanding 7.25% perpetual non-cumulative subordinated debt securities (Notes) of the bank will be redeemed in full on 31 October 2016 (redemption date) at a redemption price equal to 100% of the principal amount thereof plus accrued and unpaid interest to the redemption date. The amount of accrued and unpaid interest with respect to the Notes to the redemption date will be $36.25 on each $1,000 of Notes. The redemption price including the amount of accrued and unpaid interest with respect to the Notes for all outstanding Notes on the redemption date will be $1036.25 for each $1,000 of Notes. ICICI Bank acting through its Bahrain branch had issued a $340,000,000 7.25% perpetual non-cumulative subordinated debt securities on 24 August 2006 with an optional redemption by the bank on 31 October 2016, or on any subsequent interest payment date.
Among PSU bank stocks, Andhra Bank (down 4.29%), State Bank of India (SBI) (down 2.64%), Punjab National Bank (down 4.74%), Bank of Baroda (down 4.88%), Canara Bank (down 5.12%), IDBI Bank (down 3.02%), Bank of India (down 5.07%) and Union Bank of India (down 3.12%) dropped.
Telecom stocks declined. Bharti Airtel (down 1.11%), Idea Cellular (down 2.95%), MTNL (down 2.04%), Tata Teleservices (Maharashtra) (down 1.71%) and Reliance Communications (down 1.69%) fell.
Shares of Bharti Infratel fell 0.54%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
On a the economic front, India's industrial production declined 0.7% in August 2016 compared with a revised 2.5% decline in July 2016. The government unveiled the industrial production data for August 2016 after trading hours on Monday, 10 October 2016. Decline in production in metal and manufacturing sector led the decline in industrial production in August 2016. Production of the mining sector declined 5.6% and manufacturing production fell 0.3%. As per use-based classification, capital goods production declined sharply by 22.2% in August 2016. Consumer goods production rose 1.1%.
In overseas stock markets, European and Asian stocks were trading lower after minutes from the US Federal Reserve's September meeting raised expectations of a December interest rate hike and weak Chinese trade data for September 2016 weighed on investor sentiment. Data released today, 13 October 2016 showed China's exports tumbled nearly 10% year-on-year in dollar-terms, and imports dipped 1.9% from the previous year.
US stocks finished mostly higher yesterday, 12 October 2016. Minutes from the Fed's September meeting, indicate that policy makers wanted more evidence of full employment and gains in inflation before feeling confident in raising rates, but the minutes also said a rate increase was in the cards relatively soon.
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