A bout of volatility was witnessed as key benchmark indices languished in negative zone in mid-morning trade. At 11:21 IST, the barometer index, the S&P BSE Sensex, was off 103.83 points or 0.4% at 25,752.87. The 50-unit CNX Nifty was down 36.05 points or 0.46% at 7,836.20. The market breadth indicating the overall health of the market turned negative from positive in mid-morning trade. On BSE, 1,086 shares declined and 969 shares rose. A total of 94 shares were unchanged. The BSE Mid-Cap index was down 0.39%. The BSE Small-Cap index was down 0.05%. The decline in both these indices was lower than Sensex's decline in percentage terms.
Overseas cues were negative. Chinese stocks led decline in Asian markets after a recent batch of disappointing Chinese economic data. US stocks edged lower yesterday, 14 September 2015, on caution ahead of a US Federal Reserve meeting later this week that could end with the first rate-increase in nearly a decade. The Fed's policy-making committee holds a two-day meeting on 16 and 17 September 2015. The Fed has held its benchmark short-term interest rate near zero since December 2008.
Closer home, metal and mining stocks declined. Hindalco Industries (down 2.29%), Vedanta (down 2.43%), Hindustan Zinc (down 2.39%), National Aluminium Company (down 1.63%) and NMDC (down 0.68%) edged lower.
Steel stocks dropped. Jindal Steel & Power (down 1.72%), JSW Steel (down 2.94%), Tata Steel (down 3.58%) and Steel Authority of India (down 0.48%) edged lower. The government after trading hours yesterday, 14 September 2015, issued notification imposing a provisional safeguard duty effective from 14 September 2015 on import of hot-rolled flat products of non-alloy and other alloy steel in coils of a width of 600 mm or more at the rate of 20% ad-valorem for a period of 200 days. The safeguard duty is a global safeguard measure to protect the domestic industry and the levy is applicable on import of the concerned product from all countries.
Capital goods stocks dropped. Suzlon Energy (down 2.46%), L&T (down 2.04%), Siemens (down 0.78%), Alstom T&D (down 1.63%), Bharat Electronics (down 0.18%), Beml (down 0.54%), Bharat Heavy Electricals (down 0.54%) and ABB India (down 0.52%) edged lower. Thermax (up 0.64%), Havells India (up 0.98%) and Crompton Greaves (up 2.11%) edged higher.
Indo National declined 3.42% at Rs 1,064.75 as the stock turned ex-dividend today, 15 September 2015, for dividend of Rs 25 per share for the year ended 31 March 2015. Ahead of turning ex-dividend, the stock offered dividend yield of 2.26% based on the scrip's closing price of Rs 1,102.50 on BSE yesterday, 14 September 2015.
On the macro front, the latest data showed that inflation based on the consumer price index (CPI) remained benign last month. The headline CPI inflation eased to 3.66% in August 2015 from 3.69% in July 2015. Among the CPI components, the inflation for food and beverages rose to 2.9% in August 2015 from 2.8% in July 2015. The core CPI inflation declined to 3.8% in August 2015 from 4% in July 2015.
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