Key benchmark indices languished in negative terrain in early afternoon trade after latest data showed rise in India's wholesale price inflation last month. At 12:18 IST, the barometer index, the S&P BSE Sensex, fell 105.25 points or 0.32% at 32,947.79. The Nifty 50 index declined 25.80 points or 0.25% at 10,167.15. The Sensex languished below the 33,000 level after skidding below that level in mid-morning trade.
After a positive start, key indices traded within a narrow range around the flat line till morning trade. Indices extended intraday slide in mid-morning trade. Investors digested the US Federal Reserve's decision of raising interest rates for the third time this year, underlining the confidence that the United States remains on solid footing. Higher interest rates in the US may drain liquidity from the emerging markets, including India, and redirect it to developed economies.
The Sensex fell 133.13 points, or 0.4%, at the day's low of 32,919.91 in mid-morning trade, its lowest level since 7 December 2017. The index rose 116.70 points, or 0.35%, at the day's high of 33,169.74 in early trade. The Nifty lost 42.40 points, or 0.41%, at the day's low of 10,150.55 in mid-morning trade, its lowest level since 7 December 2017. The index advanced 37.70 points, or 0.36%, at the day's high of 10,230.65 in early trade.
Among secondary indices, the S&P BSE Mid-Cap index fell 0.36%. The S&P BSE Small-Cap index declined 0.75%. Both the indices underperformed the Sensex.
The breadth, indicating the overall health of the market, was weak. On the BSE, 1,648 shares declined and 747 shares rose. A total of 124 shares were unchanged.
Capital goods stocks declined. BEML (down 1.42%), Siemens (down 1.18%), Thermax (down 0.87%), Bhel (down 0.56%), Bharat Electronics (down 0.44%), Havells India (down 0.43%) and ABB India (down 0.39%) edged lower.
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L&T was down 0.43% at Rs 1,183.85. The company said it has successfully commissioned and handed over the state-of-the-art 225 megawatts (MW) Sikalbaha Combined Cycle Power Plant to Bangladesh Power Development Board (BPDB) for commercial operation. The announcement was made during market hours today, 14 December 2017.
Cement stocks fell. Ambuja Cements (down 1.34%), ACC (down 1.16%), UltraTech Cement (down 0.51%) and Grasim Industries (down 0.5%) declined. Shree Cement (up 0.51%) edged higher.
Shemaroo Entertainment gained 1.25% at Rs 403.80 after the company's consolidated net profit rose 24.15% to Rs 18.71 crore on 18.19% rise in total income to Rs 134.57 crore in Q2 September 2017 over Q2 September 2016. The announcement was made before market hours today, 14 December 2017.
On the macro front, India's inflation based on the wholesale price index (WPI), stood at 3.93% for the month of November 2017 as compared to 3.59% for the previous month and 1.82% during the corresponding month of the previous year. The inflation data was released by the government during market hours today, 14 December 2017.
Among other news, the second phase of polling in Gujarat is underway today, 14 December 2017 in 93 assembly constituencies. Counting of votes will take place on 18 December 2017. Gujarat recorded a polling of 68% in the first phase of assembly elections for 89 assembly constituencies held on 9 December 2017. The Gujarat assembly has 182 seats.
Overseas, Asian stocks were mixed. US stocks rose yesterday, 13 December 2017, with the Dow posting a record closing, after the Federal Reserve hiked interest rates. Investors also digested news of Congressional leaders reaching a tentative agreement on a tax overhaul plan.
The Fed raised interest rates by a quarter point after the conclusion of its two-day policy meeting yesterday, 13 December 2017, in a move that was widely expected by markets. That increased the central bank's target range to between 1.25% and 1.5%. The Fed also raised its GDP forecast from 2.1% to 2.5%. Its inflation forecast was raised from 1.6% to 1.7%.
In Europe, a meeting of the European Central Bank (ECB) is scheduled today, 14 December 2017, to announce its interest rate decision. The ECB held its benchmark refinancing rate at 0% on 26 October, as widely expected, and decided to reduce its quantitative easing programme to a monthly pace of 30 billion from January with the option of extending it in September 2018.
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