The key domestic benchmark indices pared all the gains and slipped into negative territory during the late noon trading session amid weakness in the oil shares on account of declining crude oil prices coupled with losses in Index heavyweights.
At 14:17 hours, the 30-share benchmark index, Sensex was trading at 24706.04 down by 118.79 points or by 0.48 per cent, while the NSE Nifty was at 7497.9 down by 58.05 points or by 0.77 per cent.
Investors turned cautious on Moody’s Investors Service report which says that RBI’s target to bring down retail inflation at 5 per cent by March 2017 will face some risks from monsoon uncertainty and execution of 7th Pay Panel recommendations, while macro-economic factors will be critical for sustaining growth.
The Reserve Bank of India (RBI) has today kept the policy repo rate unchanged at 6.75 per cent due to inflation concerns. RBI governor Raghuram Rajan expects inflation to be around 5 per cent by the end of 2016-17.
In the choppy trade so-far, Sensex touched intraday high of 24928.75 and intraday low of 24661.09 The NSE Nifty touched intraday high of 7576.3 and intraday low of 7496.75. Major laggards on the D-street included Tata Steel Ltd. (Rs. 237.25,-4.87%), Cipla Ltd. (Rs. 580.50,-2.89%), Sun Pharmaceutical Industries Ltd. (Rs. 847.30,-2.63%), NTPC Ltd. (Rs. 136.70,-2.53%), Bharat Heavy Electricals Ltd. (Rs. 137.00,-2.46%), among others.
Meanwhile, some buying interest was seen in index heavyweights including Bharti Airtel Ltd. (Rs. 302.05,+1.87%), Bajaj Auto Ltd. (Rs. 2356.25,+1.21%), Infosys Ltd. (Rs. 1183.85,+1.07%), Tata Consultancy Services Ltd. (Rs. 2422.95,+0.86%), Housing Development Finance Corporation Ltd. (Rs. 1188.90,+0.80%), among others.
Among the sectors, metal and Oil & gas indices remained under pressure, declining by 3.21 per cent and 1.85 per cent respectively.
The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares 2696 traded, 1141 shares advanced, 1417 shares declined while 138 were unchanged.
On the global front, Asian peers ended the day on mixed note as oil rout resumed coupled with persistent concerns over the health of Chinese economy. Meanwhile, European counters were also reeling under pressure with all CAX, DAX and FTSE trading down 1.5 per cent each.