Key benchmarks turn volatile

A bout of volatility was witnessed as key benchmark indices pared losses after hitting fresh intraday low in early afternoon trade. At 12:17 IST, the barometer index, the S&P BSE Sensex, was down 114.01 points or 0.36% at 31,176.73. The Nifty 50 index was down 50.55 points or 0.52% at 9,579.45.

The Sensex fell 162.38 points, or 0.52% at the day's low of 31,128.36 in early afternoon trade, its lowest level since 16 June 2017. The index rose 74.65 points, or 0.24% at the day's high of 31,365.39 in early trade. The Nifty fell 64.70 points, or 0.67% at the day's low of 9,565.30 in early afternoon trade, its lowest level since 15 June 2017. The index rose 17.65 points, or 0.18% at the day's high of 9,647.65 in early trade.

Broader market tumbled. Among secondary barometers, the BSE Mid-Cap index was down 1.36%. The BSE Small-Cap index was down 1.75%. The decline in both these indices was higher than the Sensex's decline in percentage terms.

The broad market depicted weakness. There were more than four losers against every gainer on BSE. 1,931 shares fell and 463 shares rose. A total of 120 shares were unchanged.

Most pharmaceutical shares declined. Piramal Enterprises (down 2.2%), Cadila Healthcare (down 1.62%), Alkem Laboratories (down 1.56%), Aurobindo Pharma (down 1.13%), GlaxoSmithKline Pharmaceuticals (down 1.09%), Glenmark Pharmaceuticals (down 0.78%), Divi's Laboratories (down 0.62%), Strides Shasun (down 0.41%), Dr Reddy's Laboratories (down 0.21%) and Sun Pharmaceutical Industries (down 0.13%), edged lower. Lupin (up 0.12%), Cipla (up 0.32%), IPCA Laboratories (up 1.02%) and Wockhardt (up 2.21%), edged higher.

Power generation stocks declined. JSW Energy (down 3.31%), CESC (down 2.64%), Torrent Power (down 2.27%), Adani Power (down 2.01%), Reliance Power (down 1.72%), Jaiprakash Power Ventures (down 1.64%), NHPC (down 1.51%), Tata Power (down 1.03%), GMR Infrastructure (down 0.96%) and Reliance Infrastructure (down 0.96%), edged lower. NTPC rose 0.44%.

State-run Power Grid Corporation of India was up 1.34%. State-run Coal India was up 0.20%.

Indian Metals & Ferro Alloys was locked at 5% upper circuit at Rs 473.55 after the company announced that the State Pollution Control Board has reinstated the 'consent to operate' for both of company's Sukinda and Mahagiri mines with immediate effect and valid as before until March 2021. The announcement was made during market hours today, 23 June 2017.

On 11 April 2017, the company had said that following an inspection of Sukinda & Mahagiri mines on 22nd March 2017, the State Pollution Control Board had issued a notice pointing out certain non-compliances. Subsequently, the consent to operate (CTO) for both mines had been withdrawn. While mining operations had been stopped with effect from 11 April, there was no immediate impact on its ferro chrome operations. The company had said it was addressing all issues which have been pointed out and expect to revive the CTO in due course.

Overseas, most Asian shares edged higher, on track for a weekly gain, as crude oil prices pulled away from this week's 10-month lows. China's Shanghai Composite Index was up 0.25% as increased regulatory scrutiny over the borrowings of China's most prolific overseas deal makers weighed on Chinese shares. The move, which sent shares of the companies' listed units tumbling late Thursday, hurt investor sentiment due to concerns about tighter regulations across China's financial markets at a time of volatile trading.

In US, stocks closed mostly lower as weak financials and consumer staples shares eclipsed a rally in the healthcare and biotechnology sectors. Health-care stocks were among the biggest gainers as lawmakers released a discussion draft of the health-care bill that aims to cut Medicaid and eliminate penalties for people who don't buy insurance, among other changes. The Dow Jones Industrial Average slipped 12.74 points to end at 21,397.29. The Nasdaq Composite Index bucked the trend for a second day to edge up 2.73 points to close at 6,236.69.

A report on weekly jobless claims showed that fewer than 250,000 Americans applied for unemployment benefits in mid-June. Initial jobless claims rose by 3,000 to 241,000 in the seven days stretching from 11 June to 17 June 2017, Labor Department said.

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