Key benchmark indices hit fresh intraday low in morning trade amid weakness in banks stocks. The Nifty gave up 11,000 level and descended towards 10,950. PSU banks stocks witnessed major selling with Nifty PSU bank index shedding 2.34%.
At 10:24 IST, the barometer index, the S&P BSE Sensex, was down 29.93 points or 0.08% at 37,074.35. The Nifty 50 index was down 17.65 points or 0.16% at 10,965.15.
The S&P BSE Mid-Cap index was down 0.64%. The S&P BSE Small-Cap index was up 0.02%.
The market breadth, indicating the overall health of the market, was almost even. On the BSE, 860 shares rose and 875 shares fell. A total of 86 shares were unchanged.
On domestic macro front, data released after market hours yesterday, 12 September 2019 showed that India's industrial production (base year 2011-12=100) improved 4.3% in July 2019, while showing acceleration in growth from four-month low of 1.2% in June 2019. However, the industrial production growth for June 2019 was revised downwards to 1.2% from 2% as reported provisionally.
The all-India general CPI inflation was nearly steady at 3.21% in August 2019 (new base 2012=100), compared with 3.15% in July 2019. The core CPI inflation eased to 4.20% in August 2019 compared with 4.25% in July 2019.
Private sector bank stocks witnessed selling. RBL Bank (down 2.29%), HDFC Bank (down 1.07%), IndusInd Bank (down 1.02%), Axis Bank (down 0.54%), ICICI Bank (down 0.37%) and AU Small Finance Bank (down 0.18%) declined.
Yes Bank was down 4.78%. Altico Capital, a non-banking finance company backed by a set of global private equity investors, has defaulted on interest payment to Dubai-based Mashreqbank PSC. Yes Bank is likely to have an exposure to Altico Capital, media reports suggested.
PSU Banks witnessed steep selling. Union Bank of India (down 4.06%), Bank of Baroda (down 3.8%), Bank of India (down 3%), Oriental Bank of Commerce (down 2.54%), Syndicate Bank (down 2.36%), Punjab National Bank (down 1.94%), Allahabad Bank (down 1.34%), State Bank of India (down 1.32%) tumbled.
The S&P BSE Bankex was down 0.59% at 31,091.48. The Bank Nifty was down 0.6% at 27,650.85.
Power Grid Corporation of India rose 0.75% to Rs 200.95 after it was declared a successful bidder in Rajasthan SEZ part-B project and in Bhind Guna transmission project.
Kalpataru Power Transmission gained 1.52% after HDFC Asset Management Company increased stake in the company. HDFC AMC increased its stake from 7.375% to 9.637% as of 11 September 2019.
Zee Entertainment Enterprises declined 0.2% after promoter Cyquator Media Services decreased its stake in the company from 20.399% to 12.143% as of 9 September 2019. While another promoter of the company, Essel Corporate LLP reduced its stake from 2.948% to 1.1818% as of 9 September 2019.
PI Industries gained 1.44% after the company acquired Isagro S.p.A for Rs 345 crore. Isagro Asia is engaged in contract manufacturing, local distribution and exports of agrochemicals. The proposed acquisition will provide PI Industries with access to additional manufacturing capacities. The company intends to meet growing demand of global customers and synergy benefits of adjacent manufacturing site while de-risking the supply chain of few products.
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