A range bound movement was witnessed as key benchmark indices languished in negative zone in morning trade. At 10:18 IST, the barometer index, the S&P BSE Sensex, was down 73.72 points or 0.3% at 24,477.45. The 50-unit Nifty 50 index was down 16.60 points or 0.22% at 7,444. Investors remained cautious ahead of the outcome of US Federal Reserve's monetary policy meeting later in the global day today, 16 March 2016.
The Sensex hit its lowest level in almost two weeks when it dropped 114.34 points or 0.46% at the day's low of 24,427.64 in morning trade. The barometer index rose 9.80 points or 0.13% at the day's high of 24,565.30 at the onset of the trading session. The Nifty hit one-week low when it shed 29.20 points or 0.39% at the day's low of 7,431.40 in morning trade. The index rose 9.80 points or 0.13% at the day's high of 7,470.40 at the onset of the trading session.
The market breadth indicating the overall health of the market was negative. On BSE, 918 shares fell and 769 shares rose. A total of 88 shares were unchanged. The BSE Mid-Cap index was currently down 0.74%. The decline in this index was higher than the Sensex's decline in percentage terms. The BSE Small-Cap index was currently down 0.24%. The decline in this index was lower than the Sensex's decline in percentage terms.
In overseas stock markets, Asian stocks were mixed as investors remained cautious ahead of the outcome of US Federal Reserve's monetary policy meeting later in the global day today, 16 March 2016. Most US stocks edged lower yesterday, 15 March 2016, weighed by a fall in oil prices and a string of lackluster economic data. The Federal Reserve's two-day monetary policy meeting ends today, 16 March 2016. Federal Reserve officials are likely to hold short-term interest rates steady at its policy meeting amid uncertainties about global financial markets and global growth. The Fed in December 2015 raised its benchmark federal-funds rate from near zero to a range between 0.25% and 0.5%.
Most auto stocks declined. Mahindra & Mahindra (M&M) (down 0.24%), Maruti Suzuki India (down 0.35%), and Tata Motors (down 0.93%) declined. Ashok Leyland (up 0.1%), TVS Motor Company (up 0.12%) and Hero MotoCorp (up 0.49%) gained.
Bajaj Auto fell 1.27% to Rs 2,249.50 as the stock turned ex-dividend today, 16 March 2016, for interim dividend of Rs 50 per share for the year ending 31 March 2016. Before turning ex-dividend, the stock offered a dividend yield of 2.19% based on the closing price of Rs 2,278.45 yesterday, 15 March 2016.
Eicher Motors edged lower on media reports that a foreign brokerage has downgraded the stock to 'underperform' from 'buy'. The stock was off 2.5% at Rs 19,055. The foreign brokerage reportedly said that Eicher Motors stock has fully priced in strong Royal Enfield outlook. The foreign brokerage sees limited stock returns for Eicher Motors even on a 3-year view, reports suggested.
Eicher Motors is one of the four stocks that enter the Nifty index with effect from 1 April 2016 following a semi-annual review of its indices announced by NSE in February 2016.
Telecom stocks were mixed. Reliance Communications (up 0.55%) and Tata Teleservices (Maharashtra) (up 0.99%) gained. Idea Cellular (down 0.5%) and Bharti Airtel (down 1.21%) declined.
Alphageo (India) rose 3.01% after the company said that it has received a contract from Oil India for provision of 2D seismic acquisition services in the areas covering parts of Assam & Arunachal Pradesh for an estimated contract value of Rs 102.42 crore. The contract is to be executed by November 2018. This contract is under National Seismic Program for acquisition of 2D Seismic Data in unappraised areas of North East India entrusted to Oil India. The announcement was made after market hours yesterday, 15 March 2016.
Meanwhile, as per data announced by the government after market hours yesterday, 15 March 2016, India's merchandise exports fell 5.66% in dollar terms in February 2016 over February 2015. Non-petroleum exports fell 2.69%. The trend of falling exports is in tandem with other major world economies, according to a statement from the Ministry of Commerce & Industry. Imports fell 5.03% in dollar terms in February 2016 over February 2015.
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