Markets open lower in early trade

13/10/2016 09:23

The key domestic benchmark indices opened lower in the morning trading session as negative cues from most markets in Asia amid speculation of a near-term US Federal Reserve interest rate hike curbed risk taking appetite.

FOMC minutes released on Wednesday showed that several policymakers called for rate tightening relatively soon with improved economic data and fears over an acceleration in inflation also bolstering the case to raise borrowing costs.

The focus today will be on the September consumer inflation data to be released in after-market hours, and which may offer further cues over policy easing by the RBI in the coming months.

At 09:15 AM, the Bombay Stock Exchange bellwether Sensex was at 27862.36 down by 219.98 points or by 0.78 per cent, while the NSE Nifty was at 8642.20 points, trading lower by 66.60 points or by 0.76 per cent.

The top gainers of the BSE Sensex pack were Cipla Ltd. (Rs. 593.50,+2.23 per cent), Asian Paints Ltd. (Rs. 1226.95,+1.24 per cent), Bajaj Auto Ltd. (Rs. 2899.90,+0.87 per cent), Hindustan Unilever Ltd. (Rs. 880.00,+0.45 per cent), Power Grid Corporation of India Ltd. (Rs. 178.50,+0.28 per cent), among others.

Meanwhile, Tata Consultancy Services Ltd. (Rs. 2355.00,-1.05 per cent), Mahindra & Mahindra Ltd. (Rs. 1370.00,-0.59 per cent), Tata Motors Ltd. (Rs. 558.90,-0.57 per cent), Housing Development Finance Corporation Ltd. (Rs. 1385.00,-0.49 per cent), Larsen & Toubro Ltd. (Rs. 1444.80,-0.44 per cent), were among the top losers on BSE.

The Market breadth, indicating the overall strength of the market, was strong. On BSE out of total 636 shares traded, 329 shares advanced, 240 shares declined while 67 were unchanged.

On the global front, Asian stocks were trading lower today as a stronger greenback hit commodity producers while the Fed indicated that a rate hike was probably imminent. . US stocks closed higher in the previous trading session as the Fed indicated that it may undertake interest rate tightening soon but maintain a gradual approach to further rate hikes.

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