Market extends losses

Key benchmark indices extended losses and hit fresh intraday low in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex was down 128.51 points or 0.46% at 27,708. The losses for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty 50 index was currently down 54.50 points or 0.63% at 8,560.75. Weakness in Asian stocks affected sentiment adversely. The Sensex and the Nifty, both, hit their fresh lowest level in more than a week.

The Sensex lost 170.91 points or 0.61% at the day's low of 27,665.60 in early afternoon trade, its lowest level since 18 October 2016. The barometer index rose 7.11 points or 0.02% at the day's high of 27,843.62 in early trade. The Nifty lost 65 points or 0.75% at the day's low of 8,550.25 in early afternoon trade, its lowest level since 18 October 2016. The index fell 5.35 points or 0.06% at the day's high of 8,609.90 in early trade.

In overseas stock markets, most Asian stocks dropped as investors reacted to a slew of earnings at companies from Samsung Electronics to Nintendo. Data showed that profit growth in China's industrial firms slowed in September from the previous month's rapid pace as several sectors showed weak activity, suggesting the world's second-biggest economy remains underpowered despite emerging signs of stability. Profits in September rose 7.7% to 577.1 billion yuan, slowing sharply from August's 19.5% jump, according to data released by the National Bureau of Statistics (NBS). US stocks edged lower yesterday, 26 October 2016 as health care companies fell and Apple pulled technology companies down.

Closer home, the broad market depicted weakness. There were more than two losers against every gainer on BSE. 1,631 shares fell and 776 shares rose. A total of 170 shares were unchanged. The BSE Mid-Cap index was currently down 1.34%. The BSE Small-Cap index was currently down 1.07%. The decline in both these indices was higher than the Sensex's decline in percentage terms.

Capital goods stocks dropped. BEML (down 0.81%), Bharat Heavy Electricals (Bhel) (down 1%), Havells India (down 0.23%), L&T (down 1.2%), Crompton Greaves (down 0.8%) and Siemens (down 1.33%) declined.

Bank stocks dropped. Among public banks stocks, Canara Bank (down 0.86%), Union Bank of India (down 0.59%), Bank of India (down 0.57%), Punjab National Bank (down 1.08%) Syndicate Bank (down 0.27%), Indian Overseas Bank (down 0.19%), Andhra Bank (down 0.8%), Oriental Bank of Commerce (down 0.35%), Dena Bank (down 0.27%), and Indian Bank (down 1.59%) declined.

State Bank of India (SBI) dropped 1.41%. The bank announced after market hours yesterday, 26 October 2016, that a meeting of the central board of the bank is scheduled to be held on 29 October 2016 to consider raising of equity share capital through preferential issue of equity shares to the Government of India.

Among private sector banks, Axis Bank (down 0.69%), ICICI Bank (down 0.74%), Kotak Mahindra Bank (down 0.86%), Yes Bank (down 2.47%), HDFC Bank (down 0.68%) and IndusInd Bank (down 1.41%) edged lower.

Indian Hume Pipe Company rose 2.14% after net profit rose 208.65% to Rs 21.76 crore on 96.47% rise in net sales to Rs 450.28 crore in Q2 September 2016 over Q2 September 2015. In a separate announcement, Indian Hume Pipe Company said that its board recommended issuing bonus shares in the proportion of one bonus share for every one equity share held (1:1). The announcements were made after market hours yesterday, 26 October 2016.

Infibeam Incorporation rose 5.13% after the company said that it has entered into an Memorandum of Understanding (MoU) with IL&FS Township & Urban Assets (ITUAL) for undertaking and implementing projects in digital space and e-commerce for Central Government, various State Governments and Private Partners. Infibeam Incorporation shall set up a special purpose vehicle (SPV) which will be located at GIFT Two Building, GIFT City, Gandhinagar wherein the company will provide its state-of-the-art technology and office premises for expanding and implementing digital projects that would be implemented by SPV. The SPV will target indicative achievable revenue opportunity of Rs 1250 crore over a period of five years starting from year ending 31 March 2018 (FY 2018). The announcement was made after market hours yesterday, 26 October 2016.

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