After seeing initial decline, key benchmark indices continued to trade in negative terrain in morning trade. At 10:18 IST, the barometer index, the S&P BSE Sensex, was down 167.83 points or 0.63% at 26,579.35. The Nifty 50 index was currently down 59.40 points or 0.72% at 8,202.35. Data showing decline in the industrial production in October weighed on market sentiment.
The Sensex lost 168.55 points or 0.63% at the day's low of 26,578.63 in morning trade, its lowest level since 8 December 2016. The index fell 21.87 points or 0.08% at the day's high of 26,725.31 in opening trade. The Nifty lost 66.20 points or 0.8% at the day's low of 8,195.55 in morning trade, its lowest level since 8 December 2016. The index fell 31.10 points or 0.37% at the day's high of 8,230.65 in opening trade.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 597 shares declined and 445 shares rose. A total of 58 shares were unchanged. The BSE Mid-Cap index was currently down 0.82%. 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 the Sensex's decline in percentage terms.
Overseas, Asian stocks witnessed a mixed trend. In Japan, the Nikkei 225 index was currently up 0.67%. Japan's October core machinery orders rose for the first time in three months to beat expectations, government data showed. Core orders, regarded as an indicator of capital spending in the coming six to nine months, rose 4.1% in October from the previous month.
US major stock indices continued their recent winning streak, closing at all-time highs on Friday, 9 December 2016. All major indexes have been hitting record highs since the election amid hopes that the Trump administration will usher in tax cuts, deregulation and fiscal stimulus.
Telecom stocks declined. Reliance Communications (down 0.95%) and Bharti Airtel (down 0.51%) edged lower.
Idea Cellular declined 1.69%. The company said it proposes to issue non-convertible debentures amounting to Rs 1500 crore on private placement basis. The tenure of debentures is 5 years with a coupon/interest of 7.57% per annum. The announcement was made after market hours on Friday, 9 December 2016.
Bharti Infratel was up 0.36%. Bharti Infratel is a telecom tower arm of Bharti Airtel.
Cement stocks also dropped. Shree Cement (down 2.66%), Ambuja Cements (down 1.5%), ACC (down 1.29%) and UltraTech Cement (down 1.01%) edged lower.
Grasim Industries was off 1.64%. Aditya Birla Nuvo (ABNL) declined 1.78%. Grasim after market hours on Friday, 9 December 2016, announced that the Competition Commission of India (CCI) approved the proposed scheme of arrangement between the company, ABNL and Aditya Birla Financial Services (ABFSL) and their respective shareholders and creditors. Under the scheme announced in August this year, ABNL will be merged with Grasim Industries. After the completion of the merger of ABNL with Grasim, the financial services business of ABNL carried under ABFSL will be demerged into a separate company and listed on the bourses.
On the macro front, data released by the government after market hours on Friday, 9 December 2016 showed that India's industrial production declined 1.9% in October 2016 over October 2015. Twelve out of 22 industry groups in the manufacturing sector showed negative growth in October 2016.
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