Key benchmark indices were hovering in the red after extending losses and hitting fresh intraday low in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex fell 85.16 points or 0.25% at 34,212.31. The Nifty 50 index dropped 26.35 points or 0.25% at 10,519.15. A jump in trade deficit in January 2018 weighed on sentiment.
Domestic markets opened with modest gains tracking surge in US stocks in the previous session amid holiday thinned trade in Asian markets. Stocks soon trimmed initial gains in morning trade and later slipped into the red in mid-morning trade.
Among secondary indices, the S&P BSE Mid-Cap index fell 0.72%. The S&P BSE Small-Cap index dropped 0.81%. Both these indices underperformed the Sensex.
The breadth, indicating the overall health of the market, was quite weak. There were almost three losers for every gainer. On the BSE, 1,922 shares fell and 672 shares rose. A total of 88 shares were unchanged.
Auto stocks declined. Mahindra & Mahindra (M&M) was down 0.71%, Eicher Motors 1.17%, Ashok Leyland 2.18%, Hero MotoCorp 0.37%, Maruti Suzuki India 1.07%, Bajaj Auto 0.77% and TVS Motor Company declined 0.99%.
Pharma stocks were mixed. Dr Reddy's Laboratories was up 1.26%, Lupin 0.33%, Cipla 0.17%, Divi's Laboratories 0.29% and FDC gained 0.07%. However, Glenmark Pharmaceuticals was down 0.69%, Sun Pharmaceutical Industries 1.59%, Piramal Enterprises 1.64%, 0.55%, and Aurobindo Pharma declined 0.75%.
Indoco Remedies rose 1.46% after the company said that it has been granted an European good manufacturing practices (GMP) certification dated 12 February 2018 from Regulatory Authority of Hungary for its manufacturing facility for non sterile products (Goa - Plant lll), located at L-32, 33, 34 Verna Industrial Estate, Goa.
The EU GMP certification will enable Indoco to continue to export medicinal products to all European countries. The granted GMP certification will also continue to support exports of drug products to Canada, Australia, New Zealand & rest of the emerging territories as well. The announcement was made after market hours yesterday, 15 February 2018.
On the macroeconomic data front, merchandise exports increased 9.1% to $24.38 billion in January 2018 over a year ago. Meanwhile, merchandise imports surged 26.1% to $40.68 billion. The trade deficit jumped 64.6% to $16.30 billion in January 2018 from $9.9 billion in January 2017.
Overseas, it is a shortened week for greater China markets, with mainland China markets remaining shut from 15 to 21 February 2018 and Hong Kong markets shut from 16 to 19 February 2018 for the Lunar New Year. Most of the other Asian markets are also closed for a holiday.
US stocks rose for the fifth day in a row yesterday 15 February 2018, led by technology stocks. They have now recovered about half their losses during the market's dramatic plunge earlier this month on worries over higher inflation and rising treasury yields. In economic news, the Labor Department said US wholesale prices rose 0.4% in January, the biggest increase since November.
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