Indian Market Extend Losses

Mon, 16 Mar 01:30 pm

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   Pre-Open   

   09:30 am   

   03:30 pm   

   Closing   

Indian markets continue to remain volatile but trading mostly in the red. BSE-Sensex is trading with a loss of 90 points while NSE-Nifty is trading with a loss of 20 points. S&P BSE Midcap and S&P BSE Smallcap are trading with moderate losses of 0.2%, and 0.6%, respectively.

Commodities have gained ground with gains. Gold prices increased 0.1% or Rs 30 and is trading at Rs 25,900 levels per 10 grams while Silver prices have increased over 0.7% or Rs 262 and is trading at Rs 35,800 levels. Crude oil prices extended the sell and is trading lower by 2.5%. Crude oil prices is trading a tad below Rs 2800 per barrel. The value of Indian Rupee against the US Dollar declined today. The Indian rupee fell 0.2% or 0.13 and is trading at Rs. 62.83 levels.

Asian markets closed today's trading session on a mixed note as investors await the outcome of the 2-day Fed Meet. Japanese and Taiwanese markets ended the day in the red with 0.04% and 0.7%, respective losses while Chinese, Hong Kong and Korean markets showed strength with gains of 2%, 0.40% and 0.1%, respectively.

The Wholesale Price Index (WPI) for the month of February touched an all-time low with -2.06%. This is the fourth consecutive instance when there has been a deflation in prices. Three groups namely primary articles, fuel & power and manufactured products are primarily responsible for the decline in prices. Primary articles (index weight - 20%) fell 1.9% while fuel & power (index weight - 15%) fell 4.5% and manufactured products (index weight - 65%) fell 0.3%.

Airline stocks were one of the most active stocks today. Shares of Jet Airways and SpiceJet increased in the range of 3% and 4% as the Government may issue new rules pertaining to domestic and international flights. According to the government, the rule will be "simple and clear". The changes will be brought about in the 5/20 rule. As per the 5/20 rule only those international flights are allowed to go international whose fleet is more than 20 and have stayed in operation for more than 5 years. According to the new rule, an airline will be allowed to go international once it completes two and a half years of domestic operations. Additionally, the domestic flight should also possess 200 domestic flight credits with flying time of less than 6 hours. On completion of 300 domestic flying credits, the airline can apply for international flights with more than 6 hours flying time.