Key indices trimmed losses in mid-afternoon trade as buying emerged at lower levels. At 14:20 IST, the barometer index, the S&P BSE Sensex, was down 130.86 points or 0.37% at 35,292.62. The Nifty 50 index was down 48.90 points or 0.46% at 10,665.40. The undertone of the market, however, continued to be negative due to weak global cues.
The indices opened higher, but reversed trend in early trade and hit fresh intraday low in afternoon trade. Indices pared losses in mid-afternoon trade.
Among secondary barometers, the BSE Mid-Cap index was down 0.69%. The BSE Small-Cap index was down 0.72%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 809 shares rose and 1706 shares fell. A total of 134 shares were unchanged.
Most capital goods shares declined. Bharat Electronics (down 3.13%), GE T&D India (down 2.64%), Punj Lloyd (down 2.53%), Suzlon Energy (down 2%), BEML (down 1.43%), Bharat Heavy Electricals (down 1.39%), Lakshmi Machine Works (down 1.35%), Havells India (down 1.26%), Reliance Defence and Engineering (down 1.25%), Praj Industries (down 1.21%), AIA Engineering (down 0.53%), ABB India (down 0.39%) and SKF India (down 0.31%), edged lower. GE Power India (up 0.16%), Siemens (up 0.2%), Jindal Saw (up 1.89%) and Crompton Greaves (up 1.96%), edged higher.
Engineering and construction major Larsen & Toubro (L&T) was down 1.59%.
Thermax was down 0.07%. The company has concluded an order of Rs 340 crore from a leading Indian steel manufacturer for a specially designed boiler, electric turbo generators and ancillary equipment for their production facility in Maharashtra. The announcement was made after market hours on Friday, 29 June 2018.
Realty shares declined. Parsvnath Developers (down 5.47%), Sunteck Realty (down 4.75%), Indiabulls Real Estate (down 4.26%), D B Realty (down 4.19%), Housing Development and Infrastructure (HDIL) (down 3.62%), Anant Raj (down 3.56%), DLF (down 3.53%), Mahindra Lifespace Developers (down 2.77%), Peninsula Land (down 1.83%), Sobha (down 1.57%), Oberoi Realty (down 1.09%), Omaxe (down 1.03%), Unitech (down 0.72%) and Godrej Properties (down 0.12%), edged lower. Prestige Estates Projects (up 0.58%) and Phoenix Mills (up 1.13%), edged higher.
On the economic front, India's manufacturing conditions improved in June at the strongest pace since December 2017, supported by the sharpest gains in output and new orders in 2018 so far. The Nikkei India Manufacturing Purchasing Managers' Index (PMI) rose from 51.2 in May to 53.1 in June. This was consistent with the fastest improvement in the health of India's manufacturing economy in 2018 so far.
Overseas, European shares were trading lower as on-going worries about the US trade policies and concerns about German Chancellor Angela Merkel's coalition weighed on sentiment. Asian stocks tumbled, with trade tensions between the US and its trading partners still a key concern for investors.
China's official manufacturing Purchasing Managers' Index (PMI) declined to 51.5 for the month of June. The figure still came in above the 50-point level indicating growth.
In Japan, confidence among large manufacturers weakened for the second straight quarter in three months to June amid growing concerns about the potential impact of trade friction on the global economy. The main index measuring large manufacturers' sentiment was at plus 21 in the April-June period, compared with plus 24 in the previous survey in March, according to the Bank of Japan's quarterly tankan survey.
US stocks closed higher Friday, 29 June 2018, led by energy and materials sectors. Financials also rose earlier after several banks announced plans to return capital to shareholders late Thursday after the Federal Reserve released results of its annual stress test. However, financials finished in the red as investors pocketed profits toward the closing bell.
On the US data front, the personal-consumption expenditures index, the Federal Reserve's preferred inflation gauge, rose 0.2% as did the core rate that strips out food and energy. The rate of inflation over the past 12 months rose to 2.3%, the fastest pace since March 2012.
Chicago PMI climbed to a reading of 64.1 in June, up from 62.7, the fastest reading since January and the highest level in six month. Any reading above 50 indicates improving conditions. The final University of Michigan consumer sentiment index for June came in at 98.2. Thursday's data showed first-quarter growth for the US economy was trimmed to 2% from 2.2%.
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