Key indices extended intraday losses and hit fresh intraday low in mid-afternoon trade. At 14:20 IST, the barometer index, the S&P BSE Sensex was down 95.28 points or 0.31% at 30,155.70. The Nifty 50 index fell 34.25 points or 0.36% at 9,388.15. Capital goods and pharma stocks dropped.
Investors booked profits after indices scaled record highs yesterday, 11 May 2017 as drop in most of the global stocks weighed on sentiment.
Key indices hovered in the negative terrain after slipping into the red in morning trade after opening with small gains.
The BSE Mid-Cap index fell 0.87%. The BSE Small-Cap index shed 0.75%. The declines in both the indices were higher than the Sensex's fall in percentage terms.
The market breadth depicted weakness. There were more than two losers for every gainer on BSE. 1,780 shares fell and 870 shares rose. A total of 159 shares were unchanged.
Capital goods stocks dropped. BEML (down 0.67%), Bharat Heavy Electricals (Bhel) (down 1.35%), Havells India (down 0.16%), L&T (down 0.2%), Thermax (down 1.89%), CG Power & Industries (down 1.3%) and Siemens (down 1.01%) declined.
UltraTech Cement dropped 0.04%. The company has commissioned a 0.3 million tonnes per annum (mtpa) slag grinding capacity at its existing facilities at Patliputra, Bihar. The announcement was made during market hours today, 12 May 2017.
The additional capacity will bolster the company's capabilities to meet the growing demand for slag cement from the markets in eastern India. The company's cement capacity now stands at 79.6 mtpa.
Pharma stocks declined. Aurobindo Pharma (down 0.51%), Cadila Healthcare (down 1.13%), Lupin (down 0.29%), and Divi's Laboratories (down 0.99%) declined. Cipla (up 1.03%) and Sun Pharmaceutical Industries (up 0.56%) gained.
Dr Reddy's Laboratories declined 0.17%. The company's consolidated net profit jumped 319% to Rs 312.5 crore on 5% drop in revenue to Rs 3554.20 crore in Q4 March 2017 over Q4 March 2016. The result was announced during market hours today, 12 May 2017.
Glenmark Pharmaceuticals lost 13.95% after the company reported Q4 March 2017 results after trading hours yesterday, 11 May 2017, which missed market expectations. On a consolidated basis, Glenmark Pharmaceuticals' net profit rose 23.49% to Rs 183.76 crore on 10.23% rise in net sales to Rs 2424.41 crore in Q4 March 2017 over Q4 March 2016. Consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) grew by 46.26% at Rs 443.84 crore in Q4 March 2017 over Q4 March 2016.
Glenn Saldanha, Chairman & MD, Glenmark Pharmaceuticals said that the company's Q4 March 2017 performance was mainly driven by US formulations business. In addition, India business also managed to record growth despite various challenging factors in the market.
On macro front, the government will announce industrial production data for the month of March 2017 after market hours today, 12 May 2017. The data on inflation based on consumer price index (CPI) or retail inflation for April 2017 will also be announced after market hours today.
Overseas, European and Asian stocks were mixed. The Bank of England yesterday, 11 May 2017 left its key interest rate at 0.25%, meeting widely held expectations. The vote to hold the rate steady was 7-1, with board member Kristen Forbes backing an increase.
The central bank left unchanged the size of its asset purchase program at 435 billion ($562 billion) and its corporate-bond purchase program at 10 billion. The bank in its quarterly inflation report reduced its forecast for 2017 economic growth to 1.9% from 2%.
US stocks retreated yesterday, 11 May 2017 as a clutch of weaker-than-expected earnings reports and lingering concerns that President Donald Trump's pro-business agenda may face delays sapped buying appetite.
On economic data front, US producer prices showed a broad-based gain in April, which pushed the annual increase up to the largest advance in five years, government data showed. The Labor Department said on Thursday its producer-price index for final demand rose 0.5% last month.
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