Key benchmarks traded in a narrow range in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex, was down 225.31 points or 0.70% at 31,849.47. The Nifty 50 index was down 47.80 points or 0.48% at 9,868.15. The Sensex was trading below the psychologically important 32,000 mark.
Heavy selling in index heavyweight ITC dragged the Sensex lower. Selling in index pivotal Reliance Industries (RIL) also put pressure on the Sensex.
Among secondary barometers, the BSE Mid-Cap index was down 0.08%. The BSE Small-Cap index was down 0.09%. 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 negative. On BSE, 1,483 shares fell and 1,091 shares rose. A total of 155 shares were unchanged.
UltraTech Cement advanced 1.09% to Rs 4,395 after 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.
Telecom shares declined. Reliance Communications (down 2.67%), MTNL (down 0.94%), Tata Teleservices (Maharashtra) (down 0.66%) and Idea Cellular (down 0.22%), edged lower.
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Telecom major Bharti Airtel was up 0.54% at Rs 410.80.
Telecom tower infrastructure provider Bharti Infratel was down 0.20% to Rs 417.60.
Aviation stocks declined. Jet Airways India (down 0.43%), InterGlobe Aviation (down 0.14%) and SpiceJet (down 0.09%), edged lower.
Cigarette major ITC lost 12.40% at Rs 285.35 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.
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 1.98% at Rs 1,520.70. 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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