A broad-based sell-off in index pivotals pulled the key benchmark indices to fresh intraday low in early afternoon trade. At 12:17 IST, the barometer index, the S&P BSE Sensex, was down 322.30 points or 1.01% at 31,569.93. The Nifty index was down 103.50 points or 1.04% at 9,870.90. Domestic stocks fell in tandem with their Asian counterparts on rising geo-political tensions between North Korea and the US.
Trading for the week began on subdued note as the key benchmark indices edged lower in early trade on negative Asian stocks. Stocks extended fall and hit fresh intraday low in morning trade. Indices hovered in negative zone in mid-morning trade.
The S&P BSE Mid-Cap index was off 1.31%. The S&P BSE Small-Cap index was off 1.27%. The fall in both these indices was higher than the Sensex's decline in percentage terms.
The broad market depicted weakness. There were more than two losers against every gainer on BSE. On the BSE, 1,664 shares declined and 752 shares rose. A total of 125 shares were unchanged.
Pharma shares declined. Dr Reddy's Laboratories (down 1.52%), Glenmark Pharmaceuticals (down 1.17%), Cipla (down 0.59%), Lupin (down 0.15%), Sun Pharmaceutical Industries (down 1.02%), Alkem Laboratories (down 0.66%), GlaxoSmithKline Pharmaceuticals (down 1.02%) and Aurobindo Pharma (down 1.41%) declined. Wockhardt (up 2.12%) rose.
Cadila Healthcare fell 0.68%. The company said it has received final approval from the US drug regulator to market a drug. The announcement was made on Saturday, 2 September 2017.
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Cadila Healthcare said it has received final approval from the United States Food and Drug Administration (USFDA) to market Mycophenalate Mofetil for Injection USP, 500 mg/vial. The drug is indicated for use in combination with other drugs i.e., cyclosporine and corticosteroids for the prophylaxis of organ rejection in patients receiving renal, hepatic or cardiac transplants. The drug will be manufactured at the group's formulations manufacturing facility at Moraiya, Ahmedabad.
Auto stocks dropped. Tata Motors (down 1.84%), Maruti Suzuki India (down 0.42%), Mahindra & Mahindra (M&M) (down 0.95%), Escorts (down 1.58%), Bajaj Auto (down 0.6%), Eicher Motors (down 0.88%) and Ashok Leyland (down 0.75%) declined.
Hero MotoCorp lost 1.85%. The company's two-wheeler sales rose 10% to 6.78 lakh units in August 2017 over August 2016, riding on popular demand for its exciting range of two-wheelers. The high sales in August have ensued owning to the early arrival of the festival season this year. The company is poised to further consolidate its market leadership by meeting customer expectations with adequate inventory of its range of popular motorcycles and scooters at dealerships across the country. The announcement was made after market hours on Friday, 1 September 2017.
TVS Motor Company rose 0.24% after the company reported 16% rise in total sales to 3.17 lakh units in August 2017 over August 2016. The announcement was made after market hours on Friday, 1 September 2017.
TVS Motor Company's total two-wheeler sales rose 15.5% to 3.09 lakh units in August 2017 over August 2016. Scooters sales rose 49.3% to 1.14 lakh units in August 2017 over August 2016. Motorcycles sales fell 1.99% to 1.11 lakh units in August 2017 over August 2016.
Three-wheeler sales increased 26.9% to 8,417 lakh units in August 2017 over August 2016. Total exports grew 33.7% to 45,604 lakh units in August 2017 over August 2016.
Apex Frozen Foods was trading at Rs 209.85 on BSE, a premium of 19.91% over the issue price of Rs 175 on its debut on the stock exchanges today, 4 September 2017. The stock opened at Rs 199.90, a premium of 14.22% over the issue price. The stock had hit a high of Rs 209.85 and a low of Rs 195 so far during the day. On the BSE, 2.35 lakh shares were traded on the counter so far.
The initial public offer (IPO) of Apex Frozen Foods received strong response from investors. The IPO was subscribed 6.14 times. The company had fixed the IPO price band at Rs 171 to Rs 175 per share. Apex Frozen Foods is one of the integrated producers and exporters of shelf stable quality aquaculture products.
KG Denim tumbled 10.29% after net profit fell 90.2% to Rs 0.91 crore on 3.9% decline in net sales to Rs 146.74 crore in Q1 June 2017 over Q1 June 2016. The result was announced on Saturday, 2 September 2017.
On the political front, Prime Minister Narendra Modi's expansion and reshuffle of his Council of Ministers took place on Sunday, 3 September 2017. Nine new Ministers of State made it to the Union Cabinet, while four existing ministers Nirmala Sitharaman, Piyush Goyal, Dharmendra Pradhan and Mukhtar Abbas Naqvi were promoted to Cabinet rank.
Nirmala Sitharaman was named as Defence Minister. Piyush Goyal was named the Railway Minister with additional charge of Ministry of Coal. Suresh Prabhu was moved to the Commerce Ministry. Petroleum Minister Dharmendra Pradhan was given additional charge of the Skill Development Ministry. Uma Bharti has been divested of her portfolio of Water Resources, River Development and Ganga Rejuvenation, which is now with Transport Minister Nitin Gadkari. Rajyavardhan Singh Rathore replaced Vijay Goel in the Sports Ministry.
Overseas, most Asian stocks were trading lower after North Korea on Sunday said it tested a hydrogen bomb with unprecedentedly big power, raising geo-political tensions between North Korea and US. Meanwhile, US President Donald Trump threatened to increase economic sanctions and halt trade with any nation doing business with North Korea.
US equities finished higher on Friday, 1 September 2017 on expectations that a weaker-than-expected rise in August nonfarm payrolls could dull the Federal Reserve's desire to further raise borrowing costs in 2017. Meanwhile, US financial markets will remain closed today, 4 September 2017 in observance of Labor Day.
In economic data, the US economy added 156,000 jobs in August. The unemployment rate stood at 4.4% in August, rising by 0.1 percentage point from July. Average hourly wages increased by 0.1% in August from a 0.3% increase in the previous month.
In other economic data, the closely watched Institute for Supply Management manufacturing index jumped to a six-year high in August. The University of Michigan said its final gauge of consumer sentiment for August came in at 96.8 versus a preliminary reading of 97.6.
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