A selling frenzy pulled the key benchmark indices to fresh intraday low in mid-afternoon trade. At 14:28 IST, the barometer index, the S&P BSE Sensex, was down 230.78 points or 0.66% at 34,986.33. The Nifty 50 index was down 98.30 points or 0.92% at 10,573.10. The Sensex dropped below the psychological 35,000 mark. Today's market slide was led by index heavyweights HDFC, ICICI Bank and Reliance Industries.
Domestic stocks edged lower in early trade tracking mostly lower Asian stocks. A divergent trend was witnessed in morning trade as the barometer index, the S&P BSE Sensex, was trading with small gains while the Nifty 50 index was trading with small losses. Volatility ruled the roost in mid-morning trade as fresh selling pulled the key benchmark indices lower, derailing a brief intraday recovery. Indices turned range bound in afternoon trade.
Trading could be volatile for the remaining part of the day as traders roll over positions in the F&O segment from the near month June 2018 series to July 2018 series. The June 2018 F&O contracts expire today, 28 June 2018.
The S&P BSE Mid-Cap index was down 1.3%. The S&P BSE Small-Cap index was down 1.37%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 706 shares rose and 1806 shares fell. A total of 133 shares were unchanged.
Among shares of oil exploration and production (E&P) companies, ONGC (up 0.37%) and Oil India (up 0.17%) rose.
Private sector banking major ICICI Bank dropped 2.9% to Rs 270.80.
Index heavyweight and housing finance major HDFC lost 1.89% to Rs 1,870.95
Index heavyweight Reliance Industries fell 1.82% to Rs 947.70.
PSU OMCs declined. HPCL (down 4.1%), BPCL (down 3.44%), and Indian Oil Corporation (down 1.34%) fell.
Reliance Infrastructure fell 0.18%. Maharashtra Electricity Regulatory Commission (MERC) has given its approval to the proposed 100% stake sale of Reliance Infrastructure's integrated Mumbai power business to Adani Transmission. Following the commission's nod, the transaction is expected to be closed in July 2018. MERC had concluded its hearing into the matter and reserved its order on 14 June 2018. The announcement was made during trading hours today, 28 June 2018.
Reliance Infrastructure has already received the approval of Competition Commission of India (CCI) and its share-holders for the deal. Reliance Infrastructure and ATL had signed Definitive Binding Agreement for 100% stake sale of the integrated business of generation, transmission and distribution of power for Mumbai in December 2017. The total consideration value of the deal is estimated at Rs 18800 crore.
Reliance Infrastructure will utilize the proceeds of this transformative transaction entirely to reduce its debt, becoming debt free and up to Rs 3000 crore cash surplus. This is the largest ever debt reducing exercise by any corporate. This monetization is a major step in Reliance Infrastructure deleveraging strategy for future growth.
Overseas, European stocks were trading lower as uncertainty over US President Donald Trump's trade policies on China lingered. Asian markets are trading lower in view of conflicting messages from US President Donald Trump and his aides over whether he would adopt a confrontational approach to limit Chinese investment in America. US stocks fell yesterday, 27 June 2018 as a drop in technology stocks and financials more than offset an advance in the energy sector.
Trump has softened the threat of new curbs on Chinese investment in US firms. Separately, top US economic advisor Larry Kudlow said the Trump administration has no intention of backing down from the current China situation.
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