Index heavyweights Infosys and HDFC led losses for key benchmark indices. At 10:16 IST, the barometer index, the S&P BSE Sensex was down 249.58 points or 1% at 24,651.05. The losses for the Nifty 50 index were lower in percentage terms than those for the Sensex. The Nifty was currently down 67.20 points or 0.88% at 7,547.15. The Sensex failed to retain the psychologically important 25,000 level which it had crossed at the onset of the trading session.
The Sensex hit three-week low when it lost 252.42 points or 1.01% at the day's low of 24,648.21 in morning trade. The barometer index rose 112.50 points or 0.45% at the day's high of 25,013.13 at the onset of the trading session, its highest level since 5 April 2016. The Nifty hit its lowest level in almost three weeks when it lost 71.05 points or 0.93% at the day's low of 7,543.30 in morning trade. The index rose 16.40 points or 0.21% at the day's high of 7,630.75 at the onset of the trading session.
In overseas stock markets, Asian stocks witnessed a mixed trend. US stocks edged higher yesterday, 6 April 2016, after minutes of the Federal Reserve's March meeting showed that officials favoured more gradual rate hikes.
Closer home, the market breadth indicating the overall health of the market turned negative from positive in morning trade. On BSE, 947 shares fell and 830 shares rose. A total of 74 shares were unchanged. The BSE Mid-Cap index was currently down 0.31%. The BSE Small-Cap index was currently down 0.3%. The decline in both these indices was than the Sensex's fall in percentage terms.
Shares of public sector oil marketing companies (PSU OMCs) edged higher after the government's announcement that it has decided to give oil PSUs freedom to evolve their own policies on import of crude oil. BPCL (up 0.88%) and HPCL (up 0.38%) edged higher. Indian Oil Corporation was unchanged at Rs 410.70. This measure will increase the operational and commercial flexibility of oil PSUs and enable them to adopt the most effective procurement practices for import of crude oil, according to a government statement. The announcement hit the market after trading hours yesterday, 6 April 2016.
Shares of oil exploration and production (E&P) companies edged higher after surge in crude oil prices. Cairn India (up 1.16%), ONGC (up 1.19%) and Oil India (up 0.02%) rose. Higher crude oil prices could result in higher realization from crude sales for oil exploration firms.
Index heavyweight Reliance Industries was off 0.28% at Rs 1,028.60. The stock hit a high of Rs 1,032.60 and a low of Rs 1,023.25 so far during the day.
In the global commodities markets, crude oil futures surged after the US government reported a surprise drop in weekly crude stockpiles. Brent for June settlement was currently up 26 cents at $40.10 a barrel. The contract had jumped $1.97 a barrel 5.2% to settle at $39.84 a barrel during the previous trading session.
The world's major crude oil producers led by Russia and Saudi Arabia have convened a meeting on 17 April 2016 in Doha, Qatar to discuss measures to stabilise prices, including a proposal to freeze output. Saudi Arabia on 1 April 2016 said that it would freeze oil production only if Iran follows suit. Iran has ruled out freezing output until its production recovers to pre-sanction levels.
Cement stocks declined. Ambuja Cements (down 0.52%), ACC (down 0.43%) and Shree Cement (down 0.79%) edged lower. UltraTech Cement (up 0.13%) edged higher.
Grasim Industries was off 0.03%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Index heavyweight and IT major Infosys fell 1.47% at Rs 1,183.40 after a block deal of 55.20 lakh shares was executed on the counter at Rs 1,176.80 per share at 9:46 IST on BSE. The company will announce its Q4 March 2016 results on 15 April 2016.
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