Key indices hit fresh intraday low in morning trade. At 10:30 IST, the barometer index, the S&P BSE Sensex, was down 262.70 points or 0.66% at 39,687.76. The Nifty 50 index was down 73.95 points or 0.62% at 11,891.65. Negative cues from other Asian shares put pressure on domestic bourses.
Among secondary barometers, the BSE Mid-Cap index was down 0.44%. The BSE Small-Cap index was down 0.23%.
The market breadth, indicating the overall health of the market, was negative. On BSE, 857 shares rose and 1001 shares fell. A total of 102 shares were unchanged.
Metal shares bucked negative market trend. Jindal Steel & Power (up 4.63%), Steel Authority of India (up 3.53%), Tata Steel (up 2.64%), Vedanta (up 1.95%), Hindalco Industries (up 1.43%), National Aluminium Company (up 1.41%), JSW Steel (up 1.02%), NMDC (up 1.02%), Hindustan Zinc (up 0.75%) and Hindustan Copper (up 0.71%), edged higher.
FMCG shares declined. Hindustan Unilever (down 0.86%), GlaxoSmithKline Consumer Healthcare (down 0.8%), Colgate Palmolive (India) (down 0.72%), Godrej Consumer Products (down 0.58%), Marico (down 0.45%), Tata Global Beverages (down 0.41%), Dabur India (down 0.38%), Nestle India (down 0.27%), Britannia Industries (down 0.17%) and Procter & Gamble Hygiene & Health Care (down 0.16%), edged lower. Bajaj Corp was up 0.09%.
Yes Bank was down 2.73% after credit rating agency Moody's Investors Service has placed Yes Bank's foreign currency issuer rating of Ba1 under review for downgrade. Moody's has also placed the bank's long-term foreign and local currency bank deposit ratings of Ba1, foreign currency senior unsecured MTN program rating of (P)Ba1, and Baseline Credit Assessment (BCA) and adjusted BCA of ba2 under review for downgrade. The announcement was made after market hours yesterday, 11 June 2019.
The review for downgrade takes into account Moody's expectation that the ongoing liquidity pressures on Indian finance companies will negatively impact the credit profile of Yes Bank, given the bank's sizeable exposure to weaker companies in the sector. At the end of March 2019, Yes Bank's exposure to Indian housing finance companies (HFC) and non-bank finance companies (NBFC) represented 6.4% of its total exposure. In addition, Yes Bank had a 7% direct exposure to the commercial and residential real estate sector as of the same date, which is also under pressure, because liquidity conditions have worsened for the real estate sector, just like with the HFCs and NBFCs.
Dewan Housing Finance Corporation (DHFL) was up 4.95% after the company announced that the company had made full payment towards interest payable on secured redeemable non-convertible debentures (NCDs) issued by way of public issue within the cure period of seven working days. The company has made interest payments in lieu of Rs 961 crore as committed to its debenture holders. With this tranche, the company confirms full payment and will seek rating upgrades from agencies, DHFL said. The announcement was made after market hours yesterday, 11 June 2019.
Overseas, Asian stocks declined on Wednesday. China's inflation data showed the producer price index in the country rising 0.6% year-on-year in May. The consumer price index also rose 2.7% year-on-year in the same period.
US stocks declined on Tuesday, snapping a six-day winning streak. President Donald Trump reportedly said he is personally holding up a trade deal with China and that he will not complete the agreement unless Beijing returns to terms negotiated earlier in the year.