Key benchmark indices dropped, led by losses in bank and auto stocks and index heavyweight, Reliance Industries (RIL). The barometer index, the S&P BSE Sensex, declined 191.64 points or 0.74% at 25,860.17, as per the provisional closing data. The Nifty 50 index shed 60.70 points or 0.76% at 7,972.60, as per the provisional closing data. The Sensex provisionally settled below the psychological 26,000 mark after falling below that mark in intraday trade. The Nifty provisionally closed below the psychological 8,000 level after moving above and below that mark in intraday trade. Key indices snapped two-day winning streak today, 24 November 2016.
Indian stocks fell today, 24 November 2016, as investors fear that upbeat US economic data strengthened the prospect for higher US interest rate raising worries that higher interest rates in the US will spark capital outflows from the emerging equity markets. After opening lower, key indices remained in the negative terrain throughout the session amid volatility. The Sensex lost 240.84 points or 0.92% at the day's low of 25,810.97 in afternoon trade, its lowest level since 22 November 2016. The barometer index shed 2.67 points or 0.01% at the day's high of 26,049.14 in opening trade. The Nifty lost 80.75 points or 1% at the day's low of 7,952.55 in late trade, its lowest level since 22 November 2016. The index shed 8.45 points or 0.1% at the day's high of 8,024.85 in late trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,350 shares rose and 1,203 shares fell. A total of 171 shares were unchanged. The BSE Mid-Cap index provisionally fell 0.13%. The BSE Small-Cap index provisionally dropped 0.11%. The losses for both these indices were lower in percentage terms than those for the Sensex.
The total turnover on BSE amounted to Rs 2473.80 crore, lower than turnover of Rs 2499.34 crore registered during the previous trading session.
Volatility was witnessed in intraday trade today, 24 November 2016, as traders rolled over positions in the futures & options (F&O) segment from the near month November 2016 series to December 2016 series. The near month November 2016 derivatives contracts expired today, 24 November 2016.
In overseas stock markets, most European stocks edged higher after another record-setting session for US equities in the run-up to Thanksgiving holidays. German economic growth slowed in the third quarter, as expected, following a drop in exports and weaker investment in machinery and equipment, the country's Destatis statistics office said today, 24 November 2016. Gross domestic product in Europe's largest economy grew 0.2%, or an annualized rate of 0.8%, Destatis said. German business sentiment was steady in November, a sign that the country's economic upturn remains intact, the Ifo institute said. The Ifo business climate index came in at 110.4 points in November, unchanged from October and broadly in line with forecasts.
Most Asian stocks edged lower as upbeat economic data strengthened the prospect for higher US interest rate. Investors fear that higher interest rates in the US will spark capital outflows from the emerging equity markets. US stocks closed mixed yesterday, 23 November 2016, as investors digested a number of economic data, including minutes from the Federal Reserve's November meeting. The Dow Jones Industrial Average and S&P 500 indices hit record closing high. The minutes released yesterday, 23 November 2016, back the consensus view on Wall Street that the Fed is poised to raise rates in December. Policymakers left borrowing costs unchanged earlier this month, just days before Republican Donald Trump triumphed in the November 8 presidential contest. Voting members of the Fed's rate-setting committee saw equal risks the economy would overshoot or undershoot their forecasts for continued growth and a tightening labor market. Almost all of them continued to judge that near-term risks to the economic outlook were roughly balanced, according to the minutes. The US stock market will remain closed today, 24 November 2016, because of the Thanksgiving holiday.
US weekly jobless claims increased 18,000 to a seasonally adjusted 251,000 for the week ended 19 November 2016, the Labor Department said. The claims have now been below 300,000, a threshold associated with a healthy labor market, for 90 straight weeks. Meanwhile, the Commerce Department said US durable goods increased 4.8% in October, well above a consensus estimate. Other data released included the IHS Markit manufacturing index for November, which showed a slight increase to 53.9 from 53.4 in October. A reading above 50 signals expansion within the sector. New home sales for October fell 1.9%, while consumer sentiment came in at 93.8, above estimate.
Back home, auto stocks declined. Mahindra & Mahindra (M&M) (down 2.29%), Ashok Leyland (down 1.62%), Maruti Suzuki India (down 1.36%), and Eicher Motors (down 2.61%) declined. Shares of two-wheeler makers rose. Hero MotoCorp (up 0.25%), Bajaj Auto (up 1.69%) and TVS Motor Company (up 1.48%) gained.
Index heavyweight Reliance Industries (RIL) declined 1.02% to Rs 996.95. The stock hit high of Rs 1,006.90 and low of Rs 986 in intraday trade. A fire reportedly broke out at the refinery site of RIL in Gujarat but there was no hit to the production. The fire broke out early today, 24 November 2016, morning at the company's fluid catalytic cracking unit (FCCU), a gasoline-making unit, at the 6.6 lakh barrels per day (bpd) refinery, which was under maintenance. The part of the refinery where the fire broke out was in the domestic tariff area (DTA) of the refinery site. The second 5.4 lakh bpd refinery is located in the special economic zone of the refinery site.
Index heavyweight and cigarette maker ITC shed 0.24% to Rs 224. The stock hit high of Rs 225 and low of Rs 222.25 in intraday trade.
Manpasand Beverages jumped 7.85% after net profit rose 24.37% to Rs 5.41 crore on 35.49% rise in total income from operations to Rs 106.37 crore in Q2 September 2016 over Q2 September 2015. The result was announced during market hours today, 24 October 2016.
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