Key benchmark indices continued to trade in a small range in negative zone in mid-morning trade. At 11:25 IST, the barometer index, the S&P BSE Sensex, was down 89.91 points or 0.27% at 33,754.95. The Nifty 50 index was down 38.60 points or 0.37% at 10,358.85. Metal and mining stocks saw mixed trend. Cement stocks declined.
Trading could be volatile as traders roll over positions in the F&O segment from the near month February 2018 series to March 2018 series. The February 2018 F&O contracts expire today, 22 February 2018.
Domestic stocks nudged lower in early trade on negative Asian stocks. Stocks hovered in negative zone in morning trade.
The S&P BSE Mid-Cap index was down 0.21%. The S&P BSE Small-Cap index was down 0.03%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,318 shares fell and 1,028 shares rose. A total of 125 shares were unchanged. Breadth was weak till morning trade.
Overseas, most Asian shares slipped on the risk of faster hikes in US interest rates. US stocks ended a tumultuous session yesterday, 21 February 2018 firmly lower after minutes from the Federal Reserve's most recent policy-setting meeting sparked a fresh wave of volatility. Minutes of the January 30-31 Federal Open Market Committee meeting showed that officials saw a stronger economy than at the end of 2017 and that more rate increases were in the offing.
An index that tracks US manufacturers rose to a nearly 3-year high in February and a gauge for service-oriented companies hit a six-month peak, according to IHS Markit's flash PMI. The manufacturing index rose to 55.9 from 55.5. The services barometer climbed to 55.9 from 53.3.
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Back home, metal and mining stocks saw mixed trend. Vedanta (down 1.01%), Hindustan Zinc (down 0.32%), Jindal Steel & Power (down 0.32%), Hindalco Industries (down 1.41%) and NMDC (down 1.01%) edged lower.
JSW Steel (up 0.1%), Tata Steel (up 0.41%), Steel Authority of India (Sail) (up 0.83%), National Aluminium Company (up 0.23%) and Hindustan Copper (up 0.34%) rose.
Cement stocks declined. Ambuja Cements (down 1.55%), ACC (down 1.01%), UltraTech Cement (down 0.9%) and Shree Cement (down 0.92%) edged lower.
Grasim Industries was off 0.06%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Bajaj Finserv (up 0.49%) and Titan Company (up 0.58%) rose while Grasim Industries (down 0.06%) fell ahead of their inclusion in the Nifty 50 index with effect from 2 April 2018.
Ambuja Cements (down 1.55%) and Bosch (down 1.87%) fell while Aurobindo Pharma (up 1.43%) rose ahead of their exclusion from the Nifty 50 index with effect from 2 April 2018.
Allahabad Bank slipped 0.67% after the bank said it has an exposure of Rs 516.79 crore to crisis-hit Rotomac group. Responding to a clarification sought by exchanges on news article, "Rotomac owner flees India after taking Rs 800 crore loans", the Allahabad Bank said the Rotomac group is having an exposure from the bank since 2006. The announcement was made after market hours yesterday, 21 February 2018.
There is an outstanding of Rs 43.09 crore to Rotomac Exim as a sole banker, Rs 314.56 crore to Rotomac Global as multiple banking and Rs 159.14 crore to Rotomac Exports as a consortium arrangement with Bank of India as a lead banker. These three loans amount to Rs 516.79 crore. The aforesaid accounts of Rotomac group are classified as non-performing assets (NPAs) as per IRAC norms of RBI and the required provision has been made, the bank said in a regulatory filing.
The bank said the accounts of Rotomac Global and Rotomac Exports have been filed in National Company Law Tribunal (NCLT) and was admitted on 20 September 2017. The recovery process under SARFAESI is in process by the bank for the third Rotomac group company, namely, Rotomac Exim, it said.
Indiabulls Ventures rose 0.71% to Rs 263. Valiant Mauritius Partners Offshore purchased 29.88 lakh shares of Indiabulls Ventures at Rs 255 per share in a bulk deal on the NSE yesterday, 21 February 2018. The stock had gained 6.26% in the previous two trading sessions to settle at Rs 261.15 yesterday, 21 February 2018, from its closing of Rs 245.75 on 19 February 2018.
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