Intraday volatility continued as key benchmark indices extended losses in mid-afternoon trade. At 14:16 IST, the barometer index, the S&P BSE Sensex, was off 256.48 points or 1.02% at 24,995.84. The decline for the 50-unit Nifty 50 index was higher in percentage terms compared with the fall in the Sensex. The Nifty was currently off 90.55 points or 1.18% at 7,592.75. Bank stocks led losses for key benchmark indices. The Sensex was currently trading below the psychological 25,000 mark. Earlier, the barometer index had regained that mark after falling below that mark in afternoon trade.
The Sensex hit its lowest level in more than 13 weeks when it lost 310.28 points or 1.22% at the day's low of 24,942.04 in mid-afternoon trade. The barometer index rose 63.82 points or 0.25% at the day's high of 25,316.14 at the onset of the trading session, its highest level since 9 December 2015. The Nifty hit its lowest level in more than 13 weeks when it lost 104.25 points or 1.35% at the day's low of 7,579.05 in mid-afternoon trade. The index rose 19.75 points or 0.25% at the day's high of 7,703.05 at the onset of the trading session, its highest level since 8 December 2015.
Overseas cues were negative. European stocks edged lower as falling crude oil prices heightened fears about receding global growth. Chinese stocks led decline in Asian markets after news reports said that Guo Guangchang, the Chairman of China's biggest non-state-owned conglomerate Fosun Group, went missing since yesterday, 10 December 2015. US stocks edged higher yesterday, 10 December 2015, as beaten down energy stocks witnessed bargain hunting.
Closer home, the broad market depicted weakness. There were more than two losers against every gainer on BSE. 1,699 shares fell and 832 shares rose. A total of 183 shares were unchanged. The BSE Mid-Cap index was currently off 1.25%. The BSE Small-Cap index was currently off 1.1%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
Bank stocks fell across the board. Among public sector banks, Punjab National Bank (down 5.95%), Bank of Baroda (down 5.21%), Indian Bank (down 3.98%), IDBI Bank (down 3.24%), State Bank of India (down 2.37%), Union Bank of India (down 2.64%), Syndicate Bank (down 2.66%), Bank of India (down 2.43%), Canara Bank (down 1.55%) and Oriental Bank of Commerce (down 3.07%) declined.
Among private sector banks, ICICI Bank (down 4.12%), Yes Bank (down 4.51%), Axis Bank (down 2.16%), IndusInd Bank (down 1.97%), HDFC Bank (down 1.3%) and Kotak Mahindra Bank (down 1.54%) edged lower.
The Reserve Bank of India (RBI) yesterday, 10 December 2015, announced a reduction of 100 basis points in the Statutory Liquidity Ratio (SLR) of commercial banks to 20.5% from 21.5% in four equal stages starting from 2 April 2016. The SLR will be reduced to 21.25% from 2 April 2016, 21% from 9 July 2016, 20.75% from 1 October 2016 and 20.5% from 7 January 2017.
Pharma stocks dropped. Strides Shasun (down 2.25%), Ipca Laboratories (down 1.65%), Cadila Healthcare (down 1.12%), Dr Reddy's Laboratories (down 1.25%), Wockhardt (down 1.23%), Sun Pharmaceutical Industries (down 0.54%), GlaxoSmithkline Pharmaceuticals (down 0.57%) and Lupin (down 0.1%) edged lower. Glenmark Pharmaceuticals (up 0.91%), Divi's Laboratories (up 1.22%) and Aurobindo Pharma (up 0.32%) edged higher.
Cipla fell 0.17% at Rs 634.15. The stock was volatile. The stock hit a high of Rs 643 and a low of Rs 631.40 so far during the day. Cipla after market hours yesterday, 10 December 2015, announced that the company's board of directors has approved the transfer of the consumer healthcare business of the company to Cipla Health on a going concern basis by way of a slump sale for a lumpsum consideration of Rs 16 crore. Cipla Health is a newly incorporated subsidiary of the company. The transaction will enable Cipla to participate in the attractive and growing over-the-counter market. The transaction is expected to be completed by Q4 March 2016.
The amount and percentage of the turnover contributed by the consumer healthcare business of the company for the financial year ended 31 March 2015 (FY 2015) was Rs 54.28 crore and about 0.48% respectively. The net worth of consumer healthcare business of the company as on 31 March 2015 was Rs 7.88 crore contributing 0.07% of the net worth of the company.
Suven Life Sciences rose 1.93% at Rs 255.75 after the company announced that it has secured one product patent each in Eurasia, Europe, Israel and Macau corresponding to the new chemical entities (NCEs) for the treatment of disorders associated with neurodegenerative diseases. These patents are valid through 2030, Suven Life Sciences said. The announcement was made during trading hours today, 11 December 2015.
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