Key benchmarks were trading near day's low in early afternoon trade. The Nifty held above 11,600 level. At 12:17 IST, the barometer index, the S&P BSE Sensex, was down 627.85 points or 1.59% at 38,885.54. The Nifty 50 index was down 193.2 points or 1.64% at 11,617.55.
Weak global cues spoiled investors sentiment. Global shares tumbled as hopes of steep cuts in interest rates by the US Federal Reserve faded after the world's largest economy posted better-than-expected jobs data Friday.
The S&P BSE Mid-Cap index was down 1.6%. The S&P BSE Small-Cap index was down 2.16%.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 453 shares rose and 1785 shares fell. A total of 113 shares were unchanged.
India's benchmark bond yield fell for the fifth consecutive trading session. The yield on 10-year benchmark federal paper fell to 6.623% at 12:28 IST compared with 6.695% at close in the previous trading session.
Yes Bank jumped 5.78% to Rs 93.30 after the bank said today that its financial position is sound and stable and its liquidity and operating performance continue to be robust.
Meanwhile, Yes Bank announced the appointment of Rajeev Uberoi as senior group president - governance and controls and Anurag Adlakha as senior group president & head - financial management & strategy.
Maruti Suzuki India was down 4.51% to Rs 6078. Maruti Suzuki India informed that it has reduced its production by 15.61% to 1.11 lakh units in June 2019 as against June 2018.
Metal stocks witnessed selling. NMDC (down 2.75%), Steel Authority of India (down 2.27%), Hindustan Copper (down 1.9%), Hindustan Zinc (down 1.73%), Tata Steel (down 1.46%), National Aluminium Company (down 1.43%) and Vedanta (down 0.58%) declined. Hindalco Industries (up 0.13%) edged higher.
Jindal Steel & Power was up 0.15% to Rs 134.4 after the company announced that it has recorded a 16% growth in sales in Q1 June 2019 over Q1 June 2018. The company announced production of 1.57 MT (Million Tonnes) and sales of 1.51 MT during the quarter of April - June2019. The quarterly steel & related products production & sales saw a robust 17% and16% growth respectively.
Shares of most public sector oil marketing companies (PSU OMCs) fell as Brent crude oil price rose. Indian Oil Corporation (down 4.43%), Hindustan Petroleum Corporation (down 3.04%) and Bharat Petroleum Corporation (down 2.27%) declined.
Aviation stocks declined. Jet Airways (India) declined 4.94% to Rs 59.7 and hit a lower circuit for the day. Spice Jet was down 2.91% to Rs 118.25 while InterGlobe Aviation was up 0.66% to Rs 1570.35.
In the commodities market, Brent crude for September 2019 settlement was up 3 cents at $64.26 a barrel. The contract rose 41 cents or 0.64% to settle at $64.23 a barrel in the previous trading session.
Shares of IT companies edged lower. Persistent Systems (down 1.99%), Mphasis (down 1.6%), Hexaware Technologies (down 1.54%), Oracle Financial Services Software (down 1.4%), Wipro (down 1.21%) and Infosys (down 0.36%) declined. HCL Technologies (up 1.92%) Tata Consultancy Services (up 0.6%) and Tech Mahindra (up 0.01%) gained.
MindTree down 10.78%. The stock is trading ex-dividend for a final dividend of Rs 4 per share and a special dividend of Rs 20 per share.
The company announced that Krishnakumar Natarajan, executive chairman, N S Parthasarathy, executive vice chairman and chief operating officer and Rostow Ravanan, CEO and managing director have submitted their resignations as members of the board of directors of Mindtree and as employees of the company. They will stay as board members till 17 July 2019 and as employees in line with their employment contracts to ensure smooth transition. Further, along with the other founders of the company, they have asked the company to de-classify them as promoters under applicable laws.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 68.6675, compared with its close of 68.42 during the previous trading session.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 2.98% at 13.455.
On the options front, Nifty option chain for 25 July 2019 expiry showed a maximum call open interest (OI) of 29.62 lakh contracts at the 12,000 strike price. Maximum put OI of 16.36 lakh contracts was seen at 11,300 strike price. Options data suggested a trading range for Nifty will be between 11,300 and 12,000.
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