Fresh selling in index pivotals pulled the key benchmark indices to intraday low in morning trade. At 10:28 IST, the barometer index, the S&P BSE Sensex, was down 226.44 points or 0.63% at 35,512.72. The Nifty 50 index was down 68.05 points or 0.63% at 10,788.65. Negative Asian stocks weighed on the domestic bourses.
Domestic stocks edged lower in early trade tracking negative Asian stocks after the US Federal Reserve struck a hawkish tone in its latest policy statement.
The S&P BSE Mid-Cap index was down 0.5%. The S&P BSE Small-Cap index was down 0.22%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 819 shares rose and 1222 shares fell. A total of 92 shares were unchanged.
Traders and investors are closely awaiting a series of domestic and global events this week. The wholesale price index (WPI) inflation data will be announced today, 14 June 2018.
On the global front, the European Central Bank (ECB) will hold its policy meeting today, 14 June 2018, in which policy makers are poised to hold formal talks on ending its bond-buying program. The Bank of Japan meets tomorrow, 15 June 2018 with no change to policy expected.
Overseas, Asian stocks followed US equities lower as the Federal Reserve struck a hawkish tone in its latest policy statement. US stock benchmarks ended near session lows yesterday, 13 June 2018 as the Federal Reserve completed its second increase to benchmark interest rates in 2018, as expected, but signaled a slightly more aggressive plan to tighten monetary policy this year than had previously been projected.
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The Federal Reserve voted to raise its benchmark federal-funds rate by a quarter percentage point to a range of 1.75% to 2%. Policymakers also projected a slightly faster pace of rate increases in the coming months, with two additional hikes expected by the end of this year, compared to one previously. They see another three rate increases next year, a pace unchanged from their previous forecast.
Chairman Jerome Powell said the Fed was comfortable with a return of once-dormant inflation and emphasized the central bank's desire to avoid a policy error that could result in unnaturally inflating asset valuations or pushing the economy into a recession.
Back home, SBI (down 1.95%), TCS (down 1.38%), RIL (down 1.3%), Axis Bank (down 1.03%) and Tata Motors (down 1.02%) edged lower from the Sensex pack.
ICICI Bank lost 1.26%. ICICI Prudential Life Insurance Company lost 1.67%. ICICI Bank said its board approved the sale of up to 2.87 crore shares, representing up to 2% of the issued and the paid-up equity share capital of ICICI Prudential Life Insurance Company in one or more tranches, in any manner permissible under applicable law, including through an 'offer for sale by promoters through stock exchange mechanism' (OFS), as may be permitted and in the manner specified by the Indian regulatory authorities. The announcement was made after market hours yesterday, 13 June 2018.
Cipla rose 0.69%. Cipla announced that it has received final approval for its Abbreviated New Drug Application (ANDA) for Isoproterenol Hydrochloride Injection USP, 0.2mg/mL, single-use sterile Ampoule from the United States Food and Drug Administration (USFDA). Cipla's Isoproterenol Hydrochloride injection USP, indicated for the treatment of cardiac problems, ampoule is AP-rated generic therapeutic equivalent version of Hospira Inc's Isuprel injection. According to IQVIA (IMS Health), Isuprel Injection and its generic equivalents had US sales of approximately $148 million for the 12-month period ending April 2018. The announcement was made after market hours yesterday, 13 June 2018.
Separately, Cipla said its Ugandan subsidiary, Cipla Quality Chemical Industries (CiplaQCIL), intends on partnering with the government of Uganda to increase access to cancer treatments. And as part of its growth strategy, CiplaQCIL is evaluating an initial public offering. In the event that this is achieved, a section of the public will have a stake in the company. The transaction would be subject to approval from the relevant market regulators. The announcement was made after market hours yesterday, 13 June 2018.
Sintex Industries rose 3.01% to Rs 17.10 on bargain hunting after a recent slide. Shares of Sintex Industries fell 4.05% in two trading sessions to settle at Rs 16.60 yesterday, 13 June 2018, from its close of Rs 17.30 on 11 June 2018.
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