Market trims losses

Key benchmark indices trimmed intraday losses in mid-afternoon trade after hitting fresh intraday low in afternoon trade as gains in European stocks aided recovery. At 14:20 IST, the barometer index, the S&P BSE Sensex, was down 68.10 points or 0.26% at 25,983.71. The Nifty 50 index was currently down 27.80 points or 0.35% at 8,005.50. The Sensex continued to trade below the psychological 26,000 mark after falling below that mark in early trade. The Nifty was trading above the psychological 8,000 level after moving above and below that mark in intraday trade.

Indian stocks fell as investors fear that upbeat US economic data strengthened the prospect for higher US interest rate raising worries that higher interest rates in the US will spark capital outflows from the emerging equity markets. After opening lower, key indices remained in the negative terrain throughout the session. The Sensex lost 240.84 points or 0.92% at the day's low of 25,810.97 in afternoon trade, its lowest level since 22 November 2016. The barometer index shed 2.67 points or 0.01% at the day's high of 26,049.14 in opening trade. The Nifty lost 78.40 points or 0.97% at the day's low of 7,954.90 in afternoon trade, its lowest level since 22 November 2016. The index shed 19.65 points or 0.24% at the day's high of 8,013.65 in early trade.

The market breadth indicating the overall health of the market was negative. On BSE, 1,230 shares declined and 1,132 shares rose. A total of 177 shares were unchanged. The BSE Mid-Cap index was currently down 0.47%. The BSE Small-Cap index was currently down 0.24%. The losses for both these indices were lower in percentage terms than those for the Sensex.

Capital goods stocks dropped. ABB India (down 0.22%), Bharat Heavy Electricals (Bhel) (down 0.52%), L&T (down 0.68%), Thermax (down 0.01%), Crompton Greaves (down 1.79%) and Siemens (down 2.23%) declined. Havells India (up 2.58%) and BEML (up 0.52%) gained.

Most FMCG stocks declined. Tata Global Beverages (down 1.51%), Marico (down 1.15%), Britannia Industries (down 0.93%), Hindustan Unilever (HUL) (down 0.91%), Dabur India (down 0.53%), GlaxoSmithkline Consumer Healthcare (down 1.69%), Jyothy Laboratories (down 1.21%), and Bajaj Corp (down 1.91%) declined. Procter & Gamble Hygiene and Health Care (up 0.04%), Colgate Palmolive India (up 0.27%), Nestle India (up 1.39%), and Godrej Consumer Products (up 0.07%) gained.

Navkar Corporation lost 1.65% after the company informed that its subsidiary has terminated agreement with Kribhco Infrastructure. The announcement was made after market hours yesterday, 23 November 2016. It may be recalled that Navkar Corporation had on 2 June 2016 announced that the company's wholly-owned subsidiary, Navkar Terminals, has received contract for operation and management of Kribhco Infrastructure's container freight station (CFS)/ICD and handling of container trains at Hazira Terminal, Gujarat.

Natco Pharma rose 0.33% after the company said it received final approval of abbreviated new drug application (ANDA) from the US Food and Drug Administration (USFDA) for generic version of Budesonide capsules (Enteric Coated), 3 milligrams (mg). Natco and its marketing partner Alvogen plan to launch this product in the US market immediately. Perrigo Pharma International DAC sells Budesonide capsules under their brand Entocort in the US market. Entocort EC Capsules, 3 mg, and its generic versions had US sales of approximately $370 million for twelve months ending December 2015, according to IMS Health.

In overseas stock markets, European stocks gained after another record-setting session for US equities in the run-up to Thanksgiving holidays. German economic growth slowed in the third quarter, as expected, following a drop in exports and weaker investment in machinery and equipment, the country's Destatis statistics office said today, 24 November 2016. Gross domestic product in Europe's largest economy grew 0.2%, or an annualized rate of 0.8%, Destatis said.

Most Asian stocks edged lower as upbeat economic data strengthened the prospect for higher US interest rate. Investors fear that higher interest rates in the US will spark capital outflows from the emerging equity markets. US stocks closed mixed yesterday, 23 November 2016, as investors digested a number of economic data, including minutes from the Federal Reserve's November meeting. The Dow Jones Industrial Average and S&P 500 indices hit record closing high. The minutes released yesterday, 23 November 2016, back the consensus view on Wall Street that the Fed is poised to raise rates in December. Policymakers left borrowing costs unchanged earlier this month, just days before Republican Donald Trump triumphed in the November 8 presidential contest. Voting members of the Fed's rate-setting committee saw equal risks the economy would overshoot or undershoot their forecasts for continued growth and a tightening labor market. Almost all of them continued to judge that near-term risks to the economic outlook were roughly balanced, according to the minutes. The US stock market will remain closed today, 24 November 2016, because of the Thanksgiving holiday.

US weekly jobless claims increased 18,000 to a seasonally adjusted 251,000 for the week ended 19 November 2016, the Labor Department said. The claims have now been below 300,000, a threshold associated with a healthy labor market, for 90 straight weeks. Meanwhile, the Commerce Department said US durable goods increased 4.8% in October, well above a consensus estimate. Other data released included the IHS Markit manufacturing index for November, which showed a slight increase to 53.9 from 53.4 in October. A reading above 50 signals expansion within the sector. New home sales for October fell 1.9%, while consumer sentiment came in at 93.8, above estimate.

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