The market ended with modest losses due to weak global cues as the trade spat between the US and China intensified. The barometer index, the S&P BSE Sensex, fell 261.52 points or 0.74% to 35286.74, as per the provisional closing data. The Nifty 50 index fell 89.40 points or 0.83% to 10,710.45, as per the provisional closing data. Unabated capital outflows by foreign funds too dampened sentiment.
The market opened almost flat and turned weak as the session progressed. Indices hit fresh intraday low in afternoon trade. Market pared losses in mid-afternoon trade as bargain hunting emerged at lower levels. Indices hit fresh intraday low in late trade as selling picked up pace.
The Sensex rose 4.21 points, or 0.01% at the day's high of 35,552.47 in early trade. The index fell 299.20 points, or 0.84% at the day's low of 35,249.06 in late trade. The Nifty fell 10.40 points, or 0.10% at the day's high of 10,789.45 in early trade. The index fell 98.65 points, or 0.91% at the day's low of 10,701.20 in late trade.
Broader market witnessed selling pressure. Among secondary barometers, the BSE Mid-Cap index fell 0.98%. The BSE Small-Cap index fell 1.29%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 709 shares rose and 1922 shares fell. A total of 146 shares were unchanged.
ITC (up 0.68%), ONGC (up 0.37%), HDFC Bank (up 0.23%), HDFC (up 0.18%) and Power Grid Corporation of India (up 0.05%), were the major Sensex gainers.
Adani Ports and Special Economic Zone (down 2.04%), IndusInd Bank (down 2.01%), Reliance Industries (down 1.82%), Bajaj Auto (down 1.8%) and Sun Pharmaceutical Industries (down 1.8%), were the major Sensex losers.
Vedanta fell 3.36%. With reference to a news item titled, "Vedanta faces another Sterlite like crisis in Orissa", the company clarified during trading hours today, 19 June 2018, that, on 5 June 2018, few people had assembled at Lanjigarh market-place to observe World Environment Day and to deliberate their concern about environment. Close to 300 people including tribals who had gathered out of curiosity, dispersed in less than two hours and the entire program got over peacefully. The media covered this event on 13/14th June 2018, nine days after the event. The company added that its refinery continues to operate as usual. It has not mined any bauxite from Niyamgiri. The company observed a week-long celebration of World Environment Day with the local community. A massive community plantation programme was held in peripheral villages and township areas together with participation of villagers in large numbers. A foundation stone was also laid for 'Nandghar' project - a modernized Anganwadi centre - at a nearby village. The company's Community Development wing along with the District Administration helped achieve 'Open Defecation Free' ODF status in four nearby villages. The company is committed to overall environment development in a holistic manner.
ICICI Bank fell 0.29%. The board of directors of ICICI Bank has at its meeting decided to appoint Sandeep Bakhshi, as Wholetime Director & Chief Operating Officer designate, ICICI Bank. His appointment as COO will be for a period of five years, subject to regulatory approvals. He will take over as the COO from 19 June 2018, or on the date of regulatory and other approvals, whichever is later. In line with the highest levels of governance and corporate standards, Ms. Chanda Kochhar has decided to go on leave till the completion of the enquiry as announced on 30 May 2018. The board has noted and accepted this. During her period of leave, the COO will report to the Board. The announcement was made after market hours yesterday, 18 June 2018.
IT major Tata Consultancy Services (TCS) fell 0.26%. The company opened its new delivery center in Suresnes, France. The delivery center, which is located in the Parisian region, can accommodate up to 230 employees and benefits from highly secure connectivity, a robust infrastructure and secure spaces, guaranteeing the best quality service and productivity for customers. The announcement was made after market hours yesterday, 18 June 2018.
Auto major M&M fell 2.19%. The company has received an intimation that Gipp Aero Investments Pty (GAI) and Aerostaff Australia Pty (AA), step down subsidiaries of the company, have been voluntarily deregistered by the Australian Securities & Investments Commission with effect from 16 May 2018. By virtue of the deregistration, GAI and AA have ceased to be subsidiaries of Mahindra Aerospace Australia Pty., Australia and in turn of Mahindra Aerospace, step down subsidiaries of the company and in turn of the company. The announcement was made after market hours yesterday, 18 June 2018.
On the political front, Bharatiya Janata Party (BJP) has pulled out of its alliance with Mehbooba Mufti's People's Democratic Party (PDP) in Jammu and Kashmir. The BJP is the second largest party in the State Assembly with 25 members. Speaking at a press conference in New Delhi, BJP's vice president and general secretary Ram Madhav reportedly said that it had become untenable for the BJP to continue with the alliance government in Jammu and Kashmir. Madhav reportedly added that the party took the decision after discussing with the state unit and the ministers. The ministers will resign from the cabinet and the legislators will convey the decision to the Governor soon, Madhav said. The support of 45 members are needed for Mehbooba Mufti to continue as Chief Minister, while the PDP has only 25 MLAs.
Overseas, European and Asian stocks edged lower after US President Donald Trump fired a fresh salvo in the ongoing trade spat between the US and China.
China's Shanghai Composite fell 3.78%. Trump said on Monday that he had asked the US Trade Representative to identify $200 billion worth of Chinese products that will be subject to additional tariffs of 10%. Those tariffs will take effect if China did not "change its practices".
China's Commerce Ministry said on Tuesday morning that it will take counter measures if the US publishes an additional tariffs list. China will protect its interests, taking both quantitative and qualitative measures against the move.
Trump's Monday comments came after the US on Friday announced that it would impose a 25% tariff on up to $50 billion of Chinese products. Tariffs on an initial list of goods worth some $34 billion will kick in on 6 July. In response, China announced tariffs on the same total value of products, with duties on $34 billion of US goods expected to be implemented in July.
In US, the Dow Jones Industrial Average registered its fifth straight decline Monday, but stocks broadly managed to finish above session lows as gains in energy and technology shares helped to limit declines partly inspired by fears over trade tensions between the US and China.
On the US data front, the National Association of Home Builders' monthly confidence index fell two points to 68 in June, in part due to rising lumber costs.
On the Federal Reserve front, Atlanta Fed President Raphael Bostic said Monday at the Rotary Club of Savannah that the central bank still hasn't reached the so-called neutral rate where policy is neither accommodative nor restrictive.
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