Weakness persisted on the bourses in mid-afternoon trade led by slide in Infosys and HDFC Bank. At 14:25 IST, the barometer index, the S&P BSE Sensex, was down 213.24 points or 0.67% at 31,678.99. The Nifty index was down 72.30 points or 0.72% at 9,902.10. Domestic stocks fell in tandem with their global counterparts on rising geo-political tensions between North Korea and the US.
Trading for the week had begun on a subdued note as the key benchmark indices edged lower in early trade on negative Asian stocks. Stocks hovered with small losses till mid-morning trade. Indices languished in the red after extending losses and hitting fresh intraday low in early afternoon trade triggered by weak European stocks.
The S&P BSE Mid-Cap index was off 0.77%. The S&P BSE Small-Cap index was off 0.73%. 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, 1,730 shares declined and 833 shares rose. A total of 150 shares were unchanged.
Index heavyweight and software major Infosys lost 1.99% to Rs 901.75.
Tata Motors lost 1.51% after the company's British luxury car unit Jaguar Land Rover reported just a 1% rise in its US sales at 9,421 units in August 2017 over August 2016. Jaguar US sales declined 6% to 3,101 units in August 2017 over August 2016. Land Rover US sales rose 5% to 6,320 units in August 2017 over August 2016.
FMCG stocks edged lower. Dabur India (down 1.24%), Godrej Consumer Products (down 0.58%), Hindustan Unilever (down 1.34%), Marico (down 0.33%), Nestle India (down 2.05%), Tata Global Beverages (down 2.91%), Britannia Industries (down 0.48%), Colgate-Palmolive (India) (down 0.68%) and Bajaj Corp (down 1.05%) declined. GlaxoSmithkline Consumer Healthcare (up 0.5%), Procter & Gamble Hygiene and Health Care (up 1.39%) and Jyothy Laboratories (up 0.32%) rose.
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Sugar stocks declined. Bajaj Hindusthan (down 0.75%), Dhampur Sugar Mills (down 1.41%), Sakthi Sugars (down 1.46%), Balrampur Chini Mills (down 0.86%), Triveni Engineering & Industries (down 1.52%), Shree Renuka Sugars (down 1.47%), Simbhaoli Sugar Mills (down 2.75%) and Dwarikesh Sugar Industries (down 3.52%) fell.
D-Link India fell 8.11% after the company reported net loss of Rs 10.59 crore in Q1 June 2017 as against net profit of Rs 0.51 crore in Q1 June 2016. Net sales declined 38.98% to Rs 92.17 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours on Friday, 1 September 2017.
Tribhovandas Bhimji Zaveri fell 4.73% on profit booking after a recent rally. Shares of Tribhovandas Bhimji Zaveri (TBZ) rose 13.19% in three trading sessions to settle at Rs 118.40 Friday, 1 September 2017, from its close of Rs 104.60 on 29 August 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, European and Asian stocks dropped after North Korea on Sunday, 3 September 2017, 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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