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Shares tumble on negative European cues

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Capital Market
Last Updated : Aug 22 2017 | 12:01 AM IST

Key benchmark indices hit fresh intraday low in afternoon trade after European shares opened lower. At 13:16 IST, the barometer index, the S&P BSE Sensex lost 130.24 points or 0.41% at 31,394.44. The Nifty 50 index fell 28.55 points or 0.29% at 9,808.85. Market sentiment was subdued amid lackluster trading in global bourses and weaker closing on the Wall Street last Friday.

Key indices opened the session higher and traded with small gains till morning trade. Later, the indices hovered near the flat line in mid-morning trade. Key benchmarks tumbled in afternoon trade after European shares opened lower.

The Sensex lost 139.36 points or 0.44% at the day's low of 31,385.32 in afternoon trade. It rose 117.13 points or 0.37% at the day's high of 31,641.81 in morning trade. The Nifty lost 32.55 points or 0.33% at the day's low of 9,804.85 in afternoon trade. It rose 46.95 points or 0.47% at the day's high of 9,884.35 in morning trade, its highest level since 17 August 2017.

Among secondary indices, the S&P BSE Mid-Cap index lost 0.47%. The decline in this index was higher than the Sensex's fall in percentage terms. The S&P BSE Small-Cap index fell 0.23%. The decline in this index was lower than the Sensex's fall in percentage terms.

The breadth, indicating the overall health of the market, was negative. On the BSE, 1,363 shares declined and 1,078 shares rose. A total of 134 shares were unchanged.

Metal shares were in demand. NMDC (up 3.36%), Steel Authority of India (up 1.59%), Vedanta (up 1.29%), Bhushan Steel (up 1.17%), Tata Steel (up 0.82%), National Aluminium Company (up 0.64%), Hindalco Industries (up 0.50%), JSW Steel (up 0.44%), Hindustan Copper (up 0.40%) and Hindustan Zinc (up 0.03%), edged lower. Jindal Steel & Power was down 0.37%.

Meanwhile, copper price edged higher in the global commodities markets. High Grade Copper for September 2017 delivery was currently up 0.87% at $2.9650 per pound on the COMEX.

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Most pharmaceutical shares declined. Cipla (down 1.4%), IPCA Laboratories (down 1.32%), Wockhardt (down 1.2%), Lupin (down 1.16%), Glenmark Pharmaceuticals (down 1.07%), Piramal Enterprises (down 1.03%), GlaxoSmithKline Pharmaceuticals (down 0.68%), Dr Reddy's Laboratories (down 0.55%), Alkem Laboratories (down 0.13%), Sun Pharmaceutical Industries (down 0.12%) and Divi's Laboratories (down 0.06%), edged lower. Aurobindo Pharma (up 0.53%), Strides Shasun (up 1.31%) and Cadila Healthcare (up 1.32%), edged higher.

Monte Carlo Fashions rose 2.39% after net profit spurted 60.8% to Rs 5.21 crore on 12% decrease in net sales to Rs 66.06 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours on Friday, 18 August 2017.

On the political front, the Janata Dal (United) led by Bihar Chief Minister Nitish Kumar, passed a resolution on Saturday, 19 August 2017 to join the National Democratic Alliance (NDA), mere weeks after the party broke away from the grand alliance in Bihar.

Overseas, European stocks fell at the start of trading Monday, extending last week's losses, with major takeover activity within the oil sector failing to lift sentiment. French oil giant Total said it would buy Maersk Oil, a unit of the Danish shipping giant AP Moller-Maersk, for $7.45 billion.

Asian stocks witnessed a mixed trend amid geopolitical concerns as US-South Korea military drills begin. As per reports, joint US-South Korea military exercises take place from 21 August to 31 August 2017. This exercise comes on the back of a ramp up in geopolitical tensions earlier this month after a heated exchange of rhetoric between President Donald Trump and Pyongyang.

In economic news, Japan's all industry activity recovered in June, data from the Ministry of Economy, Trade and Industry showed today, 21 August 2017. The all industry activity index rose 0.4% month-on-month in June, reversing a 0.8% fall in May.

US equities closed off their session lows on Friday, 18 August 2017 after Steve Bannon, one of President Donald Trump's top advisors, left the administration. Reports suggested that tension between Bannon and other top advisors to Trump, including Chief Economic Advisor Gary Cohn and National Security Advisor H.R. McMaster, had been festering inside the White House.

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First Published: Aug 21 2017 | 1:16 PM IST

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