Domestic equity barometers traded with significant losses in mid-morning trade amid weak global cues. At 11:26 IST, the barometer index, the S&P BSE Sensex, was down 261.16 points or 0.68% at 38,104.19. The Nifty 50 index lost 73.70 points or 0.65% at 11,243.65.
The broader market tumbled. The S&P BSE Mid-Cap index fell 1.07% while the S&P BSE Small-Cap index was declined 1.61%.
Sellers outpaced buyers. On the BSE, 531 shares rose and 1803 shares fell. A total of 116 shares were unchanged.
Investors turned cautious after External Affairs Minister S. Jaishankar was quoted by the media as saying that the current India-China border situation was "very serious". In a fresh sign of escalation, India and China reportedly accused each other of firing into the air on the border of western Himalayas.
The overnight selloff on Wall Street exacerbated the selling in domestic shares. Growing Sino-US tensions have contributed, to some extent, to the recent fall witnessed in the US markets. As per reports, US President Donald Trump launched a fresh broadside against China, promising a "decoupling" of the US economy from the Chinese one if he is re-elected in November.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 27,579,437 with 897,614 deaths, according to data from Johns Hopkins University. India reported 8,97,394 active cases of COVID-19 infection and 73,890 deaths while 33,98,844 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
Stocks in Spotlight:
AstraZeneca Pharma India slumped 8.7% to Rs 3848 after the UK-based parent AstraZeneca PLC voluntarily paused a randomized clinical trial of its coronavirus vaccine after a volunteer developed an unexplained illness. AstraZeneca PLC, which is developing the drug alongside the University of Oxford, is a frontrunner in the global race for a COVID-19 vaccine. As of 30 June 2020, UK-based AstraZeneca Pharma holds 75% stake in AstraZeneca Pharma India.
Dr.Reddy's Laboratories was up 0.40% to Rs 4365.25. The drug major on Wednesday (9 September) announced the launch of Remdesivir, under a brand name Redyx in India. The launch is part of the licensing agreement with Gilead Sciences, Inc. that grants Dr. Reddy's the right to register, manufacture and sell Remdesivir, a potential treatment for Covid-19, in 127 countries including India. Remdesivir is approved by Drug Controller General of India (DCGI) for restricted emergency use in India for the treatment of Covid-19 patients hospitalized with severe symptoms.
Further, Dr. Reddy's Laboratories also announced the launch of over-the-counter Diclofenac Sodium Topical Gel 1%, the store brand version of Voltaren Arthritis Pain in the US market. The solution is used for the temporary relief of arthritis pain in upper and lower body areas. Voltaren Arthritis Pain brand had total US retail sales of approximately $44 million since launch in May 2020 according to IRI.
Spencers Retail rose 3.62% to Rs 81.50. On a consolidated basis, the company reported a net loss stood at Rs 54.63 crore in Q1 June 2020 as compared with net loss of Rs 2.46 crore in Q1 June 2019. Net sales slipped 8.9% to Rs 547.07 crore in Q1 FY21 over Rs 600.76 crore in Q1 FY20. The gross margin for the quarter stood at Rs 112 crore. The EBITDA loss was at Rs 4 crore.
Natures Basket reported standalone turnover of Rs 108 crore and gross margin of 26.2% for the quarter ended 30 June 2020. Shashwat Goenka, the sector head of Spencer's Retail, has said: "I am delighted to share that Natures Basket has reported positive EBITDA within 1 year of acquisition due to successful integration efforts and has witnessed significant growth despite the challenging conditions by winning the trust of customers."
Global Markets:
Asian markets were under pressure following the overnight slide in shares on Wall Street.
Chinese inflation data for August released Wednesday showed the producer price index declined 2% in August from a year earlier, while the consumer price index in August rose 2.4% as compared with a year ago.
Meanwhile, AstraZeneca said a late-stage trial of its Covid-19 vaccine candidate has been put on hold due to safety concerns. That came following a suspected serious adverse reaction in a participant in the United Kingdom, according to reports from an American health-oriented news website.
The US stock market finished session lower on Tuesday, 08 September 2020, amid worries about rising tech tensions between Washington and Beijing after reports that the U.S. government is considering adding China's largest chipmaker Semiconductor Manufacturing International Corp. or SMIC to a trade blacklist.
Ten of the 11 major S&P sectors were lower, with only the defensive utilities group edging higher. Technology shares led selloff as investors fled the high flyers, meanwhile energy shares also slumped as oil prices fell below $40 a barrel.
U.S. President Donald Trump's administration is considering imposing export restrictions on SMIC, according to reports. The potential move by Washington would mark a major escalation in the tech battle between the U.S. and China.
Tesla plunged, as the electric-car maker was excluded from a group of companies being added to the S&P 500. Investors had widely expected its inclusion after a blockbuster quarterly earnings report in July. Up to Friday's close, the stock had surged about 400% this year.
Further, the stock tumbled further after General Motors announced a stake in rival electric-vehicle manufacturer Nikola Motors. Nikola surged on news of the deal.
Tech stocks tumbled on profit booking. Shares of Apple, Microsoft, and Facebook slumped along with top work-from-home plays including Zoom Video and Docusign. Apple's wiped out almost $140 billion in market value Tuesday, while its three-day slide swelled to 14%, the most since October 2008.
JPMorgan Chase & Co fell after a report it was probing employees who were allegedly involved in the misuse of funds intended for COVID-19 relief.
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