Key benchmark indices further extended losses and hit fresh intraday low in mid-afternoon trade after European stocks extended losses. At 14:18 IST, the barometer index, the S&P BSE Sensex was down 300.85 points or 1.11% at 26,719.81. The losses for the Nifty 50 index were lower in percentage terms than those for the Sensex. The Nifty 50 index was currently down 79.50 points or 0.96% at 8,193.55. The Sensex remained below the psychologically important 27,000 mark so far during the day's trade after sliding below that mark in early trade. The Sensex and the Nifty, both, hit their lowest level in one week. Weakness in global stocks dampened sentiment. The market sentiment was also affected adversely on worries that the recent gains in crude oil prices could adversely impact India's fiscal deficit situation and increase fuel price inflation as India imports about 80% of its crude requirements.
In global commodities markets, crude oil prices edged lower after gaining in previous session. Brent for August settlement was currently down 21 cents at $52.30 a barrel. The contract had risen $1.07 a barrel or 2.08% to settle at $52.51 a barrel during the previous trading session.
The Sensex dropped 328.31 points or 1.21% at the day's low of 26,692.35 in mid-afternoon trade, its lowest level since 2 June 2016. The index fell 25.75 points or 0.09% at the day's high of 26,994.91 at the onset of the trading session. The Nifty fell 88.45 points or 1.06% at the day's low of 8,184.60 in afternoon trade, its lowest level since 2 June 2016. The index rose 0.3 points at the day's high of 8,273.35 at the onset of the trading session.
In overseas markets, European shares extended initial losses today, 9 June 2016, dropping for a second straight day after European Central Bank's president Mario Draghi warned that Europe is at risk of suffering lasting economic damage from weak productivity and low growth. Asian stocks declined as investors weigh risks amid the Federal Reserve's cautious stance about tightening rates. Data showed that China's consumer inflation rose less than forecast in May as pressure from high food prices eased, while producer prices recovered more than forecast. The consumer price index (CPI) rose 2% in May, compared with a 2.3% increase in April. The producer price index (PPI) fell 2.8% in May, easing from a 3.4% drop in April, and rose 0.5% month-on-month. US stocks rose yesterday, 8 June 2016 with Dow Jones Industrial Average rising above 18,000 for the first time since April as a weaker dollar lifted some commodity-related shares.
Closer home, the market breadth indicating the overall health of the market tuned negative from positive in mid-afternoon trade. On BSE, 1314 shares fell and 1,123 shares rose. A total of 172 shares were unchanged. The BSE Mid-Cap index was currently down 0.58%. The BSE Small-Cap index was currently down 0.13%. The decline in both the indices was lower than the Sensex's decline in percentage terms.
Auto stocks were mixed. Mahindra & Mahindra (M&M) (up 0.17%), Maruti Suzuki India (up 0.21%), and TVS Motor Company (up 0.43%) gained. Ashok Leyland (down 0.19%), Eicher Motors (down 0.08%), Hero MotoCorp (down 2.27%), and Bajaj Auto (down 1.56%) declined.
Tata Motors rose 0.09% after the company announced that its global wholesales including Jaguar Land Rover (JLR) rose 10% to 87,414 units in May 2016 over May 2015. Global wholesales of all Tata Motors' commercial vehicles and Tata Daewoo range rose 11% to 32,375 units in May 2016 over May 2015. Global wholesales of all passenger vehicles rose 10% to 55,039 units in May 2016 over May 2015. The announcement was made after market hours yesterday, 8 June 2016.
Capital goods stocks were mixed. Bharat Heavy Electricals (Bhel) (up 0.66%), BEML (up 0.99%) and Siemens (up 0.29%) gained. Havells India (down 1.52%), ABB India (down 0.24%), Bharat Electronics (down 0.16%), L&T (down 0.35%), and Thermax (down 0.91%) declined.
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