Gains in index heavyweights Infosys and ITC aided intraday recovery for the two key benchmark indices. At 14:18 IST, the barometer index, the S&P BSE Sensex, was down 60.61 points or 0.25% at 24,490.56. The 50-unit Nifty 50 index was down 14.50 points or 0.19% at 7,446.10. Gains in European stocks aided the recovery for the two key benchmark indices.
The Sensex hit two-week low when it dropped 196.62 points or 0.8% at the day's low of 24,354.55 in early afternoon trade. The barometer index rose 9.80 points or 0.13% at the day's high of 24,565.30 at the onset of the trading session. The Nifty too hit two-week low when it shed 55.45 points or 0.74% at the day's low of 7,405.15 in early afternoon trade. The index rose 9.80 points or 0.13% at the day's high of 7,470.40 at the onset of the trading session.
The market breadth indicating the overall health of the market was weak. On BSE, 1,573 shares fell and 864 shares rose. A total of 149 shares were unchanged. The BSE Mid-Cap index was currently down 0.76%. The BSE Small-Cap index was currently down 0.58%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
In overseas stock markets, European stocks edged higher ahead ofthe US Federal Reserve's policy decision due later in the global day. Asian stocks were mixed. Most US stocks edged lower yesterday, 15 March 2016, weighed by a fall in oil prices and a string of lackluster economic data.
The Federal Reserve's two-day monetary policy meeting ends today, 16 March 2016. Federal Reserve officials are likely to hold short-term interest rates steady at its policy meeting amid uncertainties about global financial markets and global growth. The Fed in December 2015 raised its benchmark federal-funds rate from near zero to a range between 0.25% and 0.5%.
Asian Paints edged lower on reports that a foreign brokerage has downgraded the stock to "neutral" from "buy", citing expensive valuation. The stock dropped 2.04% to Rs 868. The brokerage reckons that there is not much earnings visibility for the company once crude oil price stabilises. The brokerage has reportedly trimmed its revenue growth forecast for the company. The brokerage expects improvement in the company's EBITDA (earnings before interest, taxation, depreciation and amortization) margin from FY 2016. It, however, does not expect a significant expansion in profit margins.
Cement stocks dropped. ACC (down 0.47%), Ambuja Cements (down 0.29%), and UltraTech Cement (down 0.07%) declined. Shree Cement rose 0.23%.
Grasim Industries gained 0.83%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
IT stocks were mixed. Tech Mahindra (up 0.13%) and HCL Technologies (up 0.22%) edged higher. TCS declined 0.55%.
Index heavyweight and IT major Infosys was up 0.39%.
IT major Wipro dropped 0.07%. The company announced a strategic partnership with Schneider Electric, a global specialist in energy management and automated systems, to develop convergent solutions for India's smart cities. Wipro and Schneider Electric will collaborate to enable the delivery of cost-effective and efficient citizen services to urban and rural communities. Both the organizations will jointly develop solutions in the smart city space for India and global markets. Wipro and Schneider already have a strong partnership around IT, Data Centers, connectivity, Intelligent Building Management Systems and Data Center Infrastructure Management solutions. Wipro made the announcement was made after market hours yesterday, 15 March 2016.
Meanwhile, as per data announced by the government after market hours yesterday, 15 March 2016, India's merchandise exports fell 5.66% in dollar terms in February 2016 over February 2015. Non-petroleum exports fell 2.69%. The trend of falling exports is in tandem with other major world economies, according to a statement from the Ministry of Commerce & Industry. Imports fell 5.03% in dollar terms in February 2016 over February 2015.
Powered by Capital Market - Live News
