Telecom, IT sector stocks and index heavyweight HDFC Bank led small losses for key benchmark indices in a volatile trading session. The barometer index, the S&P BSE Sensex, fell 71.07 points or 0.27% to settle at 26,227.62. The Nifty 50 index fell 31.65 points or 0.39% to settle at 8,079.95. The Sensex and the Nifty hit their lowest closing levels in more than 5-1/2-months.
In overseas stock markets, European and Asian stocks witnessed a mixed trend. Foreign direct investment (FDI) into the Chinese mainland rose 4.2% year on year to reach 666.3 billion yuan in the first ten months of the year, official data showed today, 17 November 2016. In mainland China, the Shanghai Composite ended higher by 0.11%. In Hong Kong, the Hang Seng ended 0.08% lower. US stocks closed mostly lower yesterday, 16 November 2016, as financial stocks fell but gains in technology stocks helped Nasdaq end the day higher. Philadelphia Federal Reserve President Patrick Harker reportedly said yesterday, 16 November 2016 that he favored raising interest rates and that the US central bank might have to hike more aggressively if the incoming Trump administration enacts a fiscal stimulus. The Fed has said it expects to raise rates gradually.
Back home, the Sensex fell 71.07 points or 0.27% to settle at 26,227.62, its lowest closing level since 25 May 2016. The index rose 151.18 points, or 0.57% at the day's high of 26,449.87. The index fell 143.29 points, or 0.54% at the day's low of 26,155.40.
The Nifty 50 index fell 31.65 points or 0.39% to settle at 8,079.95, its lowest closing level since 26 May 2016. The index rose 39.65 points, or 0.49% at the day's high of 8,151.25. The index fell 51.30 points, or 0.63% at the day's low of 8,060.30.
The market breadth indicating the overall health of the market was weak. On BSE, 1,671 shares declined and 943 shares rose. A total of 158 shares were unchanged. The BSE Mid-Cap index fell 0.38%. The BSE Small-Cap index lost 0.57%. The losses for both these indices were higher than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 2627.02 crore, lower than turnover of Rs 4302.99 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Utilities index (up 1.14%), the S&P BSE Power index (up 0.93%), the S&P BSE Metal index (up 0.50%), the S&P BSE Healthcare index (up 0.36%), the S&P BSE Oil & Gas index (up 0.36%), the S&P BSE FMCG index (up 0.33%), the S&P BSE Consumer Durables index (up 0.30%), the S&P BSE Industrials index (up 0.18%), the S&P BSE Bankex (up 0.09%), the S&P BSE Realty index (up 0.07%), the S&P BSE Auto index (down 0.07%), the S&P BSE Capital Goods index (down 0.08%), the S&P BSE Finance index (down 0.16%) and the S&P BSE Energy index (down 0.19%), outperformed the Sensex. The S&P BSE Basic Materials index (down 0.59%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.94%), the S&P BSE IT index (down 1.38%), the S&P BSE Teck index (down 1.66%) and the S&P BSE Telecom index (down 2.45%), underperformed the Sensex.
Shares of auto major Tata Motors rose 3.21% at Rs 472.60. The stock hit a high of Rs 476.20 and a low of Rs 459.80 in intraday trade.
Most IT stocks declined. Oracle Financial Services Software (down 2.38%), TCS (down 2.2%), HCL Technologies (down 2.07%), MphasiS (down 1.24%), Infosys (down 1.12%), Wipro (down 0.99%) and Tech Mahindra (down 0.47%), edged lower. Persistent Systems (up 0.05%), Hexaware Technologies (up 0.18%) and MindTree (up 0.97%), edged higher.
Telecom stocks edged lower. Tata Teleservices (Maharashtra) (down 2.21%), MTNL (down 1.18%) and Idea Cellular (down 0.57%), edged lower.
Bharti Infratel fell 0.42% to Rs 358.50. Bharti Infratel is a telecom tower arm of Bharti Airtel.
Bharti Airtel fell 4.26% to Rs 296.35. The company announced the completion of the merger of its subsidiary Airtel Bangladesh with Robi Axiata, a unit ofAxiata Group Berhad. The merger was completed following the fulfilment of the condition precedents to the agreement and filing of the merger order with the registrar of joint stock companies and firms of Bangladesh Court. Post the merger, Axiata will hold 68.7% stake in the combined entity, while Airtel will hold 25%. The remaining 6.3% stake will be held by NTT DoCoMo. The announcement was made after market hours yersterday, 16 November 2016.
The combined entity will be the second largest mobile operator in Bangladesh with approximately 32.2 million customers and will operate under the Robi Axiata brand. It is well positioned to deliver an unparalleled portfolio of innovative mobile and broadband offerings at affordable rates with deep network coverage.
The joint strengths of Robi and Airtel sets the stage for the company to deliver the widest mobile network coverage across Bangladesh, enhancing its stronghold in the mobile Internet segment as well as consolidating its position as the second largest operator in the country.
Reliance Communications (RCom) fell 0.26% to Rs 38.40. RCom, through its wholly-owned subsidiary Reliance Globalcom Services Inc, acquired a newly incorporated company named Onyx NewCo LLC (ONL), a Delaware Registered Company, on 15 November 2016. Delaware is a state located in the United States. ONL will be a telecommunications company, which is yet to commence its business operations. The announcement was made after market hours yesterday, 16 November 2016.
Banks shares were mixed. Among public sector banks, Central Bank of India (down 4.93%), Vijaya Bank (down 3.02%), Dena Bank (down 1.46%), Bank of India (down 1.11%), IDBI Bank (down 0.92%), Punjab National Bank (down 0.77%), UCO Bank (down 0.42%), Allahabad Bank (down 0.35%), United Bank of India (down 0.22%), Andhra Bank (down 0.18%) and Syndicate Bank (down 0.14%), edged lower. State Bank of India (up 0.18%), Punjab & Sind Bank (up 0.4%), Bank of Baroda (up 0.84%), Bank of Maharashtra (up 1.01%), Canara Bank (up 1.24%), Corporation Bank (up 1.36%), Union Bank of India (up 1.49%) and Indian Bank (up 1.65%), edged higher.
Among private sector banks, Federal Bank (up 1.11%), Kotak Mahindra Bank (up 0.87%), ICICI Bank (up 0.54%) and IndusInd Bank (up 0.42%), edged higher. Yes Bank (down 0.41%), City Union Bank (down 2.41%) and RBL Bank (down 3.41%), edged lower.
Index heavyweight HDFC Bank declined 1.14% at Rs 1,229.70. The stock hit a high of Rs 1,249 and a low of Rs 1,225.20 in intraday trade.
Axis Bank rose 0.50% to Rs 474.40. The bank announced redemption and cancellation to holders of $46,000,000 - 7.167% Callable Hybrid Tier I Notes (notes) issued pursuant to Axis Bank, acting through its Singapore Branch (formerly known as UTI Bank, acting through its Singapore Branch). The issuer has fully redeemed all the outstanding notes in an aggregate principal amount of $46,000,000 and an aggregate accrued amount of interest of $1,648,410 for a total sum of $47,648,410. Following the full redemption of all the outstanding notes on the redemption date, the notes have been cancelled in accordance with the conditions and there are no outstanding notes. The announcement was made after market hours yesterday, 16 November 2016.
Meanwhile, the Sensex has fallen 1,290.06 points or 4.69% in four consecutive trading sessions from its close of 27,517.68 on 10 November 2016. The Sensex has fallen 1,702.59 points or 6.10% in November 2016 so far (till 17 November 2016). The Sensex has risen 110.08 points or 0.42% in calendar year 2016 so far (till 17 November 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 3,733.01 points or 16.60%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 2,849.66 points or 9.80%. The Sensex is off 3,797.12 points or 12.65% from a record high of 30,024.74 hit on 4 March 2015.
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