Key benchmark indices tumbled as heavy selling in index heavyweight ITC put pressure on the indices. Selling in index pivotal Reliance Industries (RIL) also dragged the indices lower. The barometer index, the S&P BSE Sensex, fell 358.67 points or 1.12% to 31,716.11, as per the provisional closing data. The Nifty 50 index fell 88.80 points or 0.90% to 9,827.15, as per the provisional closing data. The Sensex provisionally ended below the psychologically important 32,000 mark.
The Sensex fell 448.34 points, or 1.40% at the day's low of 31,626.44 in early trade, its lowest level since 10 July 2017. The index fell 163.17 points, or 0.51% at the day's high of 31,911.61 in morning trade. The Nifty fell 123.90 points, or 1.25% at the day's low of 9,792.05 in early trade, its lowest level since 12 July 2017. The index fell 30.60 points, or 0.31% at the day's high of 9,885.35 in morning trade.
Among secondary barometers, the BSE Mid-Cap index provisionally fell 0.62%. The BSE Small-Cap index provisionally fell 0.56%. The decline 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 weak. On BSE, 1,683 shares fell and 1,005 shares rose. A total of 147 shares were unchanged.
The total turnover on BSE amounted to Rs 3844.09 crore, higher than turnover of Rs 3549.80 crore registered during the previous trading session.
Realty shares declined. Unitech (down 3.09%), Parsvnath Developers (down 2.19%), Prestige Estates Projects (down 2.17%), DLF (down 2.06%), Indiabulls Real Estate (down 2.05%), D B Realty (down 1.78%), Anant Raj (down 1.73%), Sobha (down 1.42%), Peninsula Land (down 1.28%), Housing Development and Infrastructure (HDIL) (down 1.17%), Omaxe (down 1.07%), Godrej Properties (down 1.02%) and Mahindra Lifespace Developers (down 0.33%), edged lower. Sunteck Realty (up 0.66%), Oberoi Realty (up 1.62%) and Phoenix Mills (up 3.09%), edged higher.
State-run GAIL (India) dropped 1.92% to Rs 377.55 after reports suggested that a fresh investigation against the company was ordered by the Competition Commission of India for alleged abuse of dominant position in natural gas supply. The Competition Commission of India's (CCI) probe is reportedly followed by the complaint by Uttar Pradesh-based glass-bottle manufacturer Mohan Meakin. The company is alleged to have violated Section 4 of the Competition Act that is related to the abuse of dominant market position. This is the second time in less than a week that the company has come under the lens of the watchdog for alleged unfair business practices, report added.
UltraTech Cement fell 1.14% at Rs 4,298.05. The company's consolidated net profit rose 15% to Rs 897 crore on 6.16% growth in net sales to Rs 6938 crore in Q1 June 2017 over Q1 June 2016. The result was announced during market hours today, 18 July 2017. The company's consolidated profit before interest, depreciation and tax (PBIDT) rose 10.57% at Rs 1798 crore in Q1 June 2017 over Q1 June 2016. In its outlook, UltraTech said that the government spending on infrastructure, rural and affordable housing will be the key demand drivers for cement. The company added that it is well positioned across the country to cater to the demand.
Cigarette major ITC lost 12.77% at Rs 284.15 after the Goods and Services Tax (GST) Council yesterday, 17 July 2017, increased the compensation cess on cigarettes by 48.50 paise to 79.20 paise per stick with effect from 18 July 2017. The stock hit a high of Rs 293.20 and low of Rs 276.90 so far during the day.
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While the peak Goods and Services Tax (GST) rate of 28% stays and so does 5% ad valorem cess on top of it on the cigarettes, the fixed cess has been hiked between Rs 485 and Rs 792 per thousand sticks. The increase in cess is expected to help the government raise around Rs 5000 crore of additional tax revenue, reports suggested.
Index pivotal Reliance Industries (RIL) was down 2.05% at Rs 1519.60. The stock hit a high of Rs 1,551.50 and low of Rs 1,512 so far during the day.
Overseas, European stocks were trading lower as oil and financial stocks declined. Most Asian stocks were mixed as setbacks for a health care overhaul in the US raised doubts over prospects for a range of reforms backed by US President Donald Trump.
US market ended little changed yesterday, 17 July 2017, as investors braced for a flood of second-quarter earnings reports later this week. The Dow Jones Industrial Average declined 8.02 points to close at 21,629.72. The S&P 500 declined 0.13 points to close at 2,459.14. The Nasdaq Composite Index rose 1.97 points to close at 6,314.43.
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