Key benchmarks extended losses and hit fresh intraday low in mid-afternoon trade. At 14:17 IST, the barometer index, the S&P BSE Sensex, was down 173.62 points or 0.48% at 36,346.34. The Nifty 50 index was down 40.60 points or 0.37% at 10,967.45. The Nifty was currently trading a tad below the psychologically important 11,000 mark after sliding below that level in early afternoon trade.
The market reversed early trend and slipped into negative terrain in early afternoon trade as the opposition parties tabled a no-confidence motion against Prime Minister Narendra Modi's government.
After opening higher, the market pared gains in mid-morning trade and hit fresh intraday low in mid-afternoon trade. The Sensex rose 227.91 points, or 0.62% at the day's high of 36,747.87 in early trade. The index fell 199.04 points, or 0.55% at the day's low of 36,320.92 in mid-afternoon trade. The Nifty rose 68.15 points, or 0.62% at the day's high of 11,076.20 in early trade. The index fell 51.75 points, or 0.47% at the day's low of 10,956.30 in mid-afternoon trade.
Broader market witnessed selling pressure. Among secondary barometers, the BSE Mid-Cap index was down 1.30%. The BSE Small-Cap index was down 1.03%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 802 shares rose and 1657 shares fell. A total of 120 shares were unchanged.
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Most auto stocks declined. Ashok Leyland (down 11.44%), Escorts (down 3.3%), Tata Motors (down 2.47%), Mahindra & Mahindra (down 1.6%), TVS Motor Company (down 1.53%) and Maruti Suzuki India (down 0.94%), edged lower. Hero MotoCorp (up 0.29%), Eicher Motors (up 0.75%) and Bajaj Auto (up 0.77%), edged higher.
Realty shares declined. DLF (down 4.12%), Housing Development and Infrastructure (HDIL) (down 3.45%), Anant Raj (down 2.49%), D B Realty (down 2.36%), Godrej Properties (down 2.05%), Prestige Estates Projects (down 1.94%), Oberoi Realty (down 1.5%), Mahindra Lifespace Developers (down 1.32%), Sunteck Realty (down 1.13%), Indiabulls Real Estate (down 0.99%), Peninsula Land (down 0.99%), Phoenix Mills (down 0.91%), Unitech (down 0.49%), Parsvnath Developers (down 0.37%) and Omaxe (down 0.02%), edged lower. Sobha was up 0.89%.
On the political front, the Monsoon Session of Parliament began today, 18 July 2018. A no-confidence motion was reportedly moved against the Narendra Modi government in the Lok Sabha today, with Speaker Sumitra Mahajan admitting it and saying she would announce the date for a debate on it in "2-3 days". Over half-a-dozen MPs from the Opposition Benches gave notices for the no-confidence motion which includes members from Congress, TDP and TMC. Parliamentary Affairs Minister Ananth Kumar said the government was ready to face the no-confidence motion and win it as it enjoyed a two-third majority in the House, reports added.
The Monsoon Session of Parliament will conclude on 10 August 2018. The Session will provide a total of 18 sittings spread over a period of 24 days. Government has listed a substantive legislative business for the session. This includes 48 items, including 46 Bills and two financial matters. The bills prioritised by the government include The Muslim Women (Protection of Rights on Marriage) Bill or the anti-instant triple talaq bill and The Constitution (123rd Amendment) Bill, that gives Constitutional status to the National Commission for Backward Classes.
Overseas, European shares rose helped by a rally in tech stocks following well-received earning updates from equipment maker Ericsson. Most Asian shares were trading higher, tracking overnight gains in the US market following upbeat remarks from Federal Reserve Chairman Jerome Powell during his congressional testimony.
US stocks closed higher on Tuesday, extending a recent upswing after Fed's Powell indicated the US central bank would not move too quickly in changing monetary policy, and that it would be flexible in the face of changing conditions. Traders also digested the latest round of corporate earnings, which came in mixed but nevertheless showed strong growth.
Appearing in front of the Senate Banking Committee, Powell said the best way forward is to keep gradually raising the federal-funds rate for now. In a cautious note, however, Powell said that it is difficult to predict the ultimate outcome of current discussions over trade policy as well as the size and timing of the economic effects of the recent changes in fiscal policy.
On the US data front, industrial production rose 0.6% in June to more than offset a similarly sized decline in May. The National Association of Home Builders' monthly confidence index was unchanged at 68 in July.
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