Key benchmark indices provisionally settled with small losses amid intraday volatility and rangebound session of trade as weakness in most of the global stocks dampened sentiment. The barometer index, the S&P BSE Sensex, fell 26.87 points or 0.08% at 31,599.76, as per the provisional closing data. The Nifty 50 index declined 18.95 points or 0.19% at 9,854.75, as per the provisional closing data. Indices fell for the sixth straight session.
Market opened with small gains but soon slipped into the red and hovered near the flat line in morning trade. Stocks extended losses and hit fresh intraday low in mid-morning trade on weak Asian stocks. The Sensex and the Nifty, both, hit their lowest level in four weeks in mid-morning trade. Indices pared losses and hovered near the flat line in mid-afternoon trade. Selling was witnessed once again at the fag end of the session.
The Sensex gained 66.96 points or 0.21% at the day's high of 31,693.59 in early trade. The index dropped 170.98 points or 0.54% at the day's low of 31,455.65 in mid-morning trade, its lowest level since 29 August 2017. The Nifty gained 18.75 points or 0.19% at the day's high of 9,891.35 in late trade. The index fell 59.60 points or 0.6% at the day's low of 9,813 in mid-morning trade, its lowest level since 29 August 2017.
The S&P BSE Mid-Cap index provisionally rose 0.44%. The S&P BSE Small-Cap index provisionally gained 1.08%. Both these indices outperformed the Sensex.
The breadth, indicating the overall health of the market, was strong. On the BSE, 1,512 shares rose and 1,017 shares fell. A total of 167 shares were unchanged.
Metal & mining stocks gained on bargain hunting after recent losses. JSW Steel (up 2.05%), Vedanta (up 3.47%), Hindalco Industries (up 1.53%), Hindustan Zinc (up 2.47%), Jindal Steel & Power (up 2.61%), Tata Steel (up 2.23%), National Aluminum Company (up 2.68%) and NMDC (up 2.49%) gained. Hindustan Copper (down Bhushan Steel (down 0.39%), and Steel Authority of India (Sail) (down 0.18%) declined.
Meanwhile, High Grade Copper for December 2017 delivery was currently up 0.41% at $2.9495 per pound on the COMEX.
Godrej Industries rose 2.13% to Rs 589.95 after the company said that its subsidiary set a price band for its upcoming public issue. The announcement was made after market hours yesterday, 25 September 2017. Diversified agri-business company Godrej Agrovet, promoted by Godrej Industries, is coming up with an initial public offer aggregating upto Rs 291.51 crore and an offer for sale (OFS) by Godrej Industries aggregating upto Rs 300 crore and upto 1.23 crore equity shares by V-Sciences Investments. The price band for the IPO has been fixed at Rs 450-460 per share. The IPO opens on 4 October and closes on 6 October 2017.
Meanwhile, Prime Minister Narendra Modi has constituted the Economic Advisory Council to the Prime Minister (EAC-PM). The five-member council consists of economists of high repute and eminence. It consists of Dr. Bibek Debroy, Member, NITI Aayog- Chairman, Dr. Surjit Bhalla- Part-time Member, Dr. Rathin Roy- Part-time Member, Dr. Ashima Goyal- Part-time Member and Ratan Watal, Principal Advisor, NITI Aayog - Member-Secretary.
The EAC-PM is an independent body to give advice on economic and related issues to the Government of India, specifically to the Prime Minister.
Overseas, European stocks were mixed. The re-election of Germany's Angela Merkel to a fourth-term in power, the hard task of political negotiations to form a coalition government has begun and could take weeks, if not months, as per reports.
Most Asian stocks dropped taking cues from weak close in US stocks overnight hurt by fresh threats from North Korea and weakness among key technology stocks.
Meanwhile, Developing Asia is on track to grow faster this year and next, the Asian Development Bank said, buoyed by a pick-up in world trade and China's expansion, but it flagged risks from tightening US monetary policy. Developing Asia is expected to grow by 5.9% and 5.8% in 2017 and 2018, respectively, the Manila-based lender said. India's growth was seen at 7% and 7.4% for this year and next, weaker than the July forecasts of 7.4% and 7.6%.
On Wall Street, a sharp selloff in technology stocks dragged down the Nasdaq Composite index by around 1% yesterday, 25 September 2017, with North Korea's latest warnings to Washington adding to the downbeat mood. North Korea's foreign minister said President Donald Trump had declared war on the country and that it reserves the right to take countermeasures, including shooting down US bombers even if they are not in its airspace.
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