Key benchmark indices remained weak in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex, was down 339.79 points or 1.27% at 26,452.40. The losses for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was down 134.30 points or 1.62% at 8,162.
The broad market depicted weakness. There were more than six losers against every gainer on BSE. 2,260 shares fell and 336 shares rose. A total of 113 shares were unchanged. The BSE Mid-Cap index was currently down 3.54%. The BSE Small-Cap index was currently down 4.27%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
Likely short term negative impact on the economy of recent demonetization of higher denomination notes by the Indian government and worries that the recently elected US president Donald Trump's policies stance - from protectionism and fiscal expansion - will boost inflation and lead the Federal Reserve to raise interest rates more than expected weighed on sentiment. Investors fear that a higher interest rates in the US will spark capital outflows from the emerging equity markets. Meanwhile, the Indian government on 8 November 2016, removed legal tender of Rs 500 and Rs 1,000 denomination notes, with effect from 9 November 2016, and gave time till December end to deposit these notes in the banks in a biggest crackdown on black money. The move is likely to affect consumption due to cash liquidity crunch and will pull down the growth of economy in short term while in the long term it is expected to have a positive impact on the economy.
The recent selling by the foreign portfolio investors (FPIs) of Indian stocks also affected sentiment. FPIs sold shares worth a net Rs 1493.27 crore on Friday, 11 November 2016, as per provisional data released by the stock exchanges, when indices slumped around 2.5% on that day. The market remained closed on Monday, 14 November 2016, on account of holiday.
Most pharma stocks declined. Cipla (down 0.16%), Cadila Healthcare (down 2.09%), and Sun Pharmaceutical Industries (down 0.6%) declined. Glenmark Pharmaceuticals (up 0.41%) and Dr Reddy's Laboratories (up 1.78%) gained.
Drug major Lupin shed 1.24%. The company announced during trading hours today, 15 November 2016, that its US subsidiary, Lupin Pharmaceuticals, Inc. has launched its Amabelz Tablets (Estradiol arid Norethindrone Acetate Tablets USP, 0.5 mg/0.1 mg and 1 mg/0.5 mg) having received an approval from the United States Food and Drug Administration (FDA) earlier to market a generic version of Amneal Pharmaceuticals' Activella Tablets (Estradiol and Norethindrone Acetate Tablets USP, 0.5 mg/0.1 mg and 1 mg/0.5 mg). Amabelz Tablets are indicated in a woman with a uterus for treatment of moderate to severe vasomotor symptoms due to menopause and prevention of postmenopausal osteoporosis. It is also indicated n a woman with a uterus for treatment of moderate to severe symptoms of vulvar and vaginal atrophy due to menopause.
Aurobindo Pharma fell 2.58%. The company's consolidated net profit rose 33.53% to Rs 605.64 crore on 12.03% rise in total income to Rs 3783.73 crore in Q2 September 2016 over Q2 September 2015. The result was announced on Monday, 14 November 2016. Aurobindo Pharma's consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) before forex rose 19.3% to Rs 929.20 crore in Q2 September 2016 over Q2 September 2015. Consolidated EBITDA margin expanded to 24.6% in Q2 September 2016 from 23.1% in Q2 September 2015.
Divi's Laboratories dropped 6.3% after net profit fell 24.6% to Rs 223.85 crore on 2.4% rise in total income to Rs 1025.70 crore in Q2 September 2016 over Q2 September 2015. The result was announced on Saturday, 12 November 2016. Divi's paid a one time ex-gratia of Rs 79 crore in Q2 September 2016 to the employees and whole-time directors on the occasion of completion of 25 years of formation of the company. Forex loss amounted to Rs 11 crore in Q2 September 2016 as against a gain of Rs 12 crore in Q2 September 2015, Divi's Laboratories said.
IT stocks gained on weak rupee. Tech Mahindra (up 0.22%), HCL Technologies (up 1.49%), TCS (up 1.42%), Infosys (up 1.04%), and Wipro (up 1.8%) edged higher. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 67.7425, compared with its close of 67.25 during the previous trading session.
MOIL lost 5.66% after net profit declined 14.6% to Rs 41.47 crore on 32.07% rise in net sales to Rs 196.03 crore in Q2 September 2016 over Q2 September 2015. The result was announced on Monday, 14 November 2016.
In overseas markets, European stocks gained as the US dollar stood near a 13-and-a-half-year high and treasury yields continued to rise as traders anticipate President-elect Donald Trump's policies will stoke inflation. German economic growth slowed more than expected in the third quarter of 2016 as exports fell following Britain's vote to leave the European Union. The economy grew by 0.2% on the quarter between July and September after expanding by 0.4% in the three months to June, Germany's Federal Statistics Office said. Asian stocks closed mixed. US stocks closed little changed yesterday, 14 November 2016, after rising dramatically the week before and a decline in the technology sector offset a steep rise in financial stocks as investors bet on higher interest rates. The Dow Jones Industrial Average settled at another record closing high.
On macro front, inflation based on wholesale price index (WPI) eased slightly to 3.39% (provisional) in October 2016 over October 2015, as compared to 3.57% (provisional) for the September 2016 and -3.7% in October 2015. Build up inflation rate in the financial year so far was 4.34% compared to a build up rate of 0.45% in the corresponding period of the previous year. The data was announced during market hours today, 15 November 2016.
The government will announce monthly inflation data based on consumer price index (CPI) for October 2016 after market hours today, 15 November 2016. The CPI had eased to 4.31% in September 2016, from a 5.05% growth in August.
The industrial production (IIP) data announced after market hours on Friday, 11 November 2016 showed that IIP rose 0.7% in September 2016 over September 2015. The IIP contracted 0.7% in August, and shrank 2.5% in July.
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