Key benchmark indices dropped today, 4 December 2015, tracking slide in global stocks after the European Central Bank (ECB)'s stimulus package announced after policy meet yesterday, 3 December 2015, fell well short of markets' high expectations. The barometer index, the S&P BSE Sensex, lost 207.31 points or 0.8% at 25,679.31, as per the provisional closing data. The fall in 50-unit CNX Nifty 50 index was higher in percentage terms than Sensex's fall. The Nifty 50 index shed 77.90 points or 0.99% at 7,786.25, as per the provisional closing data. Key indices hit fresh intraday low in late trade.
The Sensex hit its lowest level in more than two weeks when it lost 262.91 points or 1.01% at the day's low of 25,623.71 in late trade. The Nifty hit over two-week low when it dropped 88.45 points or 1.12% at the day's low of 7,775.70 in late trade.
Key indices fell for the third day in a row today, 4 December 2015.
The market breadth indicating the overall health of the market was negative. On BSE, 1,565 shares fell and 1,182 shares rose. A total of 165 shares were unchanged. The BSE Mid-Cap index was provisionally off 1.05%. The decline in the index was higher in percentage terms than the Sensex's fall. The BSE Small-Cap index was provisionally off 0.64%. The decline in the index was lower in percentage terms than the Sensex's fall.
In overseas markets, European stocks slipped after Asian stocks settled lower as the European Central Bank (ECB)'s stimulus package fell well short of markets' high expectations. US stocks dropped yesterday, 3 December 2015 as the ECB disappointed market hopes for greater stimulus. The ECB cut its deposit rate deeper into negative territory and extended its asset buys by six months, as expected. But some market participants had hoped for greater stimulus.
The ECB President Mario Draghi after a policy meet yesterday, 3 December 2015, announced the central bank would extend its massive 60 billion euro ($63.5 billion) a month bond-buying scheme to at least March 2017. The ECB cut its deposit rate further into negative territory by 10 basis points to a fresh low of -0.3%, down from -0.2%.
Shares of power generation and power distribution companies edged lower. Torrent Power (down 2.27%), GVK Power & Infrastructure (down 3.98%), NHPC (down 2.76%), Tata Power Company (down 1.83%), NTPC (down 2.13%), Power Grid Corporation of India (down 2.17%), Reliance Infrastructure (down 2.11%) and Reliance Power (down 1.79%) declined.
3i Infotech was locked at 20% upper circuit at Rs 5.20 after the company said that a meeting of the board of directors of the company will be held on 7 December 2015, inter alia, to discuss and approve a proposal for the realignment of its debt with the lenders/lessors in India and foreign currency convertible bondholders (FCCBs). Such realignment of debt may include, among others, conversion of a portion of debt into equity/redeemable preference shares and restructuring of a portion of debt to provide for elongated repayment schedule and revised interest rate, 3i Infotech said. Any debt realignment proposal shall remain subject to approval from, among others, the lenders/lessors in India and FCCB holders as well as relevant shareholder and regulatory authorities, 3i Infotech said. The announcement was made during market hours today, 4 December 2015.
Sandur Manganese & Iron Ores rose 7.17% after the company said that the Karnataka high court vide Order dated 3 December 2015 has quashed the levy of forest development tax (FDT) by the government of Karnataka on mining lease holders. The announcement was made during trading hours today, 4 December 2015. The State Government, pursuant to notification dated 16 August 2008, had amended the provisions of Section 98(A) of the Karnataka Forest Act, 1963 for levying FDT on the sale of ores by the mining lease holders with effect from 27 August 2008. The said matter was contested by Sandur Manganese & Iron Ores and other mining lease holders before the High Court of Karnataka, wherein the High Court of Karnataka at Bangalore has pronounced the judgment to the effect that the levy FDT shall be applicable only to State Government-owned entities and not others. The operative portion/summary of the judgement was pronounced in Open Court and a copy of the order is awaited, the company said in a statement.
New Delhi Television rose 5.46% after the company said it forayed into the online wedding market space with a new e-commerce venture. The announcement was made during trading hours today, 4 December 2015. The company said its forthcoming wedding and festival platform, Special Occasion, has raised funding at a valuation of $20 million from US-based venture capital firm, CerraCap Ventures. With this launch, NDTV establishes itself more firmly in the digital and ecommerce space, the company said in a statement.
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