Key benchmark indices hovered in a small range in negative zone in mid-morning trade. At 11:27 IST, the barometer index, the S&P BSE Sensex, was down 179.10 points or 0.56% at 31,630.45. The Nifty index was down 48.90 points or 0.49% at 9,903.30. Weakness in Asian stocks triggered by rising geopolitical tensions between the US and North Korea weighed on domestic bourses.
Domestic stocks saw a gap-down opening on negative Asian stocks. Key benchmark indices extended early slide and hit fresh intraday low in morning trade.
The S&P BSE Mid-Cap index was up 0.01%. The S&P BSE Small-Cap index was up 0.15%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,079 shares fell and 1,054 shares rose. A total of 111 shares were unchanged.
Overseas, Asian stocks were trading lower as investors remained wary about North Korea tensions. US stocks closed firmly lower yesterday, 5 September 2017 as investors focused on heightened tensions between the West and North Korea and worries about a lack of progress on President Donald Trump's pro-growth agenda.
The case for a continued risk-off tone was supported by a lack of consensus among the US, Russia and China on how to pressure Kim Jong Un to abandon his nuclear ambitions. Russian President Vladimir Putin has rejected US calls for more sanctions, echoing China's resistance to more punitive measures. The standoff between North Korea and the US and its allies escalated over the weekend after Pyongyang said it had successfully tested its largest-ever nuclear bomb.
Back home, pharma shares declined. Lupin (down 1.98%), Sun Pharmaceutical Industries (down 2.97%), Alkem Laboratories (down 0.99%), GlaxoSmithKline Pharmaceuticals (down 0.69%), Aurobindo Pharma (down 0.3%), Wockhardt (down 1.72%), Cadila Healthcare (down 0.89%), Cipla (down 0.01%) and Dr Reddy's Laboratories (down 0.84%) declined. Glenmark Pharmaceuticals (up 0.05%) rose.
Merck rose 3.43% after the company announced that its ultimate holding company, Merck KGaA, Germany, is preparing for strategic options for its consumer health business globally, including a potential full or partial sale of the business as well as strategic partnerships. This strategic initiative would involve the company's consumer health business in India as well, the implementation of potential measures and their specific design are subject to further analysis and decision making by competent bodies, the company said in a statement. The announcement was made after market hours yesterday, 5 September 2017.
Index heavyweight and cigarette major ITC lost 1.98% to Rs 276.75 after reports of downgrade on the stock by a couple of brokerages. The stock hit a high of Rs 281 and low of Rs 276.25 so far during the day. Cigarette business remains impacted by regulatory pressures and other businesses will see gradual uptick in growth and profitability, a brokerage reportedly said.
FMCG stocks saw mixed trend. Godrej Consumer Products (down 1.09%), Britannia Industries (down 0.14%), GlaxoSmithkline Consumer Healthcare (down 0.01%), Nestle India (down 0.9%), Dabur India (down 0.91%), Procter & Gamble Hygiene and Health Care (down 0.09%) and Bajaj Corp (down 0.1%) declined. Tata Global Beverages (up 4.25%), Jyothy Laboratories (up 0.45%), Hindustan Unilever (up 0.43%), Marico (up 0.53%) and Colgate-Palmolive (India) (up 0.12%) rose.
Music Broadcast rose 1.05% after Radio City, a part of Music Broadcast, has partnered with Lucknow Metro Rail Corporation (LMRC) to create customised content packages during peak and off-peak hours respectively, which comprises of songs jingles and a special trivia. The announcement was made after market hours yesterday, 5 September 2017.
Just Dial rose 4.24% to Rs 401.05 after HDFC Mutual Fund purchased bulk shares of the company via bulk deal mechanism on the National Stock Exchange of India yesterday, 5 September 2017.
SCI Growth Investments II sold 13.93 lakh shares of Just Dial at Rs 375.27 per share in a bulk deal on the NSE yesterday, 5 September 2017. Sequoia Capital India Growth Investment Holdings I sold 14.94 lakh shares at Rs 375.55 a piece. Sequoia Capital India Investments II sold 7.11 lakh shares at Rs 375.28 per share. HDFC Mutual Fund bought 32.06 lakh shares at Rs 375 per share.
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