Sensex falls below 25,000 mark

Fears of an early interest-rate increase in the United States pulled Indian stocks lower, with the barometer index, the S&P BSE Sensex, falling below the psychologically crucial 25,000 mark. The Sensex fell 371.16 points or 1.46% at 24,966.40 as per the provisional closing data. The losses for the Sensex were higher in percentage terms than those for the 50-unit Nifty 50 index. The Nifty fell 101.40 points or 1.31% at 7,615.10 as per the provisional closing data. Stocks of metal and mining firms, public sector banks and index heavyweight HDFC led losses for the two key benchmark indices.

A bout of volatility was witnessed in late trade as the Sensex and the Nifty trimmed losses after both these key benchmark indices hit their lowest level in more than a week. The Sensex fell 442.07 points, or 1.74% at the day's low of 24,895.49 in late trade, its lowest level since 18 March 2016. The barometer index rose 95.38 points, or 0.38% at the day's high of 25,432.94 at the onset of trading session, its highest level since 6 January 2016. The Nifty fell 128.80 points, or 1.67% at the day's low of 7,587.70 in late trade, its lowest level since 18 March 2016. The index rose 32.90 points or 0.43% at the day's high of 7,749.40 at the onset of trading session, its highest level since 6 January 2016.

In overseas stock markets, Asian stocks fell as recent remarks from US Federal Reserve policy makers reignited expectations for an early interest-rate increase in the United States. European markets were closed for the Easter Monday holiday. US stocks ended little-changed during the previous trading session on Thursday, 24 March 2016, after weaker-than-expected economic data. Meanwhile, St. Louis Federal Reserve President James Bullard said the relatively minor downgrades to the Fed's economic outlook suggest the next rate hike 'may not be far off provided that the economy evolves as expected.' On Friday, 25 March 2016, data showed that the US economy grew at a 1.4% seasonally adjusted annual rate in the fourth quarter, higher than a previous estimate for 1% growth.

Closer home, the broad market depicted weakness. There were more than two losers against every gainer on BSE. 1,924 shares fell and 762 shares rose. A total of 166 shares were unchanged. The BSE Mid-Cap index provisionally fell 1.36%. The decline in this index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index provisionally fell 1.65%. The decline in this index was higher than the Sensex's decline in percentage terms.

State-run ONGC fell 0.26% at Rs 214. The company announced during trading hours today, 28 March 2016, that its board approved the field development plan (FDP) for the development of fields falling under cluster 2 of deep water NELP block KG-DWN-98-2. The development would involve a capital expenditure of a staggering $5076.37 million (Rs 34012 crore). The total oil production from the fields envisaged is 23.526 million tonnes with the first oil production expected by March 2020. The total gas production estimated is 50.706 billion cubic meters with the first gas output expected by June 2019. The project is expected to complete by June 2020.

Metal shares edged lower. Vedanta (down 9.35%), Hindalco Industries (down 8.49%), Steel Authority of India (down 6.19%), Bhushan Steel (down 4.91%), Tata Steel (down 4.9%), NMDC (down 3.39%), Jindal Steel & Power (down 3.05%), Hindustan Copper (down 2.95%), National Aluminium Company (down 2.85%), JSW Steel (down 1.83%) and Hindustan Zinc (down 1.24%) edged lower.

High Grade Copper for May 2016 delivery was currently unchanged at $2.229 per pound on the COMEX.

Index heavyweight and housing finance major HDFC fell 1.92% to Rs 1,140.80. The stock hit a high of Rs 1,167.45 and a low of Rs 1,139 in intraday trade.

Index heavyweight Reliance Industries (RIL) fell 0.68% to Rs 1,022.30. The stock hit a high of Rs 1,031.95 and a low of Rs 1,015.50 in intraday trade.

Index heavyweight and cigarette major ITC fell 0.43% to Rs 323. The stock hit a high of Rs 329 and a low of Rs 320.65 in intraday trade.

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