A bout of volatility was witnessed as key benchmark indices trimmed losses in mid-morning trade. At 11:21 IST, the barometer index, the S&P BSE Sensex, was down 125.49 points or 0.51% at 24,678.79. The 50-unit Nifty 50 index was down 37.35 points or 0.5% at 7,501.40. Weakness in Asian stocks weighed on sentiment. The Sensex dropped 177.12 points or 0.71% at the day's low of 24,627.16 in mid-morning trade, its lowest level since 11 March 2016. The barometer index rose 36.49 points or 0.14% at the day's high of 24,840.77 at the onset of the trading session. The Nifty shed 55.40 points or 0.73% at the day's low of 7,483.35 in mid-morning trade, its lowest level since 11 March 2016. The index rose 6.45 points or 0.08% at the day's high of 7,545.20 at the onset of the trading session.
The market breadth indicating the overall health of the market was negative. On BSE, 1,277 shares fell and 892 shares rose. A total of 123 shares were unchanged. The BSE Mid-Cap index was currently down 0.26%. The BSE Small-Cap index was currently down 0.07%. The decline for both these indices was lower in percentage terms than the Sensex's decline.
In overseas markets, Asian stocks edged lower led by Chinese stocks as investors braced for a run of policy announcements from the world's major central banks this week and after the Bank of Japan held policy steady as expected. Japan's Nikkei Average was down 0.94%. In mainland China, the Shanghai Composite was currently down 1.21%. In Hong Kong, the Hang Seng index was currently down 0.68%. At the conclusion of a two-day monetary policy meeting today, 15 March 2016, the Bank of Japan (BOJ) maintained its commitment to raise the monetary base by 80 trillion yen annually and decided to continue applying a negative interest rate of minus 0.1% to the policy-rate balances in current accounts held by financial institutions at the bank. If needed, additional easing steps will be taken to hit 2% inflation, the BOJ said. BOJ had stunned markets in January by adopting negative rates.
US stocks closed on a mixed note yesterday, 14 March 2016. The US Federal Reserve's crucial two-day monetary policy meeting begins today, 15 March 2016. Federal Reserve officials are likely to hold short-term interest rates steady at its policy meeting amid uncertainties about global financial markets and global growth. The Fed in December 2015 raised its benchmark federal-funds rate from near zero to a range between 0.25% and 0.5%.
Mahindra & Mahindra (M&M) declined 0.66%. The company plans to invest Rs 7500 crore in automobiles, tractor and related businesses during the period from FY 2016 to FY 2018, the company's management said in an interaction with analysts yesterday, 14 March 2016. The company plans to invest Rs 2500 crore into group businesses during the three year period, which includes possible M&A opportunities both in M&M and other group businesses.
Most capital goods stocks gained. Bharat Heavy Electricals (Bhel) (up 0.62%), ABB India (up 0.26%), Thermax (up 0.16%), and Siemens (up 0.1%) gained. Havells India (down 0.53%) and Bharat Electronics (down 0.42%) declined.
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L&T rose 1.08% after the company announced that its construction division won orders worth Rs 1672 crore across its various businesses. The announcement was made during market hours today, 15 March 2016.
Telecom stocks were mixed. Bharti Airtel (up 0.01%) and Reliance Communications (up 0.67%) gained. Tata Teleservices (Maharashtra) (down 0.16%) and Idea Cellular (down 1.03%) declined.
Index heavyweight and housing finance major HDFC dropped 2.37% to Rs 1,128.70. The stock hit high of Rs 1,149 and low of Rs 1,127.85 so far during the day.
Index heavyweight and cigarette maker ITC declined 1.63% to Rs 319. The stock hit high of Rs 325.50 and low of Rs 318.80 so far during the day.
On the macro front, the latest data showed that inflation based on the consumer price index (CPI) dipped to four month low of 5.18% in February 2016 from 5.69% in January 2016. The decline was due to easing of food price inflation. The Consumer Food Price index (CFPI) eased sharply to 5.3% in February 2016 from 6.85% in January 2016. The core CPI inflation rose to 4.77% in February 2016 from 4.5% in January 2016.
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