Key indices edge lower in early trade

Key benchmark indices edged lower in early trade tracking weakness in Asian markets and overnight decline in Wall Street. At 9:16 IST, the barometer index, the S&P BSE was off 22.43 points or 0.09% at 25,834.27. The 50-unit CNX Nifty was down 23.05 points or 0.29% at 7,849.20. The market breadth indicating the overall health of the market was positive. On BSE, 574 shares rose and 325 shares declined. A total of 36 shares were unchanged. The BSE Mid-Cap index was up 0.18%. The BSE Small-Cap index was up 0.24%. Both these indices outperformed the Sensex.

Overseas cues were negative. China led decline in Asian stocks. US stocks closed lower yesterday, 14 September 2015 as investors awaited the Federal Reserve meeting later in the week. The Fed's policy-making committee holds a two-day meeting on 16 and 17 September 2015. The Fed has held its benchmark short-term interest rate near zero since December 2008.

Back home, Maruti Suzuki India (MSIL) was up 1.99% at Rs 4,406. The Reserve Bank of India (RBI) yesterday, 14 September 2015 notified that foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs)/qualified foreign investors (QFIs) can now invest up to 40% of the paid up capital of MSIL under the Portfolio Investment Scheme (PIS). RBI further advised that the foreign shareholding by FIIs/RFPIs in MSIL have gone below the revised threshold limit. Hence, the restrictions placed on the purchase of shares of MSIL are withdrawn with immediate effect.

Steel stocks gained after the government after trading hours yesterday, 14 September 2015 issued notification imposing a provisional safeguard duty effective from 14 September 2015, on hot-rolled flat products of non-alloy and other alloy steel in coils of a width of 600 mm or more at the rate of 20% ad-valorem for a period of 200 days. Jindal Steel & Power (up 0.86%), JSW Steel (up 0.99%), Tata Steel (up 0.83%) and Steel Authority of India (up 2.21%) edged higher.

The safeguard duty is a global safeguard measure to protect the domestic industry and once imposed the levy is applicable on import of the product from all countries.

Among macro data, data released after market hours yesterday, 14 September 2015 showed that the all-India general CPI inflation was nearly flat 3.66% in August 2015 (new base 2012=100), compared with 3.69% (revised) reading in July 2015. The corresponding provisional inflation rate for rural area was 4.5% and urban area 2.7% in August 2015 as against 4.4% and 2.9% in July 2015. The core CPI inflation declined to 3.8% in August 2015 from 4% in July 2015.

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