The Sensexfell 545.94 points, or 1.90% at the day’s low of 28,251.31 at the onset of trading session, its lowest level since 30 August 2016. The index fell 316.14 points, or 1.10% at the day’s high of 28,481.11 in morning trade. The Niftyfell 167.30 points, or 1.89% at the day’s low of 8,699.40 at the onset of trading session, its lowest level since 30 August 2016. The index fell 119.75 points, or 1.35% at the day’s high of 8,746.95 in morning trade.
The broad market depicted weakness. There were almost three losers against every gainer on BSE. 2,028 shares fell and 692 shares rose. A total of 174 shares were unchanged. The BseMid-Cap index provisionally declined 2.95%. The BseSmall-Cap index provisionally declined 2.35%. The decline in both these indices was higher than the Sensex’s decline in percentage terms.
In overseas stock markets, European stocks declined as investor sentiment was rattled by concerns that the US Federal Reserve could be considering an imminent interest rate hike. Asian markets edged lower as investors were spooked by rising bond yields and talk the Federal Reserve might be serious about lifting US interest rates as early as next week.
Trading in US stock index futures indicated fall in US stocks at the opening bell today, 12 September 2016. Trading in US index futures indicated that the Dow Jones Industrial Average could slide 115 points at the opening bell. US stocks tumbled on Friday, 9 September 2016, as investor nervousness increased following a nuclear test by North Korea and Federal Reserve officials’ comments lifted rate hike bets. North Korea conducted its fifth and biggest nuclear test on Friday, 9 September 2016, and said it had mastered the ability to mount a warhead on a ballistic missile, drawing condemnation from the United States as well as China, North Korea’s main ally. Further pressure on the US equity market came after Boston Fed President Eric Rosengren said the US central bank faced increasing risks if it waited too much longer to raise interest rates.
Metal shares edged lower after copper price declined in the global commodities markets. Hindalco Industries (down 8.99%), Steel Authority of India(down 5.63%), NMDC (down 5.51%), Tata Steel (down 5.51%), National Aluminium Company (down 5.25%), Jindal Steel & Power (down 5%), Vedanta (down 4.75%), JSW Steel (down 4.58%), Hindustan Zinc (down 3.58%), Hindustan Copper (down 3.52%) and Bhushan Steel (down 1.31%), edged lower.
High Grade Copper for December 2016 delivery was currently down 0.76% at $2.0765 per pound on the COMEX.
Power generation stocks edged lower. Reliance Infrastructure (down 6.84%), GMR Infrastructure (down 5.7%), Adani Power (down 5.03%), Jaiprakash Power Ventures (down 3.82%), Reliance Power (down 3.74%), Tata Power (down 3.57%), NTPC (down 3.43%), JSW Energy (down 3.24%), NHPC (down 2.48%), Torrent Power (down 1.92%) and CESC (down 1.18%), edged lower.
State-run Power Grid Corporation of Indiawas down 1.88% to Rs 180.20.
State-run Coal Indiawas down 0.53% to Rs 330.40. The company will announce Q1 June 2016 results tomorrow, 13 September 2016.
Meanwhile, the Union Cabinet today, 12 September 2016, gave its nod for the creation of the goods and services tax (GST) Council. The GST Council will make recommendations to the Centre and the states on important issues related to GST, like the goods and services that may be subjected or exempted from GST, model GST Laws, principles that govern Place of Supply, threshold limits, GST rates including the floor rates with bands, special rates for raising additional resources during natural calamities/disasters, special provisions for certain states, etc. The GST Council is a joint forum of the Centre and the states. The Union Finance Minister is the Chairperson of the GST Council. Union Minister of State in-charge of Revenue of finance will be a member of the GST Council. From the state governments, the Minister In-charge of finance or taxation or any other minister nominated by each state government will be a member of the GST Council.
The Constitution (One Hundred and Twenty-second Amendment) Bill, 2016, for introduction of Goods and Services tax in the country was accorded assent by the President on 8 September, 2016 and was notified as the Constitution (One Hundred and First Amendment) Act, 2016