Key benchmark indices made a partial recovery in afternoon trade after hitting intraday lows in early afternoon trade. At 13:15 IST, the barometer index, the S&P BSE Sensex, was down 188.15 points or 0.56% at 33,668.63. The Nifty 50 index was down 64.10 points or 0.61% at 10,362.75. The market sentiment was impacted after the Reserve Bank of India (RBI) banned letters of undertaking (LoUs) for seeking overseas loans. Negative Asian stocks also weighed on the sentiment on the domestic bourses.
Domestic stocks began trading on a subdued note on negative Asian stocks. Key benchmark indices hovered in negative zone in morning trade. Indices extended fall and hit fresh intraday lows in early afternoon trade.
The S&P BSE Mid-Cap index was up 0.04%. The S&P BSE Small-Cap index declined 0.15%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was negative. On the BSE, 1,464 shares declined and 1,038 shares advanced. A total of 139 shares were unchanged.
IT stocks were mixed. Wipro (down 0.46%), Persistent Systems (down 0.37%) and Infosys (down 0.3%) edged lower. Tech Mahindra (up 2.24%) and Oracle Financial Services Software (up 0.43%) edged higher.
IT major TCS lost 0.26%. Tata Sons sold 3.12 crore shares, or 1.63% equity, of TCS in two separate bulk deals on NSE yesterday, 13 March 2018. Tata Sons offloaded 2.05 crore shares at Rs 2,876.46 each. Another 1.06 crore shares were sold at Rs 2,872.19 each. As on 31 December 2017, Tata Sons held 73.52% stake in TCS.
HCL Technologies was up 0.51% after the company announced the opening of its dedicated state-of-the-art technology development center, Lab 21, showcasing the deep collaboration, investments, and advocacy on Microsoft AI platform/Cortana Analytics in the Azure Cloud. The announcement was made during market hours today, 14 March 2018.
Capital goods stocks were mixed. Suzlon Energy (down 1.04%), ABB India (down 0.44%), Bharat Electronics (down 0.36%) and Bhel (down 0.35%) edged lower. Thermax (up 0.78%), Siemens (up 0.16%) and Havells India (up 0.98%) edged higher.
L&T fell 0.31%. The company announced that its wholly owned subsidiary viz. L&T Hydrocarbon Engineering, has won orders worth above Rs 1600 crore across various business segments. The announcement was made during market hours today, 14 March 2018.
Meanwhile, the Reserve Bank of India (RBI) in a press release issued yesterday, 13 March 2018 said that on a review of the extant guidelines, it has been decided to discontinue the practice of issuance of Letters of Undertaking (LoUs)/Letters of Comfort (LoCs) for Trade Credits for imports into India by Authorised Dealer Category - I banks with immediate effect. Letters of Credit and Bank Guarantees for Trade Credits for imports into India may continue to be issued.
Overseas, Asian stocks declined following an overnight slide in US equities after fresh personnel shakeup in the US President Donald Trump's administration spurred concerns about a unilateral approach to trade, national security and foreign affairs.
Among economic data, Chinese industrial-production, fixed-asset investment and retail sales data showed the economy grew much faster than expected in the first two months of 2018. China releases combined data for January and February to limit distortions caused by the Lunar New Year holiday, which was in January last year but February this year.
Value-added industrial output, a rough proxy for economic growth, expanded by 7.2% in January and February from a year earlier, compared with a 6.2% on-year increase in December, the National Bureau of Statistics said today, 14 March 2018. Industrial production rose 0.57% on-month in February, compared with December's 0.52% growth.
Fixed-asset investment outside rural households climbed 7.9% in the first two months of 2018 from a year earlier, quickening from a 7.2% increase in 2017. Retail sales grew 9.7% on-year in January and February, accelerating from a 9.4% rise in December.
Minutes from the Bank of Japan's January meeting, released today, 14 March 2018 showed that some board members warned the central bank should keep a close eye on unexpected side effects from the current monetary policy.
US equities fell in choppy trade yesterday, 13 March 2018 after tech shares pulled back amid concerns trade tensions between the US and China could increase. The sudden firing of US Secretary of State Rex Tillerson took some by surprise less than a week after top economic adviser Gary Cohn resigned from the White House. US President Donald Trump has nominated CIA director Mike Pompeo, an ex-congressman, to replace Tillerson.
The consumer-price index rose a mild 0.2% in February after a 0.5% increase in January. The year-over-year rate for CPI edged up to 2.2% in February from 2.1% in January.
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