Metal and pharma stocks led losses for key benchmark indices as investors turned cautious ahead of the outcome of US Federal Reserve's monetary policy meeting later in the global day. At 11:20 IST, the barometer index, the S&P BSE Sensex, was down 111.25 points or 0.45% at 24,439.92. The 50-unit Nifty 50 index was down 28.25 points or 0.38% at 7,432.35.
The Sensex hit its lowest level in almost two weeks when it dropped 143.88 points or 0.58% at the day's low of 24,407.29 in mid-morning trade. The barometer index rose 9.80 points or 0.13% at the day's high of 24,565.30 at the onset of the trading session. The Nifty also hit its lowest level in almost two weeks when it shed 38.30 points or 0.51% at the day's low of 7,422.30 in mid-morning trade. The index rose 9.80 points or 0.13% at the day's high of 7,470.40 at the onset of the trading session.
The market breadth indicating the overall health of the market was negative. On BSE, 1,209 shares fell and 858 shares rose. A total of 126 shares were unchanged. The BSE Mid-Cap index was currently down 0.91%. The BSE Small-Cap index was currently down 0.52%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
In overseas stock markets, Asian stocks were mixed as investors remained cautious ahead of the outcome of US Federal Reserve's monetary policy meeting later in the global day. Most US stocks edged lower yesterday, 15 March 2016, weighed by a fall in oil prices and a string of lackluster economic data. The Federal Reserve's two-day monetary policy meeting ends today, 16 March 2016. Federal Reserve officials are likely to hold short-term interest rates steady at its policy meeting amid uncertainties about global financial markets and global growth. The Fed in December 2015 raised its benchmark federal-funds rate from near zero to a range between 0.25% and 0.5%.
Index heavyweight and housing finance major HDFC extended previous session's losses triggered by market buzz that a foreign brokerage has downgraded the stock to sell from neutral. The stock was down 1.18% at Rs 1,100.95. The scrip had lost 3.63% to settle at Rs 1,114.10 yesterday, 15 March 2016. The foreign brokerage reportedly said that structural changes may dampen HDFC's profitability and its core business is likely to be pressured. HDFC may now have structurally lower growth and core return on assets (ROAs) will decline further, the foreign brokerage reportedly said.
Pharma stocks declined. Aurobindo Pharma (down 2.12%), Dr Reddy's Laboratories (down 1.73%), Cadila Healthcare (down 1.09%), Sun Pharmaceutical Industries (down 2.2%), Glenmark Pharmaceuticals (down 0.94%), Strides Shasun (down 3.16%), Alkem Laboratories (down 0.25%), GlaxoSmithKline Pharmaceuticals (down 0.48%), Piramal Enterprises (down 0.73%), Wockhardt (down 3.75%) and IPCA Laboratories (down 0.75%), edged lower.
Lupin dropped 1.25%, with the stock extending previous session's steep losses triggered by the company's clarification that the United States Food and Drug Administration (USFDA) inspected its Goa facility last week and cited 9 observations. The stock had tumbled 7.59% to settle at Rs 1,726.60 yesterday, 15 March 2016. The USFDA's observations are on aspects such as inadequacy and adherence to Standard Operating Procedures (SOPs). Lupin said that it is in the midst of putting together a response to address the USFDA's observations. The company issued the clarification after media reports suggested that the USFDA cited nine observations in its inspection of the company's Goa facility last week.
Cipla dropped 0.99%. The company before market hours today, 16 March 2016, announced that its wholly owned subsidiary Cipla (EU) Limited, UK (Cipla UK) has made an additional investment of $3 million in Chase Pharmaceuticals Corporation Inc., US (Chase) towards full settlement of its obligation under the agreed arrangement for investment in Chase. Consequently, Cipla UK's total investment in Chase would aggregate to approximately $5.12 million for a 16.7% stake on a fully diluted basis. Chase is an early stage drug development company developing novel approaches to improve treatments for Alzhemimer's disease.
Most capital goods stocks dropped. BEML (down 0.98%), Havells India (down 1.59%), L&T (down 0.27%), Thermax (down 0.38%), and Siemens (down 2.33%) declined. Bharat Heavy Electricals (Bhel) (up 0.61%) and Crompton Greaves (up 6.38%) gained.
Lux Industries spurted 13.67% after the company said that a meeting of the board of directors of the company will be held on 12 April 2016 to consider stock-split. The announcement was made after market hours yesterday, 15 March 2016.
Meanwhile, as per data announced by the government after market hours yesterday, 15 March 2016, India's merchandise exports fell 5.66% in dollar terms in February 2016 over February 2015. Non-petroleum exports fell 2.69%. The trend of falling exports is in tandem with other major world economies, according to a statement from the Ministry of Commerce & Industry. Imports fell 5.03% in dollar terms in February 2016 over February 2015.
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