Key indices trade with modest losses

After witnessing a sudden slide in morning trade, key benchmark indices traded with modest losses in mid-morning trade. At 11:15 IST, the barometer index, the S&P BSE Sensex lost 121.71 points or 0.38% at 32,278.80. The Nifty 50 index fell 45.40 points or 0.45% at 10,095.75. Market participants lacked strong buying conviction amid subdued trading on Asian bourses after the outcome of the Federal Reserve meeting.

The S&P BSE Mid-Cap index fell 0.65%. The S&P BSE Small-Cap index lost 0.94%. The losses in both the indices were higher than the Sensex's slide in percentage terms.

The breadth, indicating the overall health of the market, was weak. On the BSE, 1,601 shares declined and 628 shares advanced. A total of 113 shares were unchanged.

IT stocks were mixed. HCL Technologies (down 1.15%), Wipro (down 0.39%) and Infosys (down 0.13%) declined. Tech Mahindra (up 0.82%), TCS (up 0.39%) and Persistent Systems (up 0.3%) edged higher.

Auto stocks declined. Ashok Leyland (down 1.63%), Eicher Motors (down 1.6%), Tata Motors (down 0.65%), Mahindra & Mahindra (down 0.32%) and Maruti Suzuki India (down 0.17%) edged lower. Bajaj Auto (up 0.19%) and Hero MotoCorp (up 0.29%) edged higher.

Dr Reddy's Laboratories (DRL) surged 4.16% at Rs 2,409.75 after the company said it has received an Establishment Inspection Report (EIR) from the United States Food and Drug Administration (USFDA) after the conclusion of audit at the company's Formulation Srikakulam Plant (SEZ) Unit II, Andhra Pradesh. The announcement was made during market hours today, 21 September 2017.

SMS Pharmaceuticals surged 13.17% at Rs 104 after the company said that its board of directors would meet on 27 September 2017, to consider the proposal for joint venture, for the purpose of contract research organization (CRO) & contract manufacturing organization (CMO), between the company and Chemo S.A (Switzerland). The announcement was made after market hours yesterday, 20 September 2017.

Overseas, Asian stocks were mixed after the dollar and US Treasury yields spiked following big news out of the Federal Reserve.

In the economic news, the Bank of Japan (BOJ), at the conclusion of its two-day monetary policy meeting today, 21 September 2017, kept monetary policy steady. In a widely expected move, the BOJ maintained the 0.1% interest it charges on a portion of excess reserves that financial institutions park at the central bank. The central bank also kept its yield target for 10-year Japanese government bonds around 0%. The decision was made by an eight-to-one vote.

US stocks closed at record highs yesterday, 20 September 2017, after the Federal Reserve indicated another rate hike this year was possible and that it would begin the unwinding of its balance sheet next month.

US central bank, at the conclusion of its two-day monetary policy meet yesterday, 20 September 2017, left rates unchanged. Fed stated that it will begin in October rolling off its $4.5 trillion balance sheet, most of which consists of the Treasuries and mortgage-backed securities.

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