Benchmark indices extend losses

Benchmark indices extended intraday losses in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex, was down 177.10 points or 0.66% at 26,570.08. The Nifty 50 index was currently down 72.40 points or 0.88% at 8,189.35. Data over the weekend showing decline in the industrial production in October weighed on market sentiment.

The Sensex lost 209.58 points or 0.78% at the day's low of 26,537.60 in mid-afternoon trade, its lowest level since 8 December 2016. The index fell 21.87 points or 0.08% at the day's high of 26,725.31 in opening trade. The Nifty lost 80.20 points or 0.97% at the day's low of 8,181.55 in mid-afternoon trade, its lowest level since 8 December 2016. The index fell 31.10 points or 0.37% at the day's high of 8,230.65 in opening trade.

Overseas, European stocks were mostly higher as political uncertainty in Italy eases and investors await another rate decision from the US Federal Reserve this week. 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.

Back home, the BSE Mid-Cap index was currently down 0.95%. The decline in this index was higher than the Sensex's decline in percentage terms. The BSE Small-Cap index was currently off 0.48%. The decline in this index was lower than the Sensex's decline in percentage terms.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,420 shares declined and 1,079 shares rose. A total of 132 shares were unchanged.

Bank stocks declined. Among the public sector banks, Punjab National Bank (down 2.51%), Canara Bank (down 2.11%), Union Bank of India (down 1.56%), Bank of Baroda (down 1.54%), IDBI Bank (down 0.97%) and Bank of India (down 0.9%) edged lower. Indian Overseas Bank (up 1.22%) and Central Bank of India (up 0.69%) edged higher.

State Bank of India (SBI) was flat at Rs 266. The bank announced that the executive committee of the central board (ECCB) of the bank at a meeting held on Friday, 9 December 2016, approved divestment of 3.9 crore equity shares constituting 3.9% stake in SBI Life Insurance Company at a price of Rs 460 per share, subject to all regulatory approvals. The announcement was made after market hours on Friday, 9 December 2016.

Among private sector banks, Kotak Mahindra Bank (down 1.36%), Yes Bank (down 1.16%), HDFC Bank (down 1.12%), ICICI Bank (down 0.99%) and RBL Bank (down 0.7%) edged lower.

Axis Bank fell 2.17%. The bank announced the acquisition of shares representing 13.67% of the total paid up capital in Assets Care and Reconstruction Enterprise from IFCI at Rs 31 per share for cash aggregating Rs 22.72 crore. The announcement was made after market hours on Friday, 9 December 2016.

IndusInd Bank was down 0.8%. The bank announced that the finance committee of the board on Friday, 9 December 2016, allotted 15,000 unsecured redeemable non-convertible bonds in the nature of debentures for an amount of Rs 1500 crore, to the identified investors on private placement basis. The announcement was made after market hours on Friday, 9 December 2016.

Capital goods stocks dropped. Crompton Greaves (down 2.54%), Havells India (down 2.21%), Bharat Heavy Electricals (down 1.43%), BEML (down 0.79%), ABB India (down 0.77%) and Bharat Electronics (down 0.55%) edged lower. L&T (up 0.63%), Siemens (up 0.45%) and Thermax (up 0.08%) edged higher.

Shilpi Cable Technologies (Shilpa Cable) rose 0.9% after the company completed expansion program for setting up of copper up cast for manufacturing of oxygen free copper rods & copper magnesium rods. The company announced that the expansion program for setting up of copper up cast for manufacturing of oxygen free copper rods & copper magnesium rods has been completed. The announcement was made on Sunday, 11 December 2016.

The machinery & technology has been imported from UK & it is one of the latest technology which will help the company not only to boost its revenue & margin but also give edge over its competitors, Shilpi Cable said.

On the macro front, 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.

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