Sensex closes in red, Nifty ends below 8200

The domestic indices were mostly trading in red throughout the day. COAL INDIA and many other listed firms posted negative results. The shares of Coal India have fallen being the top loser for the day.

The Nifty sectoral indices are also trading in red and are down by 0.50%, however, Nifty Realty and IT are trading in green, providing some relief to a sluggish day.

Sentiments are in check as investors focus on the outcome of the US Central Bank announcement that is scheduled to occur later in the day. Any comments from the US Central Bank that they may hike interest rates aggressively next year could lead to a sell-off in emerging markets.

At the global front, Asian indices ended mixed today amid cautious trade ahead of the US Federal Reserve's monetary policy outcome. China's Shanghai Composite closed at 3140 down 0.46%, Singapore's Straits Times ended at 2954.06 down 0.04%, Japan's Nikkei 225 closed at 19253 down 0.02%, all these indices closed in red, while Hong Kong's Hang Seng closed at 22456 up 0.04%.

Today, the European indices were down in early trade due to caution ahead of the outcome of US Federal Reserve's two-day policy meeting, due later today. The markets in the European region are also expecting US Central Bank to raise the interest rates by 25 bps. CAC-40 was trading at 4787 losing 0.33%, FTSE 100 was at 6953 down 0.21% and DAX at 11265.87 down 0.17%. All key three indices were trading in red.

The BSE Sensex ended with a loss of 95 points at 26697. The benchmark indices opened at 26707.91, touched an intra-day high of 26736.34 and low of 26547.05.

The NSE Nifty was down 39 points and closed at 8,182. It opened at 8,229.35 points, hitting a high of 8,229.40 and low of 8,165.10.

The India VIX (Volatility) index was up 4.2% at 16.5. The BSE Midcap closed at 12241.1 and Smallcap indices closed at 12118.3, both closing marginally close to 1%.

Out of 1508 stocks traded on the NSE, 1048 declined and 391 advanced today.

A total of 17 stocks registered a fresh 52-week high in trade today, whereas 14 stocks touched a new 52-week low on the NSE.

At the close of day, Axis Bank, HCL, Reliance, Tata Power, Infosys, Asian Paints, M&M were the top gainers while Coal India, Bosch, Aurobindo Pharma, Eicher Motors, ACC, ONGC, Tech Mahindra were among the losers on NSE.

The Indian Rupee was trading at 67.53 per dollar. Gold was trading at Rs 27,611 per 10 gms and silver was trading at Rs 41,553 per kg.

Sensex, Nifty treading in red

Following the result declaration yesterday, COAL INDIA and many other listed firms posted a negative result. The impact of that is trickling on to the market performace today morning. Also, sentiments are in check as investors focus on the outcome of the US Central Bank announcement that is scheduled to occur later in the day.

At 10:43 AM, the S&P BSE Sensex is trading at 26652 down 45 points, while NSE Nifty is trading at 8,198 down 23 points. A total of 13 stocks registered a fresh 52-week high in trade today, while 10 stocks touched a new 52-week low on the NSE.

Out of 1882 stocks traded on the NSE, 731 declined, 771 advanced and 380 remained unchanged today.

The BSE Mid-cap Index is trading up 0.08% at 12352.28, whereas BSE Small-cap Index is trading up 0.23% at 12250.05.

Some buying activity is observed in Consumer Durables, Oil & Gas, Realty, Information Technology, Energy sectors, while Auto, Metal, Bank, Capital Goods, Finance on BSE.

Reliance, Axis Bank, Tata Power, Asain Paints, NTPC, Infratel, Wipro are among the gainers, whereas Coal India, Aurobindo Pharma, Bosch, ACC, IndusInd Bank, HDFC, Eicher Motors are losing sheen on NSE.

The INDIA VIX is up 2.62% at 16.3400.

Buzzing Stock:

An exhaustive inspection of drug maker Sun Pharma’s manufacturing facility at Halol by the US FDA pointed to inadequately designed testing programs to assess the stability characteristics of drugs besides faulting accuracy of test methods used at the site.

Malvinder and Shivinder Singh are in active discussions with private equity group TPG Capital to sell a significant minority stake in Fortis Healthcare.

NTPC has partnered with Inox Wind for a 50MW wind project to be deployed in Gujarat.

Advertisement regulator ASCI has pulled up Hindustan Unilever over its 'misleading' TV commercial for dish washer brand Vim in which it claimed rival Jyothy Laboratories Exo as "sadharan" (ordinary) bar.

Jubilant FoodWorks, which operates Domino's Pizza outlets in India, said it will offer cashless payment option to all its customers on home deliveries.

Taking a cue from the success of Baba Ramdev’s Patanjali brand, Tata Global Beverages is to tap into the ‘goodness of ayurveda’ with its own offering.

Wockhardt said the UK health regulator has confirmed that its Daman-based manufacturing facility complies with good manufacturing practices (GMP).

Nifty, Sensex opens on a marginally lower note

The S&P BSE Sensex is trading at 26,676, down by 22 points, while NSE Nifty is trading at 8,200 down by 21 points.

Finance Minister Arun Jaitley expects the benefits of demonetisation to seep into the economy as the move towards a cashless system will bring in more people into the tax net. Expectations are a rise in tax collections will allow a lower tax regime in future. For now, tax revenues of the state governments for the current financial year are likely to be weaker than budgeted, according to ICRA.

The world and its markets are waiting for the outcome of the Fed meet which is underway since Tuesday; a hike is anticipated by a large section of the market. Global fund flow seems to be coming into equities as investors reportedly invested over US $ 1 billion into passive funds tracking emerging markets while bond exchange-traded funds saw some selling. 

The rupee shed around 12 paise even as traders remained cautious ahead of the FOMC rate decision.

At a macroeconomic level, withdrawal of old currency notes (demonetisation move) can lead to further short term deflationary effects on perishable commodities. Although there is a threat that sowing activity in the coming months can be impaired due to cash crunch in the rural areas, we sense that prevalent headline inflation remains well below RBI’s target rate of 5%. 

Moreover, recent fall in food prices has created lot of cushion for any inflationary risks emanating from recovery in oil prices and weak Indian Rupee. Indisputably, the consensus calls for policy action before the end of this fiscal year.

After rallying yesterday and closing on a slightly weaker note, Asian indices today opened on a mixed note, the primary factor is that the investors are taking a cautious route ahead of the outcome of the US monetary policy meet that is to will be conducted later today. When the market opened, Japan's Nikkei 225 opened at 19,270, Hong Kong's Hang Seng started at 22,596, China's Shanghai Composite opened at 3,149, and Singapore's Straits Times opened at 2,963.

Dow closes at record high for seventh session. Furthermore, other indices in the US ended higher on Tuesday ahead of the outcome of the US Federal Reserve's monetary policy meet where the central bank is expected to raise interest rate by 25 bps. Benchmark indices have rallied close to 8% on the expectation that the government will embark on an infrastructure spending spree. When the market closed on Tuesday, Nasdaq Composite ended at 5436, S&P 500 ended at 2271, and Dow Jones Industrial Average closed at 19911, where the indices gained more than 0.50%.