Selling pressure intensified in mid-afternoon trade. At 14:18 IST, the barometer index, the S&P BSE Sensex, was down 332.84 points or 1.28% at 25,731.28. The losses for the Sensex were higher in percentage terms than those for the Nifty 50 index. The Nifty was currently down 95.95 points or 1.2% at 7,883.95. The Sensex continued to hover below the psychologically important 26,000 mark after falling below that level in mid-morning trade. The weakness on the domestic bourses stemmed from weakness in global stocks. World stocks fell after the Bank of Japan left its main policies unchanged after the conclusion of a two-day monetary policy meeting, disappointing market expectations the central bank would take further extraordinary steps to stimulate Japan's economy.
The Sensex fell 362.67 points, or 1.39% at the day's low of 25,701.45 in mid-afternoon trade, its lowest level since 26 April 2016. The barometer index rose 36.42 points, or 0.14% at the day's high of 26,100.54 in early trade, its highest intraday level since 4 January 2016. The Nifty fell 103.85 points, or 1.3% at the day's low of 7,876.05 in mid-afternoon trade, its lowest level since 26 April 2016. The index rose 12.10 points, or 0.15% at the day's high of 7,992 in morning trade, its highest level since 6 November 2015.
The market may remain volatile during the remaining part of the trading session as traders roll over positions in the futures & options (F&O) segment from the near month April 2016 series to May 2016 series. The near month April 2016 derivatives contracts expire today, 28 April 2016.
The broad market depicted weakness. There were almost two losers against every gainer on BSE. 1,587 shares fell and 808 shares rose. A total of 161 shares were unchanged. The BSE Mid-Cap index was currently down 0.3%. The BSE Small-Cap index was currently down 0.71%. The decline in both these indices was lower than the Sensex's decline in percentage terms.
In overseas stock markets, Asian and European stocks edged lower after the Bank of Japan unexpectedly held off from expanding monetary stimulus. Japanese stocks led losses for Asian equities. The Nikkei 225 Average ended 3.61% lower. The Bank of Japan (BOJ) voted to keep its current level of asset purchases unchanged and rates on hold while announcing a 300 billion ($2.69 billion) lending program to support banks in the region hit by this month's Kyushu earthquake. Speculation was rise that the Japanese the central bank would announce a further easing of the monetary policy to stimulate Japan's economy. BOJ Governor Haruhiko Kuroda was quoted as saying that the BOJ will do whatever it takes to reach its 2% inflation target and that there are no limits to monetary policy measures.
Trading in US index futures indicated that the Dow Jones Industrial Average could fall 174 points at the opening bell today, 28 April 2016. US stocks closed mostly higher yesterday, 27 April 2016, but the gains were checked by weakness in the technology sector. Meanwhile, the Federal Reserve left interest rates unchanged after the conclusion of a two-day monetary policy meeting yesterday, 27 April 2016. The Fed's signal that it was in no rush to raise rates relieved investors. The stance of monetary policy remains accommodative, thereby supporting further improvement in labor market conditions and a return to 2% inflation, according to the Fed statement. The US central bank's mandate centers on maximizing employment and keeping inflation at a 2% target level, which is considered a healthy level of price increases.
Realty shares edged higher on reports that Mumbai's civic body has raised the floor space index (FSI) in its new draft development plan for the city. Peninsula Land (up 11.49%), Indiabulls Real Estate (up 9.94%), D B Realty (up 9.55%), Housing Development and Infrastructure (HDIL) (up 5.31%), Anant Raj (up 4.34%), DLF (up 3.45%), Godrej Properties (up 3.11%), Parsvnath Developers (up 2.36%), Sobha (up 1.53%), Prestige Estates Projects (up 1.40%), Oberoi Realty (up 0.86%), Unitech (up 0.20%), Phoenix Mills (up 0.08%) and Mahindra Lifespace Developers (up 0.07%), edged higher. Sunteck Realty was down 0.09%.
According to reports, FSI in the island city will be raised from current 1.33 to 2 based on the new draft development plan. In Mumbai's suburbs, FSI will be hiked from 1 to 2. For construction of five-star hotels and commercial development, FSI will go up to 5 from the present 3 to 3.5. FSI is the ratio of a building's total floor area to the size of the land upon which it is built and indicates how much a developer can construct on a particular plot of land. Higher FSI will allow builders to construct more offices and apartments, which will boost sales and drive profitability, media reports suggested.
Shares of Adani group companies declined. Adani Ports & Special Economic Zone (down 1.25%), Adani Power (down 0.77%), Adani Enterprises (down 0.18%) and Adani Transmission (down 0.15%), edged lower.
Gati was up 2.03% after consolidated net profit rose 37% to Rs 15.54 crore on 2.6% growth in net sales to Rs 424.52 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 27 April 2016.
Powered by Capital Market - Live News
