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Weakness prevails amid negative Asian cues

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Key benchmark indices continued hovering in negative zone in mid-morning trade. At 11:20 IST, the barometer index, the S&P Sensex, was down 266.38 points or 0.95% at 27,815.96. The 50 index was down 85.30 points or 0.98% at 8,623.50. Weakness in Asian stocks spoiled investors sentiment in Indian market. The and the Nifty, both, hit their lowest levels in almost two weeks in morning trade. The fell 280.69 points, or 1% at the day's low of 27,801.65 in morning trade, its lowest level since 30 September 2016. The index fell 39.72 points, or 0.14% at the day's high of 28,042.62 in early trade. The fell 88.80 points, or 1.02% at the day's low of 8,620 in mid-morning trade, its lowest level since 30 September 2016. The index fell 27.25 points, or 0.31% at the day's high of 8,681.55 in early trade.

The market breadth, indicating the overall health of the market, was weak. On BSE, 1,546 shares fell and 875 shares rose. A total of 118, shares were unchanged. The Mid-Cap index was currently down 0.94%. The Small-Cap index was currently down 0.86%. The decline in both these indices was lower than the Sensex's decline in percentage terms.

In overseas stock markets, Asian stocks declined after minutes of the last US Federal Reserve policy meeting indicated a December rate increase was still on the cards. US stocks finished mostly higher yesterday, 12 October 2016. Minutes from the Fed's September meeting, indicate that policy makers wanted more evidence of full employment and gains in inflation before feeling confident in raising rates, but the minutes also said a rate increase was in the cards relatively soon.

Back home, most FMCG companies edged lower. Godrej Consumer Products (down 2.74%), Britannia Industries (down 2.14%), Colgate Palmolive (India) (down 1.49%), Nestle India (down 1.43%), Procter & Gamble Hygiene & Health Care (down 1.33%), Jyothy Laboratories (down 0.73%), Hindustan Unilever (down 0.69%) and Dabur India (down 0.4%), edged lower. GlaxoSmithKline Consumer Healthcare (up 0.03%), Tata Global Beverages (up 0.13%) and Bajaj Corp (up 0.57%), edged higher.

Most IT stocks edged lower. HCL Technologies (down 2.15%), Oracle Financial Services Software (down 1.93%), MindTree (down 1.16%), Persistent Systems (down 0.85%), Hexaware Technologies (down 0.7%) and Wipro (down 0.13%), edged lower. Tech Mahindra (up 0.56%) and MphasiS (up 1.93%), edged higher.

IT major Infosys was up 1.94% to Rs 1,049.50. The company declares its Q2 September 2016 results tomorrow, 14 October 2016.

IT major TCS was down 1.92% to Rs 2,334.50 ahead of its Q2 September 2016 results today, 13 October 2016.

Blue Dart Express lost 2.59% after net profit fell 20.7% to Rs 42.80 crore on 1.6% rise in net sales to Rs 663.22 crore in Q2 September 2016 over Q2 September 2015. The result was announced on Wednesday, 12 October 2016. The was closed on that day on account of Muharram.

Blue Dart Express' Managing Director Anil Khanna said that despite a restrained macro-economic environment, the company will sustain its efforts to bring immense value to internal and external stakeholders by incorporating high benchmarks and quality standards in every aspect of business.

IL&FS Engineering and Construction Company rose 3.03% after the company announced that it bagged Rs 162.58 crore pipeline laying contract. The announcement was made on Wednesday, 12 October 2016. The was shut on that day.

IL&FS Engineering and Construction Company announced that it received the fax of acceptance (FOA) from Gas Authority of India (GAIL) for laying and construction of pipeline along with associated facilities for Phulpur-Haldia pipeline project (phase 1 B) in Bihar. The total length of the 30 inch pipeline is 185.38 kilometers. The total value of the contract is Rs 162.58 crore and is to be mechanically completed in 15 months from the date of FOA and with additional 3 months for drying, commissioning and GAS-IN.

On the economic front, India's industrial production declined 0.7% in August 2016 compared with a revised 2.5% decline in July 2016. The government unveiled the industrial production data for August 2016 after trading hours on Monday, 10 October 2016. Decline in production in metal and manufacturing sector led the decline in industrial production in August 2016. Production of the mining sector declined 5.6% and manufacturing production fell 0.3%. As per use-based classification, capital goods production declined sharply by 22.2% in August 2016. Consumer goods production rose 1.1%.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, October 13 2016. 11:15 IST