Key indices languished in the negative terrain in mid-afternoon trade as weakness in global stocks weighed on sentiment. At 14:20 IST, the barometer index, the S&P BSE Sensex was down 104.23 points or 0.3% at 31,216.22. The Nifty 50 index declined 29.55 points or 0.31% at 9,645.55. Earlier, both the Sensex, and the Nifty, had hit record high in early trade. FMCG and pharma stocks declined.
After the last two-day gains, key indices witnessed a gap-up opening and hit scale fresh record highs at the onset of the session. The market soon slipped into the red in early trade only to regain positive terrain in morning trade. Indices extended losses weighed by subdued global stocks after once again slipping into the red in mid-morning trade.
The S&P BSE Mid-Cap index fell 0.37%. The S&P BSE Small-Cap index declined 0.62%. The decline in both the indices was higher than the Sensex's fall in percentage terms.
The broad market depicted weakness. There were more than two losers for every gainer on the BSE. 1,765 shares fell and 804 shares rose. A total of 148 shares were unchanged.
FMCG stocks declined on profit booking. Tata Global Beverages (down 0.97%), Marico (down 1.2%), Britannia Industries (down 1.1%), Hindustan Unilever (HUL) (down 0.56%), Dabur India (down 1.28%), GlaxoSmithkline Consumer Healthcare (down 0.64%), Nestle India (down 1.35%), and Bajaj Corp (down 2.57%) declined. Procter & Gamble Hygiene and Health Care (up 0.09%), Colgate Palmolive India (up 0.58%), Godrej Consumer Products (up 0.44%), and Jyothy Laboratories (up 1.85%) rose.
The S&P BSE Sensex declined 1.47%, underperforming the Sensex. The index snapped four-day gains on profit booking.
Pharma stocks also declined. Glenmark Pharmaceuticals (down 0.05%), Aurobindo Pharma (down 0.53%), Cipla (down 0.73%), Lupin (down 0.4%), Wockhardt (down 2.14%), and Sun Pharmaceutical Industries (down 0.82%) declined.
The S&P BSE Healthcare index was down 0.11%, outperforming the Sensex.
Dr Reddy's Laboratories rose 0.32% after the company announced the launch of Bivalirudin for injection, 250 mg/vial, a therapeutic equivalent generic version of Anglomax (Bivalirudin) for injection in the US market. The announcement was made during market hours today, 6 June 2017.
Anglomax brand and generic had annual US sales of around $198 million MAT for the most recent twelve months ending in March 2017, according to IMS Health.
Cadila Healthcare rose 0.69% after the company said that its formulations manufacturing facility at Baddi in Himachal Pradesh has received an Establishment Inspection Report (EIR) from the US Food and Drug Administration (USFDA).
This receipt of EIR indicates the successful closure of the inspection points (483s) raised based on the inspection carried out between 21 February 2017 to 1 March 2017. The announcement was made after market hours yesterday, 5 June 2017.
Overseas, European stocks edged lower amid geopolitical worries. Investors took a cautious approach ahead of a general election in the UK and a European Central Bank (ECB) meeting.
Most Asian stocks dropped following the lower close on Wall Street yesterday, 5 June 2017, and as markets digested the impact of diplomatic tensions between Qatar and other Middle Eastern nations. South Korean markets are closed for Memorial Day.
Saudi Arabia, Egypt, Bahrain, and the United Arab Emirates all severed diplomatic ties with Doha, accusing it of meddling in their internal affairs and backing terrorism, which the country denies.
Stocks in the US closed the session lower yesterday, 5 June 2017 after hitting record highs before the weekend as investors grapple with a variety of geopolitical issues, both domestic and abroad.
On the data front, the latest read on US first-quarter output was raised to 1.7% from 1%, while a read on productivity was raised from a -0.6% read to an unchanged level. The Institute for Supply Management's index on the services sector fell 0.6 points in May, though it remains in solidly positive territory.
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