Indices end almost 1% lower ahead of FOMC meet

Metal shares were among the top losers amid weak economic data from China

 

Markets have closed the session on a lower note on the back of weak global cues along with selling pressure among metal and rate-sensitive sectors leading the fall. Further, investors remained cautious ahead of the US FOMC meet on 16 and 17 September 2015. 


Provisionally, the Sensex closed lower by 178.82 points at 25,677.88 and the Nifty slipped 55.05 points at 7,817.20.
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(Updated at 2:42PM)
Benchmark shares indices were trading lower in late noon trades, amid weak European cues, as investors booked profits in financials which had gained in the previous session on rate cut hopes by the central bank amid easing consumer price inflation for August. Further, lack of active participation from traders ahead of the two-day US Federal Reserve meet which begins tomorrow also weighed on market sentiment.

At 2:42PM, the 30-share Sensex was down 140 points at 25,716 and the 50-share Nifty was down 49 points at 7,822.

In the broader market, the BSE Mid-cap index was down 0.9% and Small-cap index was down 0.6%. Market breadth weakened further with 1,461 losers and 969 gainers on the BSE.

The Indian rupee was trading lower by 12 paise at 66.45 to the US dollar amid demand from banks and importers while weakness in domestic equities also dampened sentiment.

GLOBAL MARKETS

Most Asian markets eased on Tuesday with China shares witnessing a decline of nearly 4% amid weak economic growth in August. The benchmark Shanghai Composite ended down 3.7% while Hang Seng ended down 0.5%. However, shares in Japan ended with marginal gains up 0.3% while Singapore's Straits Times ended down 1%.

European shares edged lower on Tuesday as traders booked profits ahead of the US Fed meet which begins tomorrow. CAC-40, DAX and FTSE-100 were down 0.1-0.7% each.

SECTORS & STOCKS

Except for FMCG all other sectoral indices on the BSE were in the red with BSE Metal and Capital Goods indices being the top losers down over 2% each.

Metal stocks witnessed profit taking on concerns that export demand from China, the world's largest consumer, would be lower amid weak investment and factory output in August. Tata Steel, Hindalco and Vedanta are down 3-5% each.

Financials witnessed profit after gains in the previous session. Axis Bank, HDFC, HDFC Bank and ICICI Bank were down 0.7-2.2% each.

However, Maruti Suzuki India has gained 1% after the Reserve Bank of India (RBI) allowed foreign investors to invest up to 40% of the paid-up capital in the company under the portfolio investment scheme.

FMCG majors HUL and ITC were marginally higher amid easing consumer price inflation in August.

Sun Pharma was up 1%. The pharma major is planning to acquire US Based InSite Vision Inc according to media reports.

Among other shares, Shares of aviation companies - Jet Airways and SpiceJet- trading higher by up to 8% on the BSE in an otherwise subdued market after InterGlobe Aviation secured approval from the Securities and Exchange Board of India (Sebi) for Rs 2,500-crore initial public offering (IPO).