Telecom, IT, metal sector stocks and index heavyweight HDFC led losses for key benchmark indices. The barometer index, the S&P BSE Sensex, fell 224.03 points or 0.8% to settle at 27,835.91. The decline in the Nifty 50 index was lower than the Sensex's fall in percentage terms. The Nifty fell 58.10 points or 0.67% to settle at 8,592.20. The Sensex settled below the psychologically important 28,000 level. Weakness in European stocks weighed on the domestic bourses. European stocks edged lower as a closely watched indicator of the German economy declined in August 2016. The latest slide on the bourses materialized as the near month August 2016 contracts in the futures and options (F&O) segment expired. The Sensex hit its lowest closing levels in more than two weeks. The Nifty hit a two-week closing low.

Key benchmark indices reversed direction after holding positive zone until afternoon trade. The indices extended losses in late trade.

Globally, investors are awaiting speech tomorrow, 26 August 2016, from Federal Reserve Chairwoman Janet Yellen which could provide hints about the timing of the next rate hike from the Fed. High US interest rates would pull money out of emerging markets and redirect it to the US. Yellen is due to speak at the Kansas City Fed's annual Monetary Policy Symposium in Jackson Hole, Wyoming. Minutes from the Federal Open Market Committee's (FOMC) July meeting showed officials were split on whether an increase in interest rate was needed soon.

Closer home, the Union Cabinet yesterday, 24 August 2016, approved amendments to the Double Taxation Avoidance Agreement (DTAA) with Cyprus, which could impact foreign portfolio investment and foreign direct investment into India from Cyprus.

The Sensex fell 224.03 points or 0.8% to settle at 27,835.91, its lowest closing level since 10 August 2016. The index rose 94.27 points or 0.33% at the day's high of 28,154.21. The index fell 256.70 points or 0.91% at the day's low of 27,803.24.

The Nifty 50 index fell 58.10 points or 0.67% to settle at 8,592.20, its lowest closing level since 11 August 2016. The index rose 32.75 points or 0.37% at the day's high of 8,683.05. The index fell 66.65 points or 0.77% at the day's low of 8,583.65.

The market breadth indicating the overall health of the market was negative. On BSE, 1,467 shares declined and 1,232 shares rose. A total of 187 shares were unchanged. The BSE Mid-Cap index lost 0.35%. The BSE Small-Cap index fell 0.11%. The losses for both these indices were lower than the Sensex's decline in percentage terms.

The total turnover on BSE amounted to Rs 2910 crore, lower than turnover of Rs 3031.51 crore registered during the previous trading session.

Among the sectoral indices on BSE, the S&P BSE Industrials index (down 0.64%), the S&P BSE Auto index (down 0.6%), the S&P BSE Realty index (down 0.58%), the S&P BSE Capital Goods index (down 0.54%), the S&P BSE Finance index (down 0.51%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.47%), the S&P BSE Power index (down 0.43%), the S&P BSE Healthcare index (down 0.38%), the S&P BSE Energy index (down 0.34%), the S&P BSE Bankex (down 0.33%), the S&P BSE Utilities index (down 0.28%), the S&P BSE Oil & Gas index (up 0.29%) and the S&P BSE FMCG index (up 0.31%) outperformed the Sensex. The S&P BSE Telecom index (down 1.82%), the S&P BSE Metal index (down 1.43%), the S&P BSE Teck index (down 1.36%), the S&P BSE IT index (down 1.28%), the S&P BSE Consumer Durables index (down 0.83%) and the S&P BSE Basic Materials index (down 0.8%) underperformed the Sensex.

Metal shares edged lower. Vedanta (down 3.18%), Steel Authority of India (down 2.21%), Tata Steel (down 2.04%), Hindustan Copper (down 1.9%), Hindalco Industries (down 1.69%), Hindustan Zinc (down 1.47%), Bhushan Steel (down 1.07%), NMDC (down 0.97%), JSW Steel (down 0.96%), National Aluminium Company (down 0.95%) and Jindal Steel & Power (down 0.51%), edged lower.

Meanwhile, copper price edged higher in the global commodities markets. High Grade Copper for December 2016 delivery was currently up 0.36% at $2.0925 per pound on the COMEX.

Most IT stocks declined. Wipro (down 2.84%), Hexaware Technologies (down 2.74%), Tech Mahindra (down 1.9%), TCS (down 0.85%), Oracle Financial Services Software (down 0.3%) and MindTree (down 0.22%), edged lower. Persistent Systems (up 0.27%), MphasiS (up 0.36%) and HCL Technologies (up 1.51%) edged higher.

Index heavyweight and software major Infosys fell 1.99% at Rs 1,036.55. The stock hit a high of Rs 1,058 and a low of Rs 1,032.30 in intraday trade.

Stocks of public sector banks edged lower. Allahabad Bank (down 2.58%), Indian Bank (down 2.19%), State Bank of India (down 1.81%), Andhra Bank (down 1.76%), Bank of Maharashtra (down 1.44%), Union Bank of India (down 1.25%), Central Bank of India (down 1.15%), Syndicate Bank (down 0.99%), Vijaya Bank (down 0.9%), Bank of India (down 0.87%), Bank of Baroda (down 0.83%), United Bank of India (down 0.68%), Punjab National Bank (down 0.44%), Canara Bank (down 0.24%) and Punjab & Sind Bank (down 0.1%) edged lower. Dena Bank (up 0.27%), Corporation Bank (up 0.48%) and UCO Bank (up 1.95%) edged higher.

IDBI Bank rose 2.23% at Rs 73.50. The bank proposes to raise Rs 1500 crore from the issue of Additional Tier 1 bonds. The announcement was made after market hours yesterday, 24 August 2016.

Stocks of private sector banks witnessed a mixed trend. Federal Bank (down 1.18%), ICICI Bank (down 0.7%) and IndusInd Bank (down 0.16%), edged lower. Kotak Mahindra Bank (up 0.28%), Axis Bank (up 0.47%) and City Union Bank (up 1.51%), edged higher.

Index heavyweight HDFC Bank fell 0.36% at Rs 1,257.70. The stock hit a high of Rs 1,267.50 and a low of Rs 1,254.50 in intraday trade.

Yes Bank rose 0.26% at Rs 1,342. The bank announced the appointment of Amit Sanan as Group President & Country Head for Mid-Corporate Banking. Sanan will be responsible for further developing and deepening key corporate relationships in the mid-corporate space covering more than 30 locations nationally, with a clear mandate to grow and scape up the Life-Cycle Banking Business significantly vide granular revenue, assets and liabilities, Yes Bank said in a statement. The announcement was made during market hours today, 25 August 2016.

Index heavyweight and housing finance major HDFC was down 1.93% at Rs 1,357.60. The stock hit a high of Rs 1,389.50 and a low of Rs 1,352.50 in intraday trade. The company during market hours today, 25 August 2016, announced that it intends to raise Rs 500 crore from issue of non-convertible debentures on private placement basis. The debentures will carry a coupon rate of 7.7% per annum and will have a tenor of 1 year 6 months. The proceeds of the issue would be utilized for financing/refinancing the housing finance business requirements of the company. The issue opens and closes for subscription tomorrow, 26 August 2016.

Telecom stocks declined. Bharti Airtel (down 1.83%), Idea Cellular (down 2.60%) and Reliance Communications (down 0.96%) edged lower.

Bharti Infratel was down 2.06%. Bharti Infratel is a telecom tower arm of Bharti Airtel.

Index heavyweight and cigarette major ITC rose 1.24% at Rs 253.30 on reports that a foreign brokerage has maintained its outperform rating on the stock. The brokerage has reportedly stated in a research note that lower price hike will support cigarette volume growth. ITC's earnings are likely to grow at a compound annual growth rate (CAGR) of 14% over FY 2016 to FY 2019, the brokerage reportedly said.

Meanwhile, ITC during market hours today, 25 August 2016, issued a clarification regarding news reports that it has moved court against Britannia Industries (Britannia) for copying biscuit packaging. ITC said that it has filed a suit against Britannia before the Delhi High Court as Britannia has copied the trade dress and colour combination of ITC's Sunfeast Farmlite Digestive ALL Good' biscuit packages for its 'Britannia Nutrichoice Digestive Zero' biscuit packages. The case was filed by the company on 20 August 2016 and will be coming up for hearing on 31 August 2016, ITC said.

Britannia Industries rose 0.70% at Rs 3,460.35. The company in its clarification issued after market hours yesterday, 24 August 2016, said that ITC has filed a suit against the company at Delhi High Court alleging that Britannia is copying the color combination of ITC's 'Sunfeast Farmlite Digestive All Good' Biscuit Packs for its 'Nutrichoice Digestive Zero' biscuit packs. The matter came up for hearing before Delhi High Court on 22 August 2016 and 24 August 2016. The next date of hearing is 31 August 2016. No injunction (stay) has been granted as of now. As the matter is sub-judice, the company cannot comment further on this matter, Britannia Industries said.

Meanwhile, the Union Cabinet yesterday, 24 August 2016, approved amendments to the Double Taxation Avoidance Agreement (DTAA) with Cyprus, which could impact foreign portfolio investment and foreign direct investment into India from Cyprus. With the revision of the treaty, India will have the right to tax capital gains arising in India for entities resident in Cyprus. All existing investments from Cyprus and additional investments made up to 31 March 2017 will be grandfathered like the Mauritius Treaty and therefore capital gains tax will not be applicable on shares acquired prior to 1 April 2017. According to a government statement, the proposed DTAA with Cyprus also expands the scope of the Permanent Establishments (PE) that enables source based taxation of business income.

As per media reports, foreign direct investment into India from Cyprus totaled $3.3 billion in 2015-16. Companies based in Europe and the US use Cyprus to route investments in India to take advance of the tax treaty, reports suggest. The Indian government is also in discussion with Singapore for amending tax treaty with Singapore.

Key benchmark indices snapped a two-day winning streak. The Sensex had risen 74.40 points or 0.27% in the preceding two trading sessions to settle at 28,059.94 yesterday, 24 August 2016, from its close of 27,985.54 on 22 August 2016. The Sensex has risen 215.95 points or 0.77% in this month so far (till 25 August 2016). The Sensex has risen 1,718.37 points or 6.58% in calendar year 2016 so far (till 25 August 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has 5,341.30 points or 23.74%. The Sensex is off 454.05 points or 1.60% from a 52-week high of 28,289.96 hit on 9 August 2016. The Sensex is off 2,188.83 points or 7.29% from a record high of 30,024.74 hit on 4 March 2015. The current PE multiple for the Sensex is 20.37, as per BSE data.

Powered by Capital Market - Live News