Benchmark indices extend losses

After languishing in red in afternoon trade, key benchmark indices extended losses in mid-afternoon trade, with the barometer index, the S&P BSE Sensex, and the 50-unit Nifty 50 index, both, hitting their lowest level in more than 13 weeks. At 14:22 IST, the Sensex was off 211.72 points or 0.84% at 25,098.61. The Nifty was off 60.80 points or 0.79% at 7,640.90. The Sensex lost 216.82 points or 0.85% at the day's low of 25,093.51 in mid-afternoon trade, its lowest level since 8 September 2015. The barometer index rose 6.62 points or 0.02% at the day's high of 25,316.95 in early trade. The Nifty fell 63.70 points or 0.82% at the day's low of 7,638 in mid-afternoon trade, its lowest level since 8 September 2015. The index rose 1.15 points or 0.01% at the day's high of 7,702.85 in early trade.

In overseas stock markets, European stocks reversed initial gains. Asian stocks languished in negative zone. In China, the latest data showed that China's consumer price inflation rose 1.5% on year in November 2015. On a monthly basis, inflation was flat last month following the 0.3% decline in October. US stocks closed lower yesterday, 8 December 2015, but off session lows as oil prices stabilized and biotech stocks gained.

Closer home, the broad market depicted weakness. There were almost four losers against every gainer on BSE. 2,110 shares fell and 528 shares rose. A total of 151 shares were unchanged. The BSE Mid-Cap index was currently off 1.35%. The BSE Small-Cap index was currently down 1.91%. The decline in both these indices was higher than Sensex's decline in percentage terms.

Oil stocks witnessed across the board slide. Among state-run oil marketing companies (PSU OMCs), BPCL (down 2.58%), HPCL (down 2.73%) and Indian Oil Corporation (down 1.82%) declined.

Among oil exploration and production (E&P) stocks, Cairn India (down 1.13%), Oil India (down 0.53%), ONGC (down 0.6%) and Reliance Industries (down 1.85%) edged lower.

In the global commodities markets, Brent for January settlement was currently up 46 cents at $40.72 a barrel. The contract had declined 47 cents or 1.15% to settle at $40.26 a barrel during the previous trading session.

Power generation and distribution stocks edged lower. Adani Power (down 2.72%), GMR Infrastructure (down 2.27%), JSW Energy (down 1.14%), NHPC (down 1.05%), Tata Power Company (down 1.1%), Torrent Power (down 0.47%), Jaiprakash Power Ventures (down 0.45%), Reliance Power (down 1.02%) and Reliance Infrastructure (down 0.65%) declined. NTPC (up 0.88%), Power Grid Corporation of India (up 0.89%) gained.

Shares of CESC tumbled 5.84% at Rs 514.75 after a subsidiary of the company won ownership rights for an Indian Premier League (IPL) cricket team. CESC announced at the fag end of market hours yesterday, 8 December 2015, that New Rising Promoters, a subsidiary of CESC, has won the bid floated by the Board of Control for Cricket in India (BCCI) for acquiring the rights and obligations to operate Pune franchise of IPL for a period of two years.

Bharat Forge fell 4.16% at Rs 793 after the company reportedly issued a cautious outlook for the current financial year. At an analyst meet yesterday, 8 December 2015, Bharat Forge's management reportedly said that the near-term outlook for the company remains challenging and it expects standalone revenue to remain flat in the current financial year ending March 2016 (FY 2016).

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