The market declined further and hit fresh intraday low in mid-morning trade. At 11:16 IST, the barometer index, the S&P BSE Sensex, was down 167.68 points or 0.47% at 35,380.58. The Nifty 50 index was down 61.45 points or 0.57% at 10,738.40. 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.
The market opened almost flat and turned weak as the session progressed. The Sensex rose 4.21 points, or 0.01% at the day's high of 35,552.47 in early trade. The index fell 184.05 points, or 0.52% at the day's low of 35,364.21 in mid-morning trade. The Nifty fell 10.40 points, or 0.10% at the day's high of 10,789.45 in early trade. The index fell 65.60 points, or 0.61% at the day's low of 10,734.25 in mid-morning trade.
Among secondary barometers, the BSE Mid-Cap index was down 0.75%. The BSE Small-Cap index was down 0.67%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 722 shares rose and 1372 shares fell. A total of 110 shares were unchanged.
IT shares were mixed. Oracle Financial Services Software (down 2.25%), Infosys (down 1.73%), Wipro (down 1.36%), HCL Technologies (down 1.13%), MindTree (down 0.87%) and Hexaware Technologies (down 0.5%), edged lower. Tech Mahindra (up 0.05%), MphasiS (up 0.69%) and Persistent Systems (up 3.79%), edged higher.
IT major Tata Consultancy Services (TCS) was up 0.24%. The company opened its new delivery center in Suresnes, France. The delivery center, which is located in the Parisian region, can accommodate up to 230 employees and benefits from highly secure connectivity, a robust infrastructure and secure spaces, guaranteeing the best quality service and productivity for customers. The announcement was made after market hours yesterday, 18 June 2018.
Most pharmaceutical shares rose. Dr Reddy's Laboratories (up 1.39%), Cadila Healthcare (up 1.24%), Lupin (up 1.08%), GlaxoSmithKline Pharmaceuticals (up 0.87%), IPCA Laboratories (up 0.45%), Aurobindo Pharma (up 0.42%), Alkem Laboratories (up 0.40%) and Divi's Laboratories (up 0.29%), edged higher. Cipla (down 0.04%), Sun Pharmaceutical Industries (down 0.04%), Wockhardt (down 0.04%) and Piramal Enterprises (down 0.97%), edged lower.
Strides Shasun was up 2.90%. The company announced before trading hours today, 19 June 2018, that its wholly owned subsidiary Strides Pharma Global Pte. Ltd. has received final approval for Ketoconazole Tablets USP, 200 mg from the United States Food & Drug Administration (US FDA). Ketoconazole Tablets is a generic version of Nizoral Tablets, 200 mg, of Janssen Pharmaceuticals, Inc. Ketoconazole Tablet is part of the niche and small volume product portfolio with limited competition in the US market. As per IQVIA MAT April 2018 data, the US market for Ketoconazole Tablets was approximately USD 7 Million. The product will be manufactured at the company's Oral dosage facility at Bangalore and will be marketed by Strides Pharma Inc. in the US Market. The company has 75 cumulative ANDA filings with USFDA of which 49 ANDAs have been approved as of date and 26 are pending approval.
Glenmark Pharmaceuticals was up 2.48%. The company announced before trading hours today, 19 June 2018, that the US Food & Drug Administration provided its first supplemental Abbreviated New Drug Application (sANDA) approval for the company's manufacturing facility in Monroe, North Carolina. The approval covers: Atovaquone and Proguanil Hydrochloride Tablets, 250 MG/100 MG and 62.5 MG/25 MG, a generic version of GlaxoSmithKline's Malarone (atovaquone and proguanil hydrochloride) Tablets.
Overseas, Asian stocks were trading 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 2.94%. 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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