After hovering in a narrow range, key benchmark indices extended losses and hit fresh intraday low in early afternoon trade. At 12:16 IST, the barometer index, the S&P BSE Sensex, was down 460.13 points or 1.67% at 27,057.55. The losses for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was down 155.50 points or 1.82% at 8,370.25. A sudden spike in US bond yields to a 10-month high rattled emerging equity markets.
The Sensex fell 472.59 points, or 1.72% at the day's low of 27,045.09 in early afternoon trade, its lowest level since 9 November 2016. The index fell 172.83 points, or 0.63% at the day's high of 27,344.85 in early trade. The Nifty fell 156.15 points, or 1.83% at the day's low of 8,369.60 in early afternoon trade, its lowest level since 9 November 2016. The index fell 65.15 points, or 0.76% at the day's high of 8,460.60 in early trade.
In overseas stock markets, most Asian shares edged lower as US bond yields soared on expectations US President-elect Donald Trump's policies would stoke inflation. Investors fear that a higher interest rates under incoming President Donald Trump will spark capital outflows from the emerging equity markets.
In US, the Dow Jones Industrial Average rallied to a record close yesterday, 10 November 2016, as investors continued to revise their strategies and reposition portfolios in response to Donald Trump's unexpected presidential election victory.
Back home, the broad market depicted weakness. There were more than four losers against every gainer on BSE. 1,973 shares fell and 415 shares rose. A total of 133 shares were unchanged. The BSE Mid-Cap index was currently down 2.82%. The BSE Small-Cap index was currently down 2.48%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
Most public sector banks edged higher. Union Bank of India (up 4.44%), United Bank of India (up 3.13%), Corporation Bank (up 2.91%), Allahabad Bank (up 2.49%), UCO Bank (up 2.16%), Dena Bank (up 1.57%), Vijaya Bank (up 1.3%), Bank of India (up 1.01%), Punjab National Bank (up 0.91%), Bank of Baroda (up 0.7%), IDBI Bank (up 0.48%), Andhra Bank (up 0.35%), State Bank of India (up 0.32%) and Canara Bank (up 0.09%), edged higher. Syndicate Bank (down 0.34%), Central Bank of India (down 0.37%), Punjab & Sind Bank (down 0.75%) and Indian Bank (down 0.95%), edged lower.
Most private sector banks edged lower. ICICI Bank (down 3.4%), Yes Bank (down 3.15%), IndusInd Bank (down 1.21%), Axis Bank (down 1.16%), Kotak Mahindra Bank (down 1.01%) and Federal Bank (down 0.19%), edged lower. HDFC Bank (up 0.06%), RBL Bank (up 0.37%) and City Union Bank (up 0.56%), edged higher.
Power generation stocks edged lower. Tata Power (down 3.6%), Reliance Infrastructure (down 2.95%), Jaiprakash Power Ventures (down 2.14%), Adani Power (down 2.13%), GMR Infrastructure (down 2.11%), Torrent Power (down 1.85%), Reliance Power (down 1.69%), NTPC (down 1.58%) and JSW Energy (down 1.43%), edged lower. CESC was up 2.12%.
State-run Power Grid Corporation of India was down 1.65% to Rs 185.25.
State-run Coal India was down 2.07% to Rs 326.60.
NHPC was down 1.89% to Rs 25.90. The company said that the board of directors of the company in its meeting scheduled to be held on 18 November 2016, will consider the proposal for raising of Rs 2250 crore through issuance of V series corporate bonds on private placement basis. The proposed issue is out of Rs. 4500 crore already approved by the shareholders in their 40th Annual General Meeting held on 22 September 2016. The announcement was made after market hours yesterday, 10 November 2016.
Balmer Lawrie & Company gained 5.47% after the company said its board of directors at a meeting held yesterday, 10 November 2016, recommended 3:1 bonus issue. The announcement was made after market hours yesterday, 10 November 2016.
Pennar Industries was down 2.97% as the company's net profit growth in Q2 September 2016 was boosted by surge in non-operational income vis-vis corresponding previous quarter. The result was announced after market hours yesterday, 10 November 2016.
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