Market off day's low

Domestic stocks continued recovery in mid-afternoon trade as European stocks were trading higher in early trade. At 14:26 IST, the barometer index, the S&P BSE Sensex, was down 177.26 points or 0.52% at 33,679.52. The Nifty 50 index was down 62.10 points or 0.6% at 10,364.75. Oil & gas stocks declined. Many pharma shares fell. The market sentiment was impacted after the Reserve Bank of India (RBI) banned letters of undertaking (LoUs) for seeking overseas loans.

Domestic stocks began trading on a subdued note on negative Asian stocks. Key benchmark indices hovered in negative zone in morning trade. Indices extended fall and hit fresh intraday lows in early afternoon trade. Key indices made a partial recovery in afternoon trade after hitting intraday lows in early afternoon trade.

The S&P BSE Mid-Cap index was off 0.07%. The S&P BSE Small-Cap index was off 0.28%. Both these indices outperformed the Sensex.

The breadth, indicating the overall health of the market, was negative. On the BSE, 1,513 shares declined and 1,076 shares advanced. A total of 142 shares were unchanged.

Hero MotoCorp (down 1.48%), HDFC (down 1.19%) and Tata Steel (down 1.16%) edged lower from the Sensex pack.

Oil & gas stocks declined. Among shares of oil exploration and production (E&P) companies Reliance Industries (down 0.88%) and ONGC (down 1.72%) edged lower.

Oil India rose 2.75% after the company said it has fixed 29 March 2018 as the record date for issue of bonus shares in the ratio of 1:2. The announcement was made after market hours yesterday, 13 March 2018.

Among PSU OMCs, HPCL (down 1.97%), BPCL (down 0.95%), and Indian Oil Corporation (down 2.94%) declined.

Many pharma shares fell. Cadila Healthcare (down 0.21%), Cipla (down 0.13%), Dr Reddy's Laboratories (down 0.09%), Sun Pharmaceutical Industries (down 0.65%), Alkem Laboratories (down 0.01%) and Aurobindo Pharma (down 0.7%) declined. Wockhardt (up 2.24%), Glenmark Pharmaceuticals (up 1.64%), Lupin (up 0.08%) and GlaxoSmithKline Pharmaceuticals (up 0.11%) rose.

IRB Infrastructure Developers rose 1.46% after the company said it emerged as preferred bidder for two projects in Tamil Nadu. With addition of these projects, the company's construction orderbook stands at Rs 10000 crore to be executed in three years. The announcement was made after trading hours yesterday, 13 March 2018.

IRB Infrastructure Developers, in consortium with Modern Road Makers (wholly-owned subsidiary of the company), has emerged as a preferred bidder for two hybrid annuity projects under NHDP Phase IV in Tamil Nadu.

The projects include four laning of Puducherry to Poondiyankuppam at a cost of Rs 1296 crore and four laning of Poondiyankuppam to Sattanathapuram at a cost of Rs 2169 crore of NH-45A. The construction period is 730 days and operation period is 15 years for the said projects.

Deepak Fertilisers & Petrochemicals Corporation fell 4.48% to Rs 320.75 on profit booking after a recent rally. Shares of Deepak Fertilisers & Petrochemicals Corporation jumped 7.49% in two trading sessions to settle at Rs 335.80 yesterday, 13 March 2018, from its close of Rs 312.40 on 9 March 2018.

On the macro front, India's annual wholesale price inflation eased in February, government data showed today, 14 March 2018. Annual wholesale price inflation last month slowed to 2.48% from a year earlier, from a provisional 2.84% rise in January.

Meanwhile, the Reserve Bank of India (RBI) in a press release issued yesterday, 13 March 2018 said that on a review of the extant guidelines, it has been decided to discontinue the practice of issuance of Letters of Undertaking (LoUs)/Letters of Comfort (LoCs) for Trade Credits for imports into India by Authorised Dealer Category - I banks with immediate effect. Letters of Credit and Bank Guarantees for Trade Credits for imports into India may continue to be issued.

Overseas, European stocks were trading higher in early trade. Asian stocks declined following an overnight slide in US equities after fresh personnel shakeup in the US President Donald Trump's administration spurred concerns about a unilateral approach to trade, national security and foreign affairs.

Among economic data, Chinese industrial-production, fixed-asset investment and retail sales data showed the economy grew much faster than expected in the first two months of 2018. China releases combined data for January and February to limit distortions caused by the Lunar New Year holiday, which was in January last year but February this year.

Value-added industrial output, a rough proxy for economic growth, expanded by 7.2% in January and February from a year earlier, compared with a 6.2% on-year increase in December, the National Bureau of Statistics said today, 14 March 2018. Industrial production rose 0.57% on-month in February, compared with December's 0.52% growth.

Fixed-asset investment outside rural households climbed 7.9% in the first two months of 2018 from a year earlier, quickening from a 7.2% increase in 2017. Retail sales grew 9.7% on-year in January and February, accelerating from a 9.4% rise in December.

Minutes from the Bank of Japan's January meeting, released today, 14 March 2018 showed that some board members warned the central bank should keep a close eye on unexpected side effects from the current monetary policy.

US equities fell in choppy trade yesterday, 13 March 2018 after tech shares pulled back amid concerns trade tensions between the US and China could increase. The sudden firing of US Secretary of State Rex Tillerson took some by surprise less than a week after top economic adviser Gary Cohn resigned from the White House. US President Donald Trump has nominated CIA director Mike Pompeo, an ex-congressman, to replace Tillerson.

The consumer-price index rose a mild 0.2% in February after a 0.5% increase in January. The year-over-year rate for CPI edged up to 2.2% in February from 2.1% in January.

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