Key benchmark indices hit fresh intraday low in afternoon trade as selling in index heavyweights dragged the market. At 13:21 IST, the barometer index, the S&P BSE Sensex, was down 168.75 points or 0.48% at 34,934.39. The Nifty 50 index was down 52.95 points or 0.50% at 10,626.70. Decline in Asian stocks hurt sentiment on the domestic bourses.
The Sensex was trading below the psychological 35,000 mark after falling below that level in morning trade. The market sentiment was hit by data showing that foreign funds and domestic institutional investors turning net sellers of Indian stocks yesterday, 3 May 2018. The trading activity showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 148.42 crore yesterday, 3 May 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 578.92 crore yesterday, 3 May 2018, as per provisional data.
The S&P BSE Mid-Cap index was off 0.45%. The S&P BSE Small-Cap index was off 0.20%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,472 shares fell and 1,023 shares rose. A total of 122 shares were unchanged.
Index heavyweight and housing finance major HDFC fell 0.57% to Rs 1,911.95.
Index heavyweight Reliance Industries (RIL) fell 1.12% to Rs 951.80.
Index heavyweight and cigarette major ITC fell 1.44% to Rs 280.15.
Index heavyweight and IT major Infosys fell 1.48% to Rs 1164.35.
Most cement shares rose. Ambuja Cements (up 1.02%), ACC (up 0.45%) and UltraTech Cement (up 0.12%), edged higher.
Grasim Industries was down 0.45%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
FMCG shares were mixed. Marico (up 3.72%), Procter & Gamble Hygiene & Health Care (up 1.11%), Britannia Industries (up 1.05%), Dabur India (up 0.66%), Hindustan Unilever (up 0.52%) and Colgate Palmolive (India) (up 0.09%), edged higher. Godrej Consumer Products (down 0.39%), Jyothy Laboratories (down 0.64%), Tata Global Beverages (down 0.92%), GlaxoSmithKline Consumer Healthcare (down 1.81%) and Bajaj Corp (down 2.02%), edged lower.
On the macro front, India's service sector continued to improve in April, with business activity rising at a faster pace, supported by new order growth, data released today, 4 May 2018 showed. Inflationary price pressures continued to ease further, with input and output charge inflation registering below their respective historical averages. The seasonally adjusted Nikkei India Services Business Activity Index rose to 51.4 in April from 50.3 in March.
Overseas, most European shares were trading higher as investors monitored trade talks between the US and China and waited for key economic data. Asian stocks were trading lower as investors assessed the implications of ongoing trade talks between the US and China. Investors are now awaiting US jobs for April and wage growth data due later in the day. The Nikkei in Japan remained closed for a holiday.
Activity in China's service sector expanded at a faster pace in April, a private gauge showed Friday, a reading in line with official data last month. The Caixin China services purchasing managers' index rose to 52.9 in April from 52.3 in March, Caixin Media Co. and research firm Markit said. A reading above 50 indicates an expansion in activity from the previous month while a level below that points to a contraction.
US stock benchmarks ended off their lows yesterday, 3 May 2018 and the Dow ended higher in choppy trade. The Dow Jones Industrial Average rose 5.17 points, or less than 0.1%, to 23,930.15. The S&P 500 index declined 5.94 points, or 0.2%, to 2,629.75. The Nasdaq Composite Index closed 12.75 points, or 0.2%, lower at 7,088.15.
On the economic data front, the Markit services purchasing managers index for April came in at 54.6, compared with 54 in March. The Institute for Supply Management's nonmanufacturing index fell more than expected in April, dropping to 56.8, while factory orders rose 1.6% in the month.
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