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Sensex, Nifty hit fresh intraday low

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Capital Market
Last Updated : Jul 02 2018 | 2:16 PM IST

Continued selling pressure dragged key indices to fresh intraday low in early afternoon trade. At 12:19 IST, the barometer index, the S&P BSE Sensex, was down 267.27 points or 0.75% at 35,156.21. The Nifty 50 index was down 87.15 points or 0.81% at 10,627.15. Mixed cues from other Asian stocks spoiled investors sentiment.

The indices opened higher, but reversed trend in early trade and hit fresh intraday low in early afternoon trade. The Sensex rose 154.76 points, or 0.44% at the day's high of 35,578.24 at the onset of trading session. The index fell 275.99 points, or 0.78% at the day's low of 35,147.49 in early afternoon trade. The Nifty rose 21.85 points, or 0.20% at the day's high of 10,736.15 at the onset of trading session. The index fell 91.70 points, or 0.86% at the day's low of 10,622.60 in early afternoon trade.

Among secondary barometers, the BSE Mid-Cap index was down 1.06%. The BSE Small-Cap index was down 0.94%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On BSE, 768 shares rose and 1551 shares fell. A total of 134 shares were unchanged.

Cement shares fell across the board. Ambuja Cements (down 2.02%), UltraTech Cement (down 1.49%) and ACC (down 1%), edged lower.

Grasim Industries was down 1.89%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

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Telecom shares declined. Idea Cellular (down 4.81%), Reliance Communications (down 3.55%), Tata Teleservices (Maharashtra) (down 2.84%), Bharti Airtel (down 1.52%) and MTNL (down 0.63%), edged lower.

Telecom tower infrastructure provider Bharti Infratel was down 0.83%.

Shares of RITES were trading at Rs 206.15 on BSE, a premium of 11.43% over the issue price of Rs 185 on its debut on the bourses today, 2 July 2018. The stock listed at Rs 190 on the BSE , a premium of 2.7% over the initial public offer (IPO) price. The stock had hit a high of Rs 207.80 and low of Rs 190 so far during the day. So far, 25.30 lakh shares were traded on the counter on the BSE.

The IPO of RITES received bids for 169.43 crore shares, as against 2.52 crore shares on offer, the National Stock Exchange of India (NSE) data showed. The issue was subscribed 67.24 times. The issue opened for subscription on 20 June 2018 and closed on 22 June 2018. The price band for the issue was fixed at Rs 180 to Rs 185 per share.

On the economic front, India's manufacturing conditions improved in June at the strongest pace since December 2017, supported by the sharpest gains in output and new orders in 2018 so far. The Nikkei India Manufacturing Purchasing Managers' Index (PMI) rose from 51.2 in May to 53.1 in June. This was consistent with the fastest improvement in the health of India's manufacturing economy in 2018 so far.

Overseas, Asian stocks were trading mixed, with trade tensions between the US and its trading partners still a key concern for investors.

China's official manufacturing Purchasing Managers' Index (PMI) declined to 51.5 for the month of June. The figure still came in above the 50-point level indicating growth.

In Japan, confidence among large manufacturers weakened for the second straight quarter in three months to June amid growing concerns about the potential impact of trade friction on the global economy. The main index measuring large manufacturers' sentiment was at plus 21 in the April-June period, compared with plus 24 in the previous survey in March, according to the Bank of Japan's quarterly tankan survey.

US stocks closed higher Friday, 29 June 2018, led by energy and materials sectors. Financials also rose earlier after several banks announced plans to return capital to shareholders late Thursday after the Federal Reserve released results of its annual stress test. However, financials finished in the red as investors pocketed profits toward the closing bell.

On the US data front, the personal-consumption expenditures index, the Federal Reserve's preferred inflation gauge, rose 0.2% as did the core rate that strips out food and energy. The rate of inflation over the past 12 months rose to 2.3%, the fastest pace since March 2012.

Chicago PMI climbed to a reading of 64.1 in June, up from 62.7, the fastest reading since January and the highest level in six month. Any reading above 50 indicates improving conditions. The final University of Michigan consumer sentiment index for June came in at 98.2. Thursday's data showed first-quarter growth for the US economy was trimmed to 2% from 2.2%.

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First Published: Jul 02 2018 | 12:25 PM IST

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