Key benchmark indices provisionally settled on a flat-to-positive note after seeing high intraday volatility. The barometer index, the S&P BSE Sensex, rose 19.69 points or 0.06% at 35,490.04, as per the provisional closing data. The Nifty 50 index rose 6.70 points or 0.06% at 10,769.15, as per the provisional closing data. Cement stocks advanced.
Domestic stocks cut initial losses triggered by negative Asian stocks. Volatility ruled the roost in morning trade as the key benchmark indices trimmed almost entire intraday gains after staging a pullback from lower levels. Key benchmark indices extended gains in mid-morning trade. Fresh buying in index pivotals pushed the key benchmark indices to day's high in early afternoon trade. Key barometers sharply pared gains in afternoon trade. Stocks regained strength in mid-afternoon trade. Indices trimmed gains in late trade.
Broader market declined. The S&P BSE Mid-Cap index fell 0.33%. The S&P BSE Small-Cap index fell 0.59%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 853 shares rose and 1771 shares fell. A total of 139 shares were unchanged.
Cement stocks advanced on reports the goods and services tax (GST) Council will consider a proposal to reduce GST rates on more items used in construction to 18% from 28%. At present, raw material such as cement and paints come under the 28% tax slab. However, many other items used in construction are in the 18% slab. Cement stocks were also boosted by reports that cement manufacturers in north and central India have raised prices by Rs 5-15 per bag.
Ambuja Cements (up 2.37%), ACC (up 3.45%), UltraTech Cement (up 1.19%) and Shree Cement (up 1.48%) gained.
Grasim Industries advanced 2.79%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Aurobindo Pharma rose 0.1%. Aurobindo Pharma announced that it has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Ertapenem injection 1 g/vial. Aurobindo's Ertapenem injection is a generic equivalent of Merck Sharp & Dohme Corp's Invanz injection. The product will be launched in July 2018.
The approved product has an estimated market size of $387 million for the twelve months ending April 2018 according to IQVIA. Ertapenem injection is used for the treatment of moderate to severe infections caused by susceptible bacteria. Also indicated in adults for the prophylaxis of surgical site infection following elective colorectal surgery.
JMC Projects (India) rose 2.88% after the company said it has secured new orders of Rs 1966 crore. JMC Projects (India) (JMC)-led consortium has secured two turnkey projects under micro lift irrigation scheme worth Rs 2650 crore from Narmada Valley Development Authority (NVDA) in Madhya Pradesh. The share of JMC in these projects is around Rs 1600 crore. Further, the company has secured an order for construction of township for National Mineral Development Corporation (NMDC) for approximately Rs 366 crore in Chhattisgarh. The announcement was made before trading hours today, 26 June 2018.
Overseas, European stocks were trading higher, rebounding after trade concerns caused a sharp sell-off for global markets in the previous session.
Asian markets were mixed as moves by the US to gain an upper hand on trade with China weighed on the technology sector. As per reports, the Trump administration plans to limit exports of some high-tech products to China, and also limit investment in technology firms by companies with substantial Chinese ownership.
US stocks closed sharply lower yesterday, 25 June 2018 as President Donald Trump's threats of more protectionism against major partners were met with Chinese and European vows of retaliation.
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