Metal stocks drop on lower copper prices

Intraday recovery for key benchmark indices continued in mid-afternoon trade. At 14:15 IST, the barometer index, the S&P BSE Sensex, was down 146.24 points or 0.5% at 28,899.04. The Nifty 50 index was currently down 51.15 points or 0.57% at 8,901.35. The Sensex was currently trading below the psychologically important 29,000 level after falling below that level in early trade. Weakness in global stocks weighed on sentiment on the domestic bourses.

In overseas stock markets, Asian and European stocks edged lower after the European Central Bank (ECB) decided not to extend the deadline of its bond-buying program after the conclusion of its monetary policy meeting yesterday, 8 September 2016. Also, reports on earthquake in North Korea possibly due to an explosion from a nuclear test in that nation weighed on sentiment. US stocks closed lower yesterday, 8 September 2016, as the outcome of ECB's latest monetary policy meeting suggested that central banks have little left to spur up demand.

Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 1,463 shares declined and 1,141 shares rose. A total of 177 shares were unchanged. The BSE Mid-Cap index was currently down 0.32%. The BSE Small-Cap index was currently down 0.08%. The losses for both these indices were lower than the Sensex's decline in percentage terms.

Metal and mining stocks edged lower as copper prices declined in global commodities markets. Hindalco Industries (down 2.78%), National Aluminium Company (down 1.98%), Vedanta (down 1.88%), JSW Steel (down 1%), Tata Steel (down 1.71%), Hindustan Zinc (down 1.19%), Hindustan Copper (down 1.38%) and NMDC (down 0.67%) declined.

High Grade Copper for December 2016 delivery was currently down 0.5% at $2.0895 per pound on the COMEX.

Steel Authority of India (Sail) dropped 5.4% after company reported net loss of Rs 535.52 crore in Q1 June 2016, higher than net loss of Rs 248.18 crore in Q1 June 2015. Total income fell 3.84% to Rs 9327.36 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hour yesterday, 8 September 2016.

Jindal Steel & Power (JSPL) fell 0.92% after the company reported consolidated net loss of Rs 1082.15 crore in Q1 June 2016, higher than net loss of Rs 542.42 crore in Q1 June 2015. Total income rose 4.34% to Rs 4686.60 crore in Q1 June 2016 over Q1 June 2015. Higher revenues in Jindal Power (JPL) & Oman helped consolidated turnover rise 6% to Rs 4655 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 8 September 2016.

Realty stocks declined. D B Realty (down 2.22%), Godrej Properties (down 1.69%), Unitech (down 2.06%), DLF (down 0.83%), Housing Development & Infrastructure (down 0.89%) and Prestige Estates Projects (down 0.41%) edged lower. Indiabulls Real Estate (up 2.54%), Sobha (up 2.32%) and Oberoi Realty (up 1.73%) edged higher.

ICICI Bank was down 0.78% at Rs 274.20. The bank after market hours yesterday, 8 September 2016, said that the proposed initial public offer (IPO) of its subsidiary, ICICI Prudential Life Insurance Company (ICICI Pru Life) has been approved by Registrar of Companies, Maharashtra on 8 September 2016. The offer will open for subscription on 19 September 2016 and close on 21 September 2016. The price band has been fixed at Rs 300-334 per equity share.

Separately, ICICI Bank during market hours today, 9 September 2016 said that the IPO includes a reservation of upto 1.81 crore equity shares for purchase by ICICI Bank shareholders (the reserved category) who fall under the category of individuals and HUFs being public equity shareholders of the bank as on date of the red herring prospectus filed by ICICI Pru Life with the Registrar of Companies, Maharashtra on 7 September 2016.

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