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Broad market depicts weakness

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Weakness persisted on the bourses in mid-afternoon trade weighed by weakness in index heavyweight and stocks. At 14:18 IST, the barometer index, the S&P Sensex, was down 219.29 points or 0.68% at 32,054.38. The index was down 70.70 points or 0.7% at 9,986.70. Negative global stocks also impacted sentiment on the domestic bourses.

Intraday volatility was high on the bourses. The was currently trading slightly above the psychological 32,000 level after having dropped below that level in morning trade. However, the was trading below the psychological 10,000 level after moving above and below that level in intraday trade.

Key indices traded with small gains in early trade led by turnaround Q1 results by steel giant Tata Steel and select auto stocks. A sudden sell-off gripped bourses in morning trade led by slide in index heavyweights ITC, HDFC and Reliance Industries. Stocks cut losses in mid-morning trade and languished in the red later during the session. Key indices continued to languish in the red in early afternoon and afternoon trade.

The S&P Mid-Cap index was off 0.79%. The S&P Small-Cap index was off 0.91%. The fall in both these indices was higher than the Sensex's decline in percentage terms.

The broad market depicted weakness. There were more than three losers against every gainer on 1,889 shares declined and 589 shares rose. A total of 108 shares were unchanged.

Pharma stocks declined. Dr Reddy's Laboratories (down 3.56%), Glenmark Pharmaceuticals (down 1.39%), Lupin (down 0.8%), Sun Pharmaceutical Industries (down 0.88%), Alkem Laboratories (down 1.78%), GlaxoSmithKline Pharmaceuticals (down 0.74%), Cadila Healthcare (down 0.97%) and Wockhardt (down 1.13%) edged lower. Cipla (up 0.48%) and Aurobindo Pharma (up 0.57%) rose.

Merck fell 3.17% after net profit fell 11.6% to Rs 20.13 crore on 3.7% decrease in net sales to Rs 251.61 crore in Q2 June 2017 over Q2 June 2016. The result was announced after market hours yesterday, 7 August 2017.

Sugar stocks dropped sharply. Bajaj Hindusthan (down 3.26%), Dhampur Sugar Mills (down 6.41%), Sakthi Sugars (down 4.18%), Balrampur Chini Mills (down 5%), Triveni Engineering & Industries (down 8.08%), Shree Renuka Sugars (down 3.11%), Simbhaoli Sugar Mills (down 7.41%) and Dwarikesh Sugar Industries (down 9.99%) fell.

Grauer & Weil (India) lost 3.13% after net profit fell 5.9% to Rs 12.81 crore on 13.6% growth in net sales to Rs 106.22 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 7 August 2017.

Overseas, European stocks were trading lower as miners came under pressure while results weighed on Pandora, IHG and Standard Life. Germany's trade surplus widened slightly in June, though both imports and exports declined. According to data adjusted for seasonal and calendar effects, exports from Germany declined by 2.8% on the month in June. The adjusted trade surplus stood at EUR21.2 billion, just above the EUR20.3 billion recorded in the previous month.

Asian stocks took a breather as disappointing Chinese trade data clouded the otherwise upbeat outlook on global growth. China's export growth slowed to 7.2% in July from a year earlier, the weakest pace since February and cooling from an 11.3% rise in June, official data showed on Tuesday. Imports rose 11%, the slowest growth since December and down from a 17.2% rise in the previous month. That left the country with a trade surplus of $46.74 billion for the month, the highest since January, above June's $42.77 billion.

US stocks closed higher yesterday, 7 August 2017 with the S&P 500 ending at a record and the Dow extending its streak of such closing highs to nine with consumer staples and technology shares leading on the day. The Dow Jones Industrial Average rose 25.61 points, or 0.1%, to a new closing record of 22,118.42. The S&P 500 rose 4.08 points to 2,480.9, a rise of 0.2%. The Nasdaq Composite Index climbed 32.21 points, or 0.5%, to 6,383.77.

US Fed speaker St. Louis Fed President James Bullard said the level of short-term interest rates was fine, and that the current level of the policy rate is likely to remain appropriate over the near term.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, August 08 2017. 14:24 IST
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