The market reversed early gains and slipped into the negative terrain in mid-morning trade. Benchmark indices corrected after six-day rising streak. At 11:27 IST, the barometer index, the S&P BSE Sensex, fell 36.39 points or 0.91% at 39,430.92. The Nifty 50 index slipped 18.7 points or 0.16% at 11,628.90.
Profit selling was triggered by the media reports that fresh clashes broke out between Indian and Chinese troops at Pangong in Ladakh near Line of Actual Control on the intervening night of 29-30 August. The Indian forces retaliated strongly to China's plans to change the status quo at the LAC, reports suggested.
The broader market witnessed heavy selling. The S&P BSE Mid-Cap index slipped 1.31% while the S&P BSE Small-Cap index declined 2.45%.
Sellers overpower buyers. On the BSE, 609 shares rose and 1,942 shares fell. A total of 133 shares were unchanged.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,004.11 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 543.56 crore in the Indian equity market on 28 August, provisional data showed.
COVID-19 Update:
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Total COVID-19 confirmed cases worldwide stood at 25,143,423 with 845,414 deaths. India reported 7,81,975 active cases of COVID-19 infection and 64,469 deaths while 27,74,801 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Economy:
The National Statistical Office (NSO) is scheduled to release its estimates of gross domestic product (GDP) for the first quarter of this fiscal on today.
The Government will also announce its fiscal deficit level for the period of April-July 2020 today. India's fiscal deficit stood at record Rs 6.62 trillion in April-June 2020-21 which is equivalent to 83.2% of the Government's budget estimate for this financial year.
The Government will announce infrastructure output data for the month of July 2020.
Earnings Today:
Arvind (down 1.69%), Bharat Dynamics (down 1.37%), GNFC (down 4.63%), JK Cement (down 0.82%), Morepen Laboratories (up 1.1%), NHPC (down 0.44%) and Spandana Sphoorty (up 0.81%) are some of the companies that wil announce their quarterly earnings today.
Global Markets:
Asian stocks were mixed on Monday. Investors wagered monetary and fiscal policies globally would stay super stimulatory for a protracted period.
China's factory activity grew at a slower pace in August. The official manufacturing Purchasing Manager's Index (PMI) fell slightly to 51 in August from 51.1 in July, data from the National Bureau of Statistics showed on Monday. It remained above the 50-point mark that separates growth from contraction on a monthly basis.
Japan's factory output rose for a second straight month in July. Ministry of Economy, Trade and Industry (METI) data showed Japan's industrial output grew 8% in July from the previous month, following a 1.9% increase in June.
South Korea's factory output grew for a second straight month in July. Industrial production in July rose by a seasonally-adjusted 1.6% from a month earlier, Statistics Korea said on Monday, down from 7.2% in June.
In US, stocks closed modestly higher Friday, with the Dow Jones Industrial Average erasing its losses for the year to date and the S&P 500 and Nasdaq indexes carving out fresh record closes.
The Dow Jones industrial average jumped 161.60 points, or 0.6%, to settle at 28,653.87, which put the blue-chip index in positive territory for the year and pulled it within a few percentage points of the all-time high set in February. Walmart and Coca-Cola led the way for the Dow, rising 2.7% and 3.3%, respectively.
The S&P 500 rose 23.46 points, or 0.7%, to close at 3,508.01. It was the index's first-ever close above 3,500. Tech and energy were the best-performing sectors in the S&P 500, gaining 1.1% and 1.9%, respectively. The Nasdaq Composite advanced 70.30 points, 0.6%, to 11,695.63.
On the data front, U.S. consumer spending rose 1.9% in July, the Commerce Department said. Personal income was also stronger than expected, rising 0.4%. The final reading of the University of Michigan's August consumer sentiment index came in at 74.1 versus a preliminary reading of 72.8 and up from 72.5 in July.
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