Volatility ruled the roost in afternoon trade as the key benchmark indices once again regained positive zone after hitting intraday low in early afternoon trade. At 13:18 IST, the barometer index, the S&P BSE Sensex, was up 45.20 points or 0.13% at 35,592.53. The Nifty 50 index was up 7.80 points or 0.07% at 10,779.85.
Among secondary barometers, the BSE Mid-Cap index was down 0.6%. The BSE Small-Cap index was down 0.31%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 849 shares rose and 1545 shares fell. A total of 133 shares were unchanged.
ICICI Bank (up 2.05%), Reliance Industries (up 1.42%), Tata Steel (up 0.66%), HDFC (up 0.62%) and Tata Motors (up 0.56%) edged higher from the Sensex pack.
ONGC (down 2.24%), Power Grid Corporation of India (down 2.21%), M&M (down 1.64%), SBI (down 0.84%) and Axis Bank (down 0.8%) edged lower from the Sensex pack.
InterGlobe Aviation rose 2.4%. With respect to media reports indicating that the Enforcement Directorate has summoned the company's top management for foreign exchange management act (FEMA) violation, InterGlobe Aviation clarified that it has not received any such summons. The announcement was made after market hours yesterday, 20 June 2018.
AXISCADES Engineering Technologies gained 3.62%. AXISCADES Engineering Technologies and Assystem formalized their agreement and inaugurated joint venture (JV) company in India. This JV company will undertake engineering services for energy sector business for Indian and global utilities and contractors. JV combines the strength of AXISCADES in engineering services and economic competitiveness with Assystem's domain expertise in the energy and infrastructures fields to meet the needs of the industry's leading energy, buildings and infrastructures, and nuclear majors across the globe. The announcement was made after market hours yesterday, 20 June 2018.
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This JV also strengthens the economic competitiveness of Assystem engineering centers based in Europe, North America and the Middle East. The JV will start its operations in Hyderabad and plans to open two more centers in Delhi and in Mumbai with proximity to key customers.
On the macro front, the Reserve Bank of India (RBI) on Wednesday, 20 June 2018, released the minutes of the Monetary Policy Committee (MPC) meeting held between 4-6 June 2018. All six members of the MPC maintained their neutral policy stance and also voted in favour of a repo rate increase of 25 basis points to 6.25%, revealed the minutes of the meeting.
According to the minutes, RBI governor Urjit Patel said inflation risks have increased since the April policy. Patel, therefore, voted for an increase in the policy repo rate by 25 basis points. In view of prevailing uncertainties, it is apposite to maintain the neutral stance so as to respond to the evolving situation in a flexible manner, he added.
Among the internal members, deputy governor Viral Acharya said that there were considerable uncertainties around oil and food prices as well as the playing out of trade wars and global financial market outcomes, and voted for continuing with the neutral stance. The third RBI member Michael Patra pushed for front-ending rate hikes on the grounds that there is a closing sliver of opportunity to do so.
Overseas, European markets were higher against a backdrop of growing tensions in the oil market ahead of an OPEC meeting that could expand crude production. Meanwhile, the Bank of England (BOE) is widely expected to hold interest rates steady Thursday, though policymakers at the central bank could lay the groundwork for a rate hike as soon as August.
Most Asian stocks declined, driven by uncertainty surrounding trade relations between the world's two largest economies. US stock closed mostly higher Wednesday, though the Dow Jones Industrial Average posted its seventh consecutive daily decline.
Focus is largely centered on a meeting of major oil producers taking place in Vienna. Oil-producing nations appeared to inch closer to an output agreement Wednesday although a final decision is not due until Friday. Energy ministers have gathered in the Austrian capital to determine the future of OPEC's 18-month-old agreement with Russia and other allied partners to limit production.
The US current-account deficit increased to $124.1 billion (preliminary) in the first quarter of 2018 from $116.1 billion (revised) in the fourth quarter of 2017, according to statistics released by the Bureau of Economic Analysis (BEA). The deficit was 2.5% of current-dollar gross domestic product (GDP) in the first quarter, up from 2.4% in the fourth quarter.
Existing-home sales ran at a seasonally-adjusted annual 5.43 million rate in May, down 0.4% from April, the National Association of Realtors said Wednesday.
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