The stock market continued to languish in negative zone in afternoon trade. At 13:15 IST, the barometer index, the S&P BSE Sensex, fell 80.75 points or 0.24% at 34,216.72. The Nifty 50 index dropped 23.85 points or 0.23% at 10,521.65.
A jump in India's trade deficit in January 2018 weighed on sentiment. Also, the rise in global crude oil prices of late has also hit the market sentiment. India imports majority of its crude oil requirements and a surge in crude prices will add to the country's fiscal deficit.
Domestic markets opened with modest gains, tracking the surge in US stocks in the previous session and thin holiday trades in the Asian markets. Stocks soon trimmed initial gains in morning trade and later slipped into the red in mid-morning trade. Later, indices languished in negative zone so far.
Among secondary indices, the S&P BSE Mid-Cap index fell 0.82%. The S&P BSE Small-Cap index dropped 0.99%. Both these indices underperformed the Sensex.
Overseas, it is a shortened week for greater China markets, with mainland China markets remaining shut from 15 to 21 February 2018 and Hong Kong markets shut from 16 to 19 February 2018 for the Lunar New Year. Most of the other Asian markets are also closed for a holiday.
US stocks rose for the fifth day in a row yesterday 15 February 2018, led by technology stocks. They have now recovered about half of their losses during the market's dramatic plunge earlier this month on worries over higher inflation and rising treasury yields. In economic news, the Labor Department said US wholesale prices rose 0.4% in January, the biggest increase since November.
Closer home, the breadth, indicating the overall health of the market, was quite weak. There were almost three losers for every gainer. On the BSE, 1,960 shares declined and 687 shares advanced. A total of 102 shares were unchanged.
Among sectors, realty stocks were mostly lower. Indiabulls Real Estate was down 1.92%, Unitech 1.66%, DLF 1.12%, Godrej Properties 0.56% and HDIL fell 0.29%. Prestige Estates Projects was up 0.14%, Sobha 0.17% and Oberoi Realty rose 0.56%.
Aviation stocks were mixed. InterGlobe Aviation was up 0.25% and SpiceJet rose 1.22%. However, Jet Airways (India) was down 1.14%.
Bharat Heavy Electricals (Bhel) rose 0.21% after the company said it has commissioned hydro-electric project in Punjab equipped with its highest rating bulb turbines. With the commissioning of the second 9 megawatt (MW) hydro generating unit, the company has successfully commissioned the 18 MW Mukerian Hydro-Electric Project (HEP) Stage-II in Punjab. The first unit of the 18 MW Mukerian HEP, commissioned in May 2017 by Bhel, has been operating successfully. The announcement was made during trading hours today, 16 February 2018.
IDBI Bank was down 1.42%. The bank said it has sold entire 1.20 crore equity shares constituting 30% of the paid up capital of NSDL e-Governance Infrastructure (NEGIL) on 15 February 2018. NEGIL works closely with various Government agencies for designing, managing and implementing e-Governance Projects. The announcement was made after market hours yesterday, 15 February 2018.
On the macroeconomic data front, India's merchandise exports increased 9.1% to $24.38 billion in January 2018 over a year ago. Meanwhile, merchandise imports surged 26.1% to $40.68 billion. The trade deficit jumped 64.6% to $16.30 billion in January 2018 from $9.9 billion in January 2017.
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