Market slides for the sixth straight session

Losses for metal sector stocks and index heavyweights Reliance Industries, L&T and Infosys led fresh slide for key benchmark indices. The barometer index, the S&P BSE Sensex, lost 260.03 points or 1.03% at 25,050.30, as per the provisional closing data. The decline for the the 50-unit Nifty 50 index was higher in percentage terms compared with the fall in the Sensex. The Nifty fell 89.20 points or 1.16% at 7,612.50, as per the provisional closing data. The slide for the two key benchmark indices accentuated during the last one and half hour of the trading session, with the Sensex and the Nifty, both hitting their lowest level in more than 13 weeks. The Sensex lost 298.11 points or 1.17% at the day's low of 25,012.22 in late trade, its lowest level since 8 September 2015. The barometer index rose 6.62 points or 0.02% at the day's high of 25,316.95 in early trade. The Nifty fell 94.80 points or 1.23% at the day's low of 7,606.90 in late trade, its lowest level since 8 September 2015. The index rose 1.15 points or 0.01% at the day's high of 7,702.85 in early trade.

Diminishing hopes that the constitutional amendment bill on goods and services tax (GST) will be passed during the ongoing winter session of parliament triggered the latest slide on the domestic bourses. The Congress Party has accused the government of pursuing a political vendetta against the Gandhi family. The constitutional amendment bill for the implementation of GST, which subsumes all indirect taxes to create a unified market across the country, has been cleared by the Lok Sabha and is awaiting legislative passage in the Rajya Sabha. A constitutional amendment bill requires a majority of two thirds in the house for its passage. The BJP-led NDA has a comfortable majority in Lok Sabha, but lags in numbers in the Rajya Sabha. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country.

The Sensex and Nifty declined for the sixth straight trading session.

Overseas cues were negative. European stocks reversed initial gains. Asian stocks ended in red. In China, the latest data showed that China's consumer price inflation rose 1.5% on year in November 2015. On a monthly basis, inflation was flat last month following the 0.3% decline in October. US stocks closed lower yesterday, 8 December 2015, but off session lows as oil prices stabilized and biotech stocks gained.

The broad market depicted weakness. There were almost four losers against every gainer on BSE. 2,198 shares fell and 559 shares rose. A total of 161 shares were unchanged. The BSE Mid-Cap index was provisionally off 1.76%. The BSE Small-Cap index was provisionally down 2.24%. The decline in both these indices was higher than Sensex's decline in percentage terms.

The total turnover on BSE amounted to Rs 2594 crore, lower than turnover of Rs 2763.41 crore registered during the previous trading session.

Index heavyweight and housing finance major HDFC fell 1.25% at Rs 1,156.80. The stock hit a high of Rs 1,170.45 and a low of Rs 1,151.05 in intraday trade.

Another index heavyweight L&T fell 1.81% at Rs 1,298. The stock hit a high of Rs 1,325.05 and a low of Rs 1,298 in intraday trade.

Metal and mining stocks declined. Vedanta (down 5.4%), Jindal Steel & Power (down 4.32%), National Aluminium Company (down 4.31%), Tata Steel (down 3.3%), Hindalco Industries (down 2.5%), JSW Steel (down 2.22%), Steel Authority of India (down 1.8%), NMDC (down 1.53%) and Hindustan Zinc (down 0.04%) edged lower.

Oil stocks witnessed across the board slide. Among state-run oil marketing companies (PSU OMCs), BPCL (down 3.44%), HPCL (down 2.61%) and Indian Oil Corporation (down 2.58%) declined.

Among oil exploration and production (E&P) stocks, Cairn India (down 1.05%), Oil India (down 0.36%) and Reliance Industries (down 2.41%) edged lower. ONGC (up 0.56%) edged higher.

In the global commodities markets, Brent for January settlement was currently up 37 cents at $40.63 a barrel. The contract had declined 47 cents or 1.15% to settle at $40.26 a barrel during the previous trading session.

Shares of Dr Reddy's Laboratories (DRL) and Glenmark Pharmaceuticals edged lower on reports the latest political developments in Venezuela might impact the business prospects of these two companies. DRL fell 2.27% at Rs 3,001. Glenmark Pharmaceuticals tumbled 5.05% at Rs 882.25. Media reports suggest that the victory of the Opposition party in the Venezuela National Assembly elections on Sunday, 6 December 2015, might have an impact on Indian drug companies due to a change in the political landscape of the South American country and the many economic reforms the Opposition plans to roll out there. Reports indicated that Venezuela might even go for a currency devaluation. There is a likelihood that the currency will be converted to market-determined rates from a fixed-rate regime, reports suggested. DRL and Glenmark Pharmaceuticals reportedly earn decent revenue from Venezuela.

Meanwhile, DRL announced after market hours yesterday, 8 December 2015, that it has submitted its response to the United States Food and Drug Administration (USFDA) on 7 December 2015. It may be recalled that the USFDA in its warning letter issued to the company dated 5 November 2015, identified significant deviations from current good manufacturing practice (CGMP) at DRL's two pharmaceutical manufacturing facilities in Andhra Pradesh and a unit in Telangana.

TCS rose 1.49% at Rs 2,364.20 after the company announced that Oman Housing Bank (OHB) has selected TCS BaNCS Universal Banking solution to help deliver enhanced end-customer experience in its endeavor to become a leading housing finance bank in the region. The announcement was made during market hours today, 9 December 2015.

Bharat Heavy Electricals (Bhel) rose 2.64% at Rs 169 on reports that Heavy Industry Minister Anant Geete clarified to the media that there were no plans of divestment of the government's stake in the company. As on 30 September 2015, the government held 63.06% stake in Bhel. In March 2014, the government had sold 4.66% stake in the company.

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