The market tumbled further and hit the day's low in early afternoon trade amid weak global cues. At 12:28 IST, the barometer index, the S&P BSE Sensex, was down 388.62 points or 1.13% at 33,858.43. The Nifty 50 index lost 112.35 points or 1.11% at 10,003.80.
In the broader market, the S&P BSE Mid-Cap index slipped 0.32% while the S&P BSE Small-Cap index added 0.03%.
The market breadth turned negative. On the BSE, 1024 shares rose and 1066 shares fell. A total of 146 shares were unchanged.
The sentiment was cautious due to rising coronavirus cases in the country. India reported 1,37,448 active cases of COVID-19 infection and 8,102 deaths, according to the data from the Ministry of Health and Family Welfare, Government of India.
Meanwhile, total coronavirus cases worldwide stood at 73,60,239 far with 4,16,201 deaths, according to data from Johns Hopkins University.
Meanwhile, Standard & Poor's retained India's sovereign credit rating at BBB- with stable outlook. The ratings agency said, "While risks to India's long-term growth rate are rising, ongoing economic reforms, if executed well, should keep the country's growth rate ahead of peers." S&P has forecast India's economy to shrink by 5% this fiscal.
Foreign portfolio investors (FPIs) sold shares worth Rs 919.26 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 500.70 crore in the Indian equity market on 10 June, provisional data showed.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 2.48% to 30.17. The Nifty June 2020 futures were trading at 10,004.95, a premium of 1.15 points compared with the spot at 10,003.80.
On the options front, the Nifty option chain for 25 June 2020 expiry showed maximum call open interest (OI) of 20.60 lakh contracts at the 10,500 strike price. Maximum put OI of 35.26 lakh contracts was seen at 9,000 strike price.
Buzzing Index:
The Nifty Pharma index shed 0.97% to 10,051.25 amid profit booking. The index rose 2.11% in the previous two sessions while the benchmark Nifty 50 index lost 0.5% in the same period.
Sun Pharmaceutical Industries (down 3.27%), Wockhardt (down 1.35%), Strides Pharma Science (down 1.25%), Alkem Laboratories (down 1.17%), IPCA Laboratories (down 1%), Aurobindo Pharma (down 0.64%), Dr Reddy's Laboratories (down 0.57%), Lupin (down 0.22%), Divi's Laboratories (down 0.11%) and Piramal Enterprises (down 0.09%) declined.
GlaxoSmithKline Pharmaceuticals (up 1.35%), Cadila Healthcare (up 0.88%), Cipla (up 0.12%), Glenmark Pharmaceuticals (up 0.12%) and Abbott India (up 0.1%) advanced.
Earnings impact:
Jindal Stainless (Hisar) jumped 6.47% to Rs 51.05 after consolidated net profit rose 12.1% to Rs 108.35 crore on 17.4% decline in net sales to Rs 2246.07 crore in Q4 March 2020 over Q4 March 2019.
With the stainless steel sector having a direct correlation with the GDP growth of the country, disruption in the overall economic activity in the country on account of COVID-19 subdued economic sentiment for this sector as well Jindal Stainless (Hisar) said. The company further added that strong business fundamentals of the company will help avoid a significantly adverse impact on the operations and performance of the company.
Going forward, the company said it is focusing on export orders at the moment. The gap expected to be created by subsidised Chinese industries vacating global markets may provide thrust to the Indian stainless steel industry. The company's net debt stood at Rs 2,000 crore as on March 2020 compared with Rs 2,162 crore as on March 2019.
Tata Metaliks rose 2.69% to Rs 505 after standalone net profit jumped 19.7% to Rs 77.04 crore on 12.2% fall in net sales to Rs 521.60 crore in Q4 March 2020 over Q4 March 2019.
Due to the nationwide lockdown, the production at the company's plant could not be carried out from 28 March 2020 to 12 May 2020. Tata Metaliks anticipates that the current economic environment would result in lower demand in FY20. However, the firm is expected to ramp up production from May 2020 with steady increase in operational levels.
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