Key benchmark indices extended fall and hit fresh intraday low in mid-morning trade. At 11:24 IST, the barometer index, the S&P BSE Sensex, was down 179.51 points or 0.53% at 33,677.27. The Nifty 50 index was down 59.10 points or 0.57% at 10,367.75. The market sentiment was impacted after the Reserve Bank of India (RBI) banned letters of undertaking (LoUs) for seeking overseas loans. Negative Asian stocks also weighed on the sentiment.
Metal & mining and realty stocks saw mixed trend. Index heavyweight and housing finance major HDFC dropped.
Domestic stocks began trading on a subdued note on negative Asian stocks. Key benchmark indices hovered in negative zone in morning trade.
The S&P BSE Mid-Cap index was up 0.01%. The S&P BSE Small-Cap index was off 0.07%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,260 shares fell and 1,040 shares rose. A total of 118 shares were unchanged. Breadth was weak in early trade.
Index heavyweight and housing finance major HDFC lost 1.07% to Rs 1,843.30.
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Metal and mining stocks saw mixed trend. Hindustan Zinc (up 1.41%), Jindal Steel & Power (up 0.37%), Vedanta (up 0.05%), Steel Authority of India (Sail) (up 0.83%) and National Aluminium Company (up 0.63%) edged higher.
JSW Steel (down 0.13%), Tata Steel (down 0.19%), Hindalco Industries (down 0.71%), NMDC (down 0.88%), Hindustan Copper (down 0.23%) edged lower.
Copper edged higher in the global commodities market. High Grade Copper for May 2018 delivery was currently up 0.8% at $3.1630 per pound on the COMEX.
Realty stocks saw mixed trend. Prestige Estates Projects (up 1.95%), Indiabulls Real Estate (up 0.75%), Housing Development and Infrastructure (up 0.45%) and D B Realty (up 0.06%) rose.
Sobha (down 2.44%), Godrej Properties (down 0.7%), DLF (down 0.61%), Unitech (down 0.66%) and Oberoi Realty (down 2.14%) declined.
Meanwhile, the Reserve Bank of India (RBI) in a press release issued yesterday, 13 March 2018 said that on a review of the extant guidelines, it has been decided to discontinue the practice of issuance of Letters of Undertaking (LoUs) / Letters of Comfort (LoCs) for Trade Credits for imports into India by Authorised Dealer Category - I banks with immediate effect. Letters of Credit and Bank Guarantees for Trade Credits for imports into India may continue to be issued.
Overseas, Asian stocks declined following an overnight slide in US equities after a fresh personnel shakeup in the Trump administration spurred concerns about a unilateral approach to trade, national security and foreign affairs.
Chinese industrial-production, fixed-asset investment and retail sales data showed the economy grew much faster than expected in the first two months of 2018. China releases combined data for January and February to limit distortions caused by the Lunar New Year holiday, which was in January last year but February this year.
Value-added industrial output, a rough proxy for economic growth, expanded by 7.2% in January and February from a year earlier, compared with a 6.2% on-year increase in December, the National Bureau of Statistics said today, 14 March 2018. Industrial production rose 0.57% on-month in February, compared with December's 0.52% growth.
Fixed-asset investment outside rural households climbed 7.9% in the first two months of 2018 from a year earlier, quickening from a 7.2% increase in 2017. Retail sales grew 9.7% on-year in January and February, accelerating from a 9.4% rise in December.
Minutes from the Bank of Japan's January meeting, released today, 14 March 2018 showed that some board members warned the central bank should keep a close eye on unexpected side effects from the current monetary policy.
US equities fell in choppy trade yesterday, 13 March 2018 after tech shares pulled back amid concerns trade tensions between the US and China could increase. The sudden firing of US Secretary of State Rex Tillerson took some by surprise less than a week after top economic adviser Gary Cohn resigned from the White House. US President Donald Trump has nominated CIA director Mike Pompeo, an ex-congressman, to replace Tillerson.
The consumer-price index rose a mild 0.2% in February after a 0.5% increase in January. The year-over-year rate for CPI edged up to 2.2% in February from 2.1% in January.
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