Trading for the week began on a subdued note as stocks drifted lower in volatile trade. The barometer index, the S&P BSE Sensex, lost 217.86 points or 0.6% to settle at 36,323.77. The Nifty 50 index fell 82.05 points or 0.74% to settle at 10,936.85. The Nifty settled below the psychologically important 11,000 mark after falling below that level in intraday trade.
The Sensex lost 217.86 points or 0.6% to settle at 36,323.77. The Sensex rose 117.08 points, or 0.32% at the day's high of 36,658.71 in early trade. The index fell 242.69 points, or 0.66% at the day's low of 36,298.94 in late trade.
The Nifty 50 index fell 82.05 points or 0.74% to settle at 10,936.85. The Nifty rose 0.6 points, or 0.01% at the day's high of 11,019.50 in early trade. The index fell 92.65 points, or 0.84% at the day's low of 10,926.25 in late trade.
Broader market witnessed a steep decline. Among secondary barometers, the BSE Mid-Cap index lost 2.45%. The BSE Small-Cap index fell 2.51%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 546 shares rose and 2052 shares fell. A total of 179 shares were unchanged.
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Tata Motors (down 4.77%), Sun Pharmaceutical Industries (down 4.69%), Bharti Airtel (down 3.31%) and ICICI Bank (down 3.26%) were the major Sensex losers.
NTPC (up 1.96%), HDFC (up 0.95%), Wipro (up 0.86%) were the major Sensex gainers.
Metal and mining stocks dropped. Tata Steel (down 6.96%), Steel Authority of India (Sail) (down 4.89%), Vedanta (down 2.28%), JSW Steel (down 2.94%), National Aluminium Company (down 3.3%), Hindustan Zinc (down 1.9%), Jindal Steel & Power (down 4.95%), Hindalco Industries (down 3.18%), NMDC (down 3.26%) and Hindustan Copper (down 4.03%) edged lower.
Hindustan Unilever rose 0.73%. The company's net profit rose 19.17% to Rs 1529 crore on 3.07% rise in total income to Rs 9622 crore in Q1 June 2018 over Q4 March 2018. The result was announced after market hours today, 16 July 2018.
IT major Infosys rose 1.83% after the company announced liberal bonus issue after market hours on Friday, 13 July 2018. On a consolidated basis, Infosys' net profit declined 2.1% to Rs 3612 crore on 5.8% rise in revenues to Rs 19128 crore in Q1 June 2018 over Q4 March 2018. The net profit included impact of Rs 270 crore on account of reduction in the fair value of assets held for sale.
Infosys board of directors also considered, approved and recommended a bonus issue of one equity share for every equity share held and a stock dividend of one American Depositary Share (ADS) for every ADS held, as on a record date to be determined.
Salil Parekh, CEO and MD, Infosys said that the strong revenue and margin performance in this quarter shows that the company's dual emphasis on Agile Digital and AI-driven Core services is resonating with clients.
Dr Reddy's Laboratories lost 9.85% after the company said the preliminary injunction orders issued by a US court against it on the launch of generic Suboxone. Dr. Reddy's Laboratories, along with its subsidiaries announced its intent to appeal the decision made by the US District Court for the District of New Jersey in a preliminary injunction hearing with respect to further sales and commercialization of Dr. Reddy's Buprenorphine and Naloxone Sublingual Film within the United States. The company disagrees with the court's decision, and will vigorously appeal it, Dr. Reddy's Laboratories said. The announcement was made on Saturday, 14 July 2018.
Dr. Reddy's had announced the receipt of the approval, on 15 June 2018 by one of its wholly owned subsidiaries, from the US Food and Drug Administration (USFDA) for its Buprenorphine and Naloxone Sublingual Film, 2 mg/0.5 mg, 4 mg/1 mg, 8 mg/2 mg, and 12 mg/3 mg, therapeutic equivalent generic version of Suboxone (buprenorphine and naloxone) sublingual film, in the United States market.
Lupin declined 5.4%. The company announced during trading hours today, 16 July 2018, that it has received approval from UK MHRA (United Kingdom's Medicines and Healthcare products Regulatory Agency) for its Goa facility. The unit was inspected by UK MHRA in March 2018 and there were no critical or major observations cited. Commenting on the development, Nilesh Gupta, Managing Director - Lupin said that the outcome of this inspection is a positive and encouraging sign for the firm, and is a testament to its commitment to maintain global manufacturing standards and best practices. This approval from UK MHRA is a significant development for the company's Goa plant.
Aurobindo Pharma lost 5.08%. The company announced the signing of a definitive agreement to acquire from Apotex International Inc. (Apotex), its commercial operations and certain supporting infrastructure in five European countries. The acquisition is in line with Aurobindo's strategy to strengthen and grow its European business and to expand in Eastern Europe. The announcement was made on Saturday, 14 July 2018.
PC Jeweller slumped 25.89% after the company said that in view of the non-receipt of the requisite NOC from the company's bankers, the board of directors has decided to withdraw the buyback offer with immediate effect. It may be recalled that PC Jeweller had on 10 May 2018 announced the proposal for buyback of upto 1.21 crore equity shares, comprising of 3.07% of the total paid-up equity capital of the company, for an aggregate amount not exceeding Rs 424 crore, at Rs 350 per share, on a proportionate basis through the tender offer route.
Bhansali Engineering Polymers lost 5% to Rs 128.50 after net profit declined 0.65% to Rs 16.77 crore on 10.17% fall in total income to Rs 201.98 crore in Q1 June 2018 over Q1 June 2017. The result was announced on Saturday, 14 July 2018.
On the macro front, the annual rate of inflation, based on monthly WPI, stood at 5.77% (provisional) for the month of June 2018 (over June 2017) as compared to 4.43% (provisional) for the previous month and 0.90% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 2.49% compared to a build up rate of -0.44% in the corresponding period of the previous year.
Overseas, most stocks in Europe and Asia declined after mixed economic data out of China spurred selling. Market in Japan was shut for a holiday on Monday. Meanwhile, China on Monday posted second-quarter GDP growth of 6.7% from a year ago, slightly lower than 6.8% in the first quarter of 2018.
In US, the Dow on Friday moved above the 25,000 level for the first time in nearly a month while the technology-powered Nasdaq to a record, underlining an uptrend that has been driven by signs of economic strength and solid quarterly earnings.
On the US data front, the cost of import goods fell sharply in June to mark the biggest drop in about a year and a half, though the respite is unlikely to continue once tariffs between the US and other countries go into effect. A read on consumer sentiment fell to a six-month low of 97.1 in July.
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