Market slumps on weak global cues

Key benchmark indices edged lower in early trade, mirroring weak global cues. At 9:20 IST, the barometer index, the S&P BSE Sensex, was down 261.31 points or 1.05% at 24,592.80. The losses for the 50-unit Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was down 107.45 points or 1.42% at 7,454.95.

The broad market depicted weakness. There were more than eight losers against every gainer on BSE. On BSE, 1,089 shares fell and 128 shares rose. A total of 39 shares were unchanged. The BSE Mid-Cap index was currently down 1.53%. The BSE Small-Cap index was currently down 1.79%. The decline in both these indices was higher than the Sensex's decline in percentage terms.

In overseas market, Asian markets tumbled today, 14 January 2016, mirroring sharp losses on Wall Street. China's Shanghai Composite was off by 1.18%. US stocks slumped yesterday, 13 January 2016, as investors offloaded consumer-discretionary and health-care shares. A renewed slump in crude-oil prices added to the selling pressure, driving the S&P 500 and the Dow Industrials to their lowest levels since 29 September 2015.

Infosys was down 1.88% ahead of the company's Q3 results today, 14 January 2016.

Tata Steel was down 4.96%. The company announced after market hours yesterday, 13 January 2016, that the sharp fall in international steel prices due to excessive exports from China and other has triggered a review of the company's credit rating by Standard and Poor (S&P). The corporate credit rating has been downgraded by 1 notch. Tata Steel said that its long term corporate credit rating has been downgraded by S&P to BB- from earlier BB. Tata Steel UK Holdings' long term corporate credit rating has been downgraded to B+ from BB-. ABJA Investment Co. Pte.'s issue rating on its guaranteed senior unsecured notes has been downgraded to BB- from BB. S&P has affirmed B short term corporate credit rating on Tata Steel UK Holdings.

Tata Motors was down 2.68%. The company announced after market hours yesterday, 13 January 2016, that a meeting of the board of directors of the company will be held on 18 January 2016 to consider and approve buyback of unsecured non-convertible debentures aggregating Rs 200 crores due to mature on 30 November 2018. The board will also consider buyback of unsecured non-convertible debentures aggregating Rs 250 crore due to mature on 28 May 2019. The buyback is part of the company's debt restructuring programme to ensure balanced maturity profile and/or better terms that would include lower cost of debt.

Power Grid Corporation of India was up 1.06%. The company announced after market hours yesterday, 13 January 2016, that the board of directors of the company at its meeting held on 12 January 2016 have accorded approval to investment proposals totalling Rs 2510.34 crore.

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