Auto, telecom sector stocks and index heavyweight Infosys led modest losses for key benchmark indices. The barometer index, the S&P BSE Sensex, fell 111.30 points or 0.39% to settle at 28,523.20. The Nifty 50 index fell 32.50 points or 0.37% to settle at 8,775.90. Weakness in global stocks weighed on sentiment on the domestic bourses.
In overseas stock markets, European stocks were mixed. Asian stocks edged lower as investors awaited the outcomes of separate policy meetings of the US Federal Reserve and Bank of Japan (BOJ). The BOJ begins a two-day monetary policy meeting today, 20 September 2016. The central bank will conduct a comprehensive review of its stimulus programme after failing to reach its 2% inflation target. Investors are divided on what steps the central bank will take. Some expect that the BOJ will push back additional easing steps, while making its government bond buying more flexible to steepen the yield curve. Others expect the BOJ to launch fresh stimulus through a further push into negative territory and increased asset purchases. The central bank had kept its pledge to increase the monetary base at an annual pace of about 80 trillion yen and left the interest rate unchanged at minus 0.1% at its July 2016 meeting. Policymakers also decided to increase the annual exchange-traded equity funds purchase target to 6 trillion yen from the previous 3.3 trillion yen.
US stocks registered tiny losses yesterday, 19 September 2016, after a choppy session, with telecommunications shares lagging. The US Federal Reserve policy makers begin their two-day policy meeting today, 20 September 2016. The Fed is expected to keep its benchmark interest rate unchanged in the wake of recent downbeat US economic indicators. The Fed left the target range for its federal funds rate unchanged at 0.25% to 0.5% for the fifth time during its July 2016 meeting.
Back home, the Sensex fell 111.30 points or 0.39% to settle at 28,523.20, its lowest closing level since 15 September 2016 . The index rose 64.31 points, or 0.22% at the day's high of 28,698.81. The index fell 153.97 points, or 0.54% at the day's low of 28,480.53.
The Nifty 50 index fell 32.50 points or 0.37% to settle at 8,775.90, its lowest closing level since 15 September 2016 . The index rose 8.05 points, or 0.09% at the day's high of 8,816.45. The index fell 49.10 points, or 0.56% at the day's low of 8,759.30.
The market breadth indicating the overall health of the market was negative. On BSE, 1,513 shares declined and 1,197 shares rose. A total of 209 shares were unchanged. The BSE Mid-Cap index fell 0.09%. The BSE Small-Cap index fell 0.26%. The losses for both these indices were lower than the Sensex's decline in percentage terms.
Among the sectoral indices on BSE, the S&P BSE Metal index (up 0.34%), the S&P BSE Oil & Gas index (up 0.18%), the S&P BSE Basic Materials index (down 0.01%), the S&P BSE Energy index (down 0.04%), the S&P BSE Healthcare index (down 0.06%), the S&P BSE Finance index (down 0.11%), the S&P BSE Bankex (down 0.31%), the S&P BSE Consumer Durables index (down 0.32%), the S&P BSE Teck index (down 0.37%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.38%) and the S&P BSE Telecom index (down 0.38%), outperformed the Sensex. The S&P BSE IT index (down 0.42%), the S&P BSE FMCG index (down 0.52%), the S&P BSE Capital Goods index (down 0.53%), the S&P BSE Utilities index (down 0.57%), the S&P BSE Auto index (down 0.62%), the S&P BSE Industrials index (down 0.62%), the S&P BSE Power index (down 0.75%) and the S&P BSE Realty index (down 1.94%), underperformed the Sensex.
The total turnover on BSE amounted to Rs 5323.51 crore, higher than turnover of Rs 3615.78 crore registered during the previous trading session.
Index heavyweight and software major Infosys fell 1.02% at Rs 1,050.35. The stock hit a high of Rs 1,057.25 and a low of Rs 1,046.50 in intraday trade.
Banks stocks witnessed selling pressure. Among state-run banks, IDBI Bank (down 2.05%), Allahabad Bank (down 1.85%), United Bank of India (down 1.37%), Syndicate Bank (down 1.06%), Dena Bank (down 0.79%), UCO Bank (down 0.77%), Punjab & Sind Bank (down 0.56%), State Bank of India (down 0.55%), Bank of Maharashtra (down 0.48%), Bank of India (down 0.47%), Punjab National Bank (down 0.47%), Union Bank of India (down 0.18%) and Corporation Bank (down 0.12%), edged lower. Bank of Baroda (up 0.24%), Indian Bank (up 0.35%), Vijaya Bank (up 0.50%) and Andhra Bank (up 0.84%), edged higher.
Canara Bank gained 0.50% at Rs 304.20 after the bank's board of directors scheduled a board meeting on 23 September 2016 to consider raising of capital by way of a rights issue and strengthening of capital to risk weighted assets ratio (CRAR) of the bank. The announcement was made after market hours yesterday, 19 September 2016.
Among private sector banks, Federal Bank (down 2.84%), IndusInd Bank (down 1.82%), RBL Bank (down 1.43%), Kotak Mahindra Bank (down 1.08%), City Union Bank (down 0.27%), Axis Bank (down 0.25%) and HDFC Bank (down 0.19%), edged lower. ICICI Bank (up 0.06%) and Yes Bank (up 2.25%), edged higher.
Karur Vysya Bank rose 1.12% at Rs 482 after the bank said that its board of directors approved a 5-for-1 stock split proposal. The announcement was made after market hours yesterday, 19 September 2016.
Most auto stocks declined. Hero MotoCorp (down 2.43%), Bajaj Auto (down 1.96%), TVS Motor Company (down 1.23%), Tata Motors (down 1.07%) and Ashok Leyland (down 0.65%), edged lower. Maruti Suzuki (India) (up 0.53%), Eicher Motors (up 1.16%) and Escorts (up 5.31%), edged higher.
Mahindra & Mahindra (M&M) fell 0.45% to Rs 1409.75. The company announced that India Ratings and Research (Ind-Ra) has assigned 'Provisional IND AAA' rating with stable outlook for the company's proposed issue of Rs 475 crore non-convertible debentures. The ratings agency has also assigned 'IND A1+' rating for the company's proposed issue of Rs 700 crore commercial papers. The announcement was made after market hours yesterday, 19 September 2016.
Telecom stocks declined. Bharti Airtel (down 1.59%), Idea Cellular (down 1.06%) and Reliance Communications (down 0.92%) edged lower.
Bharti Infratel rose 1.82%. Bharti Infratel is a telecom tower arm of Bharti Airtel.
Adani Ports and Special Economic Zone (APSEZ) fell 2.16% at Rs 270.15. The company announced that its Australian subsidiary has entered into an agreement to acquire ownership of Abbot Point Bulkcoal Pty (APB), an Australian registered company performing the operations and maintenance activities of Abbot Point Coal Terminal in Queensland, Australia. Under the agreement, Abbot Point Operations Pty (APO) acquires 100% of shares in APB from Glencore Coal Queensland Pty upon receiving certain approvals.
Key indices corrected after a four-day rising streak. The Sensex rose 280.96 points or 0.99% in four trading days to end at 28,634.50 yesterday, 19 September 2016, from its close of 28,353.54 on 12 September 2016. The Sensex has gained 71.03 points or 0.25% in this month so far (till 20 September 2016). The Sensex has risen 2,405.66 points or 9.21% in calendar year 2016 so far (till 20 September 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 6,028.59 points or 26.80%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 554.08 points or 1.91%. The Sensex is off 1,501.54 points or 5% from a record high of 30,024.74 hit on 4 March 2015.
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