The movement for the two key benchmark indices remained confined to a narrow range in negative zone in early afternoon trade. At 12:16 IST, the barometer index, the S&P BSE Sensex, was down 122.26 points or 0.48% at 25,139.95. The Nifty 50 index was currently down 34.50 points or 0.45% at 7,701. 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 market breadth indicating the overall health of the market was negative. On BSE, 1,204 shares declined and 990 shares rose. A total of 134 shares were unchanged. The BSE Mid-Cap index was currently up 0.36%, outperforming the Sensex. The BSE Small-Cap index was currently down 0.01%. 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 1.62%. In Hong Kong, the Hang Seng index was currently down 1.19%. 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.
Shares of oil exploration and production (E&P) firms edged lower on decline in crude oil prices. Cairn India (down 1.02%) and ONGC (down 0.88%) declined. Oil India (up 1.65%) rose. Lower crude oil prices will result in lower realization from crude sales for oil exploration firms.
Index heavyweight Reliance Industries was down 0.3% at Rs 972.15. The stock hit a high of Rs 976.95 and a low of Rs 969.30 so far during the day.
Shares of public sector oil marketing companies (PSU OMCs) edged higher on decline in crude oil prices. Indian Oil Corporation (up 1.63%) and HPCL (up 1.29%) rose. BPCL (down 0.31%) edged lower. Decline in crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. The government has already decontrolled pricing of petrol and diesel.
In global commodities markets, Brent for July settlement was currently down 22 cents at $44.79 a barrel. The contract had risen 39 cents or 0.87% to settle at $45.01 a barrel during the previous trading session.
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Aviation stocks edged higher on decline in crude oil prices. SpiceJet (up 1.01%) and Jet Airways (India) (up 0.94%) rose. InterGlobe Aviation (down 1.08%) declined. Lower crude oil prices benefit aviation firms as jet fuel prices, which typically constitute about 50% of airlines' operating costs, are directly linked to international crude oil prices.
Aurobindo Pharma was off 0.4% at Rs 802. The stock was volatile. The stock hit a high of Rs 807 and a low of Rs 795.15 so far during the day. The company during market hours today, 6 May 2016, announced that it has received final approval from the US Food and Drug Administration (USFDA) to manufacture and market Fenofibrate tablets, 48 mg and 145 mg. This product is expected to be launched in the US in Q1 June 2016. The drug is bioequivalent and therapeutically equivalent to the reference listed drug product (RLD) Tricor tablets of AbbVie Inc.
Fenofibrate tablet is used to treat high level of cholesterol and triglyceride in the blood. The approved product has an estimated market size of $412 million in the US for the twelve months ended March 2016, according to IMS.
Ashoka Buildcon fell 0.71% at Rs 133.35 after a bulk deal of 5.91 lakh shares was executed on the scrip at Rs 133 per share at 10:24 IST on BSE today, 6 May 2016.
Great Eastern Shipping Company shed 2.45% at Rs 308.50 after consolidated net profit fell 57.5% to Rs 58.20 crore on 7.26% increase in total income to Rs 968.42 crore in Q4 March 2016 over Q4 March 2015. The result was announced after trading hours yesterday, 5 May 2016.
In a separate announcement after market hours yesterday, 5 May 2016, GE Shipping said that its board of directors approved raising upto Rs 1500 crore through private placement of non-convertible debentures.
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