Weakness persisted on the bourses in mid-morning trade on selling pressure in index pivotals. At 11:17 IST, the barometer index, the S&P BSE Sensex, was down 233.33 points or 0.65% at 35,776.51. The Nifty 50 index was down 77.40 points or 0.72% at 10,717.55. Metal and mining stocks fell after China reported a slowdown in exports in December. Sentiment was impacted by negative Asian stocks and weak IIP data.
Domestic stocks drifted lower in early trade on negative Asian stocks. Data showing a sharp drop in IIP in November 2018 also dented early sentiment. The Sensex dropped below the psychological 36,000 level. Stocks extended initial fall and hit intraday low in in morning trade.
India's index of industrial production (IIP) (base year 2011-12=100) moderated sharply to mere 0.5% in November 2018, compared with 8.4% growth recorded in October 2018. The industrial production growth for October 2018 has been revised upwards from 8.1% increase reported provisionally. The data released after market hours on Friday, 11 January 2019.
The output of manufacturing sector declined 0.4%, while the electricity generation growth moderated to 5.1%% in November 2018. Further, the mining output growth also eased to 2.7% in November 2018.
The market sentiment was impacted by data showing that foreign funds were net sellers of Indian stocks on Friday, 11 January 2019. The trading activity on that day showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 687.20 crore on Friday, 11 January 2019, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 123.17 crore on Friday, 11 January 2019, as per provisional data.
The S&P BSE Mid-Cap index was down 0.66%. The S&P BSE Small-Cap index was down 0.46%.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 843 shares rose and 1268 shares fell. A total of 129 shares were unchanged.
Metal and mining stocks fell after China reported a slowdown in exports in December. China is the world's largest consumer of steel, copper and aluminum. Vedanta (down 1.45%), JSW Steel (down 1.66%), Tata Steel (down 0.77%), Steel Authority of India (Sail) (down 1.92%), National Aluminium Company (down 2.22%), Hindustan Zinc (down 0.46%), Jindal Steel & Power (down 2.92%), Hindalco Industries (down 0.05%) and Hindustan Copper (down 1.11%) edged lower. NMDC (up 0.33%) rose.
Yes Bank gained 4.06% after the bank announced the appointment of Mr. Brahm Dutt as non-executive part-time chairman of the board. The Reserve Bank of India, pursuant to the provisions of the Banking Regulation Act, 1949, and basis Mr. Brahm Dutt's outstanding credentials and experience, has approved his appointment as part-time chairman of Yes Bank's board up till 4 July 2020 vide its letter dated 11 January 2019. The announcement was made on Saturday, 12 January 2019.
Brahm Dutt has been on the board of Yes Bank since July 2013 as an independent director, and has contributed to almost all the sub-committees of the board over the past 5.5 years and is currently also the chair of the nomination & remuneration committee.
Cadila Healthcare rose 0.95%. Zydus Cadila has received the final approval from the US Food and Drug Administration (USFDA) to market Betamethasone Dipropionate Cream USP (US RLD - DIPROLENE AF), 0.05%. It will be manufactured at the group's Topical manufacturing facility at Ahmedabad. This medication is a strong corticosteroid and is used to treat a variety of skin conditions (e.g., eczema, dermatitis, allergies, rash). Betamethasone reduces the swelling, itching and redness that can occur in these types of conditions.
The group also received a final approval for Amlodipine and Atorvastatin Tablets USP (US RLD Caduet) in multiple strengths. It will be manufactured at the group's formulations manufacturing facility at SEZ, Ahmedabad. This combination product contains two active ingredients - amlodipine and atorvastatin. Amlodipine reduces blood pressure and the workload on the heart by relaxing the walls of the blood vessels. It is used to lower blood pressure and to treat angina (chest pain). Atorvastatin is used in combination with diet and exercise to treat high cholesterol. It works by blocking an enzyme that is needed to make cholesterol in the body.
Overseas, Asian shares were trading lower as China reported a slowdown in exports. Markets in Japan are closed for a holiday. China said Monday that its exports to the U.S. contracted in December although its overall trade surplus with the U.S. hit a record $323 billion in 2018. Exports to the U.S. rose 11.3% to $478.4 billion for the year despite punitive tariffs imposed by President Donald Trump in a fight over Chinese technology ambitions. The customs data showed imports of American goods rose just 0.7% over 2017, reflecting the impact of Beijing's retaliatory tariffs and encouragement to importers to buy more from non-U.S. suppliers.
Wall Street dipped slightly on Friday, breaking a five-session rally, as energy shares declined and investors looked ahead to earnings season. The Dow Jones Industrial Average ended down 0.02% at 23,995.95 points, while the Nasdaq Composite dropped 0.21% to 6,971.48. The S&P 500 ended down 0.01% at 2,596.26.
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