Sensex slips below 29,000 level

Key benchmark indices edged lower in early trade on negative sentiment in Asian trading and losses for US stocks overnight. At 9:16 IST, the barometer index, the S&P BSE Sensex was down 105.94 points or 0.36% at 28,939.34. The Nifty 50 index was currently down 36.90 points or 0.41% at 8,915.60. The Sensex slipped below the psychologically important 29,000 level. It had settled above that level during the previous trading session.

In overseas stock markets, Asian stocks edged lower after the European Central Bank (ECB) surprised markets by deciding 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 positive. On BSE, 658 shares rose and 511 shares declined. A total of 63 shares were unchanged. The BSE Mid-Cap index was currently down 0.17%. The decline in this index was lower than Sensex's decline in percentage terms. The BSE Small-Cap index was currently up 0.17%, outperforming the Sensex.

Telecom stocks edged higher. Bharti Airtel (up 0.34%), Idea Cellular (up 0.47%) and Reliance Communications (up 2.28%) edged higher.

Bharti Infratel was up 1.63%. Bharti Infratel is a telecom tower arm of Bharti Airtel.

Yes Bank was down 5.33% at Rs 1,259.75 after the bank announced after market hours yesterday, 8 September 2016 that due to extreme volatility during trading day on 8 September 2016 because of misinterpretation of new qualified institutional placement (QIP) guidelines, the bank has been advised by its appointed Merchant Bankers to defer its proposed QIP. It may be recalled that the bank had announced on 7 September 2016 opening of QIP of equity shares of face value Rs 10 each to raise up to $1 billion. The bank announced Rs 1,371.84 per share as the floor price at that time.

ICICI Bank was down 0.87% at Rs 273.95. The bank 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 be open for subscription to public on 19 September 2016 and shall close on 21 September 2016. The price band has been fixed at Rs 300-334 per equity share. The announcement was made after market hours yesterday, 8 September 2016.

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