Broad market depicts weakness

Key benchmark indices extended fall in mid-morning trade on fresh selling in index pivotals after a short lived recovery in morning trade. At 11:25 IST, the barometer index, the S&P BSE Sensex, was down 137.53 points or 0.43% at 31,876.66. The Nifty index was down 39.05 points or 0.39% at 9,939.50. The Sensex was trading below the psychological 32,000 mark after sliding below that level in opening trade. Rising geopolitical concerns after the US and North Korea exchanged threats also weighed on the bourses.

Domestic stocks saw gap-down opening on negative global cues. Stocks cut losses in morning trade as select index pivotals were off intraday day lows.

The S&P BSE Mid-Cap index was down 0.69%. The S&P BSE Small-Cap index was down 0.46%. 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 BSE. 1,482 shares declined and 705 shares rose. A total of 99 shares were unchanged.

Overseas, Asian stocks declined as investors took a risk-off approach after the US and North Korea exchanged threats amid escalating tensions between the two nations. Meanwhile, China's producer price gains held steady in July on surging commodity prices, as demand stayed resilient and the government's drive to reduce industrial capacity takes hold.

US stocks finished near lows of the session yesterday, 8 August 2017 reversing earlier gains as an early rally in financial, tech and energy stocks fizzled amid tough talk from President Donald Trump on North Korea. In US economic news, the Labor Department reported on Tuesday that the number of job openings in June vaulted to 6.16 million from 5.7 million in May.

Back home, index heavyweight and cigarette major ITC fell 0.88% to Rs 271.80.

FMCG stocks declined. Britannia Industries (down 1.04%), GlaxoSmithkline Consumer Healthcare (down 1.91%), Colgate-Palmolive (India) (down 1.12%), Dabur India (down 0.62%), Godrej Consumer Products (down 1.18%), Hindustan Unilever (down 0.03%), Marico (down 1.71%), Tata Global Beverages (down 0.15%), Procter & Gamble Hygiene and Health Care (down 0.2%), Jyothy Laboratories (down 0.29%) edged lower. Nestle India (up 0.35%) and Bajaj Corp (up 0.97%) rose.

Telecom stocks fell. Bharti Airtel (down 0.78%), Idea Cellular (down 0.05%), MTNL (down 1.58%), Tata Teleservices (Maharashtra) (down 3.16%) and Reliance Communications (down 0.44%) declined.

Shares of Bharti Infratel fell 0.03%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

Ramkrishna Forgings rose 0.88% after the central bank raised foreign investment limit in the company to 49% from 24% earlier. The Reserve Bank of India (RBI) notified after market hours yesterday, 8 August 2017, that the foreign institutional investors (FIIs)/foreign portfolios investors (FPIs) investment limit under portfolio investment scheme in Ramkrishna Forgings has increased from 24% to 49% of its paid up capital.

Timken India fell 0.29% after net profit fell 22.7% to Rs 21.92 crore on 6.3% increase in net sales to Rs 299.89 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 8 August 2017.

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