Volatility struck bourses in mid-morning trade as the key benchmark indices erased entire intrday gains and were trading a tad lower. At 11:19 IST, the barometer index, the S&P BSE Sensex, was down 3.98 points or 0.01% at 35,486.06. The Nifty 50 index was down 14.55 points or 0.14% at 10,754.60. Oil stocks declined. IT stocks gained.
Domestic stocks opened on a flat note. Key benchmark indices nudged higher in morning trade.
The S&P BSE Mid-Cap index was down 0.81%. The S&P BSE Small-Cap index was down 1%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 603 shares rose and 1633 shares fell. A total of 112 shares were unchanged.
IT stocks gained. TCS (up 1.46%), Wipro (up 0.82%), HCL Technologies (up 1.35%), Oracle Financial Services Software (up 0.47%), Tech Mahindra (up 2.85%), Hexaware Technologies (up 1.3%) and Mphasis (up 2.46%) rose. MindTree (down 0.55%) fell.
Infosys rose 0.92%. Infosys Finacle, part of EdgeVerve Systems, a fully owned subsidiary of Infosys, and Santander UK, a leading financial services provider in the UK, announced the launch of a new inter-bank cash management system for its corporate customers. To enhance the user experience, Santander will introduce an inter-bank cash management portal to provide its corporate customers a fully-integrated solution with resilient, secure cash management services accessible through any device of their choice. The announcement was made after market hours yesterday, 26 June 2018.
Oil stocks fell. Shares of the state-run oil marketing companies dropped as Brent crude prices moved higher. BPCL (down 6.2%), HPCL (down 6.15%), and Indian Oil Corporation (IOCL) (down 5.13%) declined.
Higher crude oil prices could increase under-recoveries of public-sector undertaking 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 August 2018 settlement was up 22 cents at $76.53 a barrel. The contract had jumped $1.58 a barrel or 2.11% to settle at $76.31 a barrel during the previous trading session.
Among shares of oil exploration and production (E&P) companies, ONGC (down 1.93%), Oil India (down 1.46%) and Reliance Industries (down 0.09%) edged lower.
Overseas, most Asian stocks fell as concerns linger over the impact of potential global trade restrictions. US stocks rose yesterday, 26 June 2018 as a rally in American crude overshadowed lingering concerns about the impact of heightened trade tensions.
Investors are worried that trade tensions between the US and major trading partners such as China and the European Union could develop into a big drag on the global economy.
On the economic data front, a read on consumer confidence fell to 126.4 in June from a revised 128.8 in May, according to the Conference Board.
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