Key benchmark indices extended fall and hit fresh intraday low in mid-morning trade after latest data showed that India's manufacturing growth has slowed to five-month low in March. At 11:24 IST, the barometer index, the S&P BSE Sensex, was down 57.44 points or 0.17% at 33,197.92. The Nifty 50 index was down 26.30 points or 0.26% at 10,185.50. Shares of index heavyweights L&T and HDFC fell. Pharma shares saw mixed trend.
A bout of volatility was seen in early trade as domestic stocks turned positive soon after a subdued start triggered by negative Asian stocks. Key benchmark indices once again sink in negative zone in morning trade.
The S&P BSE Mid-Cap index was up 0.2%. The S&P BSE Small-Cap index was up 0.23%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,200 shares rose and 1,068 shares fell. A total of 98 shares were unchanged.
Index heavyweight and engineering and construction major L&T fell 1.13% to Rs 1,320.85.
Index heavyweight and housing finance major HDFC declined 0.94% to Rs 1,820.85.
Pharma shares saw mixed trend. Cadila Healthcare (up 1.25%), Dr Reddy's Laboratories (up 0.21%), GlaxoSmithKline Pharmaceuticals (up 1.55%), Aurobindo Pharma (up 0.27%) and Wockhardt (up 2.15%) rose. Cipla (down 0.24%), Glenmark Pharmaceuticals (down 0.35%), Sun Pharmaceutical Industries (down 0.25%) and Alkem Laboratories (down 0.85%) fell.
Lupin rose 1.55% after the company announced the successful completion of the inspection by the UK's Medicines and Healthcare Products Regulatory Agency (MHRA) at its Goa facility in March 2018. There were no critical or major observations in the inspection. The announcement was made during trading hours today, 3 April 2018.
Responding to the positive outcome, Nilesh Gupta, managing director, Lupin said the company is committed to maintaining truly global quality standards at its manufacturing units. The successful inspection by UK MHRA is a meaningful development for Goa plant.
On the macro front, data released today, 3 April 2018 showed that manufacturing conditions improved for the eighth consecutive in March, but at the weakest pace since October. The Nikkei India Manufacturing Purchasing Managers' Index (PMI) fell to a five-month low of 51 in March from 52.1 in February.
The output of eight core infrastructure sector, constituting 40.27% of the weight of items included in the Index of Industrial Production, increased 5.3% in February 2018 over February 2017. Its cumulative output moved up 4.3% in April to February 2017-18. The data was announced after market hours yesterday, 2 April 2018.
Overseas, Asian stocks declined as a sell-off in once much-favored US technology shares deepened and volatility soared. US stocks fell sharply yesterday, 2 April 2018 driven by both uncertainty surrounding trade policy and weakness in the large-capitalization technology and internet sectors.
The IHS Markit manufacturing purchasing managers index hit a three-year high of 55.6 in March, up from 55.3. The ISM manufacturing report for the same month came in at 59.3, compared with a previous monthly reading of 60.8. A reading of 50 or above indicates improving conditions.
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