Fresh selling in early afternoon trade derailed a brief intraday recovery triggered in mid-morning trade. At 12:25 IST, the barometer index, the S&P BSE Sensex, was down 149.42 points or 0.48% at 31,112.64. The Nifty 50 index was down 47.65 points or 0.49% at 9,620.60. Most IT stocks declined. Pharma shares gained. Weak global cues played the spoilsport for domestic stocks.
Domestic stocks kick-started trading for the week on a dull note on negative global cues. Key benchmark indices extended initial fall and hit fresh intraday low in morning trade. After an early setback, stocks staged a recovery to cut losses in mid-morning trade.
The S&P BSE Mid-Cap index was down 0.32%. The S&P BSE Small-Cap index was down 0.24%. The fall in both these indices was lower than the Sensex's decline in percentage terms.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,434 shares fell and 1,018 shares rose. A total of 142 shares were unchanged.
Most IT stocks declined as investors are digesting major political and economic events this week in the United States and Europe. US and Europe are the two biggest outsourcing market for Indian IT services firms.
TCS (down 1.25%), Wipro (down 2.38%), HCL Technologies (down 0.4%), MindTree (down 0.07%), Hexaware Technologies (down 0.54%) and MphasiS (down 1.92%) declined. Infosys (up 0.14%), Oracle Financial Services Software (up 0.04%), Tech Mahindra (up 2.38%) gained.
Pharma shares gained. Sun Pharmaceutical Industries (up 2.15%), Alkem Laboratories (up 0.84%), Dr Reddy's Laboratories (up 0.03%), Glenmark Pharmaceuticals (up 0.22%), Lupin (up 0.33%), GlaxoSmithKline Pharmaceuticals (up 0.22%), Aurobindo Pharma (up 0.72%) and Wockhardt (up 0.98%) rose. Cipla (down 0.26%) fell.
Cadila Healthcare rose 2.46% after the company said its subsidiary Nesher Pharmaceuticals received nod from the US drug regulator US Food and Drug Administration (USFDA) to market Nystatin Topical Powder USP, 100,000 units per gram in the US market. The announcement was made on Saturday, 10 June 2017.
The drug will be produced at the Nesher Pharmaceuticals' manufacturing facility located at St. Louis, MO, USA. Nystatin Topical Powder is an antifungal antibiotic used to treat skin infections caused by yeast.
Vascon Engineers was locked in 20% lower circuit at Rs 45.45 after the company said it cancelled the proposed issuance of compulsorily convertible debentures on preferential basis. The announcement was made on Sunday, 11 June 2017.
On 27 April 2017, Vascon Engineers proposed preferential allotment of fully compulsorily convertible debentures (CCDs) to Manan Finserve and Vinca Rosea Farms and Properties LLP. However, due to certain differences between the company with the proposed investors, both parties decided to terminate the arrangement. Accordingly, the company has cancelled the proposed preferential allotment of CCDs to the proposed investors.
Meanwhile, the GST Council in its 16th meeting on Sunday, 11 June 2017 reportedly decided to revise tax rates on 66 products and widened the scope of a concessional tax payment scheme for small businesses and restaurants. The council will meet again on 18 June 2017 to take stock of the rollout preparedness and any new proposal. The council also decided to go ahead with the planned 1 July 2017 rollout.
Among macro economic data, the government will announce industrial production data for the month of April 2017 after market hours today, 12 June 2017. The data on inflation based on consumer price index (CPI) or retail inflation for May 2017 will also be announced after market hours today, 12 June 2017.
Overseas, most Asian stocks were trading lower as investors assessed the risks from political turmoil in the UK. In US, technology stocks sold off sharply on Friday, 9 June 2017 taking a toll on the Nasdaq and dragging on other major Wall Street indexes, which touched record highs earlier in the day.
Markets turned cautious, following the surprise hung parliament result from the UK election on Friday, 9 June 2017. Investors are also weighing France's parliamentary elections, where the first round showed President Emmanuel Macron's party headed for a majority.
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