Key indices continue to languish in negative zone

Metal and banking stocks led decline as key benchmark indices languished in negative terrain. At 12:18 IST, the barometer index, the S&P BSE Sensex, was off 125.29 points or 0.48% at 25,731.41. The 50-unit CNX Nifty was down 45.40 points or 0.58% at 7,826.85. Telecom stocks edged lower. Cement stocks were also in red. Index heavyweights L&T, HDFC and Reliance Industries (RIL) nudged lower.

The market breadth indicating the overall health of the market was negative. On BSE, 1,288 shares declined and 970 shares rose. A total of 85 shares were unchanged. The BSE Mid-Cap index was down 0.61%. The decline in this index was higher than Sensex's decline in percentage terms. The BSE Small-Cap index was down 0.34%. The decline in this index was lower than Sensex's decline in percentage terms.

On the macro front, the latest data showed that inflation based on the consumer price index (CPI) remained benign last month. The headline CPI inflation eased to 3.66% in August 2015 from 3.69% in July 2015. Among the CPI components, the inflation for food and beverages rose to 2.9% in August 2015 from 2.8% in July 2015. The core CPI inflation declined to 3.8% in August 2015 from 4% in July 2015.

Telecom stocks dropped. Reliance Communications (down 2.01%), Idea Cellular (down 1.93%), Bharti Airtel (down 0.85%), Mahanagar Telephone Nigam (down 0.32%) and Tata Teleservices (Maharashtra) (down 0.31%) edged lower.

Cement stocks also edged lower. Ambuja Cements (down 2.48%), UltraTech Cement (down 0.57%), ACC (down 0.52%) and Shree Cement (down 0.33%) edged lower.

Grasim Industries was off 0.53%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Bank stocks edged lower. Among PSU banks, Bank of Baroda (down 1.85%), Punjab National Bank (down 1.64%), Canara Bank (down 1.63%), IDBI Bank (down 0.87%), Syndicate Bank (down 0.87%), Andhra Bank (down 0.79%), Union Bank of India (down 0.84%), United Bank of India (down 0.47%) and State Bank of India (down 0.09%) declined. Corporation Bank (up 2.24%) and Bank of India (up 1.29%) edged higher.

Among private sector banks, Axis Bank (down 1.35%), ICICI Bank (down 1.25%), Kotak Mahindra Bank (down 0.97%), HDFC Bank (down 0.28%), Yes Bank (down 0.16%) and IndusInd Bank (down 0.08%) edged lower.

Index heavyweight and engineering & construction major L&T was off 2.25% at Rs 1,567.70.

Index heavyweight and housing finance firm HDFC was off 0.69% at Rs 1,176.

Index heavyweight Reliance Industries (RIL) was off 0.42% at Rs 859.45.

Alok Industries surged 6.75% at Rs 6.33 after the company announced that it has received an additional $50 million under the Export Performance Bank Guarantee (EPBG) Scheme, taking the total export advance received under the scheme till date to $825 million. The company had earlier informed about the receipt of $775 million under the EPBG backed export advance scheme out of the targeted $1633.33 million or Rs 9800 crore.

In overseas stock markets, Chinese stocks led decline in Asian markets after a recent batch of disappointing Chinese economic data. US stocks edged lower yesterday, 14 September 2015, on caution ahead of a US Federal Reserve meeting later this week that could end with the first rate-increase in nearly a decade. The Fed's policy-making committee holds a two-day meeting on 16 and 17 September 2015. The Fed has held its benchmark short-term interest rate near zero since December 2008.

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