Key indices continue to languish in negative zone

Losses for index heavyweights HDFC, Reliance Industries (RIL) and ITC ensured that key benchmark indices remained in negative zone in early afternoon trade. At 12:18 IST, the barometer index, the S&P BSE Sensex, was down 80.78 points or 0.31% at 26,138.13. The 50-unit CNX Nifty was down 22.60 points or 0.28% at 7,959.30. The Sensex continued to trade above the psychological 26,000 mark. Earlier during the trading session, the Sensex reclaimed the psychological 26,000 mark after falling below that level in early trade.

The BSE Small-Cap and Mid-Cap indices retained positive zone, with both these indices outperforming the Sensex. The BSE Mid-Cap index was up 0.31%. The BSE Small-Cap index was up 0.87%. The market breadth indicating the overall health of the market was positive. On BSE, 1,338 shares rose and 949 shares fell. A total of 106 shares were unchanged.

Overseas cues were negative. Asian stocks edged lower after the US Federal Reserve's decision last week to keep interest rates at record low raised fresh concerns about global economic growth. The losses for Asian stocks came after US stocks declined sharply during the previous trading session on Friday, 18 September 2015. The US central bank cited concerns about the global economy and a lack of inflation growth in the United States as the reasons for its decision to leave interest rates at record low after the conclusion of a two-day monetary policy meeting on 17 September 2015.

Power generation stocks edged higher. CESC (up 3.19%), Jaiprakash Power Ventures (up 3.12%), Adani Power (up 2.75%), Torrent Power (up 2.62%), Reliance Power (up 2.34%), Tata Power (up 1.56%), JSW Energy (up 1.39%), GMR Infrastructure (up 1.04%) and NHPC (up 0.90%), edged higher. NTPC (down 1.14%) and Reliance Infrastructure (down 1.34%), edged lower.

Most capital goods shares edged higher. BEML (up 4.86%), Bharat Electronics (up 1.70%), Havells India (up 1.63%), ALSTOM India (up 1.17%), Praj Industries (up 1.10%), Punj Lloyd (up 1.05%), Siemens (up 0.98%), Suzlon Energy (up 0.93%), Larsen & Toubro (up 0.65%), ABB India (up 0.38%), AIA Engineering (up 0.36%), Lakshmi Machine Works (up 0.21%) and Thermax (up 0.06%), edged higher. Jindal Saw (down 0.08%), Alstom T&D India (down 0.78%), SKF India (down 0.78%), Bharat Heavy Electricals (down 0.96%), Pipavav Defence and Offshore Engineering Company (down 2%) and Crompton Greaves (down 2.02%), edged lower.

Shares of five oil exploration and production firms declined after a drop in global crude oil prices during the previous trading session. ONGC (down 0.46%), Cairn India (down 0.45%) and Reliance Industries (RIL) (down 1.41%) dropped. Oil India was up 0.39%. Fall in crude oil prices would result in lower realizations from crude sales for oil exploration firms.

In the global commodities markets, Brent crude oil futures edged higher after data released over the weekend showed a further decline in the number of oil rigs operating in the United States. Brent for November settlement was currently up 56 cents at $48.03 a barrel. The contract had declined $1.61 a barrel or 3.28% to settle at $47.47 a barrel during the previous trading session.

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