Market slips on weak global cues

Key benchmark indices fell sharply in early trade on weak global cues. At 9:23 IST, the barometer index, the S&P BSE Sensex, was down 443.08 points or 1.54% at 28,354.17. The Nifty 50 index was down 143.45 points or 1.62% at 8,723.25. The broad market depicted weakness. There were more than six losers against every gainer on BSE. 1,251 shares fell and 187 shares rose. A total of 38 shares were unchanged. The BSE Mid-Cap index was currently down 1.99%. The BSE Small-Cap index was currently down 1.95%. The decline in both these indices were higher than the Sensex's decline in percentage terms.

In overseas stock markets, Asian markets edged lower today, 12 September 2016, as investors were spooked by rising bond yields and talk the Federal Reserve might be serious about lifting US interest rates as early as next week. US stocks tumbled on Friday, 9 September 2016, as investor nervousness increased following a nuclear test by North Korea and Federal Reserve officials' comments lifted rate hike bets. North Korea conducted its fifth and biggest nuclear test on Friday, 9 September 2016, and said it had mastered the ability to mount a warhead on a ballistic missile, drawing condemnation from the United States as well as China, North Korea's main ally. Further pressure on the US equity market came after Boston Fed President Eric Rosengren said the US central bank faced increasing risks if it waited too much longer to raise interest rates.

Auto stocks declined. TVS Motor Company (down 6%), Tata Motors (down 3.09%), Escorts (down 2.9%), Ashok Leyland (down 1.78%), Hero MotoCorp (down 1.48%), Bajaj Auto (down 1.12%), Mahindra & Mahindra (down 0.74%) and Eicher Motors (down 0.65%), edged lower.

Car major Maruti Suzuki India fell 1.50%. The company clarified that the company's Chairman RC Bhargava's statement in the Annual General Meeting (AGM) held on 8 September 2016 was limited to acknowledgement that he would convey requests made by the shareholders during the AGM for consideration of stock split to the board of directors. The company issued the clarification after market hours on Friday, 9 September 2016, after reports stated that Maruti will consider stock split.

Grasim Industries fell 1.54%. The company said that board of directors on Saturday, 10 September 2016, approved the proposal to increase the limit for investment in the equity share capital of the company by registered foreign portfolio investors from 24% to 30% of the company's paid-up equity share capital of the company. The announcement was made on Saturday, 10 September 2016.

Cipla fell 1.72% on turning ex-dividend today, 12 September 2016, for dividend of Rs 2 per share for the year ended 31 March 2016 (FY 2016).

L&T fell 2.04%. The initial public offer (IPO) of L&T Technology Services opens for bidding today, 12 September 2016. The IPO closes on Thursday, 15 September 2016. The price band for the IPO has been fixed at Rs 850-860 per share. The IPO comprises of an offer for sale of 1.04 crore shares by engineering and construction major L&T. L&T Technology Services will not receive any funds from the IPO. L&T currently owns 100% stake in L&T Technology Services. Its holding will fall to 89.77% after the IPO. The offer would constitute 10.2% of post-offer paid-up equity share capital of the company. L&T Technology Services provides Engineering, Research and Development (ER&D) services to manufacturing, technology and process engineering companies, to help them develop and build products, processes and infrastructure required to deliver products and services to their end customers.

India's stock market remains close tomorrow, 13 September 2016, on account of Bakri Id.

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