Weakness persisted on the bourses in mid-afternoon trade as index pivotals remained gripped in selling pressure. At 14:29 IST, the barometer index, the S&P BSE Sensex, was down 348.57 points or 0.89% at 38,614.69. The Nifty 50 index was down 112.15 points or 0.96% at 11,600.10. Global shares dropped as trade negotiations between the US and China appeared to be on the verge of collapse.
Domestic stocks opened on a weak note on negative Asian stocks. Stocks traded with weakness in morning trade. Weakness persisted on the bourses in mid-morning trade. Indices hovered near day's low in afternoon trade amid dismal global cues.
The S&P BSE Mid-Cap index was down 0.71%. The S&P BSE Small-Cap index was down 0.78%.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 760 shares rose and 1598 shares fell. A total of 178 shares were unchanged.
Shares of state-run oil marketing companies rose after crude oil futures declined in the international commodity market.
BPCL (up 1.95%), HPCL (up 1.84%) and Indian Oil Corporation (up 0.51%), edged higher.
Lower crude oil prices could reduce under-recoveries of public sector oil marketing companies (PSU OMCs) on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
In the global commodities markets, Brent for July 2019 settlement was down by $1.18 at $69.67 a barrel. The contract fell 10 cents, or 0.14% to settle at $70.85 a barrel during the previous trading session.
Indiabulls Housing Finance fell 2.41%. The Lakshmi Vilas Bank gained 4.28%. Indiabulls Housing Finance said its board approved amendments to scheme of amalgamation to effect the merger of Indiabulls Housing Finance (IBH or Transferor Company 1) alongwith its wholly owned subsidiary, Indiabulls Commercial Credit (ICCL or Transferor Company 2) into and with The Lakshmi Vilas Bank (LVB or Transferee Company) (Scheme) under Sections 230 to 232 of the Companies Act, 2013. The Scheme, amongst others, envisages amalgamation of the IBH and ICCL into and with the LVB, on ongoing basis and dissolution of IBH and ICCL without being wound up. Basis the existing issued capital of both IBH and LBV and the share exchange ratio, the shareholders of the IBH will hold approximately 90.5% of the post-merger enhanced equity capital of the merged entity and the shareholders of LVB will hold approximately 9.5% of the post-merger enhanced equity capital of the merged entity. The announcement was made after market hours on Friday, 3 May 2019.
On the macro front, the Indian service sector lost momentum in April, with rates of new business and output growth both cooling to seven-month lows, data released today showed. Falling from 52 in March to 51 at the start of the 2019 financial year, the seasonally adjusted Nikkei India Services Business Activity Index pointed to the weakest upturn in output since last September.
On the political front, the fifth phase of the Lok Sabha polls 2019 is underway today, 6 May 2019, with 51 Lok Sabha constituencies from 7 different states going to vote. The 2019 Indian general election, which is scheduled to be held in seven phases, kicked off on 11 April 2019. It will conclude on 19 May 2019. The counting of votes will be conducted on 23 May 2019, and on the same day the results will be declared.
Overseas, shares in Europe and Asia were trading sharply lower on Monday, after President Donald Trump said the US would hike tariffs on goods from China.
Activity in China's service sector expanded at a slightly faster pace in April, a private gauge showed Monday. The Caixin China services purchasing managers' index rose to 54.5 in April from 54.4 in March, Caixin Media Co. and research firm Markit said.
Trading in US index futures indicated that the Dow could slump 525 points at the opening bell today. US President Donald Trump announced Sunday that tariffs on $200 billion of Chinese goods will increase next week to 25% from 10%. He also reportedly threatened that the U.S. will impose 25% tariffs on another $325 billion of Chinese goods. In response, China may reportedly withdraw from the next round of trade talks scheduled to begin Wednesday in Washington.
US stocks rose in a broad-based rally on Friday as stronger-than-expected job growth in April coupled with muted wage gains left investors upbeat about the outlook for the economy and interest rates. The Nasdaq registered a record high close, while the S&P 500 ended just shy of a record high finish.
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