Bank stocks drop

A range bound movement was witnessed as key benchmark indices hovered in negative terrain in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, was off 89.83 points or 0.34% at 26,079.58. The Nifty 50 index was currently down 31.85 points or 0.4% at 7,923.05. The market breadth indicating the overall health of the market was negative. On BSE, 1,262 shares fell and 1,192 shares rose. A total of 122 shares were unchanged. The BSE Mid-Cap index was down 0.12%. The BSE Small-Cap index was down 0.11%. The decline in these indices was lower in percentage terms than the Sensex's fall.

In overseas stock markets, Chinese stocks edged higher as disappointing manufacturing data spurred hopes of stimulus for the world's second biggest economy. US stocks edged higher yesterday, 1 December 2015, after downbeat manufacturing report hinted at gradual pace of US interest rate increases next year. The US Federal Reserve is widely expected to announce an increase of 25 basis points in the federal funds rate after a regular monetary policy review scheduled during the middle of this month. With markets having already priced in a 25 basis points rate hike, the focus has shifted to the likely pace and quantum of rate hikes once this first move is done.

Bank stocks declined. Among public sector banks, Bank of Baroda (down 1.47%), UCO Bank (down 2.54%), Syndicate Bank (down 2.66%), Punjab National Bank (down 2.47%), Corporation Bank (down 1.5%), Allahabad Bank (down 1.23%), Bank of India (down 1.91%), State Bank of India (SBI) (down 1.62%), Union Bank of India (down 1.33%), Canara Bank (down 1.94%), and United Bank of India (down 0.66%) edged lower.

Among private sector banks, Axis Bank (down 0.73%), HDFC Bank (down 0.43%), ICICI Bank (down 1.39%), Kotak Mahindra Bank (down 0.92%), Federal Bank (down 1.02%), Yes Bank (down 1.03%), and IndusInd Bank (down 0.3%) edged lower.

Telecom stocks were mixed. Bharti Airtel (down 1.02%) and Idea Cellular (down 1.02%) declined. Reliance Communications (up 0.97%) and Tata Teleservices (Maharashtra) (up 0.72%) gained.

Infosys dropped 1.08% to Rs 1,065. The stock hit high of Rs 1,082 and low of Rs 1,062 so far during the day.

IL&FS Engineering and Construction Company surged 13.49% after the company said it has received a letter of acceptance (LoA) from Ministry of Road Transport and Highways (MoRTH) for a total value of Rs 675 crore for rehabilitation and upgradation to 2 lanes of Birpur-Bihpur section of National Highway-106 in Bihar under phase-I of National Highways Development Project (NHDP). The announcement was made after market hours yesterday, 1 December 2015. The project involves engineering, procurement, and construction (EPC) with a completion period of 36 months.

Tree House Education & Accessories was locked at 10% upper circuit at Rs 184 on BSE after Morgan Stanley Asia (Singapore) Pte bought 2.4 lakh shares at Rs 166.56 per share in a bulk deal on the NSE yesterday, 1 December 2015. Macquarie Fund through its two schemes sold a total of 11.94 lakh shares of Tree House Education & Accessories at an average price of Rs 160.69 per share.

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