Market registered losses, extending previous trading session's slide. The barometer index, the S&P BSE Sensex lost 265.83 points or 0.84% at 31,258.85, as per the provisional closing data. The Nifty 50 index fell 89.45 points or 0.91% at 9,747.95, as per the provisional closing data. Weakness in global stocks weighed on sentiment on the domestic bourses. Sharp fall in software pivotal Infosys also weighed on key indices. Pharma stocks declined.
Key indices opened the session higher and traded with small gains till morning trade. Later, the indices hovered near the flat line in mid-morning trade. Key benchmarks slipped into the negative zone in early afternoon trade. The indices extended intraday losses in late trade.
The Sensex lost 304.15 points or 0.96% at the day's low of 31,220.53 in late trade, its lowest level since 11 August 2017. It rose 117.13 points or 0.37% at the day's high of 31,641.81 in morning trade. The Nifty lost 97.30 points or 0.98% at the day's low of 9,740.10 in late trade, its lowest level since 11 August 2017. It rose 46.95 points or 0.47% at the day's high of 9,884.35 in morning trade, its highest level since 17 August 2017.
Among secondary indices, the S&P BSE Mid-Cap index provisionally lost 1.45%. The S&P BSE Small-Cap index provisionally fell 1.02%. The losses for both the indices were higher than the Sensex's slide in percentage terms.
The breadth, indicating the overall health of the market, was weak. On the BSE, 1,715 shares declined and 876 shares rose. A total of 153 shares were unchanged.
The total turnover on BSE amounted to Rs 3944.46 crore, higher than turnover of Rs 3863.53 crore registered during the previous trading session.
Pharma stocks declined. Dr Reddy's Laboratories (down 2.42%), Divi's Laboratories (down 2.22%), Lupin (down 1.99%), Sun Pharmaceutical Industries (down 1.91%) and Cipla (down 1.16%) edged lower.
Aurobindo Pharma lost 1.28%. The company said it has received tentative approval from the US Food & Drug Administration (USFDA) under the US President's Emergency Plan for AIDS Relief (PEPFAR) for its New Drug Application for Dolutegravir, Lamivudine and Tenofovir Disoproxil Fumarate (TLD) tablets, 50mg/300mg/300mg.
The approved product is used for the treatment of HIV-l infection along as a complete regimen in adults and pediatric patients weighing 40 kg and greater. ViiV Healthcare and Aurobindo Pharma signed a licensing agreement in 2014 that allows Aurobindo Pharma to supply Dolutegravir 50mg in 92 licensed countries, following completion of required local regulatory approval processes. The triple combination product is expected to be launched in sub-Saharan Africa in Q3 FY 2018. The announcement was made before market hours today, 21 August 2017.
IT major Infosys slumped 5.65% at Rs 870.95 on media reports that four US law firms said they would be investigating claims on behalf of Infosys investors whether some of the officers and directors of the company engaged in securities fraud. This development follows the sudden resignation of CEO Vishal Sikka and the steep drop in share prices on Friday, 18 August 2017.
Meanwhile, Infosys' board at its meeting held on Saturday, 19 August 2017, approved a proposal to buyback upto 11.30 crore shares, aggregating up to 4.92% of the paid-up equity capital, at Rs 1,150 per share. The maximum buyback size is Rs 13000 crore. The buyback price is at a premium of 24.58% over the stock's closing price of Rs 923.10 on the BSE on Friday, 18 August 2017.
Housing finance major HDFC rose 0.11% at Rs 1,737 after the company's material subsidiary, HDFC Standard Life Insurance Company, filed a draft red herring prospectus with Securities & Exchange Board of India for an initial public offer of up to 29.98 crore shares of Rs 10 each representing 14.97% of the paid-up equity capital of HDFC Standard Life Insurance Company through an offer for sale of 19.12 crore equity shares by HDFC and 10.86 crore equity shares by Standard Life (Mauritius Holdings). The announcement was made after market hours on Friday, 18 August 2017.
On the political front, the Janata Dal (United) led by Bihar Chief Minister Nitish Kumar, passed a resolution on Saturday, 19 August 2017 to join the National Democratic Alliance (NDA), mere weeks after the party broke away from the grand alliance in Bihar.
Overseas, European stocks edged lower as investors remained unconvinced about US President Donald Trump's ability to impose his ambitious economic agenda.
Asian stocks witnessed a mixed trend amid geopolitical concerns as US-South Korea military drills begin. As per reports, joint US-South Korea military exercises take place from 21 August to 31 August 2017. This exercise comes on the back of a ramp up in geopolitical tensions earlier this month after a heated exchange of rhetoric between President Donald Trump and Pyongyang.
In economic news, Japan's all industry activity recovered in June, data from the Ministry of Economy, Trade and Industry showed today, 21 August 2017. The all industry activity index rose 0.4% month-on-month in June, reversing a 0.8% fall in May.
US equities closed off their session lows on Friday, 18 August 2017 after Steve Bannon, one of President Donald Trump's top advisors, left the administration. Reports suggested that tension between Bannon and other top advisors to Trump, including Chief Economic Advisor Gary Cohn and National Security Advisor H.R. McMaster, had been festering inside the White House.
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