Key benchmark indices extended initial losses and hit fresh intraday low in morning trade as weakness in Asian stocks marred sentiment. At 10:20 IST, the barometer index, the S&P BSE Sensex fell 253.81 points or 0.8% at 31,496.70. The Nifty 50 shed 66.85 points or 0.67% at 9,835. The Sensex and Nifty hit almost one-week low on intraday basis.
The S&P BSE Mid-Cap index lost 0.34%. The S&P BSE Small-Cap index fell 0.52%. The decline in both the indices was lower than the Sensex's fall in percentage terms.
The breadth, indicating the overall health of the market, was weak. On the BSE, 1,243 shares fell and 685 shares rose. A total of 77 shares were unchanged.
The Sensex fell 11.02 points or 0.03% at the day's high of 31,739.80 in early trade. It lost 264.75 points or 0.83% at the day's low of 31,486.07 in morning trade, its lowest level since 23 August 2017. The Nifty shed 25.45 points or 0.25% at the day's high of 9,887.35 in early trade. It lost 81.95 points or 0.82% at the day's low of 9,830.85 in morning trade, its lowest level since 23 August 2017.
Telecom stocks declined. Reliance Communications (RCom) (down 0.22%), and Idea Cellular (down 0.89%) declined. Tata Teleservices (Maharashtra) rose 0.15%.
Bharti Airtel dropped 0.93%. The company announced after market hours yesterday, 28 August 2017, that the proposed acquisition of Tikona Digital Networks has now been completed. With this, Tikona Digital Networks has become a wholly owned subsidiary of Bharti Airtel. The transaction for the trading of the spectrum in Rajasthan circle is still pending for approval from the department of telecom (DoT).
Shares of Bharti Infratel fell 0.79%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
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Sugar stocks dropped after report suggested that the government imposed inventory level limits on sugar mills in an attempt to keep prices under control during the upcoming festive season. Balrampur Chini Mills (down 0.41%), Bajaj Hindusthan (down 1.01%), Shree Renuka Sugars (down 1.15%), Sakthi Sugars (down 2.05%), and Triveni Engineering & Industries (down 1.44%) declined.
Sugar mills will not be allowed to hold more than 21% of their output in stocks by the end of September, and they have to bring down stock level to 8% of output by the end of October. The measure is aimed at preventing mills from artificially withholding sugar in storage in order to push up prices during the high demand festive season of September and October, report said.
ACC (down 1.01%), Bank of Baroda (down 1.8%), Tata Power Company (down 1.01%) and Tata Motors DVR (down 1.62%), edged lower. Hindustan Petroleum Corporation (HPCL) (up 1.62%) and UPL (up 1.13%) edged higher. Bajaj Finance, however, fell 0.83%.
ACC, Bank of Baroda, Tata Power Company and Tata Motors DVR will be excluded from the NSE Nifty 50 index, according to a media statement issued on the National Stock Exchange after market hours yesterday, 28 August 2017. At the same time, Bajaj Finance, Hindustan Petroleum Corporation (HPCL) and UPL will become part of the index. Changes will be effective from 29 September 2017.
Religare Enterprises rose 0.9% after the company said it has raised Rs 30 crore through issue of non-convertible debentures on private placement basis to one of its wholly-owned subsidiaries. The announcement was made after market hours yesterday, 28 August 2017. NCDs offer a yield of 11%.
Overseas, Asian stocks declined after North Korea fired a missile over northern Japan. North Korea fired a missile early today, 29 August 2017 that flew over Japan and landed in the Pacific waters off the northern region of Hokkaido, South Korea and Japan, in a sharp escalation of tensions on the Korean peninsula.
On Monday, 28 August 2017, US shares were mixed as investors tried to assess the flooding damage caused by Tropical Storm Harvey, powerful hurricane to strike Texas in more than 50 years when it came ashore last week.
An early look at US trade patterns in July points to a wider deficit. The advanced trade gap in goods services are excluded widened by nearly 1.8% to $65.1 billion in July, the Commerce Department said. Both exports and imports declined, but exports dropped at a faster pace.
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