Key benchmark indices continued to display weakness in mid-afternoon trade. At 14:18 IST, the barometer index, the S&P BSE Sensex, was down 234.91 points or 0.65% at 36,048.34. The Nifty 50 index was down 86.30 points or 0.78% at 11,044.10. Broad market depicted weakness.
Shares witnessed selling pressure as profit booking set in after a recent rally. Negative global cues also spoiled investors sentiment. Investors were cautious ahead of Union Budget 2018-2019 on Thursday, 1 February 2018.
Key indices opened lower and extended losses to hit fresh intraday low in morning trade. After some range bound trading in mid-morning trade, key indices hit fresh intraday low in afternoon trade and traded in narrow range so far. The Sensex rose 8.57 points, or 0.02% at the day's high of 36,291.82 in early trade. The index fell 268.93 points, or 0.74% at the day's low of 36,014.32 in afternoon trade, its lowest level since 25 January 2018. The Nifty fell 9.30 points, or 0.08% at the day's high of 11,121.10 in early trade. The index fell 94.35 points, or 0.85% at the day's low of 11,036.05 in afternoon trade, its lowest level since 25 January 2018.
Among secondary barometers, the BSE Mid-Cap index was down 0.87%. The BSE Small-Cap index was down 1.12%. Both these indices underperformed the Sensex.
The broad market depicted weakness. There were over two losers against every gainer on BSE. 2,002 shares fell and 744 shares rose. A total of 144 shares were unchanged.
Most FMCG shares rose. Tata Global Beverages (up 1.56%), Marico (up 1.29%), Bajaj Corp (up 1.27%), Jyothy Laboratories (up 1.04%), GlaxoSmithKline Consumer Healthcare (up 0.95%), Britannia Industries (up 0.64%), Dabur India (up 0.32%), Procter & Gamble Hygiene & Health Care (up 0.10%) and Hindustan Unilever (up 0.05%), edged higher. Godrej Consumer Products (down 0.51%), Colgate Palmolive (India) (down 0.72%) and Nestle India (down 1.56%), edged lower.
Realty shares were mixed. Indiabulls Real Estate (down 3.09%), D B Realty (down 1.66%), Unitech (down 0.89%), Peninsula Land (down 0.88%), Anant Raj (down 0.82%), Godrej Properties (down 0.82%), Mahindra Lifespace Developers (down 0.69%), Housing Development and Infrastructure (HDIL) (down 0.59%), Oberoi Realty (down 0.13%) and Sobha (down 0.12%), edged lower. Phoenix Mills (up 0.15%), Omaxe (up 0.18%), DLF (up 0.41%), Prestige Estates Projects (up 1%) and Sunteck Realty (up 1.89%), edged higher.
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The next major trigger for the market is Union Budget 2018-2019, which will be presented by the finance minister Arun Jaitley in the parliament on Thursday, 1 February 2018.
The Budget Session of the parliament began yesterday, 29 January 2018. The first phase of the budget session of the parliament is being held from 29 January 2018 to 9 February 2018. After a recess, Parliament will meet again from 5 March 2018 to 6 April 2018, as per reports.
The Economic Survey 2017-18 was tabled in Parliament yesterday, 29 January 2018. The survey estimated that India's economy should grow between 7% and 7.5% in the 2018/19 (April-March) with exports and private investment set to rebound. The survey estimated that gross domestic product will have grown 6.75% in the current fiscal year ending in March 2018.
Overseas, European stocks opened lower as investors monitored the release of fresh economic data and corporate earnings. On the data front, investors will likely pay close attention to the release of euro area gross domestic product (GDP) data for the fourth quarter.
Asian stocks fell across the board, tracking declines seen on Wall Street in the previous session. US stocks declined as the yield for benchmark 10-year Treasury note hit the highest level since April 2014 above 2.7%, raising concerns that rising borrowing costs could upend a relentless uptrend for equities. The Dow closed down about 0.7%, the S&P 500 index closed off 0.7%, at 2,853, registering its worst daily fall since August, while the Nasdaq Composite Index closed down 0.5%.
The Federal Open Market Committee (FOMC) of the US Federal Reserve holds its next two-day monetary policy meet on Tuesday, 30 January 2018 and Wednesday, 31 January 2018. The Federal Reserve will announce its interest rates decision on Wednesday. The Fed, in a widely expected move, had raised interest rates by 25 basis points (bps) to a range of 1.25-1.5% in its December monetary policy meeting.
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