Market recovers from day's low

A bout of volatility was witnessed as key benchmark indices pared losses after hitting fresh intraday low in morning trade. At 10:16 IST, the barometer index, the S&P BSE Sensex, was down 8.13 points or 0.03% at 27,702.39. The Nifty 50 index was down 1.90 points or 0.02% at 8,508.20. Weakness in Asian market dented investors' risk appetite.

The Sensex fell 56.77 points, or 0.20% at the day's low of 27,653.75 in early trade, its lowest level since 19 July 2016. The index rose 53.67 points, or 0.19% at the day's high of 27,764.19 at the onset of trading session. The Nifty fell 20.30 points, or 0.24% at the day's low of 8,489.80 in early trade, its lowest level since 19 July 2016. The index rose 15.30 points, or 0.18% at the day's high of 8,525.40 at the onset of trading session.

The market breadth indicating the overall health of the market was positive. On BSE, 1,129 shares rose and 811 shares fell. A total of 125 shares were unchanged. The BSE Mid-Cap index was currently up 0.53%. The BSE Small-Cap index was currently up 0.37%. Both these indices outperformed the Sensex.

In overseas markets, Asian stocks were trading lower after Bank of Japan (BoJ) chief Haruhiko Kuroda dashed hopes for so-called "helicopter money", triggering the yen's steepest rally in a month and weakening the outlook for exporters in Tokyo. Japan's Nikkei 225 was down 0.89%.

According to a media interview, recorded mid-June but broadcast yesterday, 21 July 2016, BOJ Governor Haruhiko Kuroda ruled out the idea of using helicopter money - or directly underwriting the budget deficit - to combat deflation. BoJ holds meeting on 29 July 2016.

In US, the Dow industrials yesterday, 21 July 2016, snapped a nine-day string of gains, as a hot equity market cooled ahead of key central-bank meetings.

Meanwhile, the European Central Bank (ECB) held rates unchanged yesterday, 21 July 2016, and emphasized that it intends to keep rates at current or lower levels for an "extended period" and that its program of monthly bond buys would run until at least March 2017, and possibly beyond.

Most metal shares declined. Hindalco Industries (down 2.4%), Tata Steel (down 1.34%), JSW Steel (down 1.08%), Vedanta (down 1.02%), Steel Authority of India (down 0.96%), Jindal Steel & Power (down 0.74%), Hindustan Copper (down 0.48%) and Bhushan Steel (down 0.24%), edged lower. Hindustan Zinc (up 0.41%), National Aluminium Company (Nalco) (up 0.42%) and NMDC (up 0.99%), edged higher.

Realty shares edged higher. Anant Raj (up 4.24%), Phoenix Mills (up 3.47%), DLF (up 1.29%), D B Realty (up 1.23%), Sunteck Realty (up 1.15%), Prestige Estates Projects (up 1.09%), Peninsula Land (up 0.49%), Parsvnath Developers (up 0.46%), Godrej Properties (up 0.34%), Oberoi Realty (up 0.32%), Sobha (up 0.22%) and Unitech (up 0.12%), edged higher. Housing Development and Infrastructure (HDIL) (down 0.70%) and Indiabulls Real Estate (down 1.14%), edged lower.

Powered by Capital Market - Live News