Trading for the week began on a dull note as the key benchmark indices registered modest losses on negative global cues. The barometer index, the S&P BSE Sensex, was down 166.36 points or 0.53% at 31,095.70, as per the provisional closing data. The Nifty 50 index was down 51.85 points or 0.54% at 9,616.40, as per the provisional closing data. Investors exercised caution ahead of release of key domestic economic data on inflation and industrial production today, 12 June 2017 and political and economic events this week in the United States and Europe.
The Sensex lost 217.78 points or 0.7% at the day's low of 31,044.28 in late trade, its lowest level since 29 May 2017. The index fell 36.63 points or 0.12% at the day's high of 31,225.43 at the onset of the session. The Nifty lost 69.75 points or 0.72% at the day's low of 9,598.50 in late trade, its lowest level since 1 June 2017. The index fell 21.20 points or 0.22% at the day's high of 9,647.05 at the onset of the session.
Domestic stocks kick-started trading for the week on a dull note on negative global cues. Key indices extended initial fall and hit fresh intraday low in morning trade. Stocks languished in the negative terrain later during the session. Weakness persisted on the bourses as the key equity benchmarks remained in negative zone throughout the trading session.
The S&P BSE Mid-Cap index was provisionally down 0.53%, matching the Sensex's decline in percentage terms. The S&P BSE Small-Cap index was provisionally down 0.61%. The fall in this index was lower than the Sensex's decline in percentage terms.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 1,665 shares fell and 1,020 shares rose. A total of 190 shares were unchanged.
The total turnover on BSE amounted to Rs 3275.82 crore, lower than the turnover of Rs 3355.57 crore registered during the previous trading session on Friday, 9 June 2017.
Reliance Industries (RIL) dropped 1.31%. RIL announced the successful and flawless commissioning of the last crystallization train (Train 3) of the Para-xylene (PX) complex at Jamnagar. This plant is built with state-of-the-art crystallization technology from BP which is highly energy efficient. With the commissioning of this plant, RIL's PX capacity has more than doubled making it world's second largest producer of PX with about 11% of global production.
Pursuant to installation and mechanical completion of the entire PX complex in the previous quarter, Reliance Industries (RIL) commissioned the second phase of PX comprising of second crystallization train (train 2), trans-alkylation and aromatic extraction units at Jamnagar in Gujarat in April 2017. Train 3, which was at an advanced stage of commissioning, has now been successfully started. The announcement was made after market hours on Friday, 9 June 2017.
Capital goods stocks edged lower. L&T (down 1.95%), Bharat Electronics (down 1.7%), GE T&D India (down 1.98%), Praj Industries (down 1.33%), Punj Lloyd (down 0.5%), Siemens (down 1.98%) and Thermax (down 0.82%) fell. Bharat Heavy Electricals (Bhel) (up 0.18%), BEML (up 1.25%) and ABB India (up 0.41%) rose.
Meanwhile, the GST Council in its 16th meeting on Sunday, 11 June 2017 reportedly decided to revise tax rates on 66 products and widened the scope of a concessional tax payment scheme for small businesses and restaurants. The council will meet again on 18 June 2017 to take stock of the rollout preparedness and any new proposal. The council also decided to go ahead with the planned 1 July 2017 rollout.
Among domestic macro economic data, the government will announce industrial production data for the month of April 2017 after market hours today, 12 June 2017. The data on inflation based on consumer price index (CPI) or retail inflation for May 2017 will also be announced after market hours today, 12 June 2017.
Overseas, European and most Asian stocks dropped as investors assessed the risks from political turmoil in the UK. In US, technology stocks sold off sharply on Friday, 9 June 2017 taking a toll on the Nasdaq and dragging on other major Wall Street indexes, which touched record highs earlier in the day.
Markets turned cautious, following the surprise hung parliament result from the UK election on Friday, 9 June 2017. Investors are also weighing France's parliamentary elections, where the first round showed President Emmanuel Macron's party headed for a majority.
Among global macro economic data, French economic growth will accelerate in the second quarter of the year and business sentiment indicators remain above their long-term average, the Bank of France said. French gross domestic product will rise 0.5% in the second quarter from the first, when it rose 0.4%, according to business activity indicators, the Bank of France said.
Japanese core machinery orders fell in April for the first time in three months, the government said. Core machinery orders, a leading indicator of business investment, decreased 3.1% from the previous month, following a 1.4% rise in March, the Cabinet Office said. On a year-on-year basis, core orders rose 2.7%.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
