Key benchmark indices were trading with small losses in early afternoon trade as profit booking materialised due to lower global stocks. At 12:20 IST, the barometer index, the S&P BSE Sensex was down 52.61 points or 0.17% at 31,256.88. The Nifty 50 index was down 8.45 points or 0.09% at 9,666.65. Cement and capital goods stocks declined.
Key indices witnessed a gap-up opening and hit scale fresh record highs at the onset of the session. The market soon slipped into the red in early trade only to regain positive terrain in morning trade. It hovered in the red after once again slipping into the red in mid-morning trade.
The S&P BSE Mid-Cap index fell 0.22%. The S&P BSE Small-Cap index declined 0.41%. The decline in both the indices was higher than the Sensex's fall in percentage terms.
The breadth, indicating the overall health of the market, was negative. On the BSE, 1,493 shares fell and 916 shares rose. A total of 133 shares were unchanged.
Capital goods stocks dropped in weak market. BEML (down 0.94%), Bharat Heavy Electricals (Bhel) (down 0.25%), VA Tech Wabag (down 0.04%), L&T (down 1.14%), Fag Bearings (down 0.71%), CG Power & Industries (down 0.24%) and Siemens (down 0.83%) declined.
The S&P BSE Capital Goods index fell 0.51%, underperforming the Sensex.
Dr Reddy's Laboratories declined 0.01%. The company announced the launch of Bivalirudin for injection, 250 mg/vial, a therapeutic equivalent generic version of Anglomax (Bivalirudin) for injection in the US market. The announcement was made during market hours today, 6 June 2017.
Anglomax brand and generic had annual US sales of around $198 million MAT for the most recent twelve months ending in March 2017, according to IMS Health.
Cement stocks also declined. ACC (down 0.96%), Shree Cement (down 1.55%), Ambuja Cements (down 0.1%), and UltraTech Cement (down 0.65%) declined.
Grasim Industries declined 0.15%. Grasim has exposure to the cement sector through its holding in UltraTech Cement. The company said that the National Company Law Tribunal (NCLT), bench at Ahmedabad, approved of the merger of Aditya Birla Nuvo (ABNL) and Grasim Industries to be followed by the listing of Aditya Birla Financial Services (ABFSL). The announcement was made after market hours yesterday, 5 June 2017.
Overseas, Asian stocks declined following the lower close on Wall Street yesterday, 5 June 2017, and as markets digested the impact of diplomatic tensions between Qatar and other Middle Eastern nations. South Korean markets are closed for Memorial Day.
Saudi Arabia, Egypt, Bahrain, and the United Arab Emirates all severed diplomatic ties with Doha, accusing it of meddling in their internal affairs and backing terrorism, which the country denies.
Stocks in the US closed the session lower yesterday, 5 June 2017 after hitting record highs before the weekend as investors grapple with a variety of geopolitical issues, both domestic and abroad.
On the data front, the latest read on US first-quarter output was raised to 1.7% from 1%, while a read on productivity was raised from a -0.6% read to an unchanged level. The Institute for Supply Management's index on the services sector fell 0.6 points in May, though it remains in solidly positive territory.
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