Metal sector stocks and index heavyweights ITC, HDFC Bank and Infosys led small losses for key benchmark indices. The barometer index, the S&P BSE Sensex lost 67.59 points or 0.26% at 26,160.03, as per the provisional closing data. The decline in the Nifty 50 index was lower than the Sensex’s fall in percentage terms. The Nifty fell 1.55 points or 0.02% at 8,078.40, as per the provisional closing data.
The Sensex lost 109.80 points or 0.41% at the day’s low of 26,117.82 in early trade, its lowest level since 9 November 2016. The barometer index rose 121.40 points or 0.46% at the day’s high of 26,349.02 in afternoon trade. The Nifty lost 31.65 points or 0.39% at the day’s low of 8,048.30 in early trade, its lowest level since 9 November 2016. The index rose 49 points or 0.6% at the day’s high of 8,128.95 in afternoon trade.
In overseas stock markets, European stocks edged lower as rising US bond yields pushed the dollar higher as investors upped bets on a December rate hike.
According to minutes of the European Central Bank’s (ECB) most recent meeting, policymakers were ready to boost their 1.7 trillion stimulus again, if needed to ensure that Eurozone’s economy remains on its recovery path.
Further, it revealed that board members widely agreed to wait until December to get a clearer picture of the inflation outlook to form a policy view as they found it premature to make a firm assessment of the outlook for price stability and to discuss its implications. Asian stocks witnessed a mixed trend.
US stocks registered modest gains yesterday, 17 November 2016, as investors parsed through economic data and Federal Reserve Chair Janet Yellen’s testimony. Yellen has stressed the importance of central bank independence in her first public remarks after Donald Trump’s election victory as new data showed the president-elect will inherit a strengthening economy. The Federal Reserve chair told a congressional hearing yesterday, 17 November 2016 that an increase in short-term interest rates could become appropriate relatively soon, raising expectations of a rise at the Fed’s next meeting in December.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 1,317 shares rose and 1,261 shares declined. A total of 160 shares were unchanged. The BSE Mid-Cap index provisionally rose 0.62%. The BSE Small-Cap index provisionally rose 0.32%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2385.88 crore, lower than turnover of Rs 2660.23 crore registered during the previous trading session.
Metal and mining stocks edged lower as copper prices declined in global commodities markets. Tata Steel (down 1.68%), NMDC (down 2.35%), Hindalco Industries (down 1.48%), Steel Authority of India (down 1.4%), Jindal Steel & Power (down 0.51%), Hindustan Copper (down 1.95%) and Hindustan Zinc (down 0.06%) declined. JSW Steel (up 2.31%) and National Aluminium Company (up 1.21%) edged higher.
High Grade Copper for December 2016 delivery was currently down 0.94% at $2.4675 per pound on the COMEX.
Vedanta was down 4.16%. The company said it proposes to offer rated secured redeemable non-convertible debentures aggregating to Rs 300 crore. In this regard, the company will hold a meeting of its duly constituted committee of the board on 22 November 2016. The announcement was made after market hours yesterday, 17 November 2016.