Shares declined on a broad-based selling pressure. The barometer index, the S&P BSE Sensex, fell 252.88 points or 0.76% to 32,923.12, as per the provisional closing data. The Nifty 50 index fell 100.95 points or 0.99% to 10,094.20, as per the provisional closing data. The Sensex provisionally settled below the psychological 33,000 level after slipping below that level in afternoon trade. The Sensex fell for the fifth straight trading session while the Nifty declined for the fourth straight trading session.
Weak global cues ahead of the US Federal Reserve policy decision later in the week, influenced trading sentiments on domestic bourses. A sharp widening of current account deficit (CAD) too weighed on investors' mood. Metals and banks shares witnessed selling pressure.
After opening higher, key indices slipped into negative terrain in morning trade. After some recovery, indices extended losses in afternoon trade and hit fresh intraday low in late trade. The Sensex rose 99.79 points, or 0.30% at the day's high of 33,275.79 in early trade. The index fell 319.46 points, or 0.96% at the day's low of 32,856.54 in late trade, its lowest level since 18 December 2017. The Nifty rose 29.40 points, or 0.29% at the day's high of 10,224.55 in early trade. The index fell 119.85 points, or 1.18% at the day's low of 10,075.30 in late trade, its lowest level since 18 December 2017.
Among secondary barometers, the BSE Mid-Cap index provisionally fell 1.58%. The BSE Small-Cap index provisionally fell 1.98%. Both these indices underperformed the Sensex.
The broad market depicted weakness. There were more than three losers against every gainer on BSE. 2,183 shares declined and 566 shares advanced. A total of 162 shares were unchanged.
The total turnover on BSE amounted to Rs 3225.01 crore, compared with the turnover of Rs 3683.79 crore registered during the previous trading session.
Metal shares declined. NMDC (down 6.59%), Hindustan Copper (down 5.87%), Steel Authority of India (down 5.36%), Tata Steel (down 4.35%), Hindalco Industries (down 3.27%), JSW Steel (down 2.29%), Hindustan Zinc (down 2.28%), Jindal Steel & Power (down 2.19%) and Vedanta (down 0.66%), edged lower. National Aluminium Company was up 1.97%
Tata Power fell 0.63%. The company said it selected Tata Communications to launch its IoT based, Automated Meter Infrastructure(AMI) in partnership with L&T Meters in Mumbai. Tata power worked on a state-of-the-art IoT AMI solution to provide power measurement parameters such as instantaneous, load profile, tamper and billing information on periodic manner. The data will be then ingested into Tata power's Meter Data Management (MDM) system which will enable fast turnaround time of data provision to MDM thereby bringing in operational effectiveness and better reconciliation between distribution points and end customers. The announcement was made during trading hours today, 19 March 2018.
Drug major Lupin rose 0.37%. The company announced that it has received final approval for its Desoximetasone Topical Spray, 0.25%, 30 ml, 50 ml, and 100 ml from the United States Food and Drug Administration (USFDA). Lupin's Desoximetasone Topical Spray, 0.25%, 30 ml, 50 ml, and 100 ml is the generic equivalent of Taro Pharmaceuticals U.S.A Inc.'s Topicort Topical Spray, 0.25%. It is a corticosteroid indicated for the treatment of plaque psoriasis in patients 18 years of age or older. Desoximetasone Topical Spray, 0.25%, 30 ml, 50 ml, and 100 ml had annual sales of approximately $19.5 million in the US (IQVIA MAT January 2018). The announcement was made during trading hours today, 19 March 2018.
Axis Bank fell 0.38%. The bank said it has decided to introduce a new tier of 6% per annum interest for savings bank customers maintaining balance of Rs 10 crore and above. Customers will continue to get 3.50% per annum for savings deposit balances of less than Rs 50 lakh and 4% for savings deposit balances between Rs 50 lakh and less than Rs 10 crore. The above rates will be effective 19 March 2018. The announcement was made during trading hours today, 19 March 2018.
In a separate announcement after market hours on Friday, 16 March 2018, Axis Bank said it has reviewed and retained the marginal cost of funds based lending rates (MCLRs) across all tenors effective from 17 March 2018. The bank's MCLRs vary between 7.85% and 8.5% ranging from overnight to three-year tenors.
On the macro front, India's current account deficit (CAD) was reported at $13.5 billion (2% of GDP) in Q3 of FY 2018, up from $8 billion (1.4% of GDP) in Q3 of FY 2017 and $7.2 billion (1.1% of GDP) in the preceding quarter. The widening of the CAD on a year-on-year (y-o-y) basis was primarily on account of a higher trade deficit ($44.1 billion) brought about by a larger increase in merchandise imports relative to exports.
On the political front, the Telugu Desam Party (TDP) and Yuvajana Shramika Rythu Congress Party (YSR Congress) moved no-confidence motions against the Narendra Modi government in the Lok Sabha today. However, no-confidence motion was not introduced, and Lok Sabha was adjourned till tomorrow after continuous uproar.
The Lok Sabha was held up for the 11th day as the TDP, YSR Congress, TRS and AIADMK continued their protests over various issues, including the banking scam and special status for Andhra Pradesh. The lawmakers from these parties trooped into the well holding placards. TDP, the BJP's erstwhile biggest ally in south which walked out of the NDA last week, and its arch-rival YSR Congress have demanded a no trust vote against the government.
The Rajya Sabha was adjourned for the day without transacting any business after parties from Tamil Nadu and Andhra Pradesh disrupted proceedings over their state specific demands. The government has only managed to get some key bills and the budget passed amid a din through a voice vote without a debate as the session has been a virtual washout so far.
Overseas, European shares edged lower, while Asian stocks settled on a mixed note as caution gripped investors ahead of the US Federal Reserve policy meeting later in the week. US stocks ended modestly higher on Friday, 16 March 2018, with the S&P 500 breaking a four-day losing streak.
The US Federal Reserve's two-day monetary policy meeting is scheduled on March 20-21. Strengthening labor market and a steady increase in price pressures could pave the way for the Federal Reserve to raise interest rates in upcoming meeting. The US central bank has forecast three rate increases for this year, but there are also expectations that it will raise its projection to four hikes at the meeting.
Among economic data, US industrial production jumped 1.1% in February, the largest increase in four months. In a separate report, the Commerce Department said housing starts declined 7% to a seasonally adjusted annual rate of 1.236 million units in February. Further, the University of Michigan consumer-sentiment index rose to 102 in March from 99.7 in February.
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