Key benchmark indices erased initial gains and hit intraday low in negative zone mirroring losses in Asian stocks. At 10:21 IST, the S&P BSE Sensex was down 71.39 points or 0.25% at 28,263.16. The Nifty 50 index was currently down 34.30 points or 0.39% at 8,734.85.
Key indices hit over one-week high at onset of the day's trading session after the International Monetary Fund (IMF) raised slightly India's growth forecast. The Sensex rose 143.10 points or 0.51% at the day's high of 28,477.65 at onset of the day's trading session, its highest level since 26 September 2016. The barometer index lost 102.59 points or 0.36% at the day's low of 28,231.96 in morning trade, its lowest level since 3 October 2016. The Nifty rose 37.80 points or 0.43% at the day's high of 8,806.95 at onset of the day's trading sesion, its highest level since 26 September 2016. The index lost 35.20 points or 0.4% at the day's low of 8,733.95 in morning trade.
In overseas stock markets, most Asian stocks were trading lower as concern shifted to the likelihood of a US Federal Reserve rate increase by the year's end. Mainland Chinese markets remained closed for the National Day holiday. US stocks closed lower yesterday, 4 October 2016 as investors digested data from the International Monetary Fund and remarks from a Federal Reserve official. Federal Reserve Bank of Richmond President Jeffrey Lacker stating that the central bank should pre-emptively raise short-term interest rates to stave off accelerating inflation.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,234 shares gained and 798 shares fell. A total of 90 shares were unchanged. The BSE Mid-Cap index was up 0.15%. The BSE Small-Cap index was up 0.35%. Both these indices outperformed the Sensex.
Metal and mining stocks rose on renewed buying. Hindustan Zinc (up 2.07%), Vedanta (up 1.31%), JSW Steel (up 0.36%), Steel Authority of India (Sail) (up 0.31%), National Aluminium Company (up 0.11%), Jindal Steel & Power (up 1.87%), Hindalco Industries (up 2.23%), NMDC (up 0.95%), Hindustan Copper (up 0.03%) edged higher.
Copper edged higher in the global commodities market. High Grade Copper for December 2016 delivery was currently up 0.32% at $2.1740 per pound on the COMEX.
Tata Steel rose 0.86% after the company announced that the Committee of Directors yesterday, 4 October 2016, allotted 8.15%, Unsecured, Redeemable Non-Convertible Debentures aggregating to Rs 1000 crore, on a private placement basis, to certain identified investors. The announcement was made after market hours yesterday, 4 October 2016.
Most IT stocks fell. Wipro (down 0.83%), HCL Technologies (down 0.74%), TCS (down 0.45%), Infosys (down 0.55%), Oracle Financial Services Software (down 0.04%), Tech Mahindra (down 0.42%) slipped. MindTree (up 0.98%), Hexaware Technologies (up 0.36%) and MphasiS (up 0.91%) rose.
Global economic growth will remain subdued this year following a slowdown in the United States and Britain's vote to leave the European Union, the IMF said in its October 2016 World Economic Outlook yesterday, 4 October 2016. The world economy will expand 3.1% this year, the IMF said, unchanged from its July projection.
Meanwhile, the International Monetary Fund (IMF) has raised India's growth forecast a tad, citing the resilience of its economy and robust growth momentum. The IMF now expects the economy to expand 7.6% in 2016-17, up from its earlier projection of 7.4%.
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