The market further extended losses and hit fresh intraday low in mid-morning trade. At 11:23 IST, the barometer index, the S&P BSE Sensex, was down 246.54 points or 0.70% at 35176.94. The Nifty 50 index was down 85.95 points, or 0.80% at 10,628.35. Mixed cues from other Asian stocks spoiled investors sentiment. IT shares were in demand.
The indices opened higher, but reversed trend in early trade and hit fresh intraday low in mid-morning 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 252.94 points, or 0.71% at the day's low of 35,170.54 in mid-morning 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 86.60 points, or 0.81% at the day's low of 10,627.70 in mid-morning trade.
Among secondary barometers, the BSE Mid-Cap index was down 0.97%. The BSE Small-Cap index was down 0.77%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 780 shares rose and 1419 shares fell. A total of 120 shares were unchanged.
ONGC fell 2.12%. 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 2.47% 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.
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IT shares rose. Infosys (up 0.89%), Hexaware Technologies (up 0.87%), Persistent Systems (up 0.67%), MphasiS (up 0.42%), Oracle Financial Services Software (up 0.41%), Tech Mahindra (up 0.41%), TCS (up 0.37%), HCL Technologies (up 0.05%) and MindTree (up 0.05%), edged higher. Wipro was down 0.54%.
Pharmaceutical shares were mixed. Alkem Laboratories (up 1.48%), Sun Pharmaceutical Industries (up 1.15%), Strides Shasun (up 1.08%), Glenmark Pharmaceuticals (up 0.61%), Dr Reddy's Laboratories (up 0.44%) and Aurobindo Pharma (up 0.24%), edged higher. Cipla (down 0.36%), Divi's Laboratories (down 0.53%), GlaxoSmithKline Pharmaceuticals (down 0.57%), Lupin (down 0.62%), IPCA Laboratories (down 0.95%), Piramal Enterprises (down 1.82%) and Wockhardt (down 1.84%), edged lower.
Cadila Healthcare rose 0.40% after the company announced that it has received final approval from the USFDA for Triamterene and Hydrochlorothiazide Tablets USP. The announcement was made on Saturday, 30 June 2018.
Zydus Cadila has received the final approval from the USFDA to market Triamterene and Hydrochlorothiazide Tablets USP in strengths of 37.5 mg/25 mg and 75 mg/SO mg. It is used for the treatment of high blood pressure. This combination drug is used by patients who have developed or are at risk for having low potassium levels on hydrochlorothiazide. It will be manufactured at the group's manufacturing facility at SEZ, Ahmedabad. The group now has more than 195 approvals and has so far filed over 320 ANDAs since the commencement ofthe filing process in FY 2003-04, Zydus Cadila said.
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, Asian stocks were trading mixed, 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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