Key benchmark indices languished in negative zone in mid-morning trade. At 11:15 IST, the barometer index, the S&P BSE Sensex, was down 147.91 points or 0.59% at 25,114.30. The Nifty 50 index was currently down 39.30 points or 0.51% at 7,696.20. Weakness in Asian stocks weighed on sentiment on the domestic bourses. Asian stocks edged lower as investors turned cautious before the release of the influential US monthly non-farm payroll data.
The Sensex hit its lowest level in more than three weeks, when it lost 204.28 points or 0.8% at the day's low of 25,057.93 in early trade. The barometer index lost 33.90 points or 0.13% at the day's high of 25,228.31 at the onset of trading session. The Nifty, too, hit its lowest level in more than three weeks when it lost 57.15 points or 0.73% at the day's low of 7,678.35 in early trade. The index lost 17.85 points or 0.23% at the day's high of 7,717.65 in opening trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,125 shares declined and 915 shares rose. A total of 117 shares were unchanged. The BSE Mid-Cap index was currently up 0.19%, outperforming the Sensex. The BSE Small-Cap index was currently down 0.09%. The decline in this index was lower than the Sensex's decline in percentage terms.
In overseas stock markets, Chinese stocks led decline in Asian markets as investors turned cautious before the release of the influential US monthly non-farm payroll data. In China, the Shanghai Composite was currently down 1.74%. In Hong Kong, the Hang Seng index was currently down 1.21%. Most US stocks edged lower yesterday, 5 May 2016, as investors awaited the key non-farm payrolls data. The US government will release the non-farm payroll data for April 2016 later in the global day today, 6 May 2016. The non-farm payroll data has implications for the US monetary policy. The US central bank's mandate centers on maximizing employment and keeping inflation at a 2% target level. The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 14-15 June 2016.
IT stocks declined. Tech Mahindra (down 0.93%), TCS (down 0.93%), HCL Technologies (down 0.75%) and Persistent Systems (down 0.14%) edged lower. Oracle Financial Services Software (up 1.14%) edged higher.
Index heavyweight and software major Infosys was off 0.88% at Rs 1,181.95. The stock hit a high of Rs 1,192 and a low of Rs 1,178.10 so far during the day.
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Wipro was down 1.14% at Rs 536.80. The company after trading hours yesterday, 5 May 2016, announced that it has won a multi-year contract from Thames Water in the United Kingdom. Wipro will develop new IT systems and processes to help Thames Water improve customer experience and drive operational efficiencies.
In a separate announcement after trading hours yesterday, 5 May 2016, Wipro said that it has successfully implemented its Software as a Service (SaaS) platform- Managed File Transfer as a Service (MFTaaS) on Amazon Web Services (AWS) for organizations, thereby helping them integrate digitally with their clients, partners and employees. Wipro anticipates that the MFTaaS platform can potentially reduce up to 30% in TCO (Total Cost of Ownership) for its clients vis-a-vis traditional deployments, the company said in a statement.
FMCG stocks gained on renewed buying. Dabur India (up 2.83%), Tata Global Beverages (up 1.59%), Emami (up 2.4%), Nestle India (up 1.56%), Marico (up 0.79%), Bajaj Corp (up 0.89%), Britannia Industries (up 0.88%), Colgate-Palmolive (India) (up 0.76%), GlaxoSmithkline Consumer Healthcare (up 0.97%), Hindustan Unilever (up 0.14%) and Godrej Consumer Products (up 0.15%) edged higher. Jyothy Laboratories (down 2.47%) and Procter & Gamble Hygiene and Health Care (down 1.49%) edged lower.
Index heavyweight and cigarette major ITC dropped 0.91% at Rs 314.65 after announcing temporary closure of its cigarette factories from 4 May 2016 until it is in a position to comply with the rules on pictorial warnings on cigarette packs. The announcement was made after market hours yesterday, 5 May 2016. The Supreme Court on 4 May 2016 passed an order transferring to the Karnataka High Court all writ petitions pending in various courts challenging the rules prescribing 85% pictorial warnings on cigarette packs. The Supreme Court observed that all parties should endeavour to follow the existing rules on pictorial warnings on cigarette packs.
The government had notified that cigarette companies have to carry warning over 85% of the pack from 1 April 2016, sharply higher than earlier 40% of the pack.
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