Breadth remains weak; IT stocks under pressure

Benchmarks continued to trade sideways with losses in mid-afternoon trade. Weak global cues coupled with Indo-China border tensions weighed on the investors sentiment. The Nifty held above 10,250 level.

At 14:22 IST, the barometer index, the S&P BSE Sensex dropped 299.25 points or 0.85% at 34,872.38. The Nifty 50 index lost 109 points or 1.05% at 10,273.40.

In the broader market, the S&P BSE Mid-Cap index fell 1.56% while the S&P BSE Small-Cap index declined 1.28%. The decline in both these indices was steeper than the Sensex.

Sellers outnumbered buyers. On the BSE, 1,035 shares rose and 1,677 shares fell. A total of 128 shares were unchanged. In Nifty 50 index, 10 stocks advanced while 40 stocks declined.

Buzzing Index:

The Nifty IT index declined 1.17% to 14,819.45 after surging 4% in the previous session.

Tech Mahindra (down 2.42%), Infosys (down 1.8%), Wipro (down 1.8%), NIIT Tech (down 1.52%), MindTree (down 1.44%), TCS (down 0.8%) and HCL Technologies (down 0.47%) were top losers in IT segment.

Stocks in Spotlight:

Cipla rose 1.5%. The drug major announced its partnership with Boehringer Ingelheim India to co-market three new oral anti-diabetics drugs Oborav (Empagliflozin), Oboravo Met (Empagliflozin+Metformin) and Tiptengio (Empagliflozin + Linagliptin). Empagliflozin is approved for glucose-control in patients with type-2 diabetes; it is also approved for reducing the risk of cardiovascular death, in patients with type-2 diabetes and established cardiovascular disease.

Sun Pharmaceutical Industries added 0.46% after the company said its unit received Japan drug regulator's approval for ILUMYA, which is used in treating plaque psoriasis. Japan has approximately 430,000 people currently suffering from psoriasis, the firm said.

Numbers to Track:

The yield on 10-year benchmark federal paper fell to 5.906% compared with previous closing of 5.913% in the previous trading session.

In the foreign exchange market, the partially convertible rupee edged higher to 75.58 compared with its previous closing 75.65.

In the commodities market, Brent crude for August 2020 settlement fell 78 cents to $40.24 a barrel. The contract fell only 0.07% to settle at $41.05 a barrel in the previous trading session.

MCX Gold futures for 5 August 2020 settlement fell 0.02% to Rs 48,295.

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