Indices drop over 1%

Weakness in global stocks dragged lower key benchmark indices by over 1% on first session of the week today, 26 September 2016. The barometer index, the S&P BSE Sensex dropped 373.94 points or 1.3% at 28,294.28, as per the provisional closing data. The Nifty 50 index shed 109.15 points or 1.24% at 8,722.40, as per the provisional closing data. The Sensex and the Nifty, both, hit 1-1/2 week low in late trade.

The Sensex dropped 396.19 points or 1.38% at the day's low of 28,272.03 in late trade, its lowest level since 14 September 2016. The barometer index fell 37.30 points or 0.13% at the day's high of 28,630.92 at the onset of the trading session. The Nifty dropped 116.45 points or 1.31% at the day's low of 8,715.10 in late trade, its lowest level since 15 September 2016. The index shed 22 points or 0.24% at the day's high of 8,809.55 at the onset of the trading session.

In overseas stock markets, European stocks dropped as investors trod cautiously ahead of an Organization of the Petroleum Exporting Countries (OPEC) producers meeting in Algeria later this week. Asian stocks dropped after losses on Wall Street on Friday, 23 September 2016, as investors' attention turned from central banks to American politics ahead of the first US presidential debate. Investors are pessimistic over any breakthroughs in oil-production cuts when the OPEC gathers for an informal meeting on Wednesday, 28 September 2016.

Trading in US stock index futures indicated a sharp decline for US stocks at the opening bell today, 26 September 2016. Trading in US index futures indicated that the Dow Jones Industrial Average could slide 103 points at the opening bell. US stocks logged weekly gains but ended with solid losses on Friday, 23 September 2016. Investors awaited US presidential debate between Donald Trump and Hillary Clinton due later in the global day today, 26 September 2016. US presidential elections will be held on 8 November this year.

Closer home, the market breadth indicating the overall health of the market was weak. On BSE, 1,644 shares fell and 1,052 shares rose. A total of 210 shares were unchanged. The BSE Mid-Cap index provisionally fell 0.53%. The BSE Small-Cap index provisionally dropped 0.55%. The decline in both these indices was lower than the Sensex's decline in percentage terms.

The total turnover on BSE amounted to Rs 3422.97 crore, lower than turnover of Rs 3871.71 crore registered during the previous trading session.

Realty stocks dropped. Godrej Properties (down 1.05%), Housing Development & Infrastructure (HDIL) (down 2%), Unitech (down 1.64%), Oberoi Realty (down 2.44%), NBCC (down 1.1%), DLF (down 2.02%), and Omaxe (down 0.75%) edged lower. Sobha (up 0.82%) and Indiabulls Real Estate (up 0.51%) gained.

Auto stocks declined. Ashok Leyland (down 1.27%), Eicher Motors (down 1.22%), Hero MotoCorp (down 1.97%), Bajaj Auto (down 1.22%), Maruti Suzuki India (down 0.75%) and TVS Motor Company (down 0.98%) declined.

Mahindra & Mahindra (M&M) fell 2.24%. The company said that loans & investment committee at its meeting held today, 26 September 2016, approved issuance and offer of 4,750 rated, listed, unsecured, redeemable, 7.57% non-convertible debentures of face value Rs 10 lakh each at par, aggregating to Rs 475 crores on private placement basis. The NCDs have tenure of 10 years. The announcement was made during market hours today, 26 September 2016.

Bank of Baroda fell 2.13% to Rs 165.50 on BSE, after a bulk deal of 22.02 lakh shares was executed on the scrip at Rs 167.70 per share at 09:34 IST on BSE.

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