The Indian benchmark indices fell 0.4% to their lowest in four months. The Sensex witnessed a poor session to end the day at 26,599, down 119 points. The broader 50-share NSE-Nifty closed the session down 48 points. The broader markets remained under pressure with the BSE Mid Cap and BSE Small Cap indices falling on the back of weak overseas cues. Midcap was down by 2% and small-cap declined by 1.7%. Banks and Realty stocks witnessed maximum selling activity for a second day running. IT stocks managed to stay in the green (up by 1.63%).
With regards to global indices, Asian markets stumbled. Nikkei was down 0.93% while Hang-Seng and Shanghai Composite fell 0.57% and 1.41% respectively. European shares fell to their lowest level in more than two months, mirroring losses in Wall Street and Asia.
Continuing its weakness, the rupee rose above the 64-mark to trade at 64.25 against the American currency, lowest since September 2013 on sustained capital outflows by foreign funds.
According to a leading financial daily, Honda Motor is lining up Rs 17.7 bn to expand its production capacity by 40% over the next 2 years. The company posted a 20% increase in sales at 4.45 million units in FY15. The proposed investment will increase its India capacity to 6.4 million scooters and motorcycles a year by the end of 2016. Investment would largely flow into the Gujarat and Benagluru plants. Honda Motor along with its local subsidiary Honda Motorcycle wants to make India its largest two wheeler operations globally.
Barring GAIL, profit booking was witnessed across oil and gas sector. According to leading financial times, ONGC plans to invest about Rs 140 bn on exploration this fiscal and is seeking partnerships to develop its deepwater assets. The spending will go to exploration activities, including drilling of wells and facilitating the location of oil and gas deposits using a technique called 3D seismic. The scrip of ONGC ended the day down by 2.47% on the BSE