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Last Updated : Sep 06 2017 | 10:47 AM IST

Key benchmark indices extended early slide and hit fresh intraday low in morning trade. At 10:21 IST, the barometer index, the S&P BSE Sensex, was down 180.38 points or 0.57% at 31,629.17. The Nifty index was down 49.35 points or 0.5% at 9,902.85. Weakness in Asian stocks triggered by rising geopolitical tensions between the US and North Korea weighed on domestic bourses.

Domestic stocks saw a gap-down opening on negative Asian stocks.

The S&P BSE Mid-Cap index was down 0.13%. The S&P BSE Small-Cap index was down 0.05%. 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, 1,071 shares fell and 893 shares rose. A total of 96 shares were unchanged.

Overseas, Asian stocks were trading lower as nations grapple with how to deal with escalating provocations from North Korea. US stocks closed firmly lower yesterday, 5 September 2017 as investors focused on heightened tensions between the West and North Korea and worries about a lack of progress on President Donald Trump's pro-growth agenda.

The case for a continued risk-off tone was supported by a lack of consensus among the US, Russia and China on how to pressure Kim Jong Un to abandon his nuclear ambitions. Russian President Vladimir Putin has rejected US calls for more sanctions, echoing China's resistance to more punitive measures. The standoff between North Korea and the US and its allies escalated over the weekend after Pyongyang said it had successfully tested its largest-ever nuclear bomb.

Back home, Sun Pharmaceutical Industries (down 2.61%), Lupin (down 1.48%) and Axis Bank (down 1.45%) edged lower from the Sensex pack.

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Index heavyweight and cigarette major ITC lost 1.82% to Rs 277.25 after reports of downgrade on the stock by a couple of brokerages. The stock hit a high of Rs 281 and low of Rs 276.80 so far during the day. Cigarette business remains impacted by regulatory pressures and other businesses will see gradual uptick in growth and profitability, a brokerage reportedly said.

Cement stocks rose. Ambuja Cements (up 0.14%), UltraTech Cement (up 0.26%) and Shree Cement (up 0.96%) gained. ACC (down 0.07%) fell.

Grasim Industries was up 0.67%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

Realty stocks dropped. DLF (down 1.41%), Indiabulls Real Estate (down 2.3%), Housing Development and Infrastructure (down 0.96%), Unitech (down 0.79%), Godrej Properties (down 0.44%), Prestige Estates Projects (down 0.17%), and Oberoi Realty (down 1.59%) declined. Sobha (up 0.56%) and D B Realty (up 1.47%) rose.

Merck rose 3.58% after the company announced that its ultimate holding company, Merck KGaA, Germany, is preparing for strategic options for its consumer health business globally, including a potential full or partial sale of the business as well as strategic partnerships. This strategic initiative would involve the company's consumer health business in India as well, the implementation of potential measures and their specific design are subject to further analysis and decision making by competent bodies, the company said in a statement. The announcement was made after market hours yesterday, 5 September 2017.

Bharat Financial Inclusion rose 1.25%. The Reserve Bank of India (RBI) yesterday, 5 September 2017, notified that the foreign shareholding through Foreign Institutional Investors (FIIs)/Foreign Portfolios Investors (FPIs) in Bharat Financial Inclusion has reached the trigger limit. Hence further purchases of equity shares of this company would be allowed only after obtaining prior approval of RBI.

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First Published: Sep 06 2017 | 10:28 AM IST

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