Key equity indices resumed decline after previous session's gains, weighed down by IT and FMCG shares. The Nifty managed to stay afloat above the key 11,000 level. Benchmarks traded with a negative bias for most part of the session as volatility creeped in a day ahead of expiry of derivative contracts for the month of September. Investors were cautious ahead of US Federal Reserve's decision on interest rates, which will be declared later in the global day.
The Sensex fell 109.79 points or 0.30% to settle at 36,542.27. The index rose 286.68 points, or 0.78% at the day's high of 36,938.74. The index fell 294.13 points, or 0.80% at the day's low of 36,357.93.
The Nifty 50 index fell 13.65 points or 0.12% to settle at 11,053.80. The index rose 78.10 points, or 0.71% at the day's high of 11,145.55. The index fell 74.40 points, or 0.67% at the day's low of 10,993.05.
Among secondary barometers, the BSE Mid-Cap index rose 0.42%. The BSE Small-Cap index rose 0.12%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, turned negative from positive in late trade. On BSE, 1304 shares rose and 1324 shares fell. A total of 184 shares were unchanged.
Among the sectoral indices on BSE, the S&P BSE Metal index (up 1.73%), the S&P BSE Realty index (up 1.69%), the S&P BSE Basic Materials index (up 1.31%), the S&P BSE Capital Goods index (up 1.23%), the S&P BSE Energy index (up 1.08%), the S&P BSE Oil & Gas index (up 0.62%), the S&P BSE Healthcare index (up 0.40%), the S&P BSE Industrials index (up 0.34%), the S&P BSE Finance index (up 0.23%), the S&P BSE Utilities index (up 0.22%), the S&P BSE Consumer Durables index (up 0.14%), the S&P BSE Telecom index (up 0.10%), the S&P BSE Bankex (up 0.04%) and the S&P BSE Power index (down 0.01%), outperformed the Sensex. The S&P BSE Consumer Discretionary Goods & Services index (down 0.31%), the S&P BSE Auto index (down 0.99%), the S&P BSE Teck index (down 1.36%), the S&P BSE FMCG index (down 1.44%) and the S&P BSE IT index (down 1.6%), underperformed the Sensex.
IT shares tumbled. Oracle Financial Services Software (down 3.3%), Wipro (down 2.91%), HCL Technologies (down 2.19%), TCS (down 1.91%), Tech Mahindra (down 1.59%), Hexaware Technologies (down 1.44%), Infosys (down 1.2%), MindTree (down 1.11%), Persistent Systems (down 1.07%) and MphasiS (down 0.79%), edged lower.
FMCG shares were mixed. Procter & Gamble Hygiene & Health Care (down 1.86%), Britannia Industries (down 1.69%), Godrej Consumer Products (down 1.6%), Hindustan Unilever (down 1.44%), Bajaj Corp (down 0.79%), Tata Global Beverages (down 0.25%) and Dabur India (down 0.19%), edged lower. Colgate Palmolive (India) (up 0.22%), GlaxoSmithKline Consumer Healthcare (up 0.38%), Nestle India (up 0.75%), Jyothy Laboratories (up 1.21%) and Marico (up 1.82%), edged higher.
Index heavyweight and cigarette major ITC fell 2.67% to Rs 293.
Reliance Industries rose 1.72%. The company announced during trading hours today, 26 September 2018, that its wholly owned subsidiary, Reliance Industrial Investments and Holdings (RIIHL), has subscribed to 40,58,647 compulsorily convertible preferred shares of NetraDyne Inc., USA ("NetraDyne") at $1.97110 per share, for cash aggregating to $8 million. RIIHL had previously invested $16 million in NetraDyne. RIIHL's investment translates to about 37.4% equity stake on the basis of current fully diluted share capital.
NetraDyne is an early stage technology start up incorporated in the State of Delaware in September 2015. NetraDyne is a high-end technology driven product, deep learning solutions and vision based analytics business with focus on verticals such as fleet management, automotive, security and surveillance. It has recently started commercializing its technology with select partners across the globe.
NetraDyne is an early stage revenue company, with turnover of $0.4 million in FY2018. The aforesaid investment has potential synergies with digital services and communications initiatives of RIL and its subsidiaries, apart from commercialization benefits in India.
Punjab National Bank rose 0.15%. The bank announced during trading hours today, 26 September 2018, that its board will meet on 27 September 2018 to consider capital infusion of Rs 5431 crore by Government of India by way of preferential issue of equity share.
Overseas, European stocks were mixed as investors focused on an upcoming US Fed decision. Asian shares rose as Chinese markets extended their recovery to hit eight-week highs on receding fears about the trade war as well as hopes China's weighting in the global benchmark will be increased. South Korean markets are closed for a public holiday.
US stocks finished mostly lower Tuesday amid subdued activity as investors limited big bets ahead of the Federal Reserve's monetary-policy decision on Wednesday. Concerns about continuing trade tensions lingered, further capping the market's upside momentum.
On Tuesday, US President Donald Trump reiterated his administration's stance on trade, telling the United Nations General Assembly that his country would "no longer tolerate abuse" on that front.
Trump's statement came after US Trade Representative Robert Lighthizer said his country was ready to move ahead on a trade deal with Mexico even if it excluded Canada, as negotiations with Ontario remained at an impasse. "We're not going to say 'no deal because of Canada.' That doesn't make any sense at all," he told the US Chamber of Commerce.
In the latest US economic data, home prices rose 0.2% in July, the slowest pace of growth since last summer. Separately, the US consumer confidence index rose to 138.4 in September from 134.7.
In the global commodities markets, Brent for November 2018 settlement was down 27 cents at $81.60 a barrel. The contract had risen 87 cents, or 0.83% to settle at $81.87 a barrel during the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 72.615, compared with its close of 72.69 during the previous trading session.
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