Fresh selling pushed the key benchmark indices to intraday lows in mid-afternoon trade. At 14:25 IST, the barometer index, the S&P BSE Sensex, was down 112.86 points or 0.33% at 33,722.88. The Nifty 50 index was down 33.40 points or 0.32% at 10,377.50. Index heavyweight Reliance Industries dropped. Auto and FMCG stocks saw mixed trend. Shares of fertiliser companies rose after the government approved a proposal to extend urea subsidy till 2020.
Key indices drifted lower in early trade tracking negative Asian stocks. Indices reversed initial declines and turned positive in morning trade. Volatility ruled the roost in mid-morning trade as the key benchmark indices hit fresh intraday low in negative zone. Indices pared some intraday losses and hovered in a narrow range in negative zone in afternoon trade.
Among secondary indices, the S&P BSE Mid-Cap index was up 0.56%. The S&P BSE Small-Cap index was up 0.76%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was strong. On the BSE, 1,555 shares advanced and 1,025 shares declined. A total of 155 shares were unchanged.
Index heavyweight Reliance Industries lost 1.46% to Rs 915.
FMCG stocks saw mixed trend. Britannia Industries (up 0.93%), Colgate-Palmolive (India) (up 0.72%), Dabur India (up 0.09%), Nestle India (up 0.81%), Tata Global Beverages (up 0.65%), Procter & Gamble Hygiene and Health Care (up 0.07%) and Bajaj Corp (up 0.31%) rose.
Godrej Consumer Products (down 1.6%), GlaxoSmithkline Consumer Healthcare (down 0.64%), Hindustan Unilever (down 0.82%), Marico (down 0.66%) and Jyothy Laboratories (down 0.51%) fell.
Also Read
Auto stocks saw mixed trend. Tata Motors (down 0.52%), Maruti Suzuki India (down 0.09%), Eicher Motors (down 0.15%), Escorts (down 0.25%) and TVS Motor Company (down 0.06%) fell.
Bajaj Auto (up 0.24%), Hero MotoCorp (up 0.45%), Mahindra & Mahindra (M&M) (up 0.56%) and Ashok Leyland (up 0.47%) gained.
Shares of fertiliser companies rose after the government approved a proposal to extend urea subsidy till 2020. National Fertilizers (up 5.24%), Fertilisers & Chemicals Travancore (up 4.94%), Rashtriya Chemicals and Fertilisers (up 3.72%), Gujarat State Fertilizers & Chemicals (up 1.69%), Deepak Fertilisers & Petrochemicals Corporation (up 1.55%) and Chambal Fertilisers & Chemicals (up 1.82%) edged higher. Tata Chemicals was down 0.99%.
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, approved the proposal of Department of Fertilizers to continue urea subsidy scheme upto 2019-2020 at a total estimated cost of Rs 164935 crore and for disbursement of fertilizer subsidy. This decision implies that there will be no increase in price of urea till 2020.
Urea subsidy is a part of central sector scheme of Department of Fertilizers with effect from 1 April 2017 and is wholly financed by the Government of India through budgetary support. The continuation of urea subsidy scheme will ensure the timely payment of subsidy to the urea manufacturers resulting in timely availability of urea to farmers. Urea subsidy also includes imported urea subsidy which is directed towards import to bridge the gap between assessed demand and indigenous production of urea in the country. It also includes freight subsidy for movement of urea across the country.
Birla Corporation rose 6.27% to Rs 797.75 on bargain hunting after a recent slide. Shares of Birla Corporation slumped 17.07% in eight trading sessions to settle at Rs 750.70 yesterday, 14 March 2018, from its close of Rs 905.25 on 1 March 2018.
Meanwhile, the Indian economy is set to revert to its trend growth rate of 7.5% in the coming years as it bottoms out from the impact of the Goods and Services Tax (GST) and demonetization, a World Bank report released yesterday, 14 March 2018 showed. India's GDP growth is projected to reach 6.7% in 2017-18 and accelerate to 7.3% and 7.5% in 2018-19 and 2019-20 respectively.
While services will continue to remain the main driver of economic growth; industrial activity is poised to grow, with manufacturing expected to accelerate following the implementation of the GST, and agriculture will likely grow at its long-term average growth rate, the report said.
Overseas, European stocks drifted higher in early trade as investors gauge the implications of the latest personnel changes in the Trump administration. Asian markets saw mixed trend.
US stocks fell yesterday, 14 March 2018 after lackluster retail sales figures fanned concern that consumer spending is cooling. US president Donald Trump reportedly planned to impose fresh tariffs on China, intensifying concerns of a global trade war. Larry Kudlow, a free trade advocate, is set to replace Gary Cohn as White House economic adviser. Cohn resigned last week after losing his fight against tariffs on steel and aluminum imports.
In economic data, the producer-price index showed wholesale inflation rose 0.2% in February, down from the 0.4% advance in January. US retail sales fell 0.1% in February, the third straight monthly decline. However, sales grew 0.3% if autos and gas are stripped out.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content