Weakness continued on the bourses in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, was off 239.65 points or 0.92% at 25,881.75. The losses for Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was currently off 89.55 points or 1.13% at 7,825.65. The Sensex continued to hover below the psychological 26,000 level after falling below that mark in early trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,345 shares declined and 1,047 shares rose. A total of 105 shares were unchanged. The BSE Mid-Cap index was currently off 1.02%. The decline in this index was higher than the Sensex's decline in percentage terms. The BSE Small-Cap index was currently off 0.31%. The decline in this index was lower than Sensex's decline in percentage terms.
Overseas cues were negative. Asian stocks edged lower amid strengthening prospects for higher US interest rates as soon as December and the latest signal of China's weakening economy. The latest data showed that China's consumer price index rose 1.3% in October from a year earlier, slower than a 1.6% rise in September. The reading, on the heels of weak export data over the weekend, is the latest indication of China's slowdown and flagging domestic demand.
Meanwhile, stronger-than-expected US employment report for October 2015 has increased the odds of a Federal Reserve rate increase in December. The Fed-funds futures market is now pricing in 68% probability of an increase in US benchmark interest rate in December 2015. Investors in emerging markets, including India are worried that once the Fed starts raising interest rates, it will drain liquidity from global emerging markets and redirect it to developed economies. The Fed has held its benchmark short-term interest rate near zero since December 2008. The ultra-loose monetary policy in the US has encouraged heavy investment in higher-yielding emerging markets. The next monetary policy review from the Fed is scheduled on 15-16 December 2015.
IT stocks dropped. Tech Mahindra (down 0.33%), HCL Technologies (down 1.46%), Oracle Financial Services Software (down 1.77%), MphasiS (down 2.42%), TCS (down 0.31%) and Infosys (down 0.98%), declined.
Wipro lost 0.37% at Rs 558.05. The stock hit a high of Rs 561.45 and a low of Rs 551.90 so far during the day. Wipro before market hours today, 10 November 2015, announced a partnership with Apttus, the category-defining Quote-to-Cash cloud solution provider, to deliver best-in-class Contract Lifecycle management (CLM), Configure-Price-Quote (CPQ) and Revenue Management solutions to clients across industries.
Realty stocks declined. Indiabulls Real Estate (down 3.4%), Unitech (down 4.27%), Oberoi Realty (down 0.35%), DLF (down 3.34%), Housing Development & Infrastructure (HDIL) (down 5.03%), and Omaxe (down 0.3%) edged lower. Sobha rose 0.79%.
Bharat Heavy Electricals (Bhel) lost 2.39% to Rs 180, with the stock extending recent losses triggered by the company reporting poor Q2 earnings. Bhel reported net loss of Rs 204.90 crore in Q2 September 2015 compared with net profit of Rs 124.84 crore in Q2 September 2014. Total income declined 0.45% to Rs 6311.23 crore in Q2 September 2015 over Q2 September 2014.
State Trading Corporation of India rose 2.74% after the company reported turnaround in Q2 results. The company reported net profit of Rs 1.02 crore in Q2 September 2015 as compared to net loss of Rs 2.33 crore in Q2 September 2014. Total income surged 79.6% to Rs 4973.75 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours yesterday, 9 November 2015.
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