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The market ended with small gains after a volatile trading session. The barometer index, the S&P BSE Sensex, rose 73.64 points or 0.22% to 32,996.76, as per the provisional closing data. The Nifty 50 index rose 30.10 points or 0.30% to 10,124.35, as per the provisional closing data. The Sensex provisionally settled below the psychological 33,000 mark after flirting with that level in intraday trade.
Trading was volatile as investors were indecisive ahead of the US Fed rate review meet. There is a possibility that the US central bank may hike policy rate and signal that three more are in store this year.
After opening lower, key benchmarks bounced back in morning trade and hit fresh intraday high in early afternoon trade. Indices pared gains and hovered in a range for rest of the trading session. The Sensex rose 179.62 points, or 0.55% at the day's high of 33,102.74 in early afternoon trade. The index fell 112.26 points, or 0.34% at the day's low of 32,810.86 in early trade, in lowest level since 18 December 2017. The Nifty rose 61.40 points, or 0.61% at the day's high of 10,155.65 in early afternoon trade. The index fell 45.15 points, or 0.45% at the day's low of 10,049.10 in early trade, in lowest level since 18 December 2017.
Among secondary barometers, the BSE Mid-Cap index provisionally rose 0.21%. The BSE Small-Cap index provisionally fell 0.21%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,585 shares fell, 1,109 shares rose and 161 shares were unchanged.
Most IT shares rose. Tech Mahindra (up 3.93%), Hexaware Technologies (up 3.84%), Wipro (up 1.93%), Infosys (up 1.74%), HCL Technologies (up 1.34%), TCS (up 1.26%) and Persistent Systems (up 1.24%), edged higher. MindTree (down 0.3%), MphasiS (down 1.86%) and Oracle Financial Services Software (down 2.45%), edged lower.
Drug major Cipla fell 1.01%. In clarification to media reports titled "Cipla shares drop on USFDA observations for Goa unit', Cipla during market hours today, 20 March 2018 said that the USFDA conducted a product specific pre-approval inspection at Goa plant in January 2018. The company received certain observations which are procedural in nature and has already responded to the agency on all the observations. At this stage, the company does not foresee any impact on the other products being manufactured/filed from the plant. Post this inspection, the company has received 2 product approvals from the plant, Cipla said.
On the political front, both Lok Sabha and Rajya Sabha were adjourned for the day today, 20 March 2018. Lok Sabha was first adjourned to 12 noon, minutes after it assembled. Protests started as soon as the House met, and several members trooped near the Speaker's podium raising slogans and displaying placards. In Rajya Sabha, parties from Tamil Nadu and Andhra Pradesh disrupted proceedings over their state specific demands. Tuesday is the 12th day of the second half of the Budget Session marred by disruptions. The session started on 5 March 2018 and will conclude on 6 April 2018.
Overseas, European and Asian shares were mixed as investors braced for new Federal Reserve Chairman Jerome Powell's first policy meeting starting later in the day. Investors also have been worrying this month about a potential global trade war, triggered by the Trump administration moving ahead with tariffs on foreign steel and aluminum.
US stocks finished sharply lower Monday as concerns about Facebook Inc.'s management of user data sparked a selloff in technology shares. Investors also lightened their positions ahead of the Fed's policy meeting.
The US Federal Reserve's two-day monetary policy meeting is scheduled on March 20-21. Strengthening labor market and a steady increase in price pressures could pave the way for the Federal Reserve to raise interest rates in upcoming meeting. The US central bank has forecast three rate increases for this year, but there are also expectations that it will raise its projection to four hikes at the meeting.
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