Domestic shares corrected after rising in past nine consecutive sessions. The barometer index, the S&P BSE Sensex, fell 63.38 points or 0.18% at 34,331.68. The Nifty 50 index fell 22.50 points or 0.21% at 10,526.20. FMCG stocks were in demand as forecasts of normal monsoon brightened their outlook. Bank shares declined.

Overseas, most European markets were trading higher as investors monitored a fresh batch of corporate earnings and economic data. Asian stocks rose as an encouraging US earnings season underscored resilient growth. Japan's exports edged up in March, on strong demand for cars and equipment to make semiconductors, data from Japan's finance ministry showed. Exports rose 2.1% from a year ago, on a rebound in demand after a lull last month. The increase helped Japan log a 10.8% rise in exports for the business year ended March, the first annual rise in three years.

US stocks rallied yesterday, 17 April 2018, amid better-than-expected earnings from industry heavyweights, adding to evidence that the strengthening economy is lifting corporate profits. Meanwhile, a lack of escalation in the trade tensions between China and the US has also emboldened investors.

Back home, intraday volatility was high. Domestic stocks drifted higher in early trade tracking positive Asian stocks. Stocks steadily extended gains and hit fresh intraday high in mid-afternoon trade. Volatility ruled the roost in mid-afternoon trade as the key benchmark indices retreated sharply after hitting intraday high. Indices hit fresh intraday low in late trade.

The Sensex fell 63.38 points or 0.18% to settle at 34,331.68, its lowest closing level since 16 April 2018. The index rose 196.75 points, or 0.57% at the day's high of 34,591.81. The index fell 125.02 points, or 0.36% at the day's low of 34,270.04.

The Sensex jumped 1,375.99 points, or 4.17% in nine trading sessions to settle at 34,395.06 yesterday, 17 April 2018, from its low of 33,019.07 on 4 April 2018.

The Nifty 50 index fell 22.50 points or 0.21% to settle at 10,526.20, its lowest closing level since 13 April 2018. The index rose 45.50 points, or 0.43% at the day's high of 10,594.20. The index fell 39 points, or 0.37% at the day's low of 10,509.70.

The S&P BSE Mid-Cap index fell 0.07%, outperforming the Sensex. The S&P BSE Small-Cap index dropped 0.37%, underperforming the Sensex.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,527 shares fell and 1,131 shares rose. A total of 151 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Consumer Durables index (down 1.18%), the S&P BSE Bankex (down 0.85%), the S&P BSE Energy index (down 0.81%), the S&P BSE Finance index (down 0.66%), the S&P BSE Oil & Gas index (down 0.65%), the S&P BSE Auto index (down 0.47%), the S&P BSE Healthcare index (down 0.47%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.29%), the S&P BSE Industrials index (down 0.21%) and the S&P BSE IT index (down 0.21%), underperformed the Sensex. The S&P BSE Capital Goods index (down 0.13%), the S&P BSE Teck index (up 0.03%), the S&P BSE Power index (up 0.17%), the S&P BSE Utilities index (up 0.3%), the S&P BSE Basic Materials index (up 0.37%), the S&P BSE Metal index (up 0.46%), the S&P BSE Realty index (up 0.49%), the S&P BSE Telecom index (up 0.5%) and the S&P BSE FMCG index (up 1.57%), outperformed the Sensex.

Index heavyweight and cigarette major ITC gained 2.82% to Rs 275.30.

Most FMCG stocks gained as forecasts of normal monsoon brightened their outlook. Godrej Consumer Products (up 5.37%), Tata Global Beverages (up 1.77%), Bajaj Corp (up 0.59%), Colgate Palmolive (India) (up 0.47%), Hindustan Unilever (up 0.39%), GlaxoSmithKline Consumer Healthcare (up 0.25%), Marico (up 0.25%) and Britannia Industries (up 0.18%), edged higher. Jyothy Laboratories (down 0.03%), Procter & Gamble Hygiene & Health Care (down 0.09%) and Nestle India (down 0.32%), edged lower.

A good monsoon could boost revenue of FMCG firms. FMCG companies derive substantial revenue from rural India.

FMCG major Dabur India rose 3.48% on reports that a foreign brokerage upgraded its rating on the stock to buy from outperform. The brokerage reportedly said outlook for consumer staple firms are improving with the forecast for normal monsoon in 2018. The brokerage raised Dabur India's target price to Rs 415 from Rs 400 earlier.

The Indian Meteorological Department (IMD) predicted the south-west monsoon (June to September) to be at 97% of the long period average (LPA) with a margin of error of +/- 5%. Rainfall between 96% and 104% of LPA during the June-September monsoon period is considered normal. The forecast was made after market hours on 16 April 2018. The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.

Car major Maruti Suzuki India shed 0.39%. Maruti Suzuki India during market hours today, 18 April 2018 said that the company has attained leadership position in utility vehicles sales in the domestic market in 2017-18, with over 27.5% market share. Riding on the success of models like Vitara Brezza, Ertiga and S-Cross, Maruti Suzuki's sale of utility vehicles reached 253,759 units in 2017-18, growing 29.6% over previous year sales of 195,741 units.

Auto major M&M lost 1.55%. M&M today launched the Plush New XUV500 in the premium SUV segment with a bold new design, plush, luxurious interiors and higher power and torque. It offers a more pleasurable ride through an enhanced suspension, and comes with a quieter cabin. Starting at Rs 12.32 lakhs (ex-showroom Mumbai, for W5 variant), it will be available at Mahindra dealerships across India with immediate effect. The announcement was made during market hours today, 18 April 2018.

Bank shares declined. Among private sector banks, Axis Bank (down 2.6%), IndusInd Bank (down 1.23%), RBL Bank (down 0.63%), Kotak Mahindra Bank (down 0.61%), ICICI Bank (down 0.51%), City Union Bank (down 0.44%), HDFC Bank (down 0.39%) and Federal Bank (down 0.2%), edged lower. Yes Bank rose 0.42%.

Among state-run banks, Bank of Baroda (down 4.02%), Indian Bank (down 3.84%), Andhra Bank (down 2.1%), IDBI Bank (down 1.69%), Allahabad Bank (down 1.65%), Dena Bank (down 1.55%), Bank of Maharashtra (down 1.39%), Union Bank of India (down 1.33%), Syndicate Bank (down 1.12%), Punjab National Bank (down 0.87%), State Bank of India (down 0.79%), Bank of India (down 0.77%), United Bank of India (down 0.53%), Central Bank of India (down 0.5%) and Corporation Bank (down 0.33%), edged lower. Vijaya Bank (up 0.17%), Punjab & Sind Bank (up 0.40%), Canara Bank (up 0.71%) and UCO Bank (up 1.23%), edged higher.

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