Intense volatility was witnessed in mid-afternoon trade as key benchmark indices trimmed losses after hitting fresh intraday lows. At 14:25 IST, the barometer index, the S&P BSE Sensex, was down 439.60 points or 1.57% at 27,642.74. The Nifty 50 index was currently down 142.30 points or 1.63% at 8,566.50. Weakness in global stocks spoiled investors sentiment in Indian market.
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 103 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. 1,969 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.
Sugar shares edged lower. EID Parry (India) (down 5.87%), Dwarikesh Sugar Industries (down 5.78%), Dhampur Sugar Mills (down 5.02%), Simbhaoli Sugars (down 4.56%), Triveni Engineering & Industries (down 3.59%), DCM Shriram Industries (down 3.19%), Sakthi Sugars (down 2.89%), Rana Sugars (down 2.85%), KCP Sugar & Industries Corporation (down 2.55%), Empee Sugars and Chemicals (down 2.09%), Upper Ganges Sugar & Industries (down 1.95%), Oudh Sugar Mills (down 1.71%), Shree Renuka Sugar (down 1.21%) and Balrampur Chini Mills (down 0.52%), edged lower. Bajaj Hindusthan Sugar was up 0.21%.
Auto stocks declined. Escorts (down 5.56%), Tata Motors (down 4.07%), Ashok Leyland (down 2.54%), TVS Motor Company (down 1.76%), Bajaj Auto (down 1.63%), Maruti Suzuki India (down 0.85%), Eicher Motors (down 0.72%) and Hero MotoCorp (down 0.09%), edged lower.
Shares of Mahindra & Mahindra (M&M) was down 1.2%. SsangYong Motor Company, part of the Mahindra group on Wednesday, 12 October 2016 announced that as a part of its effort to grow in China, the company signed a letter of intent with the Shaanxi Automobile Group for a joint venture that will establish a local production for CBU vehicles. The joint venture, which will become SsangYong's first overseas production base, in a 50/50 partnership with the Shaanxi Automobile Group, will construct production facilities for CBU vehicles and an engine plant. The first phase of construction will establish a plant with an annual capacity of 150,000 units per year by the end of 2019 and the second phase will involve an expansion of the facilities to 300,000 units annnually. Further, SsangYong will establish an automotive cluster with its major suppliers that will also enter the market, to ensure product competitiveness, and start the production of SsangYong's current models and models under development, in the second half of 2019.
Meanwhile, M&M will announce Q2 September 2016 results on 11 November 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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