After languishing in negative zone in early trade, key benchmark indices extended losses in morning trade. At 10:18 IST, the barometer index, the S&P BSE Sensex, was down 152.66 points or 0.6% at 24,655.26. The 50-unit Nifty 50 index was down 48.75 points or 0.65% at 7,490. Weakness in Asian stocks weighed on sentiment. The Sensex dropped 163.76 points or 0.66% at the day's low of 24,640.52 in morning trade, its lowest level since 11 March 2016. The barometer index rose 36.49 points or 0.14% at the day's high of 24,840.77 at the onset of the trading session. The Nifty shed 50.40 points or 0.66% at the day's low of 7,488.35 in morning trade, its lowest level since 11 March 2016. The index rose 6.45 points or 0.08% at the day's high of 7,545.20 at the onset of the trading session.
The market breadth indicating the overall health of the market was negative. On BSE, 943 shares fell and 859 shares rose. A total of 96 shares were unchanged. The BSE Mid-Cap index was currently down 0.37%. The BSE Small-Cap index was currently down 0.08%. The decline for both the indices was lower in percentage terms than the Sensex's decline.
In overseas markets, Asian stocks edged lower led by Chinese stocks as investors braced for a run of policy announcements from the world's major central banks this week, with all eyes on the Bank of Japan's meeting later in the day after it stunned markets in January by adopting negative rates. In mainland China, the Shanghai Composite was currently down 1.12%. In Hong Kong, the Hang Seng index was currently down 0.72%. The Bank of Japan's (BOJ) two-day policy meeting ends today, 15 March 2016. The BOJ is seen holding policy rate steady after adopting negative interest rates at its meeting in late January.
US stocks closed on a mixed note yesterday, 14 March 2016. The US Federal Reserve's crucial two-day monetary policy meeting begins today, 15 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%.
Pharma stocks declined. Aurobindo Pharma (down 0.98%), Cipla (down 1.03%), Dr Reddy's Laboratories (down 0.43%), Cadila Healthcare (down 1%), Divi's Laboratories (down 0.54%), and Sun Pharmaceutical Industries (down 1.41%) declined. Alkem Laboratories (up 1.23%) and Glenmark Pharmaceuticals (up 0.38%) gained.
Lupin tumbled 5.11% after media reports that the United States Food and Drug Administration (USFDA) cited nine observations in its inspection of the company's Goa facility last week. The USFDA's observations in its inspection of Lupin's Goa facility were on aspects such as inadequacy and adherence to standard operating procedures (SOP), according to news reports.
Most FMCG stocks dropped. Nestle India (down 0.65%), Marico (down 0.76%), Britannia Industries (down 0.41%), Jyothy Laboratories (down 1.31%), Procter & Gamble Hygiene and Health Care (down 1.02%), Hindustan Unilever (HUL) (down 0.28%), Colgate Palmolive India (down 0.65%), and Godrej Consumer Products (down 1.53%) declined. Tata Global Beverages (up 0.61%), Dabur India (up 0.28%), GlaxoSmithkline Consumer Healthcare (up 0.63%), and Bajaj Corp (up 0.1%) gained.
On the macro front, the latest data showed that inflation based on the consumer price index (CPI) dipped to four month low of 5.18% in February 2016 from 5.69% in January 2016. The decline was due to easing of food price inflation. The Consumer Food Price index (CFPI) eased sharply to 5.3% in February 2016 from 6.85% in January 2016. The core CPI inflation rose to 4.77% in February 2016 from 4.5% in January 2016.
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