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Shares open lower on weak global cues

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Capital Market
Last Updated : Mar 20 2018 | 9:50 AM IST

Key benchmark indices were trading lower in early trade on weak global cues. At 9:22 IST, the barometer index, the S&P BSE Sensex, was down 80.12 points or 0.24% at 32,843. The Nifty 50 index was down 14.10 points or 0.14% at 10,080.15.

Among secondary barometers,the BSE Mid-Cap index was down 0.48%. The BSE Small-Cap index was down 0.64%. Both these indices underperformed the Sensex.

The broad market depicted weakness. There were more than two losers against every gainer on BSE. 897 shares fell and 343 shares rose. A total of 54 shares were unchanged.

Overseas, Asian shares declined as investors braced for new Federal Reserve Chairman Jerome Powell's first policy meeting starting later in the day. Investors also have been worrying this month about a potential global trade war, triggered by the Trump administration moving ahead with tariffs on foreign steel and aluminum.

US stocks finished sharply lower Monday as concerns about Facebook Inc.'s management of user data sparked a selloff in technology shares. Investors also lightened their positions ahead of the Fed's policy meeting.

The US Federal Reserve's two-day monetary policy meeting is scheduled on March 20-21. Strengthening labor market and a steady increase in price pressures could pave the way for the Federal Reserve to raise interest rates in upcoming meeting. The US central bank has forecast three rate increases for this year, but there are also expectations that it will raise its projection to four hikes at the meeting.

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Back home, Granules India was up 0.51%. The company announced that the United States Food and Drug Administration (USFDA) has approved the abbreviated new drug application (ANDA) filed by the company for Metformin Extended Release (ER) Tablets 500 mg and 750 mg. The approved ANDA is the bioequivalent to the reference listed drug product (RLD), Glucophage XR tablets of Bristol Myers Squibb. Granules India intends to commercialise this product shortly. The announcement was made after market hours yesterday, 19 March 2018.

Nitesh Estates was up 4.92%. The company said that the discussions with investor for raising capital is in advanced stage and is expected to conclude around 30 April 2018. Nitesh Pune Mall, a subsidiary of Nitesh Estates had stated to the stock exchanges on 25 October 2017 regarding its discussions with certain investors for raising capital of over Rs 350 crore. The announcement was made after market hours yesterday, 19 March 2018.

IFCI was up 0.24%. The company said that the Supreme Court, in special leave petition filed by IFCI and ITC, has set aside the judgement of Bombay High Court and has upheld the sale of the hotel property of Blue Coast Hotels by IFCI. The announcement was made after market hours yesterday, 19 March 2018.

Tata Communications was down 0.15%. The company said it is working with Surbana Jurong, one of Asia's largest urban, industrial and infrastructure consulting firms, to equip its Internet of Things (IoT) enabled lifts and escalators with secure, scalable connectivity to Microsoft's Azure cloud platform. Tata Communications, Microsoft and Surbana Jurong will be discussing their collaboration in a keynote panel at IoT Asia on 21 March 2018. The announcement was made before market hours today, 20 March 2018.

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First Published: Mar 20 2018 | 9:24 AM IST

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