Weakness persisted on the bourses in early afternoon trade on selling pressure in index pivotals. At 12:29 IST, the barometer index, the S&P BSE Sensex, was down 150.55 points or 0.37% at 40,117.07. The Nifty 50 index was down 54.75 points or 0.45% at 12,033.80.
Key indices cut losses soon after opening with downward gap. A bout of volatility was witnessed in morning trade as the key indices once again sank in negative zone after briefly turning positive. Stocks hovered in negative zone in mid-morning trade.
The S&P BSE Mid-Cap index was up 0.05%. The S&P BSE Small-Cap index was up 0.09%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, turned negative from positive. On the BSE, 1068 shares rose and 1221 shares fell. A total of 147 shares were unchanged.
State-run bank stocks rose after media reports suggested that the government may infuse around Rs 40000 crore into state-run lenders in 2019-2020. The move is aimed at supporting credit growth and help weaker banks maintain regulatory norms. An announcement to this effect is reportedly expected in the Union Budget on 5 July 2019.
IDBI Bank (up 7.45%), Union Bank of India (up 3.13%), Syndicate Bank (up 2.78%), Allahabad Bank (up 2.58%), Bank of India (up 1.68%), Canara Bank (up 1.05%), Bank of Baroda (up 1.98%), Punjab National Bank (up 0.79%), Andhra Bank (up 0.61%), Punjab & Sind Bank (up 0.71%), UCO Bank (up 1.14%), United Bank of India (up 0.37%) rose. State Bank of India shed 0.36%.
Swaraj Engines rose 1.95% to Rs 1,442 after Mahindra & Mahindra purchased additional shares in the company. Mahindra & Mahindra (M&M) purchased 1.77 lakh equity shares, or 1.46% stake, of Swaraj Engines at Rs 1,387 each. Jupiter India Fund sold 1.77 lakh shares of Swaraj Engines at Rs 1,387 each. Both the transactions took place on NSE yesterday, 3 June 2019. Post transaction, M&M's stake in Swaraj Engines increased to 34.76% from 33.30% earlier.
Overseas, most Asian stocks were trading lower as an intensifying U.S.- China trade war inflamed concerns about global growth. US stocks finished mostly lower Monday, as the government stepped up scrutiny of technology giants for possible violations of antitrust law.
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