Weakness persisted on the bourses as the key benchmark indices extended losses and hit fresh intraday low in afternoon trade. At 13:16 IST, the barometer index, the S&P BSE Sensex, was down 310.89 points or 0.88% at 35,112.59. The Nifty 50 index was down 107.50 points or 1% at 10,606.80.
Among secondary barometers, the BSE Mid-Cap index was down 1.27%. The BSE Small-Cap index was down 1.24%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 704 shares rose and 1724 shares fell. A total of 124 shares were unchanged.
NTPC (down 3.86%), Bharti Airtel (down 3.01%), Vedanta (down 2.18%), ONGC (down 1.83%) and HDFC Bank (down 1.8%) edged lower from the Sensex pack.
Bajaj Auto (up 1.79%), Asian Paints (up 1.25%) and Infosys (up 0.76%) edged higher from the Sensex pack.
Shares of Fine Organic Industries were trading at Rs 819.30, a premium of 4.64% over the issue price of Rs 783 on its debut on the bourses today, 2 July 2018. The stock listed at Rs 815 on the BSE, a premium of 4.08% over the issue price of Rs 783. The stock had hit a high of Rs 823 and low of Rs 787 so far during the day.
The initial public offer (IPO) of Fine Organic Industries received bids for 4.82 crore shares, as against 53.65 lakh shares on offer, the National Stock Exchange of India (NSE) data showed. The issue was subscribed 8.99 times. Fine Organics Industries is the largest manufacturer of oleo chemical-based additives in India and a strong player globally in this industry. It produces a wide range of specialty plant derived oleo chemicals-based additives.
On the economic front, India's manufacturing conditions improved in June at the strongest pace since December 2017, supported by the sharpest gains in output and new orders in 2018 so far. The Nikkei India Manufacturing Purchasing Managers' Index (PMI) rose from 51.2 in May to 53.1 in June. This was consistent with the fastest improvement in the health of India's manufacturing economy in 2018 so far.
Overseas, European shares were trading lower as on-going worries about the US trade policies and concerns about German Chancellor Angela Merkel's coalition weighed on sentiment. Asian stocks were trading mixed, with trade tensions between the US and its trading partners still a key concern for investors.
China's official manufacturing Purchasing Managers' Index (PMI) declined to 51.5 for the month of June. The figure still came in above the 50-point level indicating growth.
In Japan, confidence among large manufacturers weakened for the second straight quarter in three months to June amid growing concerns about the potential impact of trade friction on the global economy. The main index measuring large manufacturers' sentiment was at plus 21 in the April-June period, compared with plus 24 in the previous survey in March, according to the Bank of Japan's quarterly tankan survey.
US stocks closed higher Friday, 29 June 2018, led by energy and materials sectors. Financials also rose earlier after several banks announced plans to return capital to shareholders late Thursday after the Federal Reserve released results of its annual stress test. However, financials finished in the red as investors pocketed profits toward the closing bell.
On the US data front, the personal-consumption expenditures index, the Federal Reserve's preferred inflation gauge, rose 0.2% as did the core rate that strips out food and energy. The rate of inflation over the past 12 months rose to 2.3%, the fastest pace since March 2012.
Chicago PMI climbed to a reading of 64.1 in June, up from 62.7, the fastest reading since January and the highest level in six month. Any reading above 50 indicates improving conditions. The final University of Michigan consumer sentiment index for June came in at 98.2. Thursday's data showed first-quarter growth for the US economy was trimmed to 2% from 2.2%.
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