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Sensex, Nifty hit fresh intraday low

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Capital Market
Last Updated : Jun 08 2018 | 12:50 PM IST

Key barometers extended losses and hit fresh intraday low in early afternoon trade. At 12:18 IST, the barometer index, the S&P BSE Sensex, was down 190.67 points or 0.54% at 35,272.41. The Nifty 50 index was down 56.25 points or 0.52% at 10,712.10. Weak cues from other Asian stocks spoiled investors sentiment. Selling was also triggered by profit booking after two straight sessions of gains.

The indices opened lower and hit intraday low in early trade. The indices recovered in morning trade. After hovering in a range, indices hit fresh intraday low in early afternoon trade. The Sensex fell 47.89 points, or 0.14% at the day's high of 35,415.19 in morning trade. The index fell 191.29 points, or 0.54% at the day's low of 35,271.79 in early afternoon trade. The Nifty fell 18.50 points, or 0.17% at the day's high of 10,749.85 in morning trade. The index fell 57.25 points, or 0.53% at the day's low of 10,711.10 in early afternoon trade.

Among secondary barometers, the BSE Mid-Cap index was up 0.14%. The BSE Small-Cap index were up 0.11%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, once again turned negative from positive. On BSE, 1154 shares rose and 1185 shares fell. A total of 122 shares were unchanged.

Aurobindo Pharma was up 2.69%. The company announced during trading hours today, 8 June 2018, that it received final approval from the US Food & Drug Administration (USFDA) to manufacture Omeprazole Delayed-Release tablets OTC, 20mg. Aurobindo's Omeprazole Delayed-Release tablets are generic equivalent of AstraZeneca's Prilosec OTC tablets. The product will be launched in June 2018. Omeprazole tablets are indicated for the treatment of frequent heartburn (occurs 2 or more days a week). The estimated market size of Prilosec OTC tablets is $222 million for the twelve months ending March 2018, according to Nielsen data. This is the 141st ANDA (including 20 tentative approvals) to be approved out of Unit VII formulation facility in Hyderabad, India used for manufacturing oral products. Aurobindo now has a total of 369 ANDA approvals (336 Final approvals including 17 from Aurolife Pharma LLC and 33 tentative approvals) from USFDA.

Most cement shares declined. UltraTech Cement (down 0.35%) and ACC (down 0.21%), edged lower. Ambuja Cements was up 0.41%.

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Grasim Industries was down 1.37%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Telecom shares rose. Idea Cellular (up 4.88%), Tata Teleservices (Maharashtra) (up 0.81%), Reliance Communications (up 0.63%) and Bharti Airtel (up 0.16%), edged higher. MTNL was down 3.11%.

Telecom tower infrastructure provider Bharti Infratel was up 1.36%.

On the macro front, yields on the 10-year government bonds hit over 8% in the opening session on Friday, first time since December 2014, but soon declined ahead of weekly bond auction due later in the day.

The India Meteorological Department (IMD) stated yesterday, 7 June 2018, that Southwest Monsoon further advanced into some more parts of Central Arabian Sea, remaining parts of Coastal Karnataka, most parts of South Interior Karnataka and Goa and some parts of North Interior Karnataka. Conditions are favorable for further advance of Southwest Monsoon into some more parts of Central Arabian Sea, remaining parts of Goa, some parts of south Maharashtra, remaining parts of Karnataka and Rayalaseema, some parts of Telangana, some more parts of Coastal Andhra Pradesh and West Central Bay of Bengal during next 24 hours. Conditions are very likely to become favorable for further advance of Southwest Monsoon into some more parts of Maharashtra, Telangana & Coastal Andhra Pradesh in subsequent 48 hours.

Conditions are also likely to become favorable for further advance of Southwest Monsoon into most parts of Arabian Sea, remaining parts of Maharashtra, some parts of south Gujarat region, southern parts of Madhya Pradesh & Chhattisgarh, Odisha, West Bengal & Sikkim, remaining parts of Northeastern States and most parts of Bay of Bengal during 9th to 11th June 2018. In association with the likely strengthening of south west monsoon and likely formation of a low pressure system over the Bay of Bengal, enhanced rainfall activity with heavy to very heavy and isolated extremely heavy rainfall is likely along the west coast during 8th to 11th June 2018, IMD said.

Overseas, Asian stocks declined after the mixed close on Wall Street. Worries over global trade relations ahead of a key meeting of global leaders weighed on investor sentiment as well. Asian shares also fell as risk appetite turned weak on bets that Europe's massive monetary stimulus was nearing an end.

Japan's economy shrank at an annualized pace of 0.6% in the January-March quarter.

In US, the S&P 500 and Nasdaq Composite ended with modest losses on Thursday, as a selloff in major technology shares put pressure on the benchmarks. Traders were cautious as leaders of the Group of Seven nations kicked off a summit in Canada. The G-7 summit takes place in Canada on Friday, 8 June 2018, and Saturday, 9 June 2018, with the issues related to protectionism and international trade expected to take center stage.

On the US data front, initial jobless claims fell slightly in early June, keeping the rate of layoffs in the US near a 50-year low. Household wealth topped $100 trillion for the first time in the first quarter, the Federal Reserve said. Consumer credit in April slowed to a seasonally adjusted annual rate of 2.9%, or $9.3 billion, down from 3.8% in March.

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First Published: Jun 08 2018 | 12:21 PM IST

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