Banking, metal stocks decline

Key benchmark indices were range bound in mid-morning trade. At 11:16 IST, the barometer index, the S&P BSE Sensex, was down 415.53 points or 1.44% at 28,381.72. The Nifty 50 index was down 135.95 points or 1.53% at 8,730.75. Sentiment was weak due to negative global cues. The broad market depicted weakness. There were more than three losers against every gainer on BSE. 1,758 shares fell and 532 shares rose. A total of 103 shares were unchanged. The BSE Mid-Cap index was currently down 2.21%. The BSE Small-Cap index was currently down 1.58%. The decline in both these indices was higher than the Sensex's decline in percentage terms.

In overseas stock markets, 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. 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 Reliance Industries (RIL) was up 0.70% to Rs 1,051. The stock hit a high of Rs 1,051.60 and a low of Rs 1,025.10 so far during the day.

Index heavyweight and housing finance major HDFC was down 2.18% to Rs 1,380.05. The stock hit a high of Rs 1,400.10 and a low of Rs 1,373.25 so far during the day.

Index heavyweight and cigarette major ITC was down 1.78% to Rs 254.10. The stock hit a high of Rs 257.65 and a low of Rs 253.10 so far during the day.

Metal shares edged lower after copper price declined in the global commodities markets. Hindalco Industries (down 4.98%), Jindal Steel & Power (down 3.82%), Steel Authority of India (down 3.46%), Tata Steel (down 3.36%), NMDC (down 2.98%), Hindustan Zinc (down 2.49%), JSW Steel (down 2.32%), National Aluminium Company (down 1.82%) and Hindustan Copper (down 1.5%), edged lower. Vedanta (up 1.02%) and Bhushan Steel (up 1.78%), edged higher.

High Grade Copper for December 2016 delivery was currently down 0.67% at $2.0785 per pound on the COMEX.

Banks stocks edged lower. Among PSU banks, Corporation Bank (down 4.35%), Bank of Baroda (down 3.84%), Union Bank of India (down 3.72%), Syndicate Bank (down 3.7%), Allahabad Bank (down 3.69%), Indian Bank (down 3.64%), Bank of India (down 3.32%), Andhra Bank (down 3.21%), Vijaya Bank (down 3.19%), UCO Bank (down 3.16%), Punjab National Bank (down 2.9%), State Bank of India (down 2.9%), Bank of Maharashtra (down 2.75%), Canara Bank (down 2.75%), Punjab & Sind Bank (down 2.54%), Dena Bank (down 2.01%), IDBI Bank (down 2.01%), Central Bank of India (down 1.89%) and United Bank of India (down 1.32%), edged lower.

Among private sector banks, Yes Bank (down 4.27%), Axis Bank (down 3.69%), Federal Bank (down 2.8%), ICICI Bank (down 2.37%), IndusInd Bank (down 2.17%), City Union Bank (down 1.15%), HDFC Bank (down 1.06%) and Kotak Mahindra Bank (down 0.9%), edged lower.

Fitch Ratings has said in a report that the progressive increase in minimum capital requirements under Basel III is likely to put nearly half of Indian banks in danger of breaching capital triggers. State-run banks are the most at risk, given their poor existing capital buffers and weak prospects for raising capital through market channels, Fitch said. Fitch estimates that Indian banks will require around $90 billion in new capital by FY 2019 to meet Basel III standards, with the state banks accounting for about 80% of the total. According to Fitch, state-run banks will continue to face difficulties in raising capital from the market, which will keep their Viability Ratings under pressure and will weigh on the sector outlook.

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

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