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Market hits fresh intraday low

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Key benchmark indices drifted lower in early afternoon trade on fresh selling in index pivotals. At 12:28 IST, the barometer index, the S&P Sensex, was down 22.93 points or 0.07% at 31,132.98. The 50 index was down 25.85 points or 0.27% at 9,592.30. Most IT stocks fell. FMCG stocks saw mixed trend.

Domestic stocks drifted lower in early trade tracking negative Asian stocks. Stocks recovered in morning trade. However, key indices once again resumed fall in mid-morning trade.

The S&P Mid-Cap index was up 0.02%. The S&P Small-Cap index was up 0.42%. Both these indices outperformed the

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,349 shares rose and 1,101 shares fell. A total of 126 shares were unchanged.

Most IT stocks fell. TCS (down 1.15%), Infosys (down 0.37%), HCL Technologies (down 1.11%), Oracle Financial Services Software (down 0.63%), Tech Mahindra (down 0.44%) and MindTree (down 0.5%) declined. Hexaware Technologies (up 1.83%) and MphasiS (up 0.19%) gained.

Wipro rose 1.46%. The company announced that it has won IT Applications Managed Services engagement with Finnish company, Valmet, a leading global developer and supplier of technologies, automation and services for the pulp, paper, and energy industries. The announcement was made after market hours yesterday, 14 June 2017.

Valmet has selected Wipro as the partner for supporting its renewed Infor LN ERP platform. As part of the multi-year engagement, Wipro will deliver the maintenance and support of the new ERP platforms in a Managed Services model covering all global locations in which Valmet operates.

FMCG stocks saw mixed trend. Bajaj Corp (up 3.3%), GlaxoSmithkline Consumer Healthcare (up 0.3%), Colgate-Palmolive (India) (up 0.34%), Hindustan Unilever (up 0.28%), Tata Global Beverages (up 0.6%) and Jyothy Laboratories (up 0.22%) rose. Britannia Industries (down 0.09%), Dabur India (down 0.4%), Godrej Consumer Products (down 0.22%), Marico (down 0.24%), Nestle India (down 0.05%) and Procter & Gamble Hygiene and Health Care (down 0.31%) fell.

Aarti Industries rose 7.46% after the company said it bagged big multi-year contract from global agricultural firm for supplying a high value agrochemical intermediary. The contract entails supply of a high value agrochemical intermediary, for use in herbicides, over a 10 year period. The announcement was made during market hours today, 15 June 2017.

The supplies are expected to commence from the financial year ending March 2020 and will generate expected revenues of approximately Rs 4000 crore (approximately $620 million) over the contract term. The project will entail investment of about Rs 400 crore (approximately $62 million) by Aarti Industries. The speciality chemicals market has been growing at 14% over the last five years and the market size is expected to touch $70 billion by 2020, the company said in a statement.

Plastiblends India rose 3.06% after the company said it has fixed 4 July 2017 as record date for issue of bonus shares in the ratio 1:1 i.e. one bonus share for every one held. The announcement was made after market hours yesterday, 14 June 2017.

Overseas, Asian shares were trading lower as investors took profits, after a muted reaction in US markets to the Federal Reserve's rate rise and plan to start shrinking its balance sheet. In US, the Dow industrials closed at a record for a second straight session yesterday, 14 June 2017 but other benchmarks finished lower as the Federal Reserve hiked the fed-funds futures rate.

Meanwhile, risk sentiment was hit by fear of more US political turmoil after media report indicated that US President Donald Trump is being investigated by a special counsel for possible obstruction of justice. Investigators are investigating alleged Russian interference in the 2016 US presidential election and possible collusion with the Trump campaign. Trump's legal team denounced the report.

The Federal Reserve hiked the fed-funds rate by a quarter-point to between 1% and 1.25%, as expected, after its two-day policy meeting yesterday, 14 June 2017 and indicated that it start shrinking its $4.5 trillion portfolio of bonds and other assets this year. Fed Chair Janet Yellen said the process could start relatively soon, while projections of Federal Reserve Board members also showed they expect one more rate hike by the end of 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, June 15 2017. 12:27 IST