The Sensex and the Nifty displayed volatility in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex, was down 144.56 points or 0.42% at 34,201.83. The Nifty 50 index was down 50.25 points or 0.48% at 10,504.05.
Weak global cues dented investors risk appetite in the domestic market. Investors were concerned after comments from new Federal Reserve Chairman Jerome Powell revived fears about faster rate rises in the US. In his first public appearance as head of the US central bank on Tuesday, Powell vowed to prevent the economy from overheating while sticking with a plan to gradually raise interest rates. He acknowledged the economy had strengthened recently, a remark that prompted investors to increase bets on four rate increases in 2018. The interest rate hike in the world's largest economy has implications for emerging economies like India in the form of capital outflows.
After hitting a fresh intraday low in early trade, key indices were stuck in a range till afternoon trade. Indices pared losses in mid-afternoon trade. Recovery, however, proved short lived as benchmarks slipped to trade near the day's low once again. The Sensex fell 124.89 points, or 0.36% at the day's high of 34,221.50 in mid-afternoon trade. The index fell 269.94 points, or 0.79% at the day's low of 34,076.45 in early trade, its lowest intraday level since 23 February 2018. The Nifty fell 44.60 points, or 0.42% at the day's high of 10,509.70 in mid-afternoon trade. The index fell 92.75 points, or 0.88% at the day's low of 10,461.55 in early trade, its lowest intraday level since 23 February 2018.
Among secondary barometers, the BSE Mid-Cap index was down 0.41%. The BSE Small-Cap index was down 0.09%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,683 shares fell and 919 shares rose. A total of 155 shares were unchanged.
Auto shares were mixed. Mahindra & Mahindra (down 1.51%), Tata Motors (down 0.75%), Maruti Suzuki India (down 0.47%), Bajaj Auto (down 0.46%) and TVS Motor Company (down 0.36%), edged lower. Escorts (up 0.17%), Hero MotoCorp (up 0.34%), Eicher Motors (up 0.68%) and Ashok Leyland (up 2.36%), edged higher.
Most FMCG shares declined. Colgate Palmolive (India) (down 1.96%), Hindustan Unilever (down 1.38%), Bajaj Corp (down 1.23%), Dabur India (down 0.91%), GlaxoSmithKline Consumer Healthcare (down 0.58%), Marico (down 0.39%), Godrej Consumer Products (down 0.2%), Tata Global Beverages (down 0.18%), Britannia Industries (down 0.17%) and Jyothy Laboratories (down 0.01%), edged lower. Procter & Gamble Hygiene & Health Care (up 0.07%) and Nestle India (up 0.52%), edged higher.
Granules India gained 1.11% after the company announced that US drug regulator issued Establishment Inspection Report for its wholly owned foreign subsidiary in USA. The announcement was made during market hours today, 28 February 2018.
Granules India announced that US Food and Drug Administration (USFDA) has issued Establishment Inspection Report (EIR) for Granules Pharmaceuticals, Inc. facility, a wholly owned foreign subsidiary of the company located in Chantilly, Virginia, USA. The facility was inspected by USFDA in December 2017 and there was one observation during the inspection. The company has responded to the observation within the stipulated timeframe.
On the macro front, the Nikkei India Manufacturing Purchasing Managers' Index (PMI) fell to 52.1 in February 2018 from 52.4 in January 2018. The PMI registered above the neutral 50 threshold for the seventh consecutive month and indicated a modest improvement in operating conditions.
Investors are keenly awaiting India's Q3 gross domestic product (GDP) data for the financial year 2017-2018. The government will announce Q3 GDP data after market hours today, 28 February 2018. GDP growth had recovered to 6.3% in Q2 September 2017 from 5.7% recorded in Q1 June 2017.
Overseas, European equities opened lower, while Asian stocks declined across the board following a sharp pullback in US stocks after Powell's hawkish comments to Congress. Weaker than expected economic data from China and Japan also dampened sentiment.
China's official manufacturing purchasing managers' index fell to 50.3 in February from 51.3 in January, government data showed Wednesday. A score above 50 indicates an expansion; below 50 indicates a decline.
Japanese industrial production fell 6.6% in January from a month earlier, following December's 2.9% increase, according to the Ministry of Economy, Trade and Industry.
US stocks ended sharply lower on Tuesday, 27 February 2018, following the first public appearance of Jerome Powell as Federal Reserve chairman, replacing Janet Yellen. Powell conveyed an upbeat picture of the US economy but the market focused on his emphasis on coming rate hikes in 2018 and an end to easy-money policies as the central bank tries to stave off once-dormant inflation.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
