Auto, telecom sector stocks and index heavyweights Reliance Industries, HDFC and HDFC Bank led modest losses for key benchmark indices in a volatile trading session. The barometer index, the S&P BSE Sensex lost 131.11 points or 0.47% at 27,542.49, as per the provisional closing data. The decline in the Nifty 50 index was higher than the Sensex's fall in percentage terms. The Nifty fell 60.25 points or 0.7% at 8,523.15, as per the provisional closing data. Weakness in European stocks weighed on sentiment on the domestic bourses.
The Sensex hit a 14-week low when it lost 185.30 points or 0.66% at the day's low of 27,488.30 in late 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 hit its lowest level in more than 12 weeks when it lost 77.25 points or 0.89% at the day's low of 8,506.15 in late trade. 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, 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.
Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 1,496 shares declined and 1,306 shares rose. A total of 176 shares were unchanged. The BSE Mid-Cap index provisionally lost 0.94%. The BSE Small-Cap index provisionally fell 0.5%. The decline in both these indices were higher than Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 3873.02 crore, higher than turnover of Rs 3423.38 crore registered during the previous trading session.
Telecom stocks declined. Idea Cellular (down 3.14%), Reliance Communications (down 3.03%) and Bharti Airtel (down 1.44%) edged lower.
Bharti Infratel was down 1.62%. Bharti Infratel is a telecom tower arm of Bharti Airtel.
Index heavyweight Reliance Industries was down 1.73% at Rs 1,059.50. The stock hit a high of Rs 1,080.65 and a low of Rs 1,058 in intraday trade.
Index heavyweight and housing finance major HDFC was down 1.09%. The company after market hours on Friday, 14 October 2016 announced that it has closed the issue of rupee denominated bonds to overseas investors aggregating to an amount up to Rs 500 crore. The yield to investor is 7.25% per annum payable semi-annually. Maturity date is 9 January 2020.
Index heavyweight HDFC Bank was down 1.7% at Rs 1,240. The stock hit a high of Rs 1,270 and a low of Rs 1,233 in intraday trade.
UltraTech Cement was down 0.93% at Rs 4,000.95. The stock was volatile. The stock hit a high of Rs 4,069.55 and a low of Rs 3,965 in intraday trade. 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.
ICICI Bank jumped 6.8% at Rs 258.30 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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