Fresh selling in index pivotals pulled the key benchmark indices to intraday low in early afternoon trade. At 12:28 IST, the barometer index, the S&P BSE Sensex, was down 253.13 points or 0.75% at 33,603.65. The Nifty 50 index was down 88.60 points or 0.85% at 10,338.25. The market sentiment was impacted after the Reserve Bank of India (RBI) banned letters of undertaking (LoUs) for seeking overseas loans. Negative Asian stocks also weighed on the sentiment.
Auto stocks declined. Index heavyweight Reliance Industries declined. Index heavyweight and housing finance major HDFC dropped.
Domestic stocks began trading on a subdued note on negative Asian stocks. Key benchmark indices hovered in negative zone in morning trade. Indices extended fall and hit fresh intraday low in mid-morning trade.
The S&P BSE Mid-Cap index was off 0.17%. The S&P BSE Small-Cap index was off 0.36%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, once again turned weak. On the BSE, 1,481 shares fell and 952 shares rose. A total of 126 shares were unchanged. Breadth was weak in early trade. It turned negative in morning trade.
Index heavyweight Reliance Industries fell 1% to Rs 921.35
Index heavyweight and housing finance major HDFC lost 1.04% to Rs 1,843.90. A meeting of the board of directors of the corporation is scheduled to be held on 16 March 2018, to consider and approve payment of interim dividend, if any, on the equity shares for the financial year ending 31 March 2018. The objective of payment of interim dividend is to distribute dividends received by the corporation from its subsidiary companies during the year to the shareholders. The record date is 24 March 2018. The announcement was made after market hours yesterday, 13 March 2018.
Bharti Airtel fell 1.27%. The company informed that within the authority of the special resolution passed by the shareholders of the company, the committee of directors of the company has approved the allotment of 30,000 listed, unsecured, rated, redeemable, non-convertible debentures (Series I and II) of face value Rs 10 lakh each, at par aggregating to Rs 3000 crore on private placement basis. The announcement was made during market hours today, 14 March 2018.
The proceeds of the issue will be used for general corporate purpose including routine treasury activities of refinancing of existing debt and spectrum liabilities etc.
Auto stocks declined. Escorts (down 1.85%), Bajaj Auto (down 1.15%), TVS Motor Company (down 0.12%), Tata Motors (down 0.83%), Mahindra & Mahindra (M&M) (down 0.82%) and Ashok Leyland (down 0.43%) fell. Eicher Motors (up 0.29%) and Maruti Suzuki India (up 0.22%) rose.
Hero MotoCorp lost 1.87%. Close on the heels of launching the new Super Splendor, Hero MotoCorp commenced retail sales of the new 'Passion PRO and Passion XPRO' across markets in the country.
The two new products are set to further consolidate the leadership of Hero MotoCorp in the domestic motorcycle market, where the company commands over 50% market share, Hero MotoCorp said.
L&T fell 0.64%. The company announced that its wholly owned subsidiary viz. L&T Hydrocarbon Engineering, has won orders worth above Rs 1600 crore across various business segments. The announcement was made during market hours today, 14 March 2018.
Strides Shasun rose 2.01% after the company's subsidiary received approval from US drug regulator for a generic drug indicated for the treatment of Type 1 HIV. The announcement was made before market hours today, 14 March 2018.
Strides Shasun announced that its wholly owned subsidiary Strides Pharma Global Pte has received approval for Efavirenz Tablets USP, 600 mg from the United States Food & Drug Administration (USFDA). Efavirenz Tablet is generic version of Sustiva Tablets of Bristol-Myers Squibb Company. Efavirenz Tablet is indicated for the treatment of Human Immunodeficiency Virus Type 1 (HIV-1) infected adults and adolescents.
According to IQVIA data, the US market for Efavirenz Tablets USP, 600 mg is approximately $115 million and Strides is only the second generic company to get the approval for the product under the para IV route. The product will be manufactured at the company's oral dosage facility at Bangalore and will be marketed by Strides Pharma Inc. in the US market. Strides is launching the product immediately.
Meanwhile, the Reserve Bank of India (RBI) in a press release issued yesterday, 13 March 2018 said that on a review of the extant guidelines, it has been decided to discontinue the practice of issuance of Letters of Undertaking (LoUs) / Letters of Comfort (LoCs) for Trade Credits for imports into India by Authorised Dealer Category - I banks with immediate effect. Letters of Credit and Bank Guarantees for Trade Credits for imports into India may continue to be issued.
Overseas, Asian stocks declined following an overnight slide in US equities after a fresh personnel shakeup in the Trump administration spurred concerns about a unilateral approach to trade, national security and foreign affairs.
Chinese industrial-production, fixed-asset investment and retail sales data showed the economy grew much faster than expected in the first two months of 2018. China releases combined data for January and February to limit distortions caused by the Lunar New Year holiday, which was in January last year but February this year.
Value-added industrial output, a rough proxy for economic growth, expanded by 7.2% in January and February from a year earlier, compared with a 6.2% on-year increase in December, the National Bureau of Statistics said today, 14 March 2018. Industrial production rose 0.57% on-month in February, compared with December's 0.52% growth.
Fixed-asset investment outside rural households climbed 7.9% in the first two months of 2018 from a year earlier, quickening from a 7.2% increase in 2017. Retail sales grew 9.7% on-year in January and February, accelerating from a 9.4% rise in December.
Minutes from the Bank of Japan's January meeting, released today, 14 March 2018 showed that some board members warned the central bank should keep a close eye on unexpected side effects from the current monetary policy.
US equities fell in choppy trade yesterday, 13 March 2018 after tech shares pulled back amid concerns trade tensions between the US and China could increase. The sudden firing of US Secretary of State Rex Tillerson took some by surprise less than a week after top economic adviser Gary Cohn resigned from the White House. US President Donald Trump has nominated CIA director Mike Pompeo, an ex-congressman, to replace Tillerson.
The consumer-price index rose a mild 0.2% in February after a 0.5% increase in January. The year-over-year rate for CPI edged up to 2.2% in February from 2.1% in January.
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