After trimming losses in afternoon trade, key benchmark indices once again drifted lower in mid-afternoon trade. At 14:15 IST, the barometer index, the S&P BSE Sensex, was down 88.02 points or 0.32% at 27,747.89. The Nifty 50 index was currently down 32.45 points or 0.38% at 8,559.75.
Caution prevailed on the bourses ahead of a speech by Federal Reserve Chairwoman Janet Yellen later in the global day at the Kansas City Fed's annual Monetary Policy Symposium in Jackson Hole, Wyoming, which could provide hints about the timing of the next rate hike from the Fed. High US interest rates would pull money out of emerging markets and redirect it to the US. Minutes from the Federal Open Market Committee's (FOMC) July meeting showed officials were split on whether an increase in interest rate was needed soon.
The Sensex fell 113.66 points or 0.4% at the day's low of 27,722.25 in mid-afternoon trade, its lowest level since 11 August 2016. The barometer index rose 99.97 points or 0.35% at the day's high of 27,935.88 in early trade. The Nifty fell 37.70 points or 0.43% at the day's low of 8,554.50 in mid-afternoon trade, its lowest level since 11 August 2016. The index rose 30.75 points or 0.35% at the day's high of 8,622.95 in early trade.
The market breadth indicating the overall health of the market was weak. On BSE, 1,530 shares declined and 958 shares rose. A total of 189 shares were unchanged. The BSE Mid-Cap index was currently down 0.03%. The BSE Small-Cap index was currently down 0.11%. The losses for both these indices were lower than the Sensex's decline in percentage terms.
Capital goods stocks edged lower. L&T (down 1.95%), Thermax (down 1.27%), GE T&D India (down 0.96%), ABB India (down 0.98%), Bharat Heavy Electricals (down 0.89%), Havells India (down 0.63%), Praj Industries (down 0.83%), Suzlon Energy (down 0.61%) and Siemens (down 0.07%) declined. BEML (up 2%), Bharat Electronics (up 0.89%) and Crompton Greaves (up 0.3%) edged higher.
Power generation and distribution stocks declined. Adani Power (down 1.81%), JSW Energy (down 1.63%), Torrent Power (down 1.44%), Jaiprakash Power Ventures (down 1.41%), Reliance Infrastructure (down 1.5%), NHPC (down 1.08%), NTPC (down 0.6%), Power Grid Corporation of India (down 0.38%), CESC (down 0.67%), Tata Power Company (down 0.26%) and GMR Infrastructure (down 0.23%) edged lower. Reliance Power (up 0.29%) edged higher.
Vakrangee fell 1.06% at Rs 195.15 after a bulk deal of 6.22 lakh shares was executed on the scrip at Rs 196.70 per share at 9:33 IST on BSE.
Meanwhile, RBI after trading hours yesterday, 25 August 2016, announced a package of measures for the development of fixed income and currency markets. The central said it has been decided to enhance the aggregate limit of partial credit enhancement (PCE) provided by banks, permit brokers in corporate bond repos, authorise the platform for repo in corporate bonds and encourage credit supply for large borrowers through market mechanism. The RBI has allowed banks to issue issue rupee bonds overseas (Masala Bonds) for their capital requirements and for financing infrastructure and affordable housing.
Foreign Portfolio Investors (FPIs) will be given direct access to NDS-OM to ease the process of investment in debt securities. The RBI said it has also been decided to provide FPIs facility to trade directly in corporate bonds.
Meanwhile, the India Meteorological Department (IMD) in its monsoon update issued yesterday, 25 August 2016, said that for the country as a whole, cumulative rainfall during this year's monsoon so far (till 25 August 2016) was 3% below the long period average (LPA).
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