Auto, telecom sector stocks and index heavyweight Infosys led modest losses for key benchmark indices. The barometer index, the S&P BSE Sensex lost 110.12 points or 0.38% at 28,524.38, as per the provisional closing data. The Nifty 50 index declined 30.70 points or 0.35% at 8,777.70, as per the provisional closing data. Weakness in global stocks weighed on sentiment on the domestic bourses.
The Sensex lost 153.97 points or 0.53% at the day's low of 28,480.53 in mid-afternoon trade, its lowest level since 15 September 2016. The barometer index rose 64.31 points or 0.22% at the day's high of 28,698.81 at the onset of trading session. The Nifty lost 49.10 points or 0.55% at the day's low of 8,759.30 in mid-afternoon trade, its lowest level since 16 September 2016. The index rose 8.05 points or 0.09% at the day's high of 8,816.45 at the onset of trading session.
In overseas stock markets, European stocks were mixed. Asian stocks edged lower as investors awaited the outcomes of separate policy meetings of the US Federal Reserve and Bank of Japan (BOJ). The BOJ begins a two-day monetary policy meeting today, 20 September 2016. The central bank will conduct a comprehensive review of its stimulus programme after failing to reach its 2% inflation target. Investors are divided on what steps the central bank will take. Some expect that the BOJ will push back additional easing steps, while making its government bond buying more flexible to steepen the yield curve. Others expect the BOJ to launch fresh stimulus through a further push into negative territory and increased asset purchases. The central bank had kept its pledge to increase the monetary base at an annual pace of about 80 trillion yen and left the interest rate unchanged at minus 0.1% at its July 2016 meeting. Policymakers also decided to increase the annual exchange-traded equity funds purchase target to 6 trillion yen from the previous 3.3 trillion yen.
US stocks registered tiny losses yesterday, 19 September 2016, after a choppy session, with telecommunications shares lagging. The US Federal Reserve policy makers begin their two-day policy meeting today, 20 September 2016. The Fed is expected to keep its benchmark interest rate unchanged in the wake of recent downbeat US economic indicators. The Fed left the target range for its federal funds rate unchanged at 0.25% to 0.5% for the fifth time during its July 2016 meeting.
Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 1,533 shares declined and 1,184 shares rose. A total of 202 shares were unchanged. The BSE Mid-Cap index provisionally lost 0.19%. The BSE Small-Cap index provisionally declined 0.33%. The losses for both these indices were lower than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 5323.51 crore, higher than turnover of Rs 3615.78 crore registered during the previous trading session.
Index heavyweight and software major Infosys was down 1.04% at Rs 1,050.10. The stock hit a high of Rs 1,057.25 and a low of Rs 1,046.50 in intraday trade.
Auto stocks declined. Hero MotoCorp (down 2.12%), Bajaj Auto (down 2.04%), Tata Motors (down 1.07%), TVS Motor Company (down 0.99%) and Ashok Leyland (down 0.65%) edged lower. Maruti Suzuki India (up 0.52%) and Eicher Motors (up 1.12%) edged higher.
Mahindra & Mahindra (M&M) was down 0.43%. The company announced that India Ratings and Research (Ind-Ra) has assigned 'Provisional IND AAA' rating with stable outlook for the company's proposed issue of Rs 475 crore non-convertible debentures. The ratings agency has also assigned 'IND A1+' rating for the company's proposed issue of Rs 700 crore commercial papers. The announcement was made after market hours yesterday, 19 September 2016.
Telecom stocks declined. Bharti Airtel (down 1.33%), Idea Cellular (down 1%) and Reliance Communications (down 0.92%) edged lower.
Bharti Infratel was up 2%. Bharti Infratel is a telecom tower arm of Bharti Airtel.
Adani Ports and Special Economic Zone (APSEZ) was down 2.55% at Rs 269.05. The company announced that its Australian subsidiary has entered into an agreement to acquire ownership of Abbot Point Bulkcoal Pty (APB), an Australian registered company performing the operations and maintenance activities of Abbot Point Coal Terminal in Queensland, Australia. Under the agreement, Abbot Point Operations Pty (APO) acquires 100% of shares in APB from Glencore Coal Queensland Pty upon receiving certain approvals.
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