A bout of volatility was witnessed as key benchmark indices weakened once again after trimming losses in mid-afternoon trade. At 14:17 IST, the Sensex was off 117.29 points or 0.47% at 25,084.61. The decline for 50-unit CNX Nifty was higher than the Sensex's fall in percentage terms. The Nifty was currently off 43.40 points or 0.57% at 7,611.65. All the twelve sectoral indices on BSE were in the red.
The broad market depicted weakness. On BSE, there were over two losers against every gainer. 1,708 shares declined and 785 shares rose. A total of 98 shares were unchanged. The BSE Mid-Cap index was down 1.56%. The BSE Small-Cap index was down 0.92%. The decline in both these indices was higher than Sensex's fall in percentage terms.
The Sensex and the Nifty have witnessed intermittent recovery so far during the trading session. Earlier, the Sensex hit its lowest level in almost 14 months and the Nifty hit its lowest level in almost 13 months as these two key benchmark indices witnessed high volatility in early trade.
In overseas markets, European stocks edged higher in volatile trade. Chinese stocks led decline in Asian markets after China cut its GDP growth rate for 2014 to 7.3% from 7.4% and as mixed US jobs report for August 2015 did little to quell investor uncertainty on the timing of the US Federal Reserve's first interest rate hike in a decade.
In sector trends, auto stocks declined. Ashok Leyland (down 2.18%), Eicher Motors (down 2.63%), Hero MotoCorp (down 0.76%), Bajaj Auto (down 0.81%) and TVS Motor Company (down 1.3%) declined. Maruti Suzuki India (up 0.78%) and Tata Motors (up 1.05%) gained.
Mahindra & Mahindra (M&M) declined 0.06%. M&M after market hours on Friday, 4 September 2015, announced that Telephonics Corporation (USA) is in the process of raising its stake in Mahindra Telephonics Integrated Systems (MTIS) to 49% from 26%. Telephonics Corporation has already received approval from the Foreign Investment Promotion Board for increasing its stake to 49% from 26% in MTIS. Currently, the Mahindra group holds 74% stake and Telephonics Corporation holds 26% stake in MTIS. MTIS has a state of the art production facility near Faridabad in Haryana where it currently manufactures airborne weather radars systems.
FMCG stocks dropped. Nestle India (down 0.02%), Marico (down 1.62%), Britannia Industries (down 2.08%), Jyothy Laboratories (down 5.35%), Procter & Gamble Hygiene and Health Care (down 2.26%), Hindustan Unilever (HUL) (down 1.37%), Dabur India (down 2.44%), Colgate Palmolive India (down 1.91%), Godrej Consumer Products (down 5.68%), and Bajaj Corp (down 2.73%) declined. Tata Global Beverages (up 0.42%) and GlaxoSmithkline Consumer Healthcare (up 0.11%) gained.
Yes Bank rose 1.29% on reports that a foreign brokerage has reiterated its 'buy' rating on the stock. The foreign brokerage has reportedly stated in a research report that the Yes Bank stock has already factored in concerns about the asset quality of the bank. According to the foreign brokerage, Yes Bank will benefit from a focused approach towards customer acquisition and its branch-centric business model. The brokerage has reportedly said that an expected uptick in the economy and likely rate cut from the Reserve Bank of India (RBI) are other triggers for the stock's upmove.
Vedanta dropped 2.95%. The stock was the top loser from the Sensex pack.
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