Broad market depicts weakness

Key benchmark indices hovered in negative terrain in mid-morning trade after hitting almost one-week low in morning trade. At 11:25 IST, the barometer index, the S&P BSE Sensex, was down 404.67 points or 1.51% at 26,414.15. The losses for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was down 143 points or 1.72% at 8,153.30.

Likely short term negative impact on the economy of the recent demonetization of higher denomination notes by the Indian government and uncertainty over the future policies of newly elected US president Donald Trump and their impact on the global economy continued to weigh on sentiment.

The recent selling by the foreign portfolio investors (FPIs) of Indian stocks also affected sentiment. FPIs sold shares worth a net Rs 1493.27 crore on Friday, 11 November 2016, as per provisional data released by the stock exchanges, when indices slumped around 2.5% on that day.

The Sensex lost 497.81 points, or 1.85% at the day's low of 26,321.01 in morning trade, its lowest level since 9 November 2016. The index fell 9.21 points, or 0.03% at the day's high of 26,809.61 in early trade. The Nifty skidded 170.70 points, or 2.05% at the day's low of 8,125.60 in morning trade, its lowest level since 9 November 2016. The index fell 7.75 points, or 0.09% at the day's high of 8,288.55 in early trade.

The broad market depicted weakness. There were more than seven losers against every gainer on BSE. 2,088 shares fell and 280 shares rose. A total of 86 shares were unchanged. The BSE Mid-Cap index was currently down 3.97%. The BSE Small-Cap index was currently down 4.44%. The decline in both these indices was higher than the Sensex's decline in percentage terms.

In overseas markets, most Asian stocks gained. US stocks closed little changed yesterday, 14 November 2016, after rising dramatically the week before and a decline in the technology sector offset a steep rise in financial stocks as investors bet on higher interest rates. The Dow Jones Industrial Average settled at another record closing high.

Cement stocks dropped. ACC (down 0.89%), Shree Cement (down 4.9%), Ambuja Cements (down 1.3%), and UltraTech Cement (down 5.36%) declined.

Grasim Industries declined 6.41%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

Telecom stocks also dropped. Reliance Communications (RCom) (down 2.39%), Bharti Airtel (down 1.01%), MTNL (down 2.82%) and Tata Teleservices (Maharashtra) (down 6.08%) dropped. Idea Cellular rose 0.64%.

Shares of Bharti Infratel fell 2.09%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

Maruti Suzuki India shed 4.62%. The company said that it will set up a first of its kind industrial training institute in Mehsana, Gujarat named Japan-India Institute of Manufacturing (JIM). It will go on stream in August 2017 and eventually train 30 youths per year in technical trades and Japanese shopfloor practices. The announcement was made during market hours today, 15 November 2016.

Bank of Baroda jumped 7.34% after net profit jumped 343.54% to Rs 552.12 crore on 2.1% decline in operating income to Rs 12046.60 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours on Friday, 11 November 2016.

The bank's gross non-performing assets (NPAs) stood at Rs 42949.25 crore as on 30 September 2016 as against Rs 42991.68 crore as on 30 June 2016 and Rs 23710.33 crore as on 30 September 2015. The ratio of gross NPAs to gross advances stood at 11.35% as on 30 September 2016 as against 11.15% as on 30 June 2016 and 5.56% as on 30 September 2015. The ratio of net NPAs to net advances stood at 5.46% as on 30 September 2016 as against 5.73% as on 30 June 2016 and 3.08% as on 30 September 2015. The bank's provisions and contingencies (excluding tax provisions) fell 5.07% to Rs 1795.84 crore in Q2 September 2016 over Q2 September 2015. Provision coverage ratio of the bank was at 62.95% as on 30 September 2016.

On macro front, the industrial production (IIP) data announced after market hours on Friday, 11 November 2016 showed that IIP rose 0.7% in September 2016 over September 2015. The IIP contracted 0.7% in August, and shrank 2.5% in July.

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