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Indices edge lower amid initial volatility

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Last Updated : Jan 16 2017 | 9:47 AM IST

Key benchmark indices edged lower in early trade amid initial volatility sighting lower Asian stocks. At 9:30 IST, the barometer index, the S&P BSE Sensex, was down 28.87 points or 0.11% at 27,211.33. The Nifty 50 index was down 9.35 points or 0.11% at 8,391.

The BSE Mid-Cap index was down 0.1%. The decline in this index was lower than the Sensex's drop in the percentage terms. The BSE Small-Cap index was up 0.11%, outperforming the Sensex. The market breadth, indicating the overall health of the market, was positive. On the BSE, 887 shares rose and 652 shares declined. A total of 79 shares were unchanged.

Overseas, Asian stocks dropped after the British pound plunged more than 1% on fears of hard exit by UK from the European Union, which Britain voted to leave last June. In Hong Kong, the Hang Seng Index was down 1.39%, while China's Shanghai Composite Index plunged 1.11%. UK Prime Minister Theresa May will reportedly address a speech tomorrow, 17 January 2017, in which many investors believe she could spell out an end to her country's participation in European Union's single market. May is also expected to elaborate on the UK's negotiation priorities in a speech.

US stocks rose moderately on Friday, 13 January 2017, on the back of quarterly earnings from some of the country's biggest banks, as the Nasdaq Composite index closed at a record. Markets have been in an updraft since November's presidential election, with the bulk of the gains coming from the financial sector, as investors have bet banks would benefit from deregulation under President-elect Donald Trump's coming administration and an environment that is expected to see rising interest rates. US financial markets will be closed today, 16 January 2017, for Martin Luther King Jr. Day.

In the latest economic data, US retail sales rose 0.6% in December, less than had been expected, while holiday sales were up a better-than-expected 4%. Separately, producer prices were up 0.3% while business inventories rose 0.7% in December.

Infosys (down 1.51%), Sun Pharmaceutical Industries (down 0.57%) and TCS (down 0.53%) were the major losers from the Sensex pack.

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Index heavyweight Reliance Industries (RIL) gained 0.21% ahead of its Q3 results today, 16 January 2017.

LIC Housing Finance rose 0.39% ahead of its Q3 results today, 16 January 2017.

Coal India rose 1.01% after the board of directors of Central Coalfields, a subsidiary of Coal India approved revision of coking coal prices 14 January 2017. The increase in price is done by subsuming the washery recovery charge (WRC) which was being charged separately in the case of non-linked washery grade coking coal keeping in view the observation of ADRM.

Due to this revision, Coal India will earn approximately additional revenue of Rs 89.98 crore for the balance period of financial year 2016-2017, i.e. from 13 January 2017 to 31 March 2017 and additional revenue of Rs 222 crore for financial year 2017-2018 subject to achievement of production and dispatch target norms. The announcement was made on Saturday, 14 January 2017.

Maruti Suzuki India declined 0.31%. The company launched the much awaited premium urban compact vehicle for the millennials, IGNIS. The announcement was made after market hours on Friday, 13 January 2017. The price of the vehicle ranges from Rs 4.59 lakh to Rs 7.80 lakh ex-showroom Delhi across the different variants.

On the macro front, the data showed after market hours on Friday, 13 January 2017 that exports rose 5.72% to $ 23.88 billion and imports rose 0.46% to $34.25 billion in December 2016 over December 2015.

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First Published: Jan 16 2017 | 9:24 AM IST

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