Benchmarks trim intraday gains

Key indices trimmed gains in early afternoon trade. At 12:22 IST, the barometer index, the S&P BSE Sensex, was up 101.15 points or 0.29% at 35,365.56. The Nifty 50 index was up 33.55 points or 0.31% at 10,690.85.

The market opened almost flat and hit fresh intraday low in early trade. Indices bounced back and hit fresh intraday high in mid-morning trade. Key benchmarks trimmed gains in early afternoon trade.

Among secondary barometers, the BSE Mid-Cap index was up 0.31%, outperforming the Sensex. The BSE Small-Cap index was up 0.21%, underperforming the Sensex.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1137 shares rose and 1155 shares fell. A total of 116 shares were unchanged.

Most cement shares rose. ACC (up 1.24%) and Ambuja Cements (up 0.45%), edged higher. UltraTech Cement was down 0.86%.

Grasim Industries was up 0.13%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Telecom shares were mixed. Tata Teleservices (Maharashtra) (up 2.04%), Reliance Communications (up 1.21%) and Bharti Airtel (up 0.64%), edged higher. Idea Cellular (down 0.18%) and MTNL (down 0.63%), edged lower.

Telecom tower infrastructure provider Bharti Infratel was down 2.28%.

Overseas, Asian shares tumbled as worries over US trade policy lingered in the background. A looming 6 July 2018 deadline is set to see the US impose a 25% tariff on $34 billion worth of Chinese goods from more than 800 product categories. China has also announced that it will retaliate with duties on the same value of US products.

In US, shares reversed early losses to finish higher on the back of a rally in technology shares. However, worries over trade tensions between the US and its major trading partners lingered, weighing on investors' sentiment. A trade war is seen as providing a significant headwind to global growth.

On the US data front, a read on June manufacturing from Markit came in at 55.4, compared with a preliminary reading of 54.6. Separately, the Institute for Supply Management's manufacturing index rose to 60.2% in June from 58.7%. A read on construction spending rose 0.4% in May.

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