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Market slips on weak global cues

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Capital Market
Last Updated : Aug 18 2017 | 9:28 AM IST

Key benchmark indices were trading lower in early trade on weak global cues. At 9:17 IST, the barometer index, the S&P BSE Sensex, was down 198.75 points or 0.63% at 31,596.71. The Nifty 50 index was down 61.50 points or 0.62% at 9,842.65.

Among secondary barometers,the BSE Mid-Cap index was down 0.82%. The BSE Small-Cap index was down 0.71%. The decline in both these indices was higher than the Sensex's decline in percentage terms.

The broad market depicted weakness. There were more than three losers against every loser on BSE. 828 shares fell and 251 shares rose. A total of 32 shares were unchanged.

Overseas, Asian stocks edged lower on growing doubts about US President Donald Trump's ability to fulfil his economic agenda.

Confidence was shaken further after a van mowed through crowds of tourists in Barcelona on Thursday, 17 August 2017, killing at least 13 people and injuring more than 100 in an attack authorities were treating as terrorism. Spanish police said they had killed four attackers in a shootout south of the city overnight.

US stocks tumbled overnight as the broader market appeared to be fretting about a number of bearish factors, including a record-setting market that has been viewed as too rich and due for a pullback, concerns about the health of the economy and the Federal Reserve's comfort in normalizing interest rates amid levels of inflation that have run below their 2% target, considered indicative of a normally functioning economy.

The Dow Jones Industrial Average fell 274 points, or 1.2%, lower at 21,750, as the broader stock market faced its biggest selloff since last week's North Korea-fueled jitters. The S&P 500 index meanwhile, ended down 1.5% at 2,430 and the Nasdaq Composite Index shed 1.9% at 6,221.

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Concerns have grown over Trump's ability to push through his economic goals such as tax cuts and infrastructure spending following the exodus of executives from two prominent business councils in reaction to his response to clashes last weekend in Charlottesville, Virginia.

Trump on Thursday, 17 August 2017, again decried the removal of pro-slavery Civil War Confederacy monuments, which have fuelled US racial tensions, stoking worries that some of his key policy staffers and aides may quit.

Back home, IT major Infosys was down 4.13%. The company announced that ATP, the governing body of men's professional tennis, in association with company launched a new 'PlayerZone' app and website. The revamped PlayerZone, an extranet portal for ATP players, their support teams, coaches, and others in the ecosystem, allows users to engage with each other and access information across a wide range of operational aspects related to life on Tour. The announcement was made after market hours yesterday, 17 August 2017.

The PlayerZone is developed with best-in-class technology to be intuitive and more convenient, offering biometric login on the app. It also provides information on tournament entries and withdrawals, automated updates on match scheduling and results, rules and regulations, all the way to hotel information, transportation, visa requirements, and more. Besides simplifying the life of players on Tour, PlayerZone will also feature new prize money and taxes data to ease tracking of earnings and facilitate compliance.

The new app will increase engagement with the next generation of players, provide a central portal of information as players' progress through different stages of their career, as well as offer a forum to engagewith the players' support teams in a private and secure digital environment.

Punjab National Bank was down 2.25%. The bank has decided to introduce a two tier interest rates structure on savings fund deposit scheme from 19 August 2017, with savings fund account balance upto Rs 50 lakh at 3.5% per annum and above Rs 50 lakh at 4% per annum. The announcement was made after market hours yesterday, 17 August 2017.

NIIT was down 0.49%. The company said that a meeting of the board of directors of the company is scheduled to be held on 22 August 2017, to consider inter-alia, recommendation of the Committee on the rationalization option. The announcement was made after market hours yesterday, 17 August 2017.

It may be recalled that NIIT's board at its meeting held on 28 July 2017, had constituted a Committee of Directors/Officials (Committee) to explore the options available for rationalizing the structure of NIIT Antilles NV, Netherlands Antilles and its overseas subsidiaries (Rationalization Option).

Somany Ceramics was down 1.79%. The company announced that Sudha Somany Ceramics, an associate of Somany Ceramics is setting up a facility in Andhra Pradesh to produce about 5 million square meters of vitrified tiles. The same is expected to be commissioned in the last quarter of financial year 2018-19. The announcement was made after market hours yesterday, 17 August 2017.

Raymond was up 1.33%. The company announced the acquisition of Ansell's stake in a joint venture entity known as JK Ansell. The announcement was made after market hours yesterday, 17 August 2017.

Talbros Engineering was up 4.38%. The company said that its board recommended the issuance of bonus shares in the ratio of 1:1. The announcement was made after market hours yesterday, 17 August 2017.

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First Published: Aug 18 2017 | 9:18 AM IST

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