Broad market depicts weakness

Stocks of oil production and exploration firms and metal companies led losses for key benchmark indices, with the barometer index, the S&P BSE Sensex, and the 50-unit Nifty 50 index, both, hitting their lowest level in more than 3 weeks. At 12:15 IST, the Sensex was down 484.51 points or 1.91% at 24,921.82. The decline for the Nifty was higher in percentage terms than the Sensex's decline. The Nifty was currently down 158.70 points or 2.05% at 7,582.30. The Sensex was currently trading below the psychological 25,000 level. Earlier, the barometer index had reclaimed the psychological 25,000 level in mid-morning trade after falling below that mark in morning trade.

Weakness in global stocks triggered the latest slide on the domestic bourses. A fresh rout in Chinese stocks pulled Asian markets lower. Trading was halted in mainland China after China's central bank continued to fix the onshore yuan's value lower to the US dollar.

The Sensex lost 509.89 points or 2% at the day's low of 24,896.44 in early afternoon trade, its lowest level since 14 December 2015. The barometer index fell 175.98 points or 0.69% at the day's high of 25,230.35 at the onset of the trading session. The Nifty fell 160.20 points or 2.06% at the day's low of 7,580.80 in early afternoon trade, its lowest level since 14 December 2015. The index lost 66.05 points or 0.85% at the day's high of 7,674.95 at the onset of the trading session.

In overseas stock markets, trading in mainland China was suspended for the rest of the day after the CSI 300 index tumbled more than 7% in early trade, triggering the market's circuit breaker for a second time this week. China's central bank again surprised markets by setting onshore yuan's value lower to the US dollar, deepening concerns about the economy and sending the domestic stock markets tumbling. The People's Bank of China continued to fix the onshore yuan's value lower to the US dollar, at 6.5646, down 0.51% from the previous day's closing level, the biggest move since 13 August 2015, after the yuan's devaluation.

US stock futures pointed to sharp losses for US stocks at the opening bell. Trading in US index futures indicated that the Dow Jones Industrial Average could slide 267 points at the opening bell. US stocks closed sharply lower yesterday, 6 January 2015, pressured by continued concerns about global economic growth, declining oil prices and increased geopolitical tensions.

Closer home, the broad market depicted weakness. There were more than four losers against every gainer on BSE. 2,101 shares declined and 518 shares rose. A total of 79 shares were unchanged. The BSE Mid-Cap index was currently off 2.56%. The BSE Small-Cap index was currently off 2.91%. The decline in both these indices was higher than Sensex's decline in percentage terms.

Bank stocks edged lower. Among public sector banks, IDBI Bank (down 6.08%), Bank of Baroda (down 5.21%), Punjab National Bank (down 4.32%), Indian Overseas Bank (down 4.56%), Union Bank of India (down 4.29%), Canara Bank (down 3.96%), Andhra Bank (down 3.09%), State Bank of India (down 3.02%), Indian Bank (down 2.12%) and Corporation Bank (down 3.07%) declined.

Among private sector banks, Axis Bank (down 3.75%), Yes Bank (down 2.93%), ICICI Bank (down 2.16%), IndusInd Bank (down 2.03%), HDFC Bank (down 0.92%) and Kotak Mahindra Bank (down 0.95%) edged lower.

Pharma stocks declined. Glenmark Pharmaceuticals (down 4.32%), Dr Reddy's Laboratories (down 2.47%), Ipca Laboratories (down 2.1%), Aurobindo Pharma (down 2.39%), Wockhardt (down 1.84%), GlaxoSmithkline Pharmaceuticals (down 0.96%), Cipla (down 1.15%), Divi's Laboratories (down 0.69%) and Sun Pharmaceutical Industries (down 0.61%) edged lower.

Lupin was off 0.6% at Rs 1,743.60. The stock hit a high of Rs 1,769.35 and a low of Rs 1,741.50 so far during the day. The company after market hours yesterday, 6 January 2016, announced that its US subsidiary Lupin Pharmaceutical Inc. has launched its Tri-Lo-Marzia Tablets (Norgestimate and Ethinyl Estradiol Tablets USP, 0.180 mg/0.025 mg, 0.215 mg/0.025 mg, and 0.250 mg/0.025 mg) in the United States. Lupin's Tri-Lo-Marzia Tablets are the AB rated generic equivalent of Janssen Ortho Tri-Cyclen Lo Tablets. The drug is indicated for use by women to prevent pregnancy. Ortho Tri-Cyclen Lo Tablets had annual sales of $488.4 million in the US as per IMS MAT September 2015 data. The product represents Lupin's sixteenth oral contraceptive launch in the US.

Maruti Suzuki India (MSIL) was off 4.49% at Rs 4,278.20. The stock hit a high of Rs 4,464 and a low of Rs 4,272.15 so far during the day. The company announced during market hours today, 7 January 2016, that its sedan Maruti Suzuki DZire now comes equipped with the auto gear shift (AGS) technology. With this, DZire becomes the first diesel car and the fourth model in Maruti Suzuki's portfolio to be offered with AGS technology, MSIL said in a statement. The AGS transmission model will be available in the top end ZDi variant of DZire and will be priced at Rs 8.39 lakh ex-showroom, Delhi. ZDi manual transmission is available at Rs 7.90 lakh ex-showroom, Delhi.

Meanwhile, parliamentary affairs minister Venkaiah Naidu was quoted as saying that the government has agreed to accept the conditions laid down by the Congress party to back the proposed goods and services tax bill (GST).

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