Stocks traded with weakness in morning trade after an initial slump. At 10:16 IST, the barometer index, the S&P BSE Sensex, was down 326.14 points or 0.84% at 38,637.12. The Nifty 50 index was down 96.15 points or 0.82% at 11,616.10
Domestic stocks opened on a weak note on negative Asian stocks.
The S&P BSE Mid-Cap index was down 0.54%. The S&P BSE Small-Cap index was down 0.39%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On the BSE, 617 shares rose and 1141 shares fell. A total of 107 shares were unchanged.
Overseas, Asian stocks were trading sharply lower as trade negotiations between China and the United States deteriorated suddenly.
Trading in US index futures indicated that the Dow could slump 503 points at the opening bell today. US President Donald Trump announced Sunday that tariffs on $200 billion of Chinese goods will increase next week to 25% from 10%. He also reportedly threatened that the U.S. will impose 25% tariffs on another $325 billion of Chinese goods.
US stocks rose in a broad-based rally on Friday as stronger-than-expected job growth in April coupled with muted wage gains left investors upbeat about the outlook for the economy and interest rates. The Nasdaq registered a record high close, while the S&P 500 ended just shy of a record high finish.
Back home, Tata Motors (down 4.25%), Yes Bank (down 3.08%), Tata Steel (down 2.47%), Vedanta (down 1.82%) and HDFC (down 1.73%) edged lower from the Sensex pack.
TCS (up 0.47%), Powwer Grid Corporation of India (up 0.34%) and Asian Paints (up 0.17%) edged higher from the Sensex pack.
L&T Technology Services shed 0.15%. On a consolidated basis, net profit of L&T Technology Services rose 3.18% to Rs 191.50 crore on 1.99% rise in net sales to Rs 1343.10 crore in Q4 March 2019 over Q3 December 2018. The result was announced after market hours on Friday, 3 May 2019.
Cadila Healthcare rose 1.17%. Cadila Healthcare informed that the US Food and Drug Administration (USFDA) inspected the company's formulations manufacturing facility located at Moraiya, Ahmedabad from 22nd April 2019 to 3rd May 2019. The inspection concluded with 14 observations. There were no repeat observations or Data Integrity (DI) related observations. The company said it is confident of addressing these observations and responding to the USFDA at the earliest. The announcement was made after market hours on Friday, 3 May 2019.
On the political front, the fifth phase of the Lok Sabha polls 2019 is underway today, 6 May 2019, with 51 Lok Sabha constituencies from 7 different states going to vote. The 2019 Indian general election, which is scheduled to be held in seven phases, kicked off on 11 April 2019. It will conclude on 19 May 2019. The counting of votes will be conducted on 23 May 2019, and on the same day the results will be declared.
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