Key indices dropped in early trade on selling pressure in index pivotals. Finance Minister Nirmala Sitharaman announced further relief measures with a focus on reviving the housing and export sectors. However, a surge in oil prices weighed on markets adversely.
At 9:24 IST, the barometer index, the S&P BSE Sensex, was down 204.72 points or 0.55% at 37,180.27. The Nifty 50 index was down 67.35 points or 0.61% at 11,008.55.
The S&P BSE Mid-Cap index was down 0.2%. The S&P BSE Small-Cap index was down 0.06%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 547 shares rose and 622 shares fell. A total of 85 shares were unchanged.
Oil prices retreated on Monday after hitting their highest since May at the open, on fears over supply disruptions following an attack on Saudi Arabia's oil facilities on Saturday that cut more than 5% of global oil supply. Higher crude oil prices could increase fiscal deficit and current account deficit and stoke fuel price inflation.
Finance Minister Nirmala Sitharaman on Saturday, 14 September 2019 announced a fresh set of relief measures to boost exports and housing sector. The first one is a new export promotion scheme for the remission of duties or taxes on export products. This scheme will completely replace Merchandise Exports from India Scheme (MEIS) and Rebate of State Levies (ROSL).
On the macro front, India's merchandise exports declined 6% to US$ 26.13 billion in August 2019 over a year ago. Meanwhile, merchandise imports dipped 13.4% to US$ 39.58 billion. The trade deficit narrowed 24.9% to US$ 13.45 billion in August 2019 from US$ 17.39 billion in August 2018.
India's services exports increased 8.7% to US$ 19.08 billion in July 2019 over July 2018. Meanwhile, India's services imports jumped 18.2% to US$ 12.83 billion in July 2019. India's services trade surplus declined 6.7% to US$ 6.26 billion in July 2019 from US$ 6.70 billion in July 2018.
Among stocks, Bharat Electronics rose 3.5% after the company signed the contract with Ministry of Defence, Government of India on 13 September 2019 for procurement of Seven Squadrons of Akash Missile System for Indian Air Force. The total value of the contract is Rs 5357 crore and the delivery will be completed in three years. The announcement was made after market hours on Friday, 13 September 2019.
Shares of Indiabulls Housing Finance advanced 2.89%. The Delhi High Court in a civil suit filed by Indiabulls Housing Finance passed an order restraining/ injuncting Subramanian Swamy, Member of Rajya Sabha, and others from publishing, disseminating/ uploading in any manner on their website, messenger application, social media including Facebook, Twitter and WhatsApp or any other platform operated and controlled by them, in respect of the allegation against Indiabulls Housing Finance which are false, offending, defamatory as tweeted by Swamy and mentioned in the suit. The Court has also directed Twitter, Facebook, WhatsApp etc. to remove / take down and/or expunge the offending false messages from their portals within two weeks. The announcement was made after market hours on Friday, 13 September 2019.
HUDCO gained 2.64%. The company has received an amount of Rs 253.83 crore (Principal Outstanding Rs 81.87 crore) in full and final settlement of its dues on 13 September 2019. The announcement was made after market hours on Friday, 13 September 2019.
SML Isuzu rose 0.1%. SML Isuzu decided to observe Block Closure (Chassis Division) for 6 days from 16 September 2019 to 21 September 2019 at its manufacturing plant (located at Village Asron, Distt. Nawanshahr). In the Bus Body Division, need based production will continue. The announcement was made after market hours on Friday, 13 September 2019.
Overseas, Asian stocks were trading mixed with Japan shut for a public holiday.
US stocks ended mixed on Friday as a drop in Apple stock countered cooling US-China trade tensions. Tariff-vulnerable industrials helped keep the blue-chip Dow in positive territory, which has now gained in eight straight sessions, its longest winning streak since May 2018.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
