Key benchmark indices tumbled as weakness in global stocks spoiled investors sentiment. The barometer index, the S&P BSE Sensex, fell 469.31 points or 1.67% to 27,613.03, as per the provisional closing data. The Nifty 50 index fell 135.45 points or 1.56% to 8,573.35, as per the provisional closing data.
The Sensex hit its lowest level more than 13 weeks. The Nifty hit its lowest level in nine weeks. The Sensex fell 518.50 points, or 1.85% at the day's low of 27,563.84 in mid-afternoon trade, its lowest level since 11 July 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 167.45 points, or 1.92% at the day's low of 8,541.35 in mid-afternoon trade, its lowest level since 11 August 2016. The index fell 27.25 points, or 0.31% at the day's high of 8,681.55 in early trade.
In overseas stock markets, European and Asian stocks were trading lower as an unexpected decline in Chinese exports stoked worries about the health of the global economy. China's exports sank 10% year-on-year in September to $184.5 billion, while imports fell 1.9% to $142.5 billion. Meanwhile, 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.
Trading in US index futures indicated that the Dow Jones Industrial Average could decline 104 points at the opening bell today, 13 October 2016. 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.
Back home, the broad market depicted weakness. There were more than two losers against every gainer on BSE. 1,912 shares fell and 950 shares rose. A total of 118 shares were unchanged. The BSE Mid-Cap index provisionally fell 1.50%. The BSE Small-Cap index provisionally fell 1.41%.
The decline in both these indices was lower than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 3931.19 crore, higher than turnover of Rs Rs 2502.09 crore registered during the previous trading session on Monday, 10 October 2016.
Metal shares edged lower. Steel Authority of India (down 4.46%), National Aluminium Company (down 3.25%), Bhushan Steel (down 3.19%), Hindalco Industries (down 3.17%), Hindustan Zinc (down 2.98%), Jindal Steel & Power (down 2.39%), JSW Steel (down 2.39%), Hindustan Copper (down 2.29%), Vedanta (down 1.6%), NMDC (down 1.22%) and Tata Steel (down 0.89%), edged lower.
Meanwhile, copper price edged lower in the global commodities markets. High Grade Copper for December 2016 delivery was currently down 0.41% at $2.1675 per pound on the COMEX.
Hindustan Unilever lost 1.60% to Rs 862 after the company's parent Unilever Plc today, 13 October 2016 reported a disappointing revenue growth in Q3 September 2016 over Q3 September 2015.
Unilever posted an underlying sales growth of 3.2% in Q3 September 2016 over Q3 September 2015. Volumes declined 0.4% during this period. Sales increased by 3.4% at constant exchange rates while turnover, which is at current rates, declined 0.1% in Q3 September 2016 over Q3 September 2015. Consumer demand remained weak and in the markets in which Unilever operates volumes have slowed further and are flat in aggregate, the company said. This is particularly the case in Latin America where currency devaluation has pushed up the cost of living of its consumers, squeezing disposable incomes, it added.
Unilever holds 58.32% stake in Hindustan Unilever (HUL) as per the shareholding pattern as on 30 September 2016.
TCS fell 2.17% to Rs 2,328.50 on expectations of subdued earnings in Q2 September 2016 when the company announces results today, 13 October 2016. Media reports suggested that TCS is likely to report 0.2% drop in consolidated net profit in Q2 September 2016 on sequential basis. Analysts expect the company to post 1.47% growth in revenue in Q2 September 2016 over Q1 June 2016. Dollar revenue is expected to increase 1.78% quarter-on-quarter (QoQ) in Q2 September 2016. The slowdown in North American financial services sector is likely to hurt TCS' growth in coming quarters, reports suggested.
It may be recalled that TCS had earlier warned of a slowdown in discretionary spending in banking, financial services and insurance (BFSI) vertical by its US clients. Based on data at the end of August 2016, the company had characterized customer outlook as one marked by abundant caution, with some holding back of discretionary spending - particularly in the BFSI vertical in the United States - resulting in a sequential loss of momentum, TCS had said in its earnings update issued on 7 September 2016.
On 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%.
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