Weakness persisted on the bourses in afternoon trade as index pivotals remained gripped in selling pressure. At 13:15 IST, the barometer index, the S&P BSE Sensex, was down 219.93 points or 0.62% at 35,328.33. The Nifty 50 index was down 81.70 points or 0.76% at 10,718.15. The Indian market mirrored a weak trend in the global market as the trade spat between the US and China intensified. Unabated capital outflows by foreign funds too dampened sentiment.
Broader market witnessed selling pressure. Among secondary barometers, the BSE Mid-Cap index was down 1.1%. The 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 BSE, 604 shares rose and 1857 shares fell. A total of 120 shares were unchanged.
Vedanta (down 3.72%), Bajaj Auto (down 1.91%) and Infosys (down 1.78%) edged lower from the Sensex pack.
Index heavyweight Reliance Industries lost 1.54% to Rs 999.35.
M&M fell 1.57%. The company has received an intimation that Gipp Aero Investments Pty (GAI) and Aerostaff Australia Pty (AA), step down subsidiaries of the company, have been voluntarily deregistered by the Australian Securities & Investments Commission with effect from 16 May 2018. The announcement was made after market hours yesterday, 18 June 2018.
By virtue of the deregistration, GAI and AA have ceased to be subsidiaries of Mahindra Aerospace Australia Pty., Australia and in turn of Mahindra Aerospace, step down subsidiaries of the company and in turn of the company.
Cadila Healthcare rose 1.42%. Zydus Cadila has received the tentative approval from the USFDA to market Tadalafil Tablets USP, 2.5 mg, 5 mg, 10 mg and 20 mg. It is used to treat erectile dysfunction (impotence) and symptoms of benign prostatic hypertrophy (enlarged prostate). It will be manufactured at the group's manufacturing facility at Moraiya, Ahmedabad. The announcement was made during market hours today, 19 June 2018.
Overseas, European and Asian stocks edged lower after US President Donald Trump fired a fresh salvo in the ongoing trade spat between the US and China.
China's Shanghai Composite was down 4.04%. Trump said on Monday that he had asked the US Trade Representative to identify $200 billion worth of Chinese products that will be subject to additional tariffs of 10%. Those tariffs will take effect if China did not "change its practices".
China's Commerce Ministry said on Tuesday morning that it will take counter measures if the US publishes an additional tariffs list. China will protect its interests, taking both quantitative and qualitative measures against the move.
Trump's Monday comments came after the US on Friday announced that it would impose a 25% tariff on up to $50 billion of Chinese products. Tariffs on an initial list of goods worth some $34 billion will kick in on 6 July. In response, China announced tariffs on the same total value of products, with duties on $34 billion of US goods expected to be implemented in July.
In US, the Dow Jones Industrial Average registered its fifth straight decline Monday, but stocks broadly managed to finish above session lows as gains in energy and technology shares helped to limit declines partly inspired by fears over trade tensions between the US and China.
On the US data front, the National Association of Home Builders' monthly confidence index fell two points to 68 in June, in part due to rising lumber costs.
On the Federal Reserve front, Atlanta Fed President Raphael Bostic said Monday at the Rotary Club of Savannah that the central bank still hasn't reached the so-called neutral rate where policy is neither accommodative nor restrictive.
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