Auto, pharma stocks edge lower

Benchmark indices languished in negative zone in early afternoon trade. At 12:18 IST, the barometer index, the S&P BSE Sensex, was down 127.56 points or 0.48% at 26,619.62. The Nifty 50 index was currently down 51.40 points or 0.62% at 8,210.35. Data over the weekend showing decline in the industrial production in October weighed on market sentiment.

India's industrial production declined 1.9% in October 2016 over October 2015. Twelve out of 22 industry groups in the manufacturing sector showed negative growth in October 2016. The data was released by the government after market hours on Friday, 9 December 2016.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,206 shares declined and 1,051 shares rose. A total of 121 shares were unchanged.

The BSE Mid-Cap index was currently down 0.62%. The decline in this index was higher than the Sensex's decline in percentage terms. The BSE Small-Cap index was currently off 0.2%. The decline in this index was lower than the Sensex's decline in percentage terms.

Pharma stocks declined. Alkem Laboratories (down 3.3%), GlaxoSmithkline Pharmaceuticals (down 1.05%), Aurobindo Pharma (down 0.98%), Strides Shasun (down 0.79%), Divi's Laboratories (down 0.77%), Dr Reddy's Laboratories (down 0.69%), Cadila Healthcare (down 0.55%), Wockhardt (down 0.16%) and Cipla (down 0.03%) edged lower. Glenmark Pharmaceuticals (up 1.8%), Sun Pharmaceutical Industries (up 1.05%) and Lupin (up 0.22%) edged higher.

Auto stocks edged lower. Bajaj Auto (down 1.88%), Hero MotoCorp (down 1.32%), Maruti Suzuki India (down 1.26%), Mahindra & Mahindra (down 1.1%), TVS Motor Company (down 0.91%) and Eicher Motors (down 0.11%) declined. Ashok Leyland (up 0.82%) edged higher.

Tata Motors declined 1.63% after Tata Motors Group global wholesales including Jaguar Land Rover (JLR) rose 1% to 91,832 units in November 2016 over November 2015. Tata Motors said that global wholesales of all passenger vehicles rose 5% to 64,862 units in November 2016 over November 2015. Global wholesales of all Tata Motors' commercial vehicles and Tata Daewoo range fell 7% to 26,970 units in November 2016 over November 2015. The announcement was made after market hours on Friday, 9 December 2016.

OM Metals Infraprojects surged 5.33% at Rs 46.40 after the company announced that Food Corporation of India (FCI) has issued letter of award (LOA) to the company allowing concession for a period of 30 years at four locations of Bihar, UP, West Bengal and Gujarat.

The concession is for development/construction of silos of 50,000 metric tons capacity at each location on design, build, finance, operate and own (DBFOO) basis for storage of wheat on fixed charge basis to the concessionaire.

Overseas, Asian stocks witnessed a mixed trend. In Japan, the Nikkei 225 index closed 0.84% higher. Japan's October core machinery orders rose for the first time in three months to beat expectations, government data showed. Core orders, regarded as an indicator of capital spending in the coming six to nine months, rose 4.1% in October from the previous month.

US major stock indices continued their recent winning streak, closing at all-time highs on Friday, 9 December 2016. All major indexes have been hitting record highs since the election amid hopes that the Trump administration will usher in tax cuts, deregulation and fiscal stimulus.

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