Shares declined as profit booking emerged in market heavyweights, mirroring weak global cues. The barometer index, the S&P BSE Sensex, fell 159.07 points or 0.45% to settle at 35,264.41. The Nifty 50 index fell 57 points or 0.53% to settle at 10,657.30.
The indices opened higher, but reversed trend in early trade and hit fresh intraday low in afternoon trade. Indices pared losses in mid-afternoon trade. The Sensex rose 154.76 points, or 0.44% at the day's high of 35,578.24 at the onset of trading session. The index fell 316.91 points, or 0.89% at the day's low of 35,106.57 in afternoon trade. The Nifty rose 21.85 points, or 0.20% at the day's high of 10,736.15 at the onset of trading session. The index fell 109.65 points, or 1.02% at the day's low of 10,604.65 in afternoon trade.
Among secondary barometers, the BSE Mid-Cap index was down 0.75%. The BSE Small-Cap index was down 0.70%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 944 shares rose and 1668 shares fell. A total of 153 shares were unchanged.
Index heavyweight and housing finance major HDFC fell 0.76% to Rs 1,892.85.
Index heavyweight Reliance Industries (RIL) fell 1.13% to Rs 961.95.
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Index heavyweight and cigarette major ITC fell 1.15% to Rs 263.
Engineering & construction major L&T fell 1.12% to Rs 1257.
Asian Paints (up 2.13%), Infosys (up 2.09%), Vedanta (up 2.06%), ICICI Bank (up 0.74%) and Sun Pharmaceutical Industries (up 0.46%), were the major Sensex gainers.
NTPC (down 3.61%), Bharti Airtel (down 3.39%), Adani Ports and Special Economic Zone (down 2.27%), HDFC Bank (down 1.62%) and Hero MotoCorp (down 1.47%), were the major Sensex losers.
Tata Steel fell 1.28%. Tata Steel and thyssenkrupp AG on 30 June 2018, signed definitive agreements to combine their European steel businesses in a 50/50 joint venture in a new company. This follows the signing of a Memorandum of Understanding in September 2017. The proposed new company, to be named thyssenkrupp Tata Steel BV, will be positioned as a leading pan European high quality flat steel producer with a strong focus on performance, quality and technology leadership. The joint venture is built on the strong foundations of common value systems and a long heritage in the industry. The transaction is subject to merger control clearance in several jurisdictions, including the European Union.
ONGC fell 1.49%. The company announced on Saturday, 30 June 2018, that its board, at the 308th meeting held on 29 June 2018, accorded its in-principle approval for exploring options for restructuring of ONGC group companies. Minister of Finance, Government of India, in the budget 2017-18, had announced the proposal for creating public sector 'oil major' which will be able to match the performance of international and domestic private sector oil and gas companies. Keeping in view the internal strategic plan duly aligning with the said proposal of the Government of India, ONGC acquired 51.11% in the equity capital of Hindustan Petroleum Corporation Limited (HPCL) from Government oflndia on 31 January 2018, and thereby HPCL has become another listed subsidiary of ONGC, in addition to Mangalore Refinery and Petrochemicals Limited (MRPL). The restructuring proposal shall safeguard the overall interest of the public shareholders of all ONGC group companies and would be famed up after taking into account the proposal of the Government of India referred above; the need to better value creation and synergy of ONGC group companies; and MRPL's obligation to meet the minimum public shareholding requirement. The implementation of any such restructuring proposal shall be subject to approval of the Government of India, board of directors of the relevant companies and other stakeholders of such companies in terms of applicable laws.
Bajaj Auto rose 0.49% after the company reported a 65% growth in its total vehicles sales at 4.04 lakh units in June 2018 over June 2017. The announcement was made before market hours today, 2 July 2018.
Maruti Suzuki India rose 0.11%. The company said that its total sales rose 36.3% to 1.44 lakh units in June 2018 over June 2017. The announcement was made on Sunday, 1 July 2018.
Mahindra & Mahindra's (M&M) fell 1.09%. The company's total auto sales rose 26% to 45,155 units in June 2018 over June 2017. The announcement was made on Sunday, 1 July 2018.
On the economic front, India's manufacturing conditions improved in June at the strongest pace since December 2017, supported by the sharpest gains in output and new orders in 2018 so far. The Nikkei India Manufacturing Purchasing Managers' Index (PMI) rose from 51.2 in May to 53.1 in June. This was consistent with the fastest improvement in the health of India's manufacturing economy in 2018 so far.
Overseas, European shares were trading lower as on-going worries about the US trade policies and concerns about German Chancellor Angela Merkel's coalition weighed on sentiment. Asian stocks tumbled, with trade tensions between the US and its trading partners still a key concern for investors.
China's official manufacturing Purchasing Managers' Index (PMI) declined to 51.5 for the month of June. The figure still came in above the 50-point level indicating growth.
In Japan, confidence among large manufacturers weakened for the second straight quarter in three months to June amid growing concerns about the potential impact of trade friction on the global economy. The main index measuring large manufacturers' sentiment was at plus 21 in the April-June period, compared with plus 24 in the previous survey in March, according to the Bank of Japan's quarterly tankan survey.
US stocks closed higher Friday, 29 June 2018, led by energy and materials sectors. Financials also rose earlier after several banks announced plans to return capital to shareholders late Thursday after the Federal Reserve released results of its annual stress test. However, financials finished in the red as investors pocketed profits toward the closing bell.
On the US data front, the personal-consumption expenditures index, the Federal Reserve's preferred inflation gauge, rose 0.2% as did the core rate that strips out food and energy. The rate of inflation over the past 12 months rose to 2.3%, the fastest pace since March 2012.
Chicago PMI climbed to a reading of 64.1 in June, up from 62.7, the fastest reading since January and the highest level in six month. Any reading above 50 indicates improving conditions. The final University of Michigan consumer sentiment index for June came in at 98.2. Thursday's data showed first-quarter growth for the US economy was trimmed to 2% from 2.2%.
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