Capital goods, auto stocks drop

Key benchmark indices languished in the red in mid-morning trade as weakness in Asian stocks weighed on sentiment. At 11:30 IST, the barometer index, the S&P BSE Sensex lost 292.53 points or 0.92% at 31,629.91. The Nifty 50 index fell 96.95 points or 0.97% at 9,867.45.

Key indices opened with small gains but soon slipped into the red in early trade tracking weak Asian stocks. Stocks extended losses in morning trade.

The S&P BSE Mid-Cap index fell 1.55%. The S&P BSE Small-Cap index lost 2.28%. The losses in both the indices were higher than the Sensex's slide in percentage terms.

The market breadth depicted weakness. There were more than six losers for every gainer on the BSE. 1,968 shares fell and 343 shares rose. A total of 112 shares were unchanged.

Capital goods stocks dropped for the third day in a row. ABB India (down 1.9%), BEML (down 3.05%), Bharat Heavy Electricals (Bhel) (down 2.31%), Havells India (down 1.46%), L&T (down 2.65%), Thermax (down 2.42%), CG Power & Industries (down 1.14%) and Siemens (down 4.75%) declined.

Auto stocks also declined for the fourth straight session. Mahindra & Mahindra (M&M) (down 0.4%), Ashok Leyland (down 2.01%), Maruti Suzuki India (down 1.48%), Eicher Motors (down 1.92%), Hero MotoCorp (down 0.77%), and Bajaj Auto (down 0.54%) declined. TVS Motor Company rose 0.05%.

Shares of Capacite Infraprojects were trading at Rs 361.30 at 10:55 IST on BSE, a premium of 44.52% over the initial public offer price of Rs 250. Capacite Infraprojects priced the IPO at the top end of the Rs 245 to Rs 250 per share price band. The IPO opened on 13 September 2017 and closed on 15 September 2017. It received bids for 209.17 crore shares. The IPO was subscribed 183.03 times. Capacite Infraprojects is a construction company focused on residential, commercial and Institutional buildings.

Lakshmi Vilas Bank dropped 3.33%. The bank said that its board will meet on 27 September 2017 to consider raising funds through a rights issue. The announcement was made after market hours on Friday, 22 September 2017

Overseas, Asian stocks dropped as investors digested elections in Germany and New Zealand over the weekend. Chancellor Angela Merkel's conservative alliance won the German election, but a steep drop in its support and an anti-immigrant party's surge signaled political turbulence ahead for Europe's largest economy. Her center-right bloc's victory on Sunday, projected at about 33% to 21%, over the center-left Social Democrats means that Merkel is virtually assured of a fourth term as chancellor.

Elsewhere, the New Zealand election saw Prime Minister Bill English's National Party win the most votes, although it came short of securing a majority in parliament.

Japanese index edged higher as Japanese manufacturing activity expanded in September at the fastest pace in four months. The Markit/Nikkei Japan Manufacturing Purchasing Managers' Index (PMI) rose to a seasonally adjusted 52.6 in September from a final 52.2 in August. Separately, Japan's government maintained its moderately optimistic view on the economy, signaling that a recovery is broadening and gathering strength even as inflation remains anemic.

US stocks bounced late in the session, paring early losses and ending little changed on Friday, 22 September 2017, as investors shook off the latest bellicosities between North Korean and US leaders. In the latest economic data, a read on manufacturing inched higher in September, while a read on the services sector was down slightly.

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