Key indices hovered close to their intraday lows in afternoon trade as weak global cues played the spoilsport for domestic stocks. At 13:25 IST, the barometer index, the S&P BSE Sensex, was down 172.64 points or 0.55% at 31,089.42. The Nifty 50 index was down 51.45 points or 0.53% at 9,616.80.
Domestic stocks kick-started trading for the week on a dull note on negative global cues. Key indices extended initial fall and hit fresh intraday low in morning trade. Stocks languished in the negative terrain later during the session.
The S&P BSE Mid-Cap index was down 0.41%. The S&P BSE Small-Cap index was down 0.28%. The fall in both these indices was lower than the Sensex's decline in percentage terms.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,470 shares fell and 1,023 shares rose. A total of 140 shares were unchanged.
Auto stocks were mixed. Ashok Leyland (down 0.53%), Maruti Suzuki India (down 0.75%), Eicher Motors (down 0.5%), and Bajaj Auto (down 0.97%) declined. Mahindra & Mahindra (M&M) (up 0.58%), Hero MotoCorp (up 0.12%), and TVS Motor Company (up 0.65%) gained.
Tata Motors shed 1.63% after the company said that its global wholesales, including Jaguar Land Rover, declined by 1% to 86,385 units in May 2017 over May 2016. The announcement was made after market hours on Friday, 9 June 2017.
Reliance Industries (RIL) dropped 1.13%. RIL announced the successful and flawless commissioning of the last crystallization train (Train 3) of the Para-xylene (PX) complex at Jamnagar. This plant is built with state-of-the-art crystallization technology from BP which is highly energy efficient. With the commissioning of this plant, RIL's PX capacity has more than doubled making it world's second largest producer of PX with about 11% of global production.
Pursuant to installation and mechanical completion of the entire PX complex in the previous quarter, Reliance Industries (RIL) commissioned the second phase of PX comprising of second crystallization train (train 2), trans-alkylation and aromatic extraction units at Jamnagar in Gujarat in April 2017. Train 3, which was at an advanced stage of commissioning, has now been successfully started. The announcement was made after market hours on Friday, 9 June 2017.
Shares of multiplex players rose after the GST Council decided to lower tax on tickets priced less than Rs 100 to 18% from 28% proposed earlier. PVR (up 1.39%), Inox Leisure (up 0.19%) and Cineline India (up 4.34%) gained.
However, the tax rate on tickets consisting over Rs 100 was fixed at 28%. The Multiplex Association of India had earlier urged the government to reconsider the 28%, objecting to clubbing of the sector with racing, gambling and casinos
Gulf Oil Lubricants India rose 1.23% to Rs 820 after Morgan Stanley Investment Funds Indian Equity Fund bought 8.78 lakh shares of Gulf Oil Lubricants India from Local Government Superannuation Scheme at Rs 810 per share in a bulk deal on the BSE on Friday, 9 June 2017. Morgan Stanley Investment Holding Company held 1.77% stake in Gulf Oil Lubricants India as per the shareholding pattern as on 31 March 2017.
Meanwhile, the GST Council in its 16th meeting on Sunday, 11 June 2017 reportedly decided to revise tax rates on 66 products and widened the scope of a concessional tax payment scheme for small businesses and restaurants. The council will meet again on 18 June 2017 to take stock of the rollout preparedness and any new proposal. The council also decided to go ahead with the planned 1 July 2017 rollout.
Among domestic macro economic data, the government will announce industrial production data for the month of April 2017 after market hours today, 12 June 2017. The data on inflation based on consumer price index (CPI) or retail inflation for May 2017 will also be announced after market hours today, 12 June 2017.
Overseas, European and most Asian stocks dropped as investors assessed the risks from political turmoil in the UK. In US, technology stocks sold off sharply on Friday, 9 June 2017 taking a toll on the Nasdaq and dragging on other major Wall Street indexes, which touched record highs earlier in the day.
Markets turned cautious, following the surprise hung parliament result from the UK election on Friday, 9 June 2017. Investors are also weighing France's parliamentary elections, where the first round showed President Emmanuel Macron's party headed for a majority.
Among global macro economic data, French economic growth will accelerate in the second quarter of the year and business sentiment indicators remain above their long-term average, the Bank of France said. French gross domestic product will rise 0.5% in the second quarter from the first, when it rose 0.4%, according to business activity indicators, the Bank of France said.
Japanese core machinery orders fell in April for the first time in three months, the government said. Core machinery orders, a leading indicator of business investment, decreased 3.1% from the previous month, following a 1.4% rise in March, the Cabinet Office said. On a year-on-year basis, core orders rose 2.7%.
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