Despite global trade optimism, domestic equity market failed to hold its initial strength due to selling in auto and pharma shares. The Sensex ended with small gains while the Nifty ended almost flat. Trading was volatile ahead of the US Federal Reserve meet outcome.

The barometer index, the S&P BSE Sensex, gained 66.40 points or 0.17% to 39,112.74. The index hit a high of 39,435.80 and a low of 38,881.05 in intraday trade.

The Nifty 50 index ended almost flat at 11,691.45. The index hit high of 11,802.50 and low of 11,625.10 in intraday trade.

The domestic market opened on a positive note following upbeat Asian bourses on hopes that the US Fed might cut rates in the near future. Reports of US-China trade talks next week also boosted sentiment. However, domestic shares reversed gains and hit fresh intraday low in mid-afternoon trade led by selling in index pivotals.

Among secondary barometers, the BSE Mid-Cap index was down 0.69%. The BSE Small-Cap index was down 1.37%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On BSE, 700 shares rose and 1867 shares fell. A total of 120 shares were unchanged.

Among the sectoral indices on the BSE, the S&P BSE Realty index (up 1.20%), the S&P BSE Consumer Durables index (up 0.87%) and the S&P BSE Metal index (up 0.55%) outperformed the S&P BSE Sensex. Meanwhile, the S&P BSE Healthcare index (down 1.29%), the S&P BSE Auto index (down 1.00%) and the S&P BSE Telecom index (down 0.99%) underperformed the S&P BSE Sensex.

Overseas, most European shares were trading higher ahead of a much-anticipated US Federal Reserve decision on interest rates. The US Fed kicked off its two-day monetary policy meeting yesterday. The Fed is expected to leave borrowing costs unchanged this time but possibly lay the groundwork for a rate cut later this year.

Asian stocks ended higher on Wednesday. President Donald Trump on Tuesday announced plans on Twitter for an extended meeting with Chinese President Xi Jinping at next week's G-20 summit, sparking hopes of a resolution to the ongoing trade war between the two nations.

Back home, Kotak Mahindra Bank (up 2.44%), NTPC (up 1.58%) and HDFC (up 1.11%), advanced.

Yes Bank (down 5.54%), IndusInd Bank (down 1.82%) and Bharti Airtel (down 1.68%), declined.

Pharma stocks were under pressure. Wockhardt (down 7.88%), Piramal Enterprises (down 6.81%), Strides Shasun (down 4.67%), Glenmark Pharmaceuticals (down 3.34%), Alkem Laboratories (down 2.71%), Cipla (down 2.54%), Aurobindo Pharma (down 1.53%), Dr Reddy's Laboratories (down 1.5%), Lupin (down 0.75%), Sun Pharmaceutical Industries (down 0.75%), IPCA Laboratories (down 0.31%), GlaxoSmithKline Pharmaceuticals (down 0.19%),Divi's Laboratories (down 0.13%), edged lower. Cadila Healthcare rose 1.71%.

Auto stocks witnessed steep losses. TVS Motor Company (down 2.62%), Tata Motors (down 2.31%), Escorts (down 2.29%), Hero MotoCorp (down 1.99%), Bajaj Auto (down 1.23%), Ashok Leyland (down 0.96%), Maruti Suzuki India (down 0.06%), edged lower. Only Eicher Motors (up 0.25%), edged higher.

Mahindra & Mahindra was down 1.71%. The company announced that effective from 1 July 2019, the prices of its passenger vehicles will increase by up to Rs 36,000 across models. This price increase is due to the implementation of AIS 145 Safety Norms across all passenger vehicles in India. The implementation of AIS 145 Safety Norms mandates the fitment of several safety features including driver airbag, seat belt reminder for driver and co-driver, rear parking sensors and an over speed alert for the driver across all passenger vehicle models. The announcement was made today during the market hours.

Tata Steel jumped 4.60%. The shares of Tata Steel were on bargain hunting after a recent slide. Shares of Tata Steel fell 6.50% in the past four trading sessions to settle at Rs 472.75 yesterday, 18 June 2019, from its close of Rs 505.60 on 12 June 2019. Meanwhile, a foreign brokerage has reportedly maintained a 'buy' recommendation on the Tata Steel stock with a target price of Rs 570 per share. The broker highlighted that the domestic demand for steel is resilient but spreads are unlikely to bounce back.

HDFC Bank rose 0.52%. HDFC Bank said that the Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1 crore on the bank for non-compliance with directions issued by RBI on Know Your Customer (KYC)/ Anti-Money Laundering (AML) Norms and on reporting of frauds. The announcement was made after market hours yesterday, 18 June 2019.

NMDC was up 2.80%. The company said that total production of iron ore on a provisional basis rose to 3.04 MT in May 2019 from 2.12 MT in May 2018. Total sales of iron ore on a provisional basis rose to 3.37 MT in May 2019 from 2.31 MT in May 2018. The announcement was made after market hours yesterday, 18 June 2019.

Larsen & Toubro rose 0.04%. The construction arm of L&T has secured orders from clients in Sri Lanka and from within India. The company said the Sri Lankan order falls under significant category which ranges between Rs 1000 crore and Rs 2500 crore as per its classification of contracts.

HCL Technologies was down 0.59%. The company announced a multi-year partnership, with Cricket Australia, the governing body of Australian Cricket. The company announced a digital technological partnership with Cricket Australia. The company did not disclose the deal value.

Jain Irrigation Systems slumped 28.10% to Rs 19.70. India Ratings and Research (Ind-Ra) on Tuesday, 18 June 2019, downgraded Jain Irrigation Systems's (JISL) long-term issuer rating to 'IND BBB' from 'IND A-'; while placing it on Rating Watch Negative (RWN). The downgrade reflects deterioration in the liquidity profile of JISL on account of a delay in the realisation of its receivables from its micro-irrigation systems (MIS) segment. The RWN reflects the risk of delay in the company's deleveraging plans or a further increase in its working capital requirement, resulting in further worsening of its liquidity position, the Ind-Ra statement said.

Realty stocks were mixed. Housing Development and Infrastructure (HDIL) (down 15.36%), Peninsula Land (down 7.38%), Parsvnath Developers,(down 6.54%), Unitech (down 5.66%), Indiabulls Real Estate (down 2.49%), Anant Raj (down 1.73%), Sunteck Realty (down 0.94%), D B Realty (down 0.46%) and Mahindra Lifespace Developers (down 0.13%), edged lower. Sobha (up 0.02%), Prestige Estates Projects (up 0.25%), Omaxe (up 0.85%), Godrej Properties (up 1.63%), DLF (up 1.88%), Oberoi Realty (up 2.55%) and Phoenix Mills (up 2.7%), edged higher.

Shares of public sector oil marketing companies (PSU OMCs) declined as Brent crude oil price increased. Indian Oil Corporation (down 2%), Hindustan Petroleum Corporation (down 1.82%) and Bharat Petroleum Corporation (down 1.75%), declined.

In the commodities market, Brent crude for August 2019 settlement was down 37 cents at $61.77 a barrel. The contract rose $1.20 or, 1.97% to settle at $62.14 a barrel in the previous trading session, rekindled by hopes for a US-China trade deal and potential economic stimulus from the European Central Bank (ECB).

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 69.7025, compared with its close of 69.7000 during the previous trading session.

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