Sensex, Nifty fall 1% on weak European cues; banks battered

Weakness persisted on the bourses in afternoon trade. At 14:27 PM, the barometer index, the S&P BSE Sensex, was down 378.05 points or 1.31% at 28,419.20. The losses for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was down 129.90 points or 1.47% at 8,736.80. The market sentiment was weak due to negative global cues.

The broad market depicted weakness. There were more than two losers against every gainer on BSE. 1,853 shares fell and 652 shares rose. A total of 153 shares were unchanged. The BSE Mid-Cap index was currently down 2.34%. The BSE Small-Cap index was currently down 1.55%. The decline in both these indices was higher than the Sensex's decline in percentage terms.

In overseas stock markets, European stocks declined as investor sentiment was rattled by concerns that the US Federal Reserve could be considering an imminent interest rate hike. Asian markets edged lower as investors were spooked by rising bond yields and talk the Federal Reserve might be serious about lifting US interest rates as early as next week.

Trading in US stock index futures indicated fall in US stocks at the opening bell today, 12 September 2016. Trading in US index futures indicated that the Dow Jones Industrial Average could slide 111 points at the opening bell. US stocks tumbled on Friday, 9 September 2016, as investor nervousness increased following a nuclear test by North Korea and Federal Reserve officials' comments lifted rate hike bets.

North Korea conducted its fifth and biggest nuclear test on Friday, 9 September 2016, and said it had mastered the ability to mount a warhead on a ballistic missile, drawing condemnation from the United States as well as China, North Korea's main ally. Further pressure on the US equity market came after Boston Fed President Eric Rosengren said the US central bank faced increasing risks if it waited too much longer to raise interest rates.

Index heavyweight and cigarette major ITC dropped 2.09% to Rs 253.30. The stock hit a high of Rs 257.65 and low of Rs 253 so far during the day.

Cement stocks fell. Ambuja Cements (down 3.58%), ACC (down 2.83%), UltraTech Cement (down 0.56%) and Shree Cement (down 2.6%) fell.

Grasim Industries fell 0.92%. Grasim Industries said that board of directors on Saturday, 10 September 2016, approved the proposal to increase the limit for investment in the equity share capital of the company by registered foreign portfolio investors from 24% to 30% of the company's paid-up equity share capital of the company. The announcement was made on Saturday, 10 September 2016.

Realty stocks dropped. DLF (down 4.12%), Indiabulls Real Estate (down 5.04%), D B Realty (down 3.95%), Unitech (down 4.49%), Sobha (down 1.77%), Godrej Properties (down 1.68%), Prestige Estates Projects (down 1.48%), Hubtown (down 1.23%), Oberoi Realty (down 1.32%) declined.

Housing Development and Infrastructure (HDIL) fell 8.42% after consolidated net profit fell 30% to Rs 40.89 crore on 2.7% decline in total income to Rs 265.21 crore in Q1 June 2016 over Q1 June 2015. The result was announced on Saturday, 10 September 2016. HDIL said that it follows project completion method and accordingly results on quarter to quarter basis may not be comparable.

India's stock market remains closed tomorrow, 13 September 2016, on account of Bakri Id.