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Broad market depicts weakness

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Stocks once again resumed decline in early afternoon trade after staging a short lived recovery in mid-morning trade. At 12:18 IST, the barometer index, the S&P Sensex, was down 132.29 points or 0.42% at 31,665.55. The index was down 42.05 points or 0.42% at 9,866. Weak global stocks weighed on the domestic bourses. Pharma edged lower.

Domestic stocks nudged lower in early trade on negative global cues weighed by escalation in tensions between the US and North Korea. Key benchmark indices hovered in negative zone in morning trade. Indices cut losses in mid-morning trade as stocks came off day's low zone.

The S&P Mid-Cap index was down 0.93%. The S&P Small-Cap index was down 1.03%. 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 two losers against every gainer on 1,684 declined and 620 rose. A total of 117 were unchanged.

Many metal and mining stocks declined. National Aluminium Company (down 3.27%), Hindustan Zinc (down 0.21%), JSW Steel (down 0.94%), Steel Authority of India (Sail) (down 0.73%), Jindal Steel & Power (down 0.94%) and Hindustan Copper (down 0.64%) edged lower. Tata Steel (up 1.24%), Hindalco Industries (up 1.27%) and Vedanta (up 0.77%) rose.

NMDC rose 1.23% after net profit rose 36.2% to Rs 969.20 crore on 65.1% growth in net sales to Rs 2841.53 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 9 August 2017.

Pharma edged lower. Sun Pharmaceutical Industries (down 3.06%), Alkem Laboratories (down 3.07%), GlaxoSmithKline Pharmaceuticals (down 0.81%), Cipla (down 0.51%), Dr Reddy's Laboratories (down 0.09%), Glenmark Pharmaceuticals (down 1.96%), Lupin (down 0.1%) and Wockhardt (down 1.25%) fell. Cadila Healthcare (up 0.49%) rose.

was up 2.44%, with the stock recovering from Wednesday's losses after the company reported Q1 June 2017 results after market hours yesterday, 9 August 2017. of had declined 5.84% in a single trading session yesterday, 9 August 2017 to settle at Rs 684.15, ahead of announcing Q1 results.

Aurobindo Pharma's consolidated net profit fell 11.4% to Rs 518.50 crore on 2.3% decline in revenue from operations to Rs 3678.70 crore in Q1 June 2017 over Q1 June 2016.

EBITDA (earnings before interest, taxation, depreciation and amortization) before forex and other income fell 5.3% to Rs 841.60 crore in Q1 June 2017 over Q1 June 2016. EBITDA margin contracted to 22.9% in Q1 June 2017, from 23.6% in Q1 June 2016.

The company's Managing Director N. Govindarajan said that its key markets continue to maintain its momentum in both YoY and QoQ despite headwinds. It expects the momentum to sustain going forward driven by changing product mix towards complex products. It remains focused on strengthening its existing businesses and developing a differentiated and specialty driven product basket, Govindarajan said.

Separately, said after market hours yesterday, 9 August 2017 that it will increase its stake in Tergene Biotech to 80% from 60% by subscribing additional 56.50 lakh equity of Rs 10 each at par aggregating to Rs 5.65 crore. Tergene Biotech was a 60:40 joint venture between the company and promoters of Tergene.

of Security and Intelligence Services (India) were trading at Rs 826.55, a premium of 1.42% over initial public offer price of Rs 815 per share on its debut today, 10 August 2017. The initial public offer (IPO) of SIS concluded on 2 August 2017 with strong response from investors. It was subscribed 7.07 times. The IPO price band was fixed at Rs 805-815 per share. Security and Intelligence Services (India) (SIS) is a leading provider of private security and facility management services in India.

MMTC rose 3.23% after the company reported net profit of Rs 18.13 crore in Q1 June 2017 compared with net loss of Rs 7.01 crore in Q1 June 2016. MMTC's net sales surged 125.7% to Rs 6320.08 crore in Q1 June 2017 over Q1 June 2016. The result was announced after trading hours yesterday, 9 August 2017.

Overseas, Asian stocks were trading lower as investors continued to take risks off the table even as American officials tried to ease concerns amid an escalation in tensions between the US and North Korea.

US stocks closed lower yesterday, 9 August 2017 as tensions between North Korea and the US added a dollop of geopolitical uncertainty to markets, and as high-profile companies disappointed with their quarterly results.

In the latest escalation of tensions between Washington and Pyongyang, the isolated Asian country threatened a missile strike at US territory Guam. That saber-rattling came a day after US President Donald Trump said he would respond with fire and fury like the world has never seen if the country doesn't halt its threats.

On the Federal Reserve front, Chicago Fed President Charles Evans said he supported starting a reduction of the central bank's $4.5 trillion balance sheet in September but was ambivalent about another rate hike this year.

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

First Published: Thu, August 10 2017. 12:26 IST