Weakness persisted on the bourses in mid-morning trade on negative Asian stocks. At 11:21 IST, the barometer index, the S&P BSE Sensex, was down 258.54 points or 0.77% at 33,344.22. The Nifty 50 index was down 74.55 points or 0.72% at 10,286.75. Shares of index heavyweights Reliance Industries (RIL) and HDFC edged lower. FMCG stocks saw mixed trend.
Domestic stocks saw gap-down opening taking cues from negative Asian stocks. Key benchmark indices extended early slide and hit fresh intraday low in morning trade.
The S&P BSE Mid-Cap index was down 0.18%. The S&P BSE Small-Cap index was down 0.03%. The fall in both these indices was lower than the Sensex's decline in percentage terms.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,243 shares fell and 1,102 shares rose. A total of 133 shares were unchanged.
Market may remain volatile as traders roll over positions in the futures & options (F&O) segment from the near month November 2017 series to December 2017 series. The November 2017 derivatives contract expire today, 30 November 2017.
Overseas, Asian stocks were trading lower as investors ponder the longevity of the global equity bull run. China's official nonmanufacturing purchasing managers' index, a measure of activity outside factory gates, rose to 54.8 in November from 54.3 in October, the National Bureau of Statistics said today, 30 November 2017. The official manufacturing PMI, also released today, 30 November 2017 rose to 51.8 in November from 51.6 in October.
Meanwhile, the Bank of Korea raised its benchmark interest rate for the first time since 2011. The bank raised its policy rate to 1.5% from a record low 1.25% as the economy's steady growth convinced the central bank to embark on policy normalisation.
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In US, the Dow Jones Industrial Average closed at a new high yesterday, 29 November 2017 even as the Nasdaq Composite logged its worst day in three months as a selloff in megacap technology shares, such as Facebook Inc., Apple Inc., and Amazon.com Inc., weighed on the tech-heavy index.
The Federal Reserve released the Beige Book, a compilation of anecdotes on the US economy. In the report, the Fed said it detected a slight improvement in the outlook among contacts in its 12 districts with growth remaining at a modest to moderate pace. The central bank has also witnessed strengthening in inflation pressures over the past month with increases passed on the consumers.
In economic news, the US economy's pace of growth in the third quarter was raised to 3.3% from 3% under the government's latest revision to gross domestic product. Pending-home sales jumped 3.5% in October, but remained 0.6% lower than a year ago.
Back home, index heavyweight Reliance Industries (RIL) lost 1.49% to Rs 931.40.
Index heavyweight and housing finance major HDFC dropped 1.18% to Rs 1,682.85.
M&M fell 1.6%. M&M has agreed to subscribe to 2.50 crore equity shares of Mahindra & Mahindra Financial Services (MMFSL) at a premium of Rs 420 per share on preferential basis. Pursuant to this, the shareholding of the company in MMFSL would increase from 51.20% to 53.25%, M&M said.
On 1 November 2017, M&M had approved an investment of an amount not exceeding Rs 1160 crore, in one or more tranches in the aggregate, by way of subscribing to the preferential issue of equity shares of MMFSL, a listed subsidiary of the company.
FMCG stocks saw mixed trend. Dabur India (up 2.24%), Nestle India (up 0.84%), Britannia Industries (up 0.58%), GlaxoSmithkline Consumer Healthcare (up 0.33%), Colgate-Palmolive (India) (up 0.11%), Tata Global Beverages (up 1.37%) and Jyothy Laboratories (up 1.01%) rose.
Godrej Consumer Products (down 0.97%), Hindustan Unilever (down 1.12%), Marico (down 0.84%), Procter & Gamble Hygiene and Health Care (down 0.11%) and Bajaj Corp (down 0.69%) fell.
Den Networks rose 2.31% to Rs 95.05 after The Government Pension Fund Global purchased bulk shares of the company yesterday, 29 November 2017. The Spruce House Partnership LP sold 29.48 lakh shares of Den Networks at Rs 92.76 per share in a bulk deal on the BSE on 29 November 2017. Norges Bank on account of The Government Pension Fund Global bought 23.88 lakh shares at Rs 92.75 apiece. The Spruce House Partnership LP held 1.9% stake in Den Networks as per the shareholding pattern end September 2017.
On the macro front, the government will announce Q2 September 2017 gross domestic product (GDP) data after market hours today, 30 November 2017. India's GDP growth rate slowed to 5.7% in Q1 June 2017, on the back of destocking ahead of Goods and Services Tax (GST) implementation.
India's infrastructure output data for the month of October 2017 is also scheduled to be released after market hours today, 30 November 2017. India's eight core infrastructure sector, carrying 40.27% of the weight of items included in the index of industrial production (IIP), had shown a healthy 5.2% increase in its output in September 2017 over September 2016.
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