Key benchmark indices were trading near the flat line after paring losses in mid-afternoon trade as investors bargain hunt beaten down stocks after recent losses. At 14:20 IST, the barometer index, the S&P BSE Sensex, rose 9.66 points or 0.03% at 31,636.29. The Nifty 50 index declined 0.55 points or 0.01% at 9,872.05.
Market opened with small gains and soon slipped into the red and hovered near the flat line in morning trade. Stocks extended losses and hit fresh intraday low in mid-morning trade on weak Asian stocks. The Sensex and the Nifty, both, hit their lowest level in four weeks. Indices gradually pared losses later during the session.
The S&P BSE Mid-Cap index rose 0.67%. The S&P BSE Small-Cap index gained 1.15%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was strong. On the BSE, 1,546 shares rose and 871 shares fell. A total of 158 shares were unchanged.
Most power stocks gained as Prime Minister, Narendra Modi, yesterday, 25 September 2017, launched the Pradhan Mantri Sahaj Bijli Har Ghar Yojana, or Saubhagya, at New Delhi. The aim of this scheme is to provide power to all homes. NTPC (up 0.27%), Torrent Power (up 0.39%), Power Grid Corporation of India (up 0.47%), Reliance Infrastructure (up 2.91%) and Reliance Power (up 1.3%) gained. Adani Power (down 1.3%), NHPC (down 0.73%) and Tata Power Company (down 1.16%) declined.
Bharti Airtel declined 1.39%. The company announced the deployment of India's first state of the art Massive Multiple-input Multiple-output (MIMO) technology which is a key enabler for 5G networks. The announcement was made during market hours today, 26 September 2017. The company is starting with the first round of deployment in Bangalore and Kolkata and will expand to other parts of the country soon.
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Pharma stocks rose as rupee weakened against the dollar. Sun Pharmaceutical Industries (up 1.38%), Aurobindo Pharma (up 0.78%), Cipla (up 0.47%), Lupin (up 1.89%), Wockhardt (up 4.34%), Divi's Laboratories (up 1.54%), and Glenmark Pharmaceuticals (up 0.57%) gained. Dr Reddy's Laboratories (down 0.52%) and Cadila Healthcare (down 0.49%) declined. Weakness in rupee could boost sales of pharma companies in rupee terms as pharma firms derive substantial revenue from exports. Weakness in rupee could boost sales of pharma companies in rupee terms as pharma firms derive substantial revenue from exports.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 65.395, compared with closing of 65.115 during the previous trading session.
Meanwhile, Prime Minister Narendra Modi has constituted the Economic Advisory Council to the Prime Minister (EAC-PM). The five-member council consists of economists of high repute and eminence. It consists of Dr. Bibek Debroy, Member, NITI Aayog- Chairman, Dr. Surjit Bhalla- Part-time Member, Dr. Rathin Roy- Part-time Member, Dr. Ashima Goyal- Part-time Member and Ratan Watal, Principal Advisor, NITI Aayog - Member-Secretary.
The EAC-PM is an independent body to give advice on economic and related issues to the Government of India, specifically to the Prime Minister.
Overseas, European stocks edged lower and most Asian stocks dropped taking cues from weak close in US stocks overnight hurt by fresh threats from North Korea and weakness among key technology stocks.
In Europe, after the re-election of Germany's Angela Merkel to a fourth-term in power, the hard task of political negotiations to form a coalition government has begun and could take weeks, if not months, as per reports.
Meanwhile, Developing Asia is on track to grow faster this year and next, the Asian Development Bank said, buoyed by a pick-up in world trade and China's expansion, but it flagged risks from tightening US monetary policy. Developing Asia is expected to grow by 5.9% and 5.8% in 2017 and 2018, respectively, the Manila-based lender said. India's growth was seen at 7% and 7.4% for this year and next, weaker than the July forecasts of 7.4% and 7.6%.
On Wall Street, a sharp selloff in technology stocks dragged down the Nasdaq Composite index by around 1% yesterday, 25 September 2017, with North Korea's latest warnings to Washington adding to the downbeat mood. North Korea's foreign minister said President Donald Trump had declared war on the country and that it reserves the right to take countermeasures, including shooting down US bombers even if they are not in its airspace.
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