Indices trim losses

Key equity benchmarks further trimmed intraday losses in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, was down 117.41 points or 0.37% at 31,692.14. The Nifty index was down 29.70 points or 0.3% at 9,922.50. Indian stocks languished in the red today, 6 September 2017, as weakness in global stocks triggered by rising geopolitical tensions between the US and North Korea weighed on domestic bourses.

Domestic stocks saw a gap-down opening on negative Asian stocks. Key benchmark indices extended early slide and hit fresh intraday low in morning trade. Indices trimmed losses after hovering in a narrow range in negative zone amid weakness in European stocks.

The S&P BSE Mid-Cap index was up 0.31%. The S&P BSE Small-Cap index was up 0.44%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market was positive. On the BSE, 1,288 shares rose and 1,081 shares fell. A total of 124 shares were unchanged.

Most capital goods stocks dropped. ABB India (down 1.37%), BEML (down 0.96%), Bharat Heavy Electricals (Bhel) (down 0.46%), L&T (down 0.33%), and Siemens (down 0.8%) declined. Havells India (up 0.47%) and Thermax (up 0.33%) gained.

Metal & mining stocks were mixed. JSW Steel (up 2.32%), Bhushan Steel (up 0.29%), Hindustan Copper (up 0.39%), Hindalco Industries (up 0.85%), Jindal Steel & Power (up 1.28%), and Steel Authority of India (Sail) (up 0.88%) gained. Vedanta (down 0.37%), Hindustan Zinc (down 1.02%), Tata Steel (down 0.25%), and National Aluminum Company (down 0.27%) declined. NMDC was flat.

Overseas, European stocks edged lower in early trade after orders for Germany's important manufacturing sector dropped unexpectedly in July, official data showed. Total manufacturing orders fell 0.7% compared with June, adjusted for seasonal swings and calendar effects, the ministry said.

Most Asian stocks dropped as investors found ample reasons to stay away from risky assets amid escalating tensions between the US and North Korea. US stocks closed firmly lower yesterday, 5 September 2017 as investors focused on heightened tensions between the West and North Korea and worries about a lack of progress on President Donald Trump's pro-growth agenda.

The case for a continued risk-off tone was supported by a lack of consensus among the US, Russia and China on how to pressure Kim Jong Un to abandon his nuclear ambitions. Russian President Vladimir Putin has rejected US calls for more sanctions, echoing China's resistance to more punitive measures. The standoff between North Korea and the US and its allies escalated over the weekend after Pyongyang said it had successfully tested its largest-ever nuclear bomb.

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