Banking, telecom sector stocks and index heavyweight Infosys led modest losses for key benchmark indices in a lacklustre trading session. The barometer index, the S&P BSE Sensex, lost 104.91 points or 0.36% to settle at 28,668.22. The Nifty 50 index lost 35.90 points or 0.4% to settle at 8,831.55. Weakness in European and Asian stocks weighed on sentiment on the domestic bourses. Key indices extended intraday slide towards the latter part of the trading session after hovering in a narrow range around the flat line till afternoon trade.
Index heavyweight Reliance Industries edged higher. Shares of L&T Technology Services settled near the initial public offer (IPO) price on its debut. Bharat Heavy Electricals (Bhel) dropped in volatile trade.
In overseas stock markets, European stocks edged lower after the euro zone flash composite Purchasing Managers' Index (PMI) fell to 52.6 in September 2016, from August's reading of 52.9. Asian stocks edged lower amid a slew of economic data. In mainland China, the Shanghai Composite settled 0.28% lower. In Hong Kong, the Hang Seng closed 0.39% lower. The MNI China business sentiment index came it at 55.8 in September 2016, up from a marginally revised 54.1 in August, driven by a faster increase in new orders and a further strengthening in confidence among manufacturing companies. In Japan, the Nikkei 225 Average ended 0.32% lower. Japanese manufacturing activity expanded for the first time in seven months in September, a preliminary survey showed today, 23 September 2016. The IHS Markit/Nikkei Japan Flash Manufacturing Purchasing Managers Index (PMI) rose to 50.3 in September from a final 49.5 in August on a seasonally adjusted basis.
US stocks registered modest gains yesterday, 22 September 2016, extending previous trading session's gains as investors digested several economic data releases and the Federal Reserve's latest monetary policy decision. US home resales unexpectedly fell in August 2016. The National Association of Realtors said yesterday, 22 September 2016 that existing home sales declined 0.9% to an annual rate of 5.33 million units.
The Sensex lost 104.91 points or 0.36% to settle at 28,668.22, its lowest closing level since 21 September 2016. The index rose 51.96 points or 0.18% at the day's high of 28,825.09. The index lost 145.75 points or 0.5% at the day's low of 28,627.38.
The Nifty lost 35.90 points or 0.4% to settle at 8,831.55, its lowest closing level since 21 September 2016. The index rose 17.75 points or 0.2% at the day's high of 8,885.20. The index lost 47.15 points or 0.53% at the day's low of 8,820.30.
The market breadth indicating the overall health of the market was negative. On BSE, 1,496 shares declined and 1,168 shares rose. A total of 252 shares were unchanged.
The total turnover on BSE amounted to Rs 3653 crore, higher than turnover of Rs 3311.63 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Bankex index (down 1.23%), the BSE Utilities index (down 0.67%), the BSE Telecom index (down 0.43%) and the BSE Power index (down 0.61%) underperformed the Sensex. The BSE Auto index (down 0.24%), the BSE Capital Goods index (down 0.12%), the BSE Oil & Gas index (up 0.74%) and the BSE Realty index (up 1.01%) outperformed the Sensex.
Index heavyweight and software major Infosys was down 1.46% at Rs 1,043. The stock hit a high of Rs 1,059.85 and a low of Rs 1,040 in intraday trade.
Index heavyweight Reliance Industries was up 1.41% at Rs 1,102.95. The stock hit a high of Rs 1,109.20 and a low of Rs 1,088 in intraday trade.
Bank stocks edged lower. Among public sector banks, Canara Bank (down 1.75%), IDBI Bank (down 1.61%), Indian Bank (down 0.99%), State Bank of India (down 1.15%), Bank of India (down 1.05%), Punjab National Bank (down 1.21%), Union Bank of India (down 0.65%) and Bank of Baroda (down 0.21%) declined.
Among private sector banks, Axis Bank (down 5.84%), ICICI Bank (down 1.36%), Yes Bank (down 1.11%) and IndusInd Bank (down 0.77%) edged lower. Kotak Mahindra Bank (up 0.01%) and RBL Bank (up 0.56%) edged higher.
Index heavyweight HDFC Bank was up 0.42% at Rs 1,313.15. The stock hit a high of Rs 1,318.20 and a low of Rs 1,303 in intraday trade.
Telecom stocks declined. Reliance Communications (down 1.54%) and Idea Cellular (down 1.32%) edged lower. Bharti Airtel (up 0.08%) edged higher. Bharti Infratel was down 1.11%. Bharti Infratel is a telecom tower arm of Bharti Airtel.
Shares of L&T Technology Services settled at Rs 865.10 on BSE, at a premium of 0.59% over the initial public offer (IPO) price of Rs 860 per share on its debut on the bourses today, 23 September 2016. The stock made its debut at Rs 900, a premium of 4.65% over the IPO price. The stock hit a high of Rs 931 and low of Rs 860 in intraday trade. The company had priced the IPO at Rs 860 per share, the top end of the Rs 850-860 per share price band for the IPO. The IPO which closed on 15 September 2016 received strong response from investors. The IPO comprised of an offer for sale of 1.04 crore shares by engineering and construction major L&T. L&T Technology Services did not receive any funds from the IPO. L&T's stake in L&T Technology Services has fallen to 89.77% from 100% earlier after the IPO.
Shares of L&T shed 0.15% at Rs 1,496.80.
Bharat Heavy Electricals (Bhel) dropped in volatile trade. The stock lost 0.61% at Rs 146.20. The stock hit a high of Rs 150.70 and a low of Rs 145.75 in intraday trade. The company's chairman & managing director Atul Sobti said that the company recorded its highest-ever commissioning of projects and highest order booking in the last five years in the financial year ended 31 March 2016 (FY 2016), with significant traction in growth drivers. Addressing shareholders at the company's annual general meeting yesterday, 22 September 2016, Sobti said that enhanced focus on project execution has resulted in Bhel creating history by way of commissioning/synchronizing an all-time high 15,059 megawatts (MW) of power generating equipment during the year. Despite intense competitive pressure in the power and capital goods markets during the year, Bhel achieved the highest order booking in the last five years, at Rs 43727 crore, a 42% leap over FY 2015. The company ended FY 2016 with a total order book of Rs 110730 crore for execution in FY 2017 and beyond. The announcement was made after market hours yesterday, 22 September 2016.
Meanwhile, the government yesterday, 22 September 2016, named three outside experts as members of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI). The Appointments Committee of the Cabinet approved the names of Chetan Ghate, a professor at Indian Statistical Institute; Pami Dua, director at Delhi School of Economics (DSE); and Ravindra Dholakia, professor at Indian Institute of Management, Ahmedabad, as MPC members. The six-member MPCthe other three members are from RBIwill conduct its first monetary policy review on 4 October 2016. The members of the committee from RBI are Governor Urjit Patel, deputy governor R. Gandhi, who is also in charge of the monetary policy, and executive director Michael Patra. The RBI governor will have a casting vote in case of a tie.
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