Key benchmark indices registered modest losses weighed by ITC and Sun Pharmaceutical Industries. The barometer index, the S&P BSE Sensex, fell 147.58 points or 0.46% at 31,661.97, as per the provisional closing data. The Nifty index fell 36.70 points or 0.37% at 9,915.50, as per the provisional closing data. Indian stocks edged lower in sync with their global peers triggered by rising geopolitical tensions between the US and North Korea.
The Sensex fell 81.70 points or 0.26% at the day's high of 31,727.85 at the onset of the session. The index lost 223.02 points or 0.7% at the day's low of 31,586.53, in mid-morning trade, its lowest level since 4 September 2017. The Nifty fell 20.65 points or 0.21% at the day's high of 9,931.55 at the onset of the session. The index lost 69.65 points or 0.7% at the day's low of 9,882.55 in mid-morning trade, its lowest level since 4 September 2017.
Domestic stocks saw a gap-down opening on negative Asian stocks. Key benchmark indices extended early slide and hit fresh intraday low in morning trade. Indices trimmed losses in afternoon trade after hovering in a narrow range in negative zone amid weakness in European stocks. Stocks continued to hover in negative zone later in the day.
The S&P BSE Mid-Cap index provisionally rose 0.17%. The S&P BSE Small-Cap index provisionally rose 0.35%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market was positive. On the BSE, 1,331 shares rose and 1,238 shares fell. A total of 149 shares were unchanged.
The total turnover on BSE amounted to Rs 3352.69 crore, higher than the turnover of Rs 3161.64 crore registered during the previous trading session.
Index heavyweight and cigarette major ITC lost 2.44% to Rs 275.50 after reports of downgrade on the stock by a couple of brokerages. The stock hit a high of Rs 281 and low of Rs 275 in intraday trade. Cigarette business remains impacted by regulatory pressures and other businesses will see gradual uptick in growth and profitability, a brokerage reportedly said.
Pharma shares declined. Lupin (down 2.18%), Sun Pharmaceutical Industries (down 3.82%), Alkem Laboratories (down 2.48%), Wockhardt (down 2%), Cadila Healthcare (down 3.02%), Glenmark Pharmaceuticals (down 0.38%), Cipla (down 0.66%) and Dr Reddy's Laboratories (down 0.34%) declined. GlaxoSmithKline Pharmaceuticals (up 0.5%) and Aurobindo Pharma (up 0.05%) rose.
Merck rose 4.01% after the company announced that its ultimate holding company, Merck KGaA, Germany, is preparing for strategic options for its consumer health business globally, including a potential full or partial sale of the business as well as strategic partnerships. This strategic initiative would involve the company's consumer health business in India as well, the implementation of potential measures and their specific design are subject to further analysis and decision making by competent bodies, the company said in a statement. The announcement was made after market hours yesterday, 5 September 2017.
Overseas, European stocks were trading lower after orders for Germany's important manufacturing sector dropped unexpectedly in July, official data showed. Total manufacturing orders fell 0.7% compared with June, adjusted for seasonal swings and calendar effects, the ministry said.
Most Asian stocks dropped as investors found ample reasons to stay away from risky assets amid escalating tensions between the US and North Korea. US stocks closed firmly lower yesterday, 5 September 2017 as investors focused on heightened tensions between the West and North Korea and worries about a lack of progress on President Donald Trump's pro-growth agenda.
The case for a continued risk-off tone was supported by a lack of consensus among the US, Russia and China on how to pressure Kim Jong Un to abandon his nuclear ambitions. Russian President Vladimir Putin has rejected US calls for more sanctions, echoing China's resistance to more punitive measures. The standoff between North Korea and the US and its allies escalated over the weekend after Pyongyang said it had successfully tested its largest-ever nuclear bomb.
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