Sensex falls below 27,000 level

Losses for pharma stocks and index heavyweights Infosys, HDFC and ITC pulled key benchmark indices lower in mid-afternoon trade, with the barometer index, the S&P BSE Sensex, falling below the psychological 27,000 level. At 14:17 IST, the Sensex, was off 132.50 points or 0.49% at 26,947.01. The 50-unit CNX Nifty was down 25.35 points or 0.31% at 8,164.35. The market breadth indicating the overall health of the market turned negative from positive. On BSE, 1,329 shares fell and 1,280 shares rose. A total of 114 shares were unchanged.

The BSE Mid-Cap and Small-Cap indices, both, slipped into the red from green. The BSE Mid-Cap index was currently off 0.03%. The BSE Small-Cap index was down 0.04%. The decline in both these indices was lower than the Sensex's decline in percentage terms.

Bank stocks trimmed gains, with some of them moving into the red from green. Shares of IT major Infosys edged lower in choppy trade after the company lowered its full year revenue growth guidance in dollar terms for the year ending 31 March 2016 (FY 2016) at the time of announcement of Q2 September 2015 results. Metal and mining stocks gained after China's central bank announced fresh stimulus measures over the weekend.

In overseas stock markets, European stocks edged lower in volatile trade. Chinese stocks led gains in Asian markets on stimulus measures from China and signals of reform in China's telecommunications sector. In mainland China, the Shanghai Composite ended with gains of 3.28%. China's central bank announced over the weekend that it will expand a relending trial to nine more cities and provinces, including Shanghai and Beijing. The plan, currently in place in Shandong and Guangdong, allows banks to pledge certain assets to secure loans from the central bank.

FMCG stocks declined. Nestle India (down 2.21%), Marico (down 1.94%), Colgate Palmolive (India) (down 1.74%), Hindustan Unilever (down 0.92%), Bajaj Corp (down 1.73%), Godrej Consumer Products (down 0.61%), Britannia Industries (down 1.21%), Procter & Gamble Hygiene and Health Care (down 0.5%), GlaxoSmithkline Consumer Healthcare (down 0.16%), Jyothy Laboratories (down 0.58%) and Tata Global Beverages (down 0.11%) edged lower. Dabur India (up 0.77%) edged higher.

Pharma stocks edged lower. Lupin (down 1.87%), Sun Pharmaceutical Industries (down 1.91%) Dr Reddy's Laboratories (down 1.74%), Cipla (down 1.35%), Ipca Laboratories (down 0.62%), Strides Arcolab (down 0.22%) and GlaxoSmithkline Pharmaceuticals (down 0.01%) edged lower. Glenmark Pharmaceuticals (up 1.71%), Divi's Laboratories (up 0.16%) and Wockhardt (up 0.04%) edged higher.

Metal and mining stocks gained after China's central bank announced fresh stimulus measures over the weekend. Hindalco Industries (up 4.84%), Jindal Steel & Power (up 4.18%), National Aluminium Company (up 0.51%) and NMDC (up 3.28%) edged higher. JSW Steel (down 0.67%) and Hindustan Zinc (down 0.73%) edged lower. China is the world's largest consumer of steel, copper and aluminum.

Shares of Steel Authority of India were unchanged at Rs 55.95.

Vedanta rose 6.71% at Rs 110.55. With reference to media reports titled Vedanta eyes Solar Energy Biz, plans to create 500 MW capacity, Vedanta after market hours on Friday, 9 October 2015, clarified that the company has no firm plans to enter the solar generation industry and termed the media reports as speculation.

Tata Steel rose 1.24% at Rs 253.85. The company announced after market hours on Friday, 9 October 2015, that its hot metal production rose 3% to 2.66 million tonnes in Q2 September 2015 over Q2 September 2014. Crude steel production rose 11% to 2.51 million tonnes in Q2 September 2015 over Q2 September 2014. Saleable steel production rose 9% to 2.41 million tonnes in Q2 September 2015 over Q2 September 2014. Deliveries rose 11% to 2.33 million tonnes in Q2 September 2015 over Q2 September 2014.

Shares of state-run coal mining giant Coal India were off 0.7% at Rs 333.30.

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