Key benchmark indices languished near the flat line in mid-afternoon trade. At 14:15 IST, the barometer index, the S&P BSE Sensex was down 39.94 points or 0.12% at 34,156. The Nifty 50 index was up 2 points or 0.02% at 10,500.25. Investors were cautious ahead of the central bank's policy decision later in the day.
Key indices opened the session on a positive note on higher global stocks after witnessing a slide in the previous six trading sessions. Indices trimmed intraday gains in mid-morning trade. Indices slipped into the negative zone in early afternoon trade. Key indices bounced back and were hovering near the flat line in mid-afternoon trade.
Overseas, European stocks edged higher in early trade after recent global markets turmoil. Asian stocks were mixed. US stocks closed higher yesterday, 6 February 2018, albeit with wild swings witnessed in the day's trading, after two huge sell-offs in a row. The wild moves were attributed to a combination of factors like interest-rate fears, computer-driven trading and the obscure volatility funds that use leverage.
Back home to today's trade, among secondary indices, the S&P BSE Mid-Cap index rose 0.74%. The S&P BSE Small-Cap index rose 2.12%. Both these indices outperformed the Sensex.
The broad market depicted strength. There were nearly three gainers against every loser on the BSE. 1,992 shares rose and 687 shares declined. A total of 101 shares were unchanged.
Power generation and power distribution stocks advanced. Jaiprakash Power Ventures (up 4.25%), Tata Power Company (up 3.32%), Adani Power (up 1.26%), Power Grid Corporation of India (up 0.79%), NHPC (up 1.07%), Reliance Power (up 0.74%), Reliance Infrastructure (up 0.27%) and GMR Infrastructure (up 0.26%) edged higher. NTPC (down 1.24%) edged lower.
Key capital goods stocks were mixed. Bharat Electronics (up 5.64%), Thermax (up 3.71%), BEML (up 3.55%) and Bhel (up 2.22%) advanced. L&T (down 1.28%), Siemens (down 1.19%) and ABB India (down 0.79%) declined.
Mining major Vedanta dropped 1.85% at Rs 315.70 after media reports suggested that the Supreme Court today, 7 February 2018 cancelled 88 mining leases in Goa that were renewed by the State government in 2015 just before the Mines and Minerals (Regulation and Development) Act mandated the auction of mining leases. All mining activity, involving the iron and manganese mines, in Goa would come to a halt by March 15, reports indicated. The judgement has come on a petition filed by NGO Goa Foundation that challenged the renewal of leases by the government.
Among key events, the Reserve Bank of India's (RBI) two-day Monetary Policy Committee (MPC) meeting concludes today, 7 February 2018 at 14:30 IST. The central bank is likely to keep its policy rate on hold, but could toughen its warnings against inflation. The MPC is expected to tilt towards a hawkish tone from its neutral tone following higher fiscal targets, oil price increases and higher MSP for agriculture crops.
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