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Capital goods stocks decline

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Capital Market
Last Updated : Jun 12 2017 | 11:47 AM IST

After an early setback, stocks staged a recovery to cut losses in mid-morning trade. At 11:25 IST, the barometer index, the S&P BSE Sensex, was down 129.52 points or 0.41% at 31,132.54. The Nifty 50 index was down 35.40 points or 0.37% at 9,632.85. Weak global cues played the spoilsport for domestic stocks.

Domestic stocks kick-started trading for the week on a dull note on negative global cues. Key benchmark indices extended initial fall and hit fresh intraday low in morning trade.

The S&P BSE Mid-Cap index was down 0.15%. The S&P BSE Small-Cap index was down 0.02%. The fall in both these indices was lower than the Sensex's decline in percentage terms.

The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,269 shares fell and 1,032 shares rose. A total of 122 shares were unchanged.

Overseas, most Asian stocks were trading lower as investors assessed the risks from political turmoil in the UK. In US, technology stocks sold off sharply on Friday, 9 June 2017 taking a toll on the Nasdaq and dragging on other major Wall Street indexes, which touched record highs earlier in the day.

Markets turned cautious, following the surprise hung parliament result from the UK election on Friday, 9 June 2017. Investors are also weighing France's parliamentary elections, where the first round showed President Emmanuel Macron's party headed for a majority.

Back home, Wipro (down 2.63%), Reliance Industries (down 1.1%) and ICICI Bank (down 0.87%) edged lower from the Sensex pack.

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Capital goods stocks edged lower. L&T (down 1.46%), Bharat Heavy Electricals (Bhel) (down 0.68%), BEML (down 0.12%), Bharat Electronics (down 0.03%), Punj Lloyd (down 0.25%), Siemens (down 0.23%) and Thermax (down 0.16%) fell. ABB India (up 1.26%) rose.

Telecom stocks saw mixed trend. Bharti Airtel (up 0.49%), Idea Cellular (up 0.38%) rose. MTNL (down 0.89%) and Tata Teleservices (Maharashtra) (down 0.31%) fell.

Reliance Communications rose 1.63% to Rs 18.70 on bargain hunting after a recent slide. The stock had hit a high of Rs 19.15 so far during the day. The stock had hit a low of Rs 18.10 so far during the day, which is also a record high for the counter.

Shares of Reliance Communications (RCom) fell 11.54% in four trading sessions to settle at Rs 18.40 yesterday, 9 June 2017, from its close of Rs 20.80 on 5 June 2017. The recent selling in the stock was triggered by ratings agencies Moody's and Fitch further downgrading their ratings on the telecom company and warning about its ability to deal with long-term debt.

Shares of Bharti Infratel fell 0.18%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

Mawana Sugars jumped 9.31% after net profit rose 42.7% to Rs 92.63 crore on 8.5% decrease in net sales to Rs 422.24 crore in the quarter ended March 2017 over the quarter ended March 2016. The result was announced after market hours on Friday, 9 June 2017.

Meanwhile, the GST Council in its 16th meeting on Sunday, 11 June 2017 reportedly decided to revise tax rates on 66 products and widened the scope of a concessional tax payment scheme for small businesses and restaurants. The council will meet again on 18 June 2017 to take stock of the rollout preparedness and any new proposal. The council also decided to go ahead with the planned 1 July 2017 rollout.

Among macro economic data, the government will announce industrial production data for the month of April 2017 after market hours today, 12 June 2017. The data on inflation based on consumer price index (CPI) or retail inflation for May 2017 will also be announced after market hours today, 12 June 2017.

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First Published: Jun 12 2017 | 11:32 AM IST

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