Sudden slide on the bourses

After hovering near the flat line in early trade, key benchmark indices witnessed a sudden slide in morning trade. At 10:15 IST, the barometer index, the S&P BSE Sensex lost 139.83 points or 0.43% at 32,260.68. The Nifty 50 index fell 46.30 points or 0.46% at 10,094.85. Market participants lacked buying conviction amid subdued trading on Asian bourses after the outcome of the Federal Reserve meeting.

The Sensex lost 174.18 points or 0.53% at the day's low of 32,226.33 in morning trade, its lowest level since 15 September 2017. It rose 62.10 points or 0.19% at the day's high of 32,462.61 in early trade. The Nifty lost 62.15 points or 0.61% at the day's low of 10,079 in morning trade, its lowest level since 15 September 2017. It rose 17.75 points or 0.17% at the day's high of 10,158.90 in early trade.

The S&P BSE Mid-Cap index fell 0.73%. The S&P BSE Small-Cap index lost 1.05%. The losses in both the indices were higher than the Sensex's slide in percentage terms.

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.

Closer home, the breadth, indicating the overall health of the market, turned negative from positive. On the BSE, 1,405 shares declined and 604 shares advanced. A total of 90 shares were unchanged.

Realty stocks were mixed. Indiabulls Real Estate (down 2.28%), DLF (down 1.58%), Oberoi Realty (down 1.23%), HDIL (down 0.89%) and D B Realty (down 1.04%) declined. Unitech (up 2.32%), Sobha (up 0.01%), Prestige Estates Projects (up 1.01%) and Godrej Properties (up 0.01%) gained.

Cement stocks also witnessed mixed trend. Shree Cement (up 0.53%), Grasim Industries (up 0.13%) and UltraTech Cement (up 0.07%) edged higher. ACC (down 1.37%) and Ambuja Cements (down 0.66%) edged lower.

Novartis India rose 4.89% at Rs 680.50 after the company announced that a meeting of the board of directors of the company will be held on 25 September 2017, to consider a proposal for buyback of the company's equity shares, constitution of buyback committee, and appointment of intermediaries in accordance with all applicable provisions of law. The announcement was made after market hours yesterday, 20 September 2017.

NBCC (India) advanced 1.57% at Rs 223.75 after the company said it received Letter of Intent (LoI) from Department of Customs and Excise, Government of India for planning, designing & construction of office complex and residential quarters at Wadala in Mumbai. The order is worth approximately to Rs 3200 crore on self-revenue generation model. The announcement was made after market hours yesterday, 20 September 2017.

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