Key benchmark indices provisionally settled with small losses after witnessing intraday volatility. The barometer index, the S&P BSE Sensex, dropped 72.46 points or 0.21% at 34,771.05, as per the provisional closing data. The Nifty 50 index declined 41.10 points or 0.38% at 10,700.45, as per the provisional closing data. Profit booking was witnessed on the bourses after indices scaled record highs yesterday, 15 January 2018. Key indices snapped three-day winning streak today, 16 January 2018.
Indices opened with small gains and hovered in the positive terrain near the flat line till morning trade. Stocks slipped into the red in mid-morning trade but soon pared losses. The market once again reclaimed positive terrain in early afternoon trade, however, once again drifted lower in afternoon trade. Indices slipped into the red again after staging recovery in mid-afternoon trade. Indices swung between gains and losses in late trade.
The Sensex rose 92.52 points or 0.27% at the day's high of 34,936.03 in morning trade. The index fell 107.96 points or 0.31% at the day's low of 34,735.55 in mid-afternoon trade. The Nifty gained 20.80 points or 0.19% at the day's high of 10,762.35 in morning trade. The index declined 53.70 points or 0.5% at the day's low of 10,687.85 in mid-afternoon trade, its lowest level since 12 January 2018.
Among the secondary indices, the S&P BSE Mid-Cap index provisionally fell 1.74%. The S&P BSE Small-Cap index provisionally dropped 2.21%. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 7648.82 crore, higher than turnover of Rs 5271.95 crore registered during the previous trading session.
The broad market depicted weakness. There were more than three losers for every gainer on BSE. 2,222 shares declined and 754 shares rose. A total of 115 shares were unchanged.
Metal and mining stocks dropped. Bhushan Steel (down 4.93%), Vedanta (down 2.29%), Tata Steel (down 1.94%), NMDC (down 3.82%), Hindalco Industries (down 2.77%), Steel Authority of India (down 5.79%), JSW Steel (down 0.4%), Hindustan Zinc (down 1.39%) and National Aluminium Company (down 7.67%) edged lower. Jindal Steel & Power gained 0.9%.
In the upcoming budget 2018-19, the metal industry is expecting a push for use of indigenous products, encouraging Make-in-India and increased spending on infra project including housing for all and roads.
TCS rose 3.92% after the company announced the launch of TCS HOBS (Hosted OSS/BSS), a TM Forum certified platform for digital enterprises, on Microsoft Azure. The announcement was made during market hours today, 16 January 2018. The cloud ready TCS HOBS platform will enable customers to get to market quicker and benefit from a pay-as you-use commercial model.
Separately, TCS said that M&G Prudential, the UK and European savings and investments business of Prudential plc, entered into a new agreement with the company to digitally transform their business and deliver enhanced service for its UK savings and retirement customers. The value of the agreement exceeds 500 million pounds or $690 million over 10 years and covers the support of over 4 million customer policies. The announcement was made during market hours today, 16 January 2018.
ICICI Lombard General Insurance Company rose 2.66% after net profit rose 5.2% to Rs 231.76 crore on 9.60% increase in total income to Rs 2019.77 crore in Q3 December 2017 over Q3 December 2016. The result was announced during trading hours today, 16 January 2018.
Among macroeconomic data, exports rose 12.36% to $27.03 billion in December 2017 over December 2016. Imports rose 21.12% to $41.91 billion in December 2017 over December 2016. The trade deficit for December 2017 was estimated at $14.88 billion as against the deficit of $10.54 billion during December 2016.
Overseas, most European stocks edged higher as investors awaited the release of corporate earnings. On macro front, the trade surplus in the 19 countries sharing the euro expanded in November to its highest point in eight months. The European statistics office Eurostat said the euro zone's surplus in goods trade rose in unadjusted terms to 26.3 billion euros in November, up from 18.9 billion euros in October. It was also higher than the 23.8 billion surplus recorded a year earlier.
Asian stocks gained, erasing early losses amid announcements of corporate earnings. US stock markets remained shut yesterday, 15 January 2018, for the Martin Luther King Jr. holiday.
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