After rising over 70 points in initial trade, the benchmark Sensex today fell back to close over 114 points down at 28,622.12 on caution ahead of the Federal Reserve’s monetary policy statement.
While the Fed is not expected to announce any hike in rates tonight, traders are keeping a close eye on what the central bank has to say about its near-term plans after a recent mixed bag of economic data. Consequently, market participants did not create any fresh positions, say brokers.
The BSE Sensex, which commenced the day on a better note at 28,766.87, rose further to touch the day’s high of 28,806.97.
However, emergence of profit-booking at improved levels, dragged down the 30-share index to a low of 28,546.76 and closed at 28,622.12, down 114.26 points, or 0.40 per cent.
Market Outlook by Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services
Awaiting for the FOMC policy statement, market continue to consolidate. Clarity from FOMC meet & post budget reforms could determine the trend of this phase. As far as FED meeting is concerned, we do not expect any rate hike. But market is expecting a rate hike post June’15, hence indication towards the time-frame and outlook will provide support to the world market. The risk is that FED will have to consider the health of world economy which has been downgraded by IMF. Hence FED may have to lower its inflation target which is currently at 2%, thus impacting the time-frame for US rate.
Market Wrap Up by Alex Mathews, Head Research, Geojit BNP Paribas Financial Services
The markets took a cautious stand after a positive opening and finally closed marginally lower, due to the absence of positive triggers. Markets were also keen in the outcome of US Federal Reserve’s meeting as it may give insight to interest rate proposals.
Nifty closed at 8685 down around 37 points. But the market breadth stood negative as there were seen 1271 stocks advancing against 1581 stocks declining. The Nifty volatility index, India VIX stood at 15.5125 up around 2.54%.
The mid-cap and small-cap sectors were outperforming the broader markets ended up around 0.28% and 0.25% respectively.
The major losers in the sectorial front were Power and IT sector which closed down around 1.09% and 0.94% respectively. Whereas some sort of buying were seen in Oil & gas and Banking sector which ended up around 0.69% and 0.48% respectively.
In the stocks’ front, the losers were NTPC and BHEL which closed down around 3.52% and 2.76% respectively whereas the gainers were BPCL and ZEEL which closed up around 3.22% and 2.84% respectively.
The FIIs turned to buyers in the cash markets segment, bought shares worth Rs 265.52 crore on Tuesday, 17 March 2015. On the other hand the DIIs were net sellers on 17 March 2014, sold shares worth Rs 243.69 crore as per the provisional data from the stock exchanges.
The European markets were little changed ahead of the US Federal Reserve’s meeting and the US index futures remained mixed.
Yesterday, global markets rose with the Sensex rallying 298.67 points on hopes US Fed will not act in hurry to effect the first interest rate increase in nearly nine years.
Other major losers which also pulled down the Sensex included NTPC, BHEL, Wipro, M&M, ONGC, Bharti Airtel, HDFC, ITC, Hindalco, HUL, L&T, Bajaj Auto and Infosys.
Bucking the overall bearish trend, shares of RIL ended 1.39 per cent higher on reports of a brokerage upgrading the stock. Overall, 18 Sensex shares ended lower while 12 finished in the positive zone.
Vineeta Mahnot, Equity Research Analyst, Hem Securities
Sharp fall in the crude oil prices due to global concerns of oversupply of oil dampened the sentiment. Heavyweights Reliance Industries, SBI, Hero Motors and Coal India supported the index. Among sectors, Power, Information Technology and select capital goods were on the loser’s side. The broader indices outperformed the Sensex with mild gains about 0.25%. Market breadth was negative with 1265 advances against 1584 declines on the BSE.
Sectorally, the BSE Power index fell the most by plunging 1.09 per cent, followed by IT (0.94 per cent), Teck (0.77 per cent), Capital Goods (0.72 per cent), Auto (0.63 per cent) and FMCG (0.59 per cent).
The 50-issue Nifty of the NSE also fell by 37.40 points, or 0.43 per cent, to 8,685.90. It shuttled between 8,747.25 and 8,664 during the session.
Meanwhile, Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 265.52 crore yesterday.
Globally, other Asian bourses closed up on hopes of further measures to stimulate the Chinese economy while Europe opened better ahead of British government’s annual budget and the US Federal Reserve policy decision.
In currency markets, the dollar retreated as investors sat on the sidelines. In oil space, US benchmark West Texas Intermediate for April delivery eased to USD 42.5 levels while Brent crude for May fell to USD 53.1 mark.