Weakness persisted on the bourses in mid-afternoon trade on sustained selling pressure in index heavyweights HDFC, ICICI Bank and ITC. At 14:30 IST, the barometer index, the S&P BSE Sensex, was down 240.95 points or 0.82% at 29,244.50. The Nifty 50 index was down 70.20 points or 0.77% at 9,051.30. Weak global cues played the spoilsport for domestic stocks.
Earlier, the two key equity benchmarks had extended losses and hit fresh intraday low in morning trade after witnessing a gap-down opening on negative Asian stocks. The Sensex and the Nifty, both, had hit their lowest level in almost two weeks at intraday lows. Indices trimmed intraday losses in afternoon trade.
The BSE Mid-Cap index was down 0.89%. The fall in this index was higher than Sensex's decline in percentage terms. The BSE Small-Cap index was down 0.55%. The fall in this index was lower than the Sensex's decline in percentage terms.
The breadth, indicating overall health of the market was weak. On BSE, 1,720 shares declined and 979 shares rose. A total of 190 shares were unchanged.
Axis Bank was up 0.26% after the bank denied rumours of resignation of its MD & CEO Shikha Sharma. Axis Bank, in a clarification issued before market hours today, 22 March 2017, stated that the information on the bank's MD & CEO Shikha Sharma's resignation is false, speculative and is being circulated with the malafide intention of misleading the investors and the general public.
Pharma shares saw mixed trend. Cadila Healthcare (down 1.15%), Glenmark Pharmaceuticals (down 0.6%), GlaxoSmithKline Pharmaceuticals (down 0.38%), Aurobindo Pharma (down 0.81%) fell.
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Wockhardt (up 1.03%), Cipla (up 0.83%), Dr Reddy's Laboratories (up 0.92%), Lupin (up 0.27%), Sun Pharmaceutical Industries (up 0.22%), Alkem Laboratories (up 1.96%) rose.
FMCG stocks saw mixed trend. Dabur India (up 1.05%), Britannia Industries (up 0.37%), GlaxoSmithkline Consumer Healthcare (up 0.55%), Procter & Gamble Hygiene and Health Care (up 0.49%), Jyothy Laboratories (up 0.93%) and Bajaj Corp (down 1.14%) rose.
Godrej Consumer Products (down 1.55%), Marico (down 1.87%), Nestle India (down 0.69%), Tata Global Beverages (down 1.44%), Colgate-Palmolive (India) (down 0.16%) fell.
Hindustan Unilever (HUL) slipped 0.19%. HUL announced that it has commenced the commercial production in its new manufacturing unit at Assam on 15 March 2017. The announcement was made after market hours yesterday, 21 March 2017. The company had earlier informed about setting up new manufacturing unit in Assam to augment the production capacity of personal care products of the company.
Emami Infrastructure hit an upper circuit limit of 20% at Rs 75.10 after the company said it tied-up with a real estate company to launch flagship project in Mumbai. Emami Group announced that it has pumped Rs 350 crore to join hands with Sheth Corp for 50% partnership in Mulund project. The announcement was made during trading hours today, 22 March 2017.
Overseas, European markets were trading lower amid increasing concerns regarding US President Donald Trump's economic growth agenda. Asian stocks were trading lower as investors re-evaluated their optimism around the 'Trump trade.' In Japan, exports rose at the sharpest rate in two years in February as demand from China and other parts of Asia jumped, underpinning a modest but continuing recovery in the world's third-largest economy. Merchandise exports grew 11.3% in value terms from a year earlier to 6.347 trillion yen, after increasing 1.3% in January, according to data released yesterday, 21 March 2017 by the Ministry of Finance.
US stocks sank yesterday, 21 March 2017 as the Dow Jones Industrial Average and Nasdaq Composite index logged their worst daily drops since September, while the S&P 500 also tumbled the most in a single session in five months on concerns about US president Donald Trump's ability to push through major reforms.
Shares have been broadly stronger globally since the US presidential elections, buoyed by Donald Trump's talk of reforming the tax system and investing in infrastructure. However, a series of recent roadblocks ahead of the coming vote to dismantle the Affordable Care Act is seeing the market question Trump's ability to deliver on his policy promises, and triggered a pullback.
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