Market pares gains

Strong gains in afternoon trade proved short lived as key benchmark indices trimmed gains in mid-afternoon trade. At 13:16 IST, the barometer index, the S&P BSE Sensex was up 45.05 points or 0.18% at 24,668.39. The gains for the 50-unit Nifty 50 index were lower in percentage terms than those for the Sensex. The Nifty was currently up 6.70 points or 0.09% at 7,492.85.

The Sensex rose 194.46 points or 0.78% at the day's high of 24,817.80 in mid-morning trade. The barometer index fell 71.08 points or 0.28% at the day's low of 24,552.26 in early afternoon trade. The Nifty rose 57.80 points or 0.77% at the day's high of 7,543.95 in morning trade. The index fell 25.55 points or 0.34% at the day's low of 7,460.60 in early afternoon trade.

In overseas stock markets, European edged higher in early trade after European Central Bank (ECB) stimulus and higher oil prices. Asian stocks edged higher, reversing initial decline as investors digested fresh easing from ECB. US stocks closed slightly lower yesterday, 10 March 2016, under pressure from low oil prices and concerns about the effectiveness of monetary policy following the announcements from ECB.

The ECB delivered a surprise package of measures to kick start Europe's economy by cutting its main interest rates and expanding its massive bond-buying program. The ECB cut the bank's key lending rate to zero from 0.05% and cut its bank deposit rate, from minus 0.3% to minus 0.4%. It also announced it would expand the size of its monthly bond purchases to 80 billion euros from its current level of 60 billion euros beginning in April 2016 and expand the scope of those purchases to include investment-grade, euro-denominated, nonbank corporate bonds.

Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 1,442 shares declined and 988 shares rose. A total of 151 shares were unchanged. The BSE Mid-Cap index was currently down 0.01%. The BSE Small-Cap index was currently down 0.18%. Both these indices underperformed the Sensex.

Bank stocks declined. Among PSU banks, Dena Bank (down 1.58%), Central Bank of India (down 1.47%), Punjab and Sind Bank (down 1.46%), IDBI Bank (down 1.44%), Corporation Bank (down 1.36%), Andhra Bank (down 1.32%), Allahabad Bank (down 0.88%), Indian Bank (down 0.87%), Bank of Maharashtra (down 0.85%), United Bank of India (down 0.76%), UCO Bank (down 0.42%), Vijaya Bank (down 0.31%), Union Bank of India (down 0.28%), Bank of India (down 0.16%), Canara Bank (down 0.14%), Syndicate Bank (down 0.08%), Punjab National Bank (down 0.06%) and State Bank of India (down 0.03%), edged lower. Bank of Baroda was up 0.68%.

Among private sector banks, Kotak Mahindra Bank (down 1.58%), Federal Bank (down 0.51%), IndusInd Bank (down 0.28%), City Union Bank (down 0.17%) and ICICI Bank (down 0.16%), edged lower. Axis Bank (up 0.21%), HDFC Bank (up 0.64%) and Yes Bank (up 1.03%), edged higher.

Fertiliser shared declined. Zuari Global (down 3.96%), Gujarat State Fertilizers Company (down 2.57%), Fertilisers & Chemicals Travancore (down 2.33%), Deepak Fertilisers & Petrochemicals Corporation (down 1.95%), Rashtriya Chemicals and Fertilisers (down 0.79%), Chambal Fertilisers & Chemicals (down 0.55%), National Fertilizers (down 0.36%) and Tata Chemicals (down 0.07%), edged lower. Coromandel International was up 0.17%.

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