A bout of volatility was witnessed as the the barometer index, the S&P BSE Sensex, pared losses after hitting one-week low and the Nifty 50 index trimmed losses after hitting its lowest level in almost two weeks. At 12:17 IST, the Sensex was down 142.09 points or 0.55% at 25,696.05. The Nifty was currently down 44.90 points or 0.57% at 7,854.40. Weakness in Asian stocks spoiled investors' sentiment. Asian shares edged lower as investors awaited central bank meetings in the United States and Japan this week.
The Sensex fell 189.02 points, or 0.73% at the day's low of 25,649.12 in early afternoon trade, its lowest level since 18 April 2016. The barometer index rose 52.89 points, or 0.2% at the day's high of 25,891.03 in early trade. The Nifty fell 58.80 points, or 0.74% at the day's low of 7,840.50 in early afternoon trade, its lowest level since 13 April 2016. The index rose 11.70 points, or 0.15% at the day's high of 7,911 in early trade.
The market breadth indicating the overall health of the market was weak. On BSE, 1,372 shares fell and 913 shares rose. A total of 134 shares were unchanged. The BSE Mid-Cap index was currently down 0.15%. The BSE Small-Cap index was currently down 0.26%. The decline in both these indices was lower than the Sensex's decline in percentage terms.
In overseas stock markets, Asian shares edged lower as investors awaited central bank meetings in the United States and Japan this week. US stocks finished mixed during the previous trading session on Friday, 22 April 2016, as earnings misses in the previous session from Microsoft and Google parent Alphabet slackened optimism on Wall Street. The US Federal Reserve holds a two-day policy meeting on Tuesday, 26 April 2016 and Wednesday, 27 April 2016. As per market expectations, the Fed is likely to hold rates steady this week and instead will opt to raise the federal funds rate by 25 basis points in its June meeting to 0.5-0.75% in what will be the second in its first series of rate rises in nearly a decade.
In Japan, the Bank of Japan (BOJ) holds a two-day monetary policy meeting on Wednesday, 27 April 2016 and Thursday, 28 April 2016. Market participants are becoming more confident in their expectations of further easing from the Bank of Japan. The BOJ in January decided to begin charging 0.1% interest on some bank reserves parked with the institution, in a bid to kick-start the economy and pull it out of two decades of deflation.
Most FMCG shares edged lower. Colgate Palmolive (India) (down 1.18%), Marico (down 1.08%), Hindustan Unilever (down 0.79%), Procter & Gamble Hygiene & Health Care (down 0.73%), Nestle India (down 0.68%), Jyothy Laboratories (down 0.56%), Britannia Industries (down 0.4%), Godrej Consumer Products (down 0.22%), Dabur India (down 0.19%) and Bajaj Corp (down 0.14%), edged lower. Tata Global Beverages (up 0.12%) and GlaxoSmithKline Consumer Healthcare (up 0.14%), edged higher.
Shares of Anil Dhirubhai Ambani group companies fell. Reliance Power (down 1.42%), Reliance Infrastructure (down 0.7%), Reliance Communications (down 0.53%) and Reliance Capital (down 0.46%), edged lower.
Kalpataru Power Transmission (KPTL) rose 3.48% after the company said that it has received new orders/notification of award in excess of Rs 1150 crore. KPTL said that it has received orders worth Rs 930 crore for construction and supply of 225KV & 90KV overhead transmission lines in West Africa. The projects have been awarded to KPTL and its wholly owned subsidiary Kalpataru Power DMCC and will be delivered by the respective entities. The company also said that it has received orders worth Rs 220 crore for construction of 220KV & 132KV substations, transmission lines and feeder bay work from Madhya Pradesh Power Transmission Company.
DIC India tumbled after announcing first quarter results. The stock was currently off 7.74%. Net profit rose 26.8% to Rs 7.20 crore on 2.1% decline in net sales to Rs 167.95 crore in Q1 March 2016 over Q1 March 2015. The result was announced after market hours on Friday, 22 April 2016.
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