Stocks cut losses in mid-afternoon trade after hitting fresh intraday low in afternoon trade. At 14:21 IST, the barometer index, the S&P BSE Sensex, was down 34.83 points or 0.1% at 34,392.46. The Nifty 50 index was down 13.10 points or 0.12% at 10,552.20. Pharma stocks saw mixed trend. Today's fall was triggered after minutes of the central bank's policy panel meeting indicated that a repo rate hike is around the corner. Negative global cues also spoiled investors sentiment.
A bout of volatility was witnessed in early trade as the key benchmark indices dipped in negative zone after a positive start to the day's trading session. Stocks hovered in a small range after hitting intraday low in morning trade. Key indices moved in a small range in negative zone in mid-morning trade. Key indices hit fresh intraday low in afternoon trade as selling pressure intensified.
The S&P BSE Mid-Cap index was down 0.59%. The S&P BSE Small-Cap index was down 0.12%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,481 shares fell and 1,044 shares rose. A total of 132 shares were unchanged.
RIL (down 1.79%), NTPC (down 1.63%) and L&T (down 1.52%) edged lower from the Sensex pack.
Pharma stocks saw mixed trend. Cipla (up 0.31%), Glenmark Pharmaceuticals (up 0.07%), Lupin (up 0.83%), GlaxoSmithKline Pharmaceuticals (up 0.56%) and Wockhardt (up 3.83%) rose. Aurobindo Pharma (down 0.23%), Dr Reddy's Laboratories (down 0.87%), Cadila Healthcare (down 0.38%), Sun Pharmaceutical Industries (down 0.8%) and Alkem Laboratories (down 1.66%) fell.
J B Chemicals & Pharmaceuticals fell 2.51% after the company said it received an order from Office of Member Secretary, Pollution Control Committee, Daman dated 18 April 2018 directing the closure of the company's formulation manufacturing facility at Daman on the ground of alleged deviation of standards of treated waste water released from ETP outlet of the said facility. The announcement was made after market hours yesterday, 19 April 2018.
The company said it does not accept the analytical results obtained by the said authority. The company is taking all necessary steps so as to resume operations at the said facility in line with the standards prescribed by the said authority. The company's said facility has received all NOC/Consents to operate under applicable environmental laws and is operating well within the framework of law. During 2017-2018, the total sales of formulations manufactured at the said facility amounted to about Rs 223 crore.
Meanwhile, RBI deputy governor Viral Acharya flagged two reasons that had induced him to pause from voting to begin the process of withdrawal of accommodation: first, the possibility of US shale gas response softening the oil price outlook, and two, growth recovery in the economy still being nascent. Uncertainty on these fronts has now receded, Viral Acharya said. The minutes of the Monetary Policy Committee Meeting held on 4 April and 5 April 2018 were released after market hours yesterday, 19 April 2018.
The Monetary Policy Committee (MPC) had in its two-day meeting held on 4 April and 5 April 2018 decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6% per cent.
Overseas, most European indices were trading lower as investors monitored a fresh batch of corporate earnings and economic data.
Asian stocks fell with technology stocks leading the way following a downbeat outlook from Taiwan Semiconductor Manufacturing Co. Inflation remained weak in Japan. Core consumer prices rose 0.9% from a year earlier in March, versus February's reading of 1%.
US stocks ended lower yesterday, 19 April 2018 with consumer staples, real estate and technology shares leading the losses.
Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) meets later today, 20 April 2018 to discuss production caps. Oil futures were down slightly in Asia after hitting a 3-year high this week.
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