Key benchmark indices logged modest losses on first trading day of the week led by slide in Infosys and HDFC Bank. The barometer index, the S&P BSE Sensex, lost 189.98 points or 0.6% at 31,702.25, as per the provisional closing data. The Nifty index lost 70.95 points or 0.71% at 9,903.45, as per the provisional closing data. Domestic stocks fell for the first time in four trading days, in tandem with their global counterparts, on rising geo-political tensions between North Korea and the US.
The Sensex gained 39.97 points or 0.13% at the day's high of 31932.20 in opening trade. The index lost 331.91 points or 1.04% at the day's low of 31,560.32 in early afternoon trade, its lowest level since 31 August 2017. The Nifty gained 14 points or 0.14% at the day's high of 9,988.40 in opening trade. The index lost 113.40 points or 1.14% at the day's low of 9,861 in early afternoon trade, its lowest level since 31 August 2017.
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. Indices cut losses in afternoon trade. Stocks further recovered some lost ground in late trade.
The S&P BSE Mid-Cap index provisionally fell 0.68%. The S&P BSE Small-Cap index provisionally fell 0.68%. The fall in both these indices was higher than the Sensex's decline in percentage terms.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 1,596 shares fell and 998 shares rose. A total of 228 shares were unchanged.
The total turnover on BSE amounted to Rs 3390.86 crore, higher than the turnover of Rs 3322.43 crore registered during the previous trading session.
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Index heavyweight and software major Infosys lost 2.03% to Rs 901.40.
Tata Motors lost 1.45% 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.
Pharma shares declined. Dr Reddy's Laboratories (down 1.05%), Glenmark Pharmaceuticals (down 0.89%), Cipla (down 1.12%), GlaxoSmithKline Pharmaceuticals (down 0.4%) and Aurobindo Pharma (down 1.34%) declined. Sun Pharmaceutical Industries (up 3.41%) and Wockhardt (up 1.91%) rose.
Lupin rose 0.35% after the company announced the launch of its Olmesartan Medoxomil tablets, 5 mg, 20mg and 40mg having received an approval from the United States Food and Drug Administration earlier. The announcement was made during market hours today, 4 September 2017.
The drug is the AB rated equivalent of Daichi Sankyo Inc's Benicar tablets. It is indicated for the treatment of hypertension, alone or in combination with other antihypertensive agents, to lower blood pressure. Benicar had annual US sales of $681 million as per IMS MAT July 2017.
Cadila Healthcare fell 0.93%. The company said it has received final approval from the US drug regulator to market a drug. The announcement was made on Saturday, 2 September 2017.
Cadila Healthcare said it has received final approval from the United States Food and Drug Administration (USFDA) to market Mycophenalate Mofetil for Injection USP, 500 mg/vial. The drug is indicated for use in combination with other drugs i.e., cyclosporine and corticosteroids for the prophylaxis of organ rejection in patients receiving renal, hepatic or cardiac transplants. The drug will be manufactured at the group's formulations manufacturing facility at Moraiya, Ahmedabad.
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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