Key benchmark indices extended intraday fall and hit fresh intraday low in afternoon trade. At 13:19 IST, the barometer index, the S&P BSE Sensex, fell 175.97 points or 0.53% at 33,279.82. The Nifty 50 index declined 58.90 points or 0.57% at 10,263.35.
Indices started the session on a shaky note and languished in negative zone so far after extending intraday slide in afternoon trade. The stock market dropped on profit booking after previous three sessions of gains. Also, weakness in Asian stocks dented investor sentiment.
The Sensex lost 179.41 points, or 0.54%, at the day's low of 33,276.38 in afternoon trade, its lowest level since 8 December 2017. The index rose 2.62 points at the day's high of 33,458.41 in early trade. The Nifty lost 62.55 points, or 0.61%, at the day's low of 10,259.70 in afternoon trade, its lowest level since 8 December 2017. The index rose 3.85 points, or 0.03%, at the day's high of 10,326.10 in early trade.
Among secondary indices, the S&P BSE Mid-Cap index fell 0.56%, underperforming the Sensex. The S&P BSE Small-Cap index fell 0.24%, outperforming the Sensex.
The breadth, indicating the overall health of the market, was weak. On the BSE, 1,539 shares declined and 995 shares rose. A total of 132 shares were unchanged.
Most pharmaceutical shares declined. Piramal Enterprises (down 1.57%), Alkem Laboratories (down 1.08%), Aurobindo Pharma (down 0.83%), Cipla (down 0.71%), Wockhardt (down 0.65%), Sun Pharmaceutical Industries (down 0.51%), Cadila Healthcare (down 0.43%), GlaxoSmithKline Pharmaceuticals (down 0.28%) and Strides Shasun (down 0.25%), edged lower. Glenmark Pharmaceuticals (up 0.30%), Lupin (up 1.23%), IPCA Laboratories (up 1.98%) and Divi's Laboratories (up 2.69%), edged higher.
Dr Reddy's Laboratories (DRL) surged 3.81% after the company said it has received an Establishment Inspection Report (EIR) from the United States Food and Drug Administration (USFDA) yesterday, 11 December 2017, as closure of audit of the company's formulations manufacturing plant - 3 at Bachupally, Hyderabad. The announcement was made after market hours yesterday, 11 December 2017.
Alembic Pharmaceuticals rose 1.68% after the company said that it has received US Food & Drug Administration (USFDA) approval for its abbreviated new drug application (ANDA) Darifenacin Extended-Release Tablets, 7.5 mg and 15 mg. The approved ANDA is therapeutically equivalent to the reference listed drug product (RLD) Enablex Extended-Release Tablets 7.5 mg and 15 mg, of Allergan Pharmaceuticals. The announcement was made during market hours today, 12 December 2017.
Darifenacin Extended-Release Tablets are indicated for the treatment of overactive bladder with symptoms of urge urinary incontinence, urgency and frequency. The drug has an estimated market size in US of $64 million for twelve months ended December 2016, according to IMS.
Power generation stocks declined. Jaiprakash Power Ventures (down 2.75%), Tata Power (down 2.19%), GMR Infrastructure (down 1.69%), NTPC (down 1.6%), JSW Energy (down 1.28%), Reliance Power (down 1.21%), Torrent Power (down 1.09%), Reliance Infrastructure (down 1.08%), NHPC (down 0.86%), Adani Power (down 0.43%) and CESC (down 0.17%), edged lower.
State-run Coal India was down 1.74%. State-run Power Grid Corporation of India was down 0.69%.
State-run Bharat Heavy Electricals (Bhel) was up 0.49% at Rs 92.15. The company announced that has achieved yet another milestone in the South East Asian region with the successful commissioning of a 54 MW coal-fired captive power project in Indonesia. The 3x18 MW power project located at Sangatta, East Kalimantan, Indonesia has been set up by Bhel for PT Citra Kusuma Perdana (PT CKP) for their coal-mining operations. For the project, Bhel has designed, engineered, manufactured and supplied the Boiler, Turbine & Generator (BTG) island and associated auxiliaries along with supervisory services during erection & commissioning. Notably, Bhel has executed several projects in the region including projects in Malaysia, Taiwan, Thailand and Vietnam. In Indonesia, the company has earlier successfully executed a 2x30 MW boiler project for PT Makmur Sejahtera Wisesa (PT MSW); and 2x11 MW & 1x15 MW captive power projects for PT Indo Bharat Rayon (PT IBR).
Shares of three state-run oil marketing companies fell after Brent crude oil prices climbed above $65 a barrel mark. HPCL (down 2.99%), BPCL (down 1.96%) and Indian Oil Corporation (down 1.91%) edged lower.
Brent crude oil prices jumped above $65 per barrel for the first time since 2015 after the shutdown of the Forties North Sea pipeline knocked out significant supply from a market that was already tightening due to Organization of Petroleum Exporting Countries (OPEC)-led production cuts. In the global commodities markets, Brent for February 2018 settlement was up 85 cents at $65.54 a barrel. The contract had risen $1.29 a barrel, or 2.03% to settle at $64.69 a barrel during the previous trading session.
Higher crude oil prices could increase under-recoveries of public-sector undertaking oil marketing companies (PSU OMCs) on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
On macro front, the government will announce industrial production data for October today, 12 December 2017. India's industrial production increased by 3.8% year-on-year in September, following an upwardly revised 4.5% gain in the previous month.
The government will announce today, 12 December 2017, inflation data based on consumer price index (CPI) for November. Consumer prices increased 3.58% year-on-year in October, above 3.28% in September.
Overseas, Asian stocks declined as investors turned cautious after several days of advances, erasing early gains. Markets are awaiting the Federal Reserve meeting outcome on Wednesday and the outcome of a major Chinese planning conference.
US equities closed higher yesterday, 11 December 2017, reversing earlier weakness following a terror incident near New York City's Times Square. The Dow Jones Industrial Average and the S&P 500 notched record closing highs.
The US Federal Reserve's Federal Open Market Committee (FOMC) starts its two-day meeting on interest rates later in global day today, 12 December 2017. The US Federal Reserve will announce its interest rate decision tomorrow, 13 December 2017. The Federal Reserve left the target range for its federal funds rate unchanged at 1% to 1.25% during its November 2017 meeting as widely expected.
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