Market tumbles on weak global cues

Key benchmark indices were trading lower in early trade, tracking weak leads from Japanese stocks and overnight slide on the Wall Street. At 9:20 IST, the barometer index, the S&P BSE Sensex, was down 313.92 points or 1.29% at 23,973.50. The losses for the Sensex were higher in percentage terms than those for the 50-unit Nifty 50 index. The Nifty was down 89.60 points or 1.21% at 7,297.65.

The broad market depicted weakness. There were more than four losers against every gainer on BSE. 904 shares fell and 221 shares rose. A total of 35 shares were unchanged. The BSE Mid-Cap index was currently down 0.83%. The BSE Small-Cap index was currently down 0.99%. The decline in both these indices was lower than the Sensex's decline in percentage terms.

On a the economic front, India's Gross Domestic Product (GDP) expanded at slower pace of 7.3% in Q3 December 2015 compared with 7.7% growth recorded in the previous quarter Q2 September 2015. However, the growth is showing acceleration from 6.6% growth recorded in Q3 December 2014. Meanwhile, the Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation, has revised its full year GDP growth estimate for the financial year ending March 2016 to 7.6% from 7.1-7.5% range earlier. The date was released after market hours yesterday, 8 February 2016.

In the overseas market, Japanese stocks nose-dive today, 9 February 2016, and join the global sell-off, after the stock markets in the US and Europe fell sharply lower the day earlier on the back of steep declines in the banking and financial sectors' stocks. Rest of Asia remains closed for the Lunar New Year. China and Taiwan are shut for the week, while markets in Hong Kong, Singapore, South Korea, Malaysia and Vietnam are closed today, 9 February 2016. The Japanese benchmark index, the Nikkei 225 slumped 5.45%. US stocks trimmed sharp losses but still ended broadly lower yesterday, 8 February 2016, with the S&P 500 posting its lowest close since April 2014 amid a fresh drop in crude oil prices, jitters over European banks and continuing fears of a global economic slowdown.

IT stocks tumbled. Infosys (down 4.23%), TCS (down 3.29%), Tech Mahindra (down 1.8%), Wipro (down 1.66%), HCL Technologies (down 1.62%), Hexaware Technologies (down 1.51%), Persistent Systems (down 0.99%), MphasiS (down 0.54%) and Oracle Financial Services Software (down 0.42%), edged lower.

MindTree fell 1.45%. The company after market hours yesterday, 8 February 2016 announced that it has been selected by Sandvik, a global engineering group in tooling, materials technology, mining and construction, to foster its IT services integration capabilities.

Metal shares declined. Hindustan Zinc (down 3.14%), Bhushan Steel (down 2.59%), Vedanta (down 2.58%), Jindal Steel & Power (down 2.28%), JSW Steel (down 1.99%), Hindalco Industries (down 1.65%), Steel Authority of India (down 1.6%), Hindustan Copper (down 1.13%), Tata Steel (down 1.09%), NMDC (down 0.9%) and National Aluminium Company (down 0.74%), edged lower.

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