Key indices languish in negative zone amid range bound movement

A range bound movement was witnessed as key benchmark indices languished in negative zone in afternoon trade. At 13:15 IST, barometer index, the S&P BSE Sensex, was down 140.98 points or 0.5% at 28,011.42. The Nifty 50 index was currently down 48 points or 0.55% at 8,624.15. The Sensex was currently trading above the psychologically important 28,000 mark. The barometer index alternately moved above and below that level after falling below that level in early afternoon trade. Indian stocks took cues from lower Asian and European stocks.

The Sensex fell 209.75 points, or 0.75% at the day's low of 27,942.65 in early afternoon trade. The index rose 46.70 points, or 0.17% at the day's high of 28,199.10 in morning trade. The Nifty fell 71.70 points, or 0.83% at the day's low of 8,600.45 in early afternoon trade, its lowest level since 11 August 2016. The index rose 10.20 points, or 0.12% at the day's high of 8,682.35 in morning trade.

The market breadth indicating the overall health of the market was weak. On BSE, 1,565 shares fell and 941 shares rose. A total of 142 shares were unchanged. The BSE Mid-Cap index was currently up 0.23%, outperforming the Sensex. The BSE Small-Cap index was currently down 0.15%. The decline in this index was lower than the Sensex's decline in percentage terms.

The losses on the domestic bourses materialized after the data showing increase in inflation based on the consumer price index (CPI) and the wholesale price index (WPI). Inflation based on WPI accelerated to 3.55% in July 2016 from 1.62% in June 2016. The government announced the data during trading hours today, 16 August 2016. Inflation based on CPI accelerated to 6.07% in July 2016 from 5.77% in June 2016. The core CPI inflation moved up to 4.52% in July 2016 from 4.39% in June 2016. The data was released after market hours on Friday, 12 August 2016.

Another data showed that industrial production (IIP) expanded 2.1% in June 2016 from a year earlier. The rise was primarily led by expansion in electricity and mining production. The data was released after market hours on Friday, 12 August 2016.

In overseas stock markets, European stocks edged lower weighed down by industrial stocks after Swiss firm Schindler cut the top end of its revenue growth outlook for the full year. Most Asian stocks edged lower as the price of crude oil took a breather from a three-day rally. Japanese stocks fell as the yen strengthened against the dollar. The Nikkei 225 Average ended 1.62% lower. A stronger yen hurts the competitiveness of Japanese exporters Japan's gross domestic product expanded an annualized 0.2% in the April-June quarter, weaker than a 2% expansion in the first three months of the year, Japan's government said yesterday, 15 August 2016.

All three main indices in the US closed at record high yesterday, 15 August 2016, thanks in part to a sharp uptick in oil prices, which boosted energy and materials shares.

Index heavyweight and housing finance major HDFC dropped 1.57% to Rs 1,357. The stock hit high of Rs 1,383.75 and low of Rs 1,351.45 so far during the day.

Telecom stocks dropped. Bharti Airtel (down 1.67%), Idea Cellular (down 0.32%), Tata Teleservices (Maharashtra) (down 0.63%) and Reliance Communications (down 3.07%) declined. MTNL rose 0.48%.

Shares of Bharti Infratel lost 5.51%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

Realty stocks declined. Indiabulls Real Estate (down 1.24%), DLF (down 0.66%), Housing Development and Infrastructure (down 1.61%), D B Realty (down 1.51%), Unitech (down 16.1%), Sunteck Realty (down 3.03%), Hubtown (down 3.52%), Oberoi Realty (down 0.34%) and Parsvnath Developers (down 0.79%) fell.

Prestige Estates Projects (up 3.43%), Sobha (up 0.22%) and Godrej Properties (up 0.32%) rose.

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