Key benchmark indices provisionally registered small losses on weak global cues. The barometer index, the S&P BSE Sensex, fell 94.04 points or 0.31% at 29,880.20, as per the provisional closing data. The Nifty 50 index lost 8.50 points or 0.09% at 9,256.65, as per the provisional closing data.
The market sentiment was subdued, tracking weakness in European and Asian stocks and overnight losses on Wall Street, after the Federal Reserve's minutes from March meeting showed that Fed officials want to start unwinding the central bank's massive $4.5 trillion balance sheet later this year.
The Sensex lost 156.65 points or 0.52% at the day's low of 29,817.59 in mid-morning trade, its lowest level since 3 April 2017. It fell 19.99 points or 0.06% at the day's high of 29,954.25 in late trade. The Nifty lost 46.30 points or 0.49% at the day's low of 9,218.85 in afternoon trade. It rose 2.80 points or 0.03% at the day's high of 9,267.95 in late trade.
The BSE Mid-Cap index provisionally rose 0.15%, outperforming the Sensex. The BSE Small-Cap index provisionally fell 0.23%. The decline in this index was lower than the Sensex's decline in percentage terms.
The breadth, indicating overall health of the market, was positive. On the BSE, 1,476 shares rose and 1,403 shares declined. A total of 140 shares were unchanged.
Telecom stocks declined. Bharti Airtel (down 0.64%), Idea Cellular (down 1.14%) and Reliance Communications (down 1.64%) edged lower. Bharti Infratel (up 0.84%) edged higher.
Tata Power Company was down 1.02%. The company announced that its generation crossed 51,000 million units (MUs) of power for the first time, collectively from all its power plants in FY 2017.
The company also reported a significant increase in generation of 15.2% with the total power generation capacity of Tata Power in India standing at 10,577 megawatts (MW) from various fuel sources such as thermal, hydroelectric power, renewable energy (wind and solar PV) and waste heat recovery, thereby reinforcing its position as the largest integrated power company in India. The announcement was made during market hours today, 6 April 2017.
The Reserve Bank of India (RBI) today, 6 April 2017, kept the policy repo under the liquidity adjustment facility (LAF) unchanged at 6.25%.
On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, 6 April 2017, the Monetary Policy Committee (MPC) decided to keep the policy repo rate under the LAF unchanged at 6.25%.
Consequent upon the narrowing of the LAF corridor as elaborated in the accompanying Statement on Developmental and Regulatory Policies, the reverse repo rate under the LAF is at 6% per cent, and the marginal standing facility (MSF) rate and the Bank Rate are at 6.5%.
The decision of the MPC is consistent with a neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of plus/minus 2%, while supporting growth, the RBI said.
Meanwhile, data released by Markit Economics during market hours today, 6 April 2017 showed that the Indian service sector moved further away from the demonetisation-related contractions seen towards the end of 2016 and beginning of 2017. The seasonally adjusted Nikkei India composite PMI output index increased to 52.3 in March, from 50.7 in February, signalling a quicker rise in private sector activity across the country.
Overseas, European and Asian stocks edged lower, after minutes of the US Federal Reserve's last meeting raised worries over high stock market valuations.
US stock markets closed lower yesterday, 5 April 2017, after the Federal Reserve released the minutes from its March meeting. The minutes showed Fed officials want to start unwinding the central bank's massive $4.5 trillion balance sheet later this year.
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