Cement, IT stocks nudge lower

Key benchmark indices extended slide in mid-morning trade. At 11:15 IST, the barometer index, the S&P BSE Sensex was down 106.09 points or 0.34% at 31,032.12. The Nifty 50 index lost 47.55 points or 0.5% at 9,527.40.

Key indices opened higher after a holiday. They later slipped into the negative terrain amid lack of key domestic or global cues to boost investors' spirits.

The Sensex lost 121.13 points or 0.38% at the day's low of 31,017.08 in mid-morning trade, its lowest level since 13 June 2017. It rose 156.75 points or 0.5% at the day's high of 31,294.96 in early trade. The Nifty lost 55.50 points or 0.57% at the day's low of 9,519.45 in mid-morning trade, its lowest level since 26 May 2017. It rose 40.45 points or 0.42% at the day's high of 9,615.40 in early trade.

The S&P BSE Mid-Cap index declined 1%. The S&P BSE Small-Cap index lost 1.15%. The decline in both the indices was higher than the Sensex's decline in percentage terms.

The breadth, indicating the overall health of the market, was weak. On the BSE, 1,601 shares declined and 627 shares rose. A total of 99 shares were unchanged.

Cement stocks declined. ACC (down 2.51%), UltraTech Cement (down 1.83%), Ambuja Cements (down 1.79%) and Shree Cement (down 1.17%) edged lower. Grasim Industries (up 1.64%) edged higher. Grasim has exposure to cement sector through its holding in UltraTech Cement.

IT stocks also dropped. Persistent Systems (down 2.72%), Oracle Financial Services Software (down 1.56%), Wipro (down 0.9%) and HCL Technologies (down 0.05%) edged lower. Tech Mahindra (up 0.46%) and TCS (up 0.43%) edged higher.

Infosys was down 1.66%. The company issued a press release regarding its settlement with New York Attorney General. The company said that its agreement concluded the State of New York's investigation relating to the amount of taxes the company paid in 2010-2011 without any criminal or civil charges being filed. While this investigation centered on alleged paperwork errors, the company committed no wrongdoing and denies all allegations made in this regard, Infosys said.

This settlement relates to legal issues already resolved under the 2013 settlement with the US Department of Justice, and was reached by both parties to avoid protracted litigation.

Infosys said it maintains robust policies and procedures to ensure adherence with all applicable regulations and laws. Infosys will continue to focus on boosting American innovation, hiring American workers and better serving its valued customers across the United States, it added. The announcement was made after market hours on Friday, 23 June 2017.

L&T dropped 0.66%. The company said its construction division has won orders worth Rs 2552 crore across various business segments. The announcement was made during market hours today, 27 June 2017.

Overseas, Asian stocks witnessed mixed trend as investors watched for signals from central bankers' speeches. Federal Reserve Chair Janet Yellen is due to speak in London today, 27 June 2017.

US equities closed mixed yesterday, 26 June 2017, as a rise in the financial sector helped offset losses from large-cap technology stocks.

The European Central Bank (ECB) chief Mario Draghi yesterday, 26 June 2017, defended the ECB's easy monetary policy. Draghi, speaking to university students in Lisbon, reportedly said super low rates create jobs, foster growth and benefit borrowers, ultimately easing inequality.

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