Indices come off day's low; Nifty reclaims 10K

Barometers pared losses in mid afternoon trade with the Nifty reclaiming the 10,000 mark. Auto stocks corrected after 11-day rising streak. Traders remained cautious ahead of today's weekly options expiry.

At 13:20 IST, the barometer index, the S&P BSE Sensex dropped 349.58 points or 1.02% at 33,759.96. The Nifty 50 index lost 104.45 points or 1.04% at 9,957.10.

The broader market traded with minor losses. The S&P BSE Mid-Cap index fell 0.36% while the S&P BSE Small-Cap index declined 0.33%.

The market breadth was negative. On the BSE, shares 1,120 rose and 1,247 shares fell. A total of 140 shares were unchanged. In Nifty 50 index, 22 stocks advanced while 28 stocks declined.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,851.12 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 781.79 crore in the Indian equity market on 3 June 2020, provisional data showed.

Buzzing Index:

The Nifty Auto index declined 0.71% to 6,452.65. The index jumped about 20% in past eleven trading sessions.

Ashok Leyland (down 3.18%), Mahindra & Mahindra (down 2.35%), Eicher Motors (down 1.89%), TVS Motor (down 0.82%), Tata Motors (down 0.81%) and Hero MotoCorp (down 0.1%) were top losers in auto segment.

V.S.T Tillers Tractors advanced 15.46%. The company's power tillers sales rose to 1,750 units in May 2020 from 1,411 units in May 2019. Tractors sales rose to at 633 units from 527 units.

Stocks in Spotlight:

Aurobindo Pharma rose 1.84%. The drug maker announced that the United States Food and Drug Administration (USFDA) inspected AuroLife Pharma LLC's (wholly owned step-down subsidiary) oral solid manufacturing facility situated at Dayton, New Jersey, a of the Company, from 13 January to 12 February 2020. At the end of the inspection, a 'Form 483' was issued with nine observations. With respect to the mentioned inspection, the company received a letter from USFDA classifying the inspection as Official Action Indicated. The company said that this OAI classification may not have any material impact on the existing revenues, the supplies of our US business or pipeline products at this juncture. The exclusive sales from this facility is around 2% of the group turnover. Aurobindo assured that it will work closely with the regulator to comprehensively address the issues.

Saregama India hit an upper circuit of 20% at Rs 400.70, extending gains for the second day. The stock has added 44% in two sessions from its closing of Rs 278.30 on 2 June 2020. During market hours yesterday, Saregama India announced a global deal with Facebook, to license its music for video and other social experiences across Facebook & Instagram. This partnership will allow users to choose from a wide variety of music to add to their social experiences such as videos, stories via music stickers and other creative content. People will also be able to add songs to their Facebook profile.

Numbers to Track:

The yield on 10-year benchmark federal paper fell to 5.8% compared with previous closing of 6.031% in the previous trading session.

In the foreign exchange market, the partially convertible rupee edged lower to 75.57 compared with its previous closing of 75.4775.

In the commodities market, Brent crude for August 2020 settlement was down 31 cents to $39.48 a barrel. The contract rose 0.56% to settle at $39.79 a barrel in the previous trading session.

MCX Gold futures for 5 August 2020 settlement rose 0.56% to Rs 46,265.

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