Key benchmark indices were trading with small losses after swinging between gains and losses near the flat line in morning trade. At 10:20 IST, the barometer index, the S&P BSE Sensex, was down 57.35 points or 0.18% at 32,180.53. The Nifty 50 index was down 2.75 points or 0.03% at 10,010.90. Nifty was trading above the psychologically important 10,000 mark after falling below that mark in early trade.
Key indices had opened slightly higher on firm Asian stocks but soon dropped in the red. Stocks swung between gains and losses in morning trade.
The S&P BSE Mid-Cap index fell 0.08%. The decline in the index was lower than the Sensex's fall in percentage terms. The S&P BSE Small-Cap index rose 0.03%, outperforming the Sensex.
The breadth, indicating the overall health of the market, was positive. On the BSE, 1,013 shares rose and 973 shares fell. A total of 96 shares were unchanged.
Pharma stocks declined after recent gains in rupee against the dollar. Glenmark Pharmaceuticals (down 1.32%), Aurobindo Pharma (down 1.47%), Cipla (down 1.79%), Dr Reddy's Laboratories (down 2.04%), Cadila Healthcare (down 2.77%), Lupin (down 2%), Divi's Laboratories (down 0.51%), and Sun Pharmaceutical Industries (down 2.38%) declined. Firm rupee affects adversely sales of pharma companies in rupee terms as pharma firms derive substantial revenue from exports.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 63.665, compared with its close of 63.6825 during the previous trading session.
IT stocks advanced. Tech Mahindra (up 0.52%), HCL Technologies (up 0.46%), TCS (up 0.45%), and Wipro (up 0.57%) edged higher.
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Infosys dropped 0.17%. The company announced a definitive agreement to acquire Brilliant Basics, a London-based product design and customer experience (CX) innovator. This acquisition represents Infosys' commitment to the expansion of a worldwide connected network of Digital Studios. These studios are focused on fulfilling the needs of global clients for end-to-end digital Transformation solutions required to meet customer demand for next-generation enhanced customer experiences.
With Infosys Digital Studios spanning the globe - from Bengaluru and Pune to New York, London and Melbourne - the addition of Brilliant Basics will enhance the company's expertise in the financial services, retail and telco sectors across Europe and the Middle East. The acquisition is expected to close during the second quarter of fiscal 2018. The announcement was made after market hours yesterday, 3 August 2017.
Kokuyo Camlin lost 8.4% after the company reported net loss of Rs 1.26 crore in Q1 June 2017, as compared with net profit of Rs 4.70 crore in Q1 June 2016. The result was announced after market hours yesterday, 3 August 2017. Kokuyo Camlin's total income fell 12.48% to Rs 164.26 crore in Q1 June 2017 over Q1 June 2016.
PNB Housing Finance surged 5.02% after net profit jumped 92.65% to Rs 184.75 crore on 38.16% rise in net sales to Rs 1192.15 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 3 August 2017.
Gross non performing assets (NPA) stood at 0.43% of the loan assets as on 30 June 2017 against 0.27% as on 30 June 2016. The gross NPAs on AUM basis were 0.40% as on 30 June 2017. Net NPA stood at 0.33% of the loan assets as on 30 June 2017 against 0.19% as on 30 June 2016.
India Meteorological Department said that actual cumulative area weighted rainfall (mm) for the country as a whole till 2 August 2017 equaled normal rainfall.
Meanwhile, the Banking Regulation (Amendment) Bill 2017 was passed by the lower house of the parliament yesterday, 3 August 2017. It will replace the Non-Performing Assets Ordinance, which came into effect earlier this year. The measure allows the RBI to initiate insolvency resolution process on specific stressed-assets. The RBI would also be empowered to issue other directions for resolution, appoint or approve for appointment, authorities or committees to advise the banking companies for stressed-asset resolution.
Overseas, most Asian stocks rose ahead of the US employment report. In US, Dow Jones Industrials Average managed to post slight gains, staying above the 22,000 level and hitting fresh record high while, the S&P 500 index and Nasdaq Composite index closed lower weighed down by Amazon.com, Apple and other top-shelf technology stocks yesterday, 3 August 2017.
Labor Department data showed weekly jobless claims fell last week, pointing to a tightening labour market, while a report from the Institute for Supply Management showed its non-manufacturing index fell to 53.9 last month from 57.4 in June. US employment report for July is due later during the global day.
In Europe, the Bank of England (BOE) yesterday, 3 August 2017 held interest rates steady at 0.25%, as expected, while largely sticking to its previous assumptions for growth and inflation over the three-year forecast horizon. The Monetary Policy Committee (MPC) voted by a majority of 6-2 to keep rates at record low levels in August. Meantime, the UK's central bank maintained stock levels of government bonds and corporate bonds at 435 billion and 10 billion respectively.
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