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Market drops in volatile trade

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Capital Market
Last Updated : Sep 04 2018 | 4:16 PM IST

Key benchmark indices logged modest losses after a volatile session of trade. The barometer index, the S&P BSE Sensex, was down 154.60 points or 0.4% at 38,142.40, as per the provisional closing data. The Nifty 50 index was down 62.05 points or 0.54% at 11,520.30, as per the provisional closing data. Cement stocks dropped sharply.

A bout of volatility was seen in early trade as the key benchmark indices reversed initial gains to sink in red on negative Asian stocks. Key benchmark indices were off day's low in morning trade. A divergent trend was witnessed in mid-morning trade. Stocks continued to hover near the flat line in early afternoon trade. Key indices came off day's high and were trading near flat line in afternoon trade. Fresh selling pulled the key benchmark indices low in mid-afternoon trade. Indices cut losses after hitting intraday low in late trade.

The S&P BSE Mid-Cap index lost 2.6%. The S&P BSE Small-Cap index fell 2.04%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 766 shares rose and 2010 shares fell. A total of 135 shares were unchanged.

Cement stocks dropped sharply. Ambuja Cements (down 5.1%), ACC (down 4.41%), UltraTech Cement (down 3.65%) and Shree Cement (down 3.39%) edged lower.

Grasim Industries lost 3.77%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

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Lupin fell 1.91%. Lupin during market hours today, 4 September 2018 announced the completion of a cGMP inspection carried out by the US FDA at its Tarapur facility. The inspection closed with one observation, a procedural deficiency. The inspection at the site was conducted between 27 and 31 August 2018 by three FDA investigators.

The inspection focused on cGMP compliance and also on the safety of Lupin's Valsartan, Losartan and Irbesartan APIs (commonly known as 'Sartans') in light of the safety alert issued by Regulatory Authorities on the NDMA (classified as a probable human carcinogen) impurity in Valsartan API supplied by some companies. During the inspection, the US FDA concluded that the manufacturing processes of Lupin 'Sartans' are safe with no chance of presence of the NDMA impurity in the APIs.

Overseas, European stocks were broadly lower on Tuesday as rising trade tensions and the sell-off in emerging market currencies, particularly in Argentina and Turkey, kept investors nervous. Asian stocks were broadly positive on Tuesday afternoon, after a slightly turbulent trading day, with markets remaining uncertain over trade concerns and emerging market worries. US markets were closed yesterday, 3 September 2018 for the Labor Day holiday.

Reportedly, US and Canadian officials are still due to resume talks Wednesday on a revised North American Free Trade Agreement (NAFTA) deal, after they failed to reach an agreement last week. Mexico and the US have already struck a deal.

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First Published: Sep 04 2018 | 3:56 PM IST

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